Beach First National Bancshares (BFNB) 8-K Beach First Reports 42% Earnings Growth in 2004

Exhibit 99.1

Beach First National Bancshares, Inc.
News Release
Contact: Walt Standish, President and Chief Executive Officer
                 843.916.7813
                 Dick Burch, Senior Vice President and Chief Financial Officer
                  843.916.7806

FOR IMMEDIATE RELEASE

Beach First Reports 42% Earnings Growth in 2004

Myrtle Beach, SC, January 25, 2005 – Beach First National Bancshares, Inc., parent of Beach First National Bank, announced earnings growth of 42.3% in 2004, marking the bank’s fifth consecutive year of strong financial performance. Net income for the year ended December 31, 2004 increased 42.3%, totaling $1,435,922, or $0.71 per basic share, when compared to $1,008,931, or $0.50 per basic share, for 2003. Return on average equity for the year ended December 31, 2004 increased 29.1% to 9.10% compared to 7.05% in 2003.

The bank experienced solid growth in virtually all areas of the balance sheet. Total assets grew to $242 million, which represents an increase of 46.6% over the previous year. Total deposits grew to $203 million, an increase of 47.1% in 2004. Total loans grew to $191 million, a 41.2% increase over the previous year.

Walt Standish, president and chief executive officer, said, “This earnings report caps a busy and productive year for Beach First National Bank. In 2004, we opened our fifth office overall and fourth along the Grand Strand, in the Waccamaw Neck area, and prepared for a second office on Hilton Head Island. Our newest location on the Island is located in The Village at Wexford and opened on schedule on January 3. The bank also continued to prepare for future growth with key staff additions in the commercial lending and technology areas.”

Beach First National Bancshares, Inc. is the parent of Beach First National Bank, a $242 million financial institution headquartered in Myrtle Beach, South Carolina. Beach First operates offices in Myrtle Beach, Surfside Beach, North Myrtle Beach, Pawleys Island, and Hilton Head Island, South Carolina. Beach First offers a full line of banking products and services, including NetTeller internet banking. The company’s stock trades under the symbol BFNB and the website is 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.

Beach First National Bancshares, Inc. and Subsidiary

Consolidated Balance Sheets

	December 31,
	2004			2003
Assets
Cash and due from banks	$	4,824,176		$	4,886,682
Federal funds sold and short term investments		463,069			4,598,520
Investment securities		36,202,370			11,918,074
Loans, net		189,059,926			133,851,712
Federal Reserve Bank stock		309,000			309,000
Federal Home Loan Bank stock		1,070,200			575,000
Property and equipment, net		4,544,022			4,477,943
Cash value of life insurance		3,230,950			3,076,570
Investment in BFNB Trust		155,000			-
Other assets		2,232,632			1,399,535
Total assets	$	242,091,345		$	165,093,036
Liabilities and shareholders' equity
Liabilities
Deposits
Non-interesting bearing	$	32,540,139		$	23,454,124
Interest bearing		170,628,819			114,645,442
Total deposits		203,168,958			138,099,566
Advances from Federal Home Loan Bank		16,500,000			11,500,000
Other liabilities		934,426			760,577
Total liabilities		220,603,383			150,360,143
Commitments and contingencies -
Shareholders' equity
Common stock, $1 par value, 10,000,000 shares authorized,
2,013,508 shares issued and outstanding at December
31, 2004 and 1,323,768 at December 31, 2003		2,013,508			1,323,768
Paid-in capital		11,335,982			11,837,299
Retained earnings		3,153,939			1,718,321
Accumulated other comprehensive loss		(170,467	)		(146,495	)
Total shareholders' equity		16,332,962			14,732,893
Total liabilities and shareholders' equity	$	242,091,345		$	165,093,036

Consolidated Statements of Income

	For the years ended December 31,
	2004		2003		2002
Interest income
Loans and fees on loans	$	10,418,114	$	7,927,496	$	5,898,801
Investment securities		1,102,690		519,128		413,289
Federal funds sold and short term investments		71,998		49,637		73,206
Dividends on long term investments		4,069		-		-
Total interest income		11,596,871		8,496,261		6,385,296
Interest expense
Deposits		2,799,558		2,266,876		2,023,754
Short term borrowings		395,946		216,040		71,746
Long-tern borrowings - junior subordinated debt		136,943		-		-
Total Interest Expense		3,331,447		2,482,916		2,095,500
Net interest income		8,265,424		6,013,344		4,289,797
Provision for loan losses		1,340,000		713,000		539,000
Net interest income after provision for
loan losses		6,925,424		5,300,344		3,750,797
Noninterest income
Service fees on deposit accounts		536,077		490,694		420,128
Gain on sale of loan		-		-		96,886
Gain on sale of investment securities		37,395		134,530		977
Income from cash value life insurance		161,544		161,544		80,222
Other income		302,409		200,066		133,411
Total noninterest income		1,037,425		986,834		731,624
Noninterest expenses
Salaries and wages		2,556,452		2,074,934		1,468,357
Employee benefits		501,347		400,579		275,694
Supplies and printing		89,560		105,704		94,624
Advertising and public relations		239,256		168,138		117,077
Professional fees		190,138		136,553		140,429
Depreciation and amortization		446,158		428,609		320,590
Occupancy		476,736		362,202		239,774
Data processing fees		343,275		308,568		215,397
Other operating expenses		838,946		703,317		483,988
Total noninterest expenses		5,681,867		4,688,604		3,355,930
Income before income taxes		2,280,982		1,598,574		1,126,491
Income tax expense		845,060		589,643		419,220
Net income	$	1,435,922	$	1,008,931	$	707,271
Basic net income per common share	$	0.71	$	0.51	$	0.36
Diluted net income per common share	$	0.69	$	0.50	$	0.36
Weighted average number of common
Shares outstanding
Basic		2,010,662		1,978,252		1,977,552
Diluted		2,089,287		2,015,103		1,987,468