Beach First National Bancshares (BFNB) 8-K 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 75% for Third Quarter; 105% Year-to-Date

Myrtle Beach, SC, October 17, 2006 – Beach First National Bancshares, Inc. (NASDAQ: BFNB) today announced that its net income for the nine months ended September 30, 2006, increased 104.7% over figures reported for the same period in 2005.

Net income for the quarter ended September 30, 2006 increased 75.1%, totaling $1,729,819, or $0.53 per diluted share, when compared to $987,551, or $0.30 per diluted share, for the same period a year ago. As of September 30, 2006, total assets were $492.0 million, which represents an increase of 44.0% compared to September 30, 2005. Total deposits grew to $382.8 million, an increase of 43.3% from September 30, 2005. Total loans grew to $403.8 million, a 43.9% increase from September 30, 2005.

Net income for the nine months ended September 30, 2006 increased $2,232,065, totaling $4,364,717, or $1.34 per diluted share, an increase of 104.7% when compared to $2,132,652, or $0.83 per diluted share, for the nine months ended September 30, 2005.

Return on average shareholders’ equity was 13.93% for the nine months ended September 30, 2006 (annualized), compared to 10.81% for the same period in 2005 (annualized). The net interest margin declined slightly to 4.57% at September 30, 2006, compared to 4.65% at September 30, 2005. Book value per share was $13.71 per share at September 30, 2006, compared to $12.06 per share at September 30, 2005.

Walt Standish, president and chief executive officer, said, “Beach First’s third quarter performance can be attributed to our favorable net interest margin, fueled by our ability to meet strong loan demand and by growth of deposits as we have promoted competitive and special rates in all markets. During the third quarter, we continued to make progress on our new headquarters at the corner of 38^th Avenue North and Grissom Parkway in Myrtle Beach and expect to occupy the new building in December 2006.”

Beach First National Bancshares, Inc. is the parent of Beach First National Bank, a $492.0 million financial company 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. The company’s stock trades on the NASDAQ Global Market 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 Subsidiaries
Myrtle Beach, South Carolina
Consolidated Balance Sheets

	September 30,						December 31,
	2006			2005			2005
	(unaudited)			(unaudited)			(audited)
ASSETS
Cash and due from banks	$	6,694,944		$	5,156,506		$	4,284,868
Federal funds sold and short term investments		235,866			607,305			25,521,071
Investment securities available for sale		62,892,627			45,392,922			43,975,876
Loans, net		398,145,937			276,693,072			307,424,435
Federal Reserve Bank stock		984,000			534,000			534,000
Federal Home Loan Bank stock		2,475,600			1,448,900			2,011,400
Premises and equipment, net		11,197,614			5,112,738			6,672,507
Cash value life insurance		3,393,144			3,271,008			3,301,417
Investment in BFNB Trusts		310,000			310,000			-
Other assets		5,705,823			3,290,746			3,663,660
Total assets	$	492,035,555		$	341,817,197		$	397,389,234
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Deposits
Noninterest bearing deposits	$	35,560,935		$	34,066,310		$	31,152,603
Interest bearing deposits		347,223,536			233,029,902			279,741,607
Total deposits		382,784,471			267,096,212			310,894,210
Advances from Federal Home Loan Bank		37,500,000			21,500,000			34,000,000
Other borrowings		14,780,469			3,080,000			1,504,009
Junior subordinