Beach First Earnings Grow 130 Percent in Second Quarter


MYRTLE BEACH, S.C., July 18, 2006 (PRIMEZONE) -- Beach First National Bancshares, Inc. (Nasdaq:BFNB) today announced that earnings for the six months ended June 30, 2006 grew 130.1%, when compared with the same period last year.

Net income for the three months ended June 30, 2006, increased 114.6%, totaling $1,423,091, or $0.44 per diluted share, when compared to the $663,251, or $0.29 per diluted share, reported for the quarter ended June 30, 2005. There was double digit growth in earnings, deposits, and loans as compared to June 30, 2005. Total assets grew to $461.9 million, an increase of 45.6% from the same period a year ago. Total deposits grew to $370.7 million, an increase of 48.9% from the same period a year ago. Total loans grew to $380.6 million, a 52.3% increase over the same period a year ago. Net income includes a one time gain of $366,030 on the sale of real estate and approximately $163,800 in one time expenses related to the formation of the mortgage division. (See reconciliation of GAAP to non-GAAP below.)

Beach First National Bancshares, Inc. provides non-GAAP measures for operating income, net income and net income per share data as supplemental information regarding Beach First National Bancshares' core business operational performance. Beach First National Bancshares believes that these non-GAAP financial measures are an indication of Beach First National Bancshares' baseline performance before gains, losses or other charges that are considered by management to be outside Beach First National Bancshares' core business operational results. Beach First National Bancshares uses core business operational results for its internal budgeting and measurement purposes and to develop its perspective and understanding of Beach First National Bancshares performance historically, currently and prospectively. The core business operational results are also used by Beach First National Bancshares to provide a consistent method of comparison to historical periods and to the performance of competitors and peer group companies.

Net income for the six months ended June 30, 2006, increased 130.1%, totaling $2,634,898, or $0.81 per diluted share, when compared to the $1,145,101, or $0.52 per diluted share, reported for the six months ended June 30, 2005.

Return on average shareholders' equity was 12.88% for the six months ended June 30, 2006 (annualized), compared to 11.52 % for the six months ended June 30, 2005 (annualized). The net interest margin was 4.50% for the period ended June 30, 2006, when compared to 4.51% for the same period a year ago. Book value per share was $12.86 per share at June 30, 2006, compared to $11.92 per share at June 30, 2005.

Walt Standish, president and chief executive officer, said, "Our financial performance is attributed to robust growth in the balance sheet with deposits and loans showing strong gains. During the second quarter, we greatly expanded our mortgage lending operations, adding more than 35 originators and closers, along with mortgage loan production offices in Little River and in North Carolina, Virginia, and Maryland. We also began preparations for the move to our new headquarters on Grissom Parkway to take place later this fall."

Beach First National Bancshares, Inc. is the parent of Beach First National Bank, a $462 million financial institution headquartered in Myrtle Beach, South Carolina. Beach First operates six banking locations in Myrtle Beach, Surfside Beach, North Myrtle Beach, Pawleys Island, and Hilton Head Island, South Carolina, and offers a full line of banking products and services, including NetTeller internet banking and mortgage lending. The company's stock trades on the NASDAQ Global Market under the symbol BFNB and the website is www.beachfirst.com.

The Beach First National Bank logo is available at http://media.primezone.com/prs/single/?pkgid=703

Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.

Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.



      Beach First National Bancshares, Inc. and Subsidiaries
                     Myrtle Beach, South Carolina
                     Consolidated Balance Sheets

                                       June 30,           December 31,
                                  2006          2005          2005
                                  ----          ----          -----
                              (unaudited)    (unaudited)    (audited)



          ASSETS

 Cash and due from banks      $  7,656,305  $  5,554,721  $  4,284,868
 Federal funds sold and
  short term investments         1,140,600     9,951,047    25,521,071
 Investment securities
  available for sale            55,981,528    42,618,511    43,975,876
 Loans, net                    375,325,808   246,481,357   307,424,435
 Federal Reserve Bank stock        984,000       309,000       534,000
 Federal Home Loan Bank
  stock                          2,318,100     1,336,400     2,011,400
 Premises and equipment, net     9,573,056     5,118,058     6,672,507
 Cash value life insurance       3,361,903     3,240,520     3,301,417
 Other assets                    5,517,653     2,680,283     3,663,660
                              ------------  ------------  ------------
  Total assets                $461,858,953  $317,289,897  $397,389,234
                              ============  ============  ============

