Beach First Earnings Grow 123 Percent in 2005


MYRTLE BEACH, S.C., Jan. 24, 2006 (PRIMEZONE) -- Beach First National Bancshares, Inc, (Nasdaq:BFNB) today announced that its year-end earnings for 2005 increased 123% over earnings for 2004.

Net income for the year ended December 31, 2005, totaled $3,199,028, or $1.17 per diluted share, an increase of 123% over the $1,435, 922 or $0.69 per diluted share, for the year ended December 31, 2004. Strong growth was seen throughout the balance sheet. Total assets grew 64% to $397 million, total deposits grew 53% to $311 million, and total loans grew 63% to $312 million.

Return on average assets was 1.03% for the year ended December 31, 2005, compared to 0.71% for the same period a year ago. Return on average shareholder's equity was 10.83 % for the year ended December 31, 2005, compared to 9.13% for the same period a year ago. The net interest margin improved to 4.67% at December 31, 2005, compared to 4.30% at December 31, 2004. Book value per share stood at $12.29 per share at December 31, 2005, compared to $8.12 per share at December 31, 2004.

Walt Standish, president and chief executive officer, said, "Our continued strong financial performance in 2005 can be attributed to robust economies in the markets we serve which fueled growth in all areas of the bank's balance sheet, along with the maturing of our branch network. These well-established branches have performed well, as customers continue to appreciate the Beach First way of banking. The bank achieved many goals in 2005, including breaking ground on a new headquarters on Grissom Parkway in Myrtle Beach, completing a stock offering to raise capital for further growth, and opening a second office on Hilton Head Island. We are looking forward to a busy and productive year in 2006."

Beach First National Bancshares, Inc. is the parent of Beach First National Bank, a $396 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. A new headquarters, being built in partnership with Nelson Mullins Riley & Scarborough, LLP, is expected to open in summer 2006 at the corner of 38th Avenue North and Grissom Parkway. The company's stock trades on the Nasdaq National Market under the symbol BFNB and the website is www.beachfirst.com.

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.

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



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


                                                December 31,
                                       -------------------------------
                                           2005               2004
                                       ------------       ------------
Assets
Cash and due from banks                $  4,284,868       $  4,824,176
Federal funds sold and short
  term investments                       25,521,071            463,069
Investment securities                    43,975,876         36,202,370
Loans, net                              307,300,805        189,059,926
Federal Reserve Bank stock                  534,000            309,000
Federal Home Loan Bank stock              2,011,400          1,070,200
Property and equipment, net               6,080,290          4,681,812
Cash value of life insurance              3,301,417          3,230,950
Other assets                              3,754,541          2,249,842
                                       ------------       ------------
        Total assets                   $396,764,268       $242,091,345
                                       ============       ============

Liabilities and shareholders' 
  equity
Liabilities
Deposits
   Non-interesting bearing             $ 31,152,603       $ 32,540,139
   Interest bearing                     279,741,607        170,628,819
                                       ------------       ------------
     Total deposits                     310,894,210        203,168,958

Advances from Federal Home Loan 
  Bank                                   34,000,000         16,500,000
Other borrowings                          1,002,673               --
Junior subordinated debentures           10,310,000          5,155,000
                                                        
Other liabilities                         1,592,587            934,425
                                       ------------       ------------
  Total liabilities                     357,799,470        225,758,383

Commitments and contingencies -
   Notes 10 and 14

Shareholders' equity
 Common stock, $1 par value, 
  10,000,000 shares authorized,  
   3,169,958 shares issued and 
   outstanding at December 31, 
   2005 and 2,013,508 at 
   December 31, 2004                      3,169,958          2,013,508
 Paid-in capital                         30,157,843         11,335,982
 Retained earnings                        6,352,967          3,153,939
 Accumulated other comprehensive 
  loss                                     (715,970)          (170,467)
                                       ------------       ------------
                                     
    Total shareholders' equity           38,964,798         16,332,962
                                       ------------       ------------    
    Total liabilities and 
     shareholders' equity              $396,764,268       $242,091,345
                                       ============       ============


