Beach First National Bancshares (BFNB) 8-K/A Results of Operations and Financial Condition

Exhibit 99.1

News Release
Contact:      Walt Standish, President and Chief Executive Officer
                      843.916.7813
                      Dick Burch, Executive Vice President and Chief Financial Officer
                      843.916.7806

FOR IMMEDIATE RELEASE

Beach First Earnings Grow 130% in Second Quarter

Myrtle Beach, SC, July 18, 2006 - 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.”

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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.

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.

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Beach First National Bancshares, Inc. and Subsidiary
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

The accompanying notes are an integral part of these consolidated financial statements.

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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

The accompanying notes are an integral part of these consolidated financial statements.

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

Asset Quality Ratios and Other Data	June 30, 2006			June 30, 2005			December 31, 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 three months						For the 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	%

	Six Months					Three Months
Reconciliation of GAAP to Non-GAAP 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)	$	2,432,668		$	1,145,101	$	1,220,861		$	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		.77			.54		.39			.30
Diluted net income per common share, adjusted non-GAAP		.75			.52		.38			.29

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