  LIABILITIES AND
   SHAREHOLDERS' EQUITY

 LIABILITIES:
 Deposits
  Noninterest bearing
   deposits                   $ 32,062,917  $ 30,108,671  $ 31,152,603
  Interest bearing deposits    338,648,329   218,839,604   279,741,607
                              ------------  ------------  ------------
  Total deposits               370,711,246   248,948,275   310,894,210
 Advances from Federal Home
  Loan Bank                     32,500,000    19,000,000    34,000,000
 Other borrowings                4,971,581          --       1,504,009
 Junior subordinated
  debentures                    10,310,000    10,310,000    10,310,000
 Other liabilities               2,546,114     1,264,036     1,555,602
                              ------------  ------------  ------------
  Total liabilities            421,038,941   279,522,311   358,263,821
                              ------------  ------------  ------------

 SHAREHOLDERS' EQUITY:
 Common stock, $1 par value;
  10,000,000 shares
  authorized; shares issued
  and outstanding -
  3,174,508 at June 30,
  2006, 3,168,458 at June
  30, 2005, and 3,169,958
  at December 31, 2005           3,174,508     3,168,458     3,169,958
 Paid-in capital                30,215,895    30,355,287    30,157,843
 Retained earnings               9,148,480     4,299,040     6,513,582
 Accumulated other
  comprehensive income
  (loss)                        (1,718,871)      (55,199)     (715,970)
                              ------------  ------------  ------------
  Total shareholders' equity    40,820,012    37,767,586    39,125,413
                              ------------  ------------  ------------
  Total liabilities and
   shareholders' equity       $461,858,953  $317,289,897  $397,389,234
                              ============  ============  ============


        Beach First National Bancshares, Inc. and Subsidiaries
                     Myrtle Beach, South Carolina
                   Consolidated Statements of Income
                              (Unaudited)

                       Six Months Ended         Three Months Ended
                            June 30,                  June 30,
                            --------                  --------
                        2006         2005        2006          2005
                        ----         ----        ----          ----
 INTEREST INCOME
  Interest and
   fees on loans    $14,623,038  $ 7,965,420  $ 7,799,168  $ 4,329,777
  Investment
   securities         1,262,116      840,818      679,972      447,096
  Fed funds sold
   & short term
   investments          236,985       73,290       86,675       43,091
                    -----------  -----------  -----------  -----------
    Total interest
     income          16,122,139    8,879,528    8,565,815    4,819,964

 INTEREST EXPENSE
  Deposits            5,850,959    2,442,335    3,154,070    1,362,078
  Advances from
   the FHLB and
   federal funds
   purchased            687,414      275,201      345,525      150,336
  Junior
   subordinated
   debentures           366,827      209,513      189,580      140,500
                    -----------  -----------  -----------  -----------

    Total interest
     expense          6,905,200    2,927,049    3,689,175    1,652,914
    Net interest
     income           9,216,939    5,952,479    4,876,640    3,167,050

 PROVISION FOR
  POSSIBLE LOAN
  LOSSES              1,187,400    1,099,000      665,200      599,000
                    -----------  -----------  -----------  -----------
    Net interest
     income after
     provision
     for possible
     loan losses      8,029,539    4,853,479    4,211,440    2,568,050
                    -----------  -----------  -----------  -----------