             Beach First National Bancshares, Inc. and Subsidiaries
                        Consolidated Statements of Income

                                    For the years ended December 31,
                               ---------------------------------------
                                   2005          2004          2003
                               -----------   -----------   -----------
 Interest income
  Loans and fees on loans      $19,154,656   $10,418,114   $ 7,927,496
  Investment securities          1,838,313     1,098,986       519,128
  Federal funds sold and     
   short term investments          127,961        75,702        49,637
  Other                             15,681         4,069           --
                               -----------   -----------   -----------

      Total interest income     21,136,612    11,596,871     8,496,261

 Interest expense
  Deposits                       5,912,891     2,799,558     2,266,877
  Advances from FHLB and 
   federal funds purchased         747,209       394,946       216,040
  Junior subordinated 
   debentures                      528,812       136,943           --
                               -----------   -----------   -----------
  Total interest expense         7,188,912     3,331,447     2,482,917

  Net interest income           13,947,700     8,265,424     6,013,344
 
 Provision for loan losses       2,184,000     1,340,000       713,000
                               -----------   -----------   -----------

  Net interest income 
   after provision for
   loan losses                  11,763,700     6,925,424     5,300,344
                               -----------   -----------   -----------
 Noninterest income
  Service fees on deposit 
   accounts                        549,689       536,077       490,694
  Gain on sale of loan              14,610           --           -- 
  Gain (loss) on sale of 
   investment securities            (3,935)       37,395       134,530
  Income from cash value
   life insurance                   89,809       161,544       161,544
  Mortgage loan referral
   fees                            249,757       134,865        64,121
  Other income                     217,947       167,544       135,945
                               -----------   -----------   -----------
 Total noninterest income        1,117,877     1,037,425       986,834
                               -----------   -----------   ----------- 

 Noninterest expenses
  Salaries and wages             3,711,534     2,556,452     2,074,934
  Employee benefits                675,496       501,347       400,579
  Supplies and printing            101,889        89,560       105,704
  Advertising and public 
   relations                       295,509       239,256       168,138
  Professional fees                327,130       190,138       136,553
  Depreciation and 
   amortization                    539,406       446,158       428,609
  Occupancy                        724,313       476,736       362,202
  Data processing fees             455,646       343,275       308,568
  Other operating expenses       1,053,867       838,945       703,317
                               -----------   -----------   -----------
    Total noninterest 
     expenses                    7,884,790     5,681,867     4,688,604
                               -----------   -----------   -----------
    Income before income 
     taxes                       4,996,787     2,280,982     1,598,574

 Income tax expense              1,797,759       845,060       589,643
                               -----------   -----------   -----------
    Net income                 $ 3,199,028   $ 1,435,922   $ 1,008,931
                               ===========   ===========   ===========
 Basic net income per 
  common share                 $      1.20   $       .71   $      0.51
 Diluted net income per 
  common share                 $      1.17   $       .69   $      0.50
 Weighted average common 
  shares outstanding:
     Basic                       2,650,576     2,010,662     1,978,252
                               ===========   ===========   ===========
     Diluted                     2,740,899     2,089,287     2,015,103
                               ===========   ===========   ===========


     Beach First National Bancshares, Inc. and Subsidiaries

                              (Unaudited)
                            (In thousands)

  Asset Quality Ratios and Other Data       
                                       December 31,     December 31,
                                       ------------     ------------
                                           2005             2004
                                           ----             ----

  Total nonperforming loans           $   1,111           $    78
  Allowance for loan losses               4,364             2,422
  Nonperforming loans as a 
   percent of total loans                  0.36%             0.04%
  Nonperforming assets, past 
   due and restructured loans 
   to total assets                         0.28%             0.03%
  Net charge-offs to average
   total loans                             0.10%             0.43%
  Allowance for loan losses 
   to total loans                          1.40%             1.26%
  Allowance for loan losses
   to nonperforming loans                392.80%         3,105.13%

                                           For the year ended
                                               December 31,
                                          2005              2004
                                          ----              ----
  Interest rate spread                     4.10%             3.95%
  Net interest margin                      4.67%             4.30%


            

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