 NONINTEREST
  INCOME
  Service fees on
   deposit
   accounts             261,948      282,269      133,982      141,807
  Gain on sale of
   loan                  60,392       14,610       38,133          --
  Gain (Loss) on
   sale of
   investment
   securities               --         9,665          --        10,195
  Income from
   cash value
   life insurance        70,526       46,899       35,676       21,561
   Mortgage loan
    referral fees       120,874      106,317       54,489       66,497
  Other income          759,026       95,387      698,967       51,907
                    -----------  -----------  -----------  -----------
   Total
    noninterest
    income            1,272,766      555,147      961,247      291,967
                    -----------  -----------  -----------  -----------
 NONINTEREST
  EXPENSES
  Salaries and
   wages              2,489,799    1,652,258    1,466,316      858,092
  Employee
   benefits             433,710      324,962      199,403      153,456
  Supplies and
   printing              59,361       49,522       30,922       23,206
  Advertising and
   public
   relations            172,783      136,945       89,268       63,974
  Legal and
   professional
   fees                 269,176      148,770      191,654       76,062
  Depreciation and
   amortization         250,125      259,375      119,723      132,891
  Occupancy             405,889      361,866      216,405      178,051
  Data processing
   fees                 246,776      220,211      129,807      110,523
  Other operating
   expenses             859,209      460,686      505,538      230,701
                    -----------  -----------  -----------  -----------
    Total
     noninterest
     expenses         5,186,828    3,614,595    2,949,036    1,826,956
                    -----------  -----------  -----------  -----------
    Income before
     income taxes     4,115,477    1,794,031    2,223,651    1,033,061

 INCOME TAX
  EXPENSE             1,480,579      648,930      800,560      369,810
                    -----------  -----------  -----------  -----------
    Net income      $ 2,634,898  $ 1,145,101  $ 1,423,091  $   663,251
                    ===========  ===========  ===========  ===========

 BASIC NET INCOME
  PER COMMON
  SHARE             $       .83  $       .54  $       .45  $       .30
                    ===========  ===========  ===========  ===========
 DILUTED NET
  INCOME PER
  COMMON SHARE      $       .81  $       .52  $       .44  $       .29
                    ===========  ===========  ===========  ===========


         Beach First National Bancshares, Inc. and Subsidiaries 
                      Myrtle Beach, South Carolina
                   Consolidated Statements of Income
                              (Unaudited)

  Asset Quality Ratios and 
   Other Data                          June 30,   June 30, December 31, 
                                        2006        2005      2005
                                       ---------  --------- ----------
        (In thousands)

  Total nonperforming loans            $   1,696    $   533  $   1,111
  Allowance for loan losses                5,329      3,434      4,364
  Nonperforming loans as a 
   percent of total loans                  0.45%      0.21%      0.36%
  Nonperforming assets, past 
   due and restructured loans 
   to total assets                         0.37%      0.17%      0.28%
  Net charge-offs to average
   total loans                             0.06%      0.04%      0.10%
  Allowance for loan losses to 
   total loans                             1.40%      1.37%      1.40%
  Allowance for loan losses to
  nonperforming loans                    314.31%    644.85%    392.80%

                                            For the         For the 
                                          three months     Year ended
                                         Ended June 30,   December 31,
                                         --------------   ------------
                                         2006      2005       2005
                                         ----      ----       ----

  Interest rate spread                  3.95%     4.14%      4.10%
  Net interest margin                   4.50%     4.51%      4.67%


 Reconciliation of 
  GAAP to Non-GAAP           Six Months              Three Months
  Measures                  Ended June 30,          Ended June 30,
                           2006        2005        2006       2005
                           ----        ----        ----       ----

 Net income, as 
  reported (GAAP)       $2,634,898  $1,145,101  $1,423,091  $  663,251
   Non-operating items:
   Gain on sale of 
    assets, net of 
    income taxes          (366,030)        --     (366,030)        --

   One time expenses 
    related to 
    formation of 
    mortgage division, 
    net of income 
    taxes                  163,800         --      163,800         --
                        ----------  ----------  ----------  ----------
 Operating earnings 
  (net income, 
  excluding 
  non-operating
  items)                $2,837,128  $1,145,101  $1,625,321  $  663,251
                        ==========  ==========  ==========  ==========

 Basic net income per 
  common share, as 
  reported                     .83         .54         .45         .30

 Diluted net income 
  per common share, 
  as reported                  .81         .52         .44         .29

 Basic net income per 
  common share, 
  adjusted non-GAAP            .88         .54         .51         .30

 Diluted net income 
  per common share, 
  adjusted non-GAAP            .85         .52         .50         .29


            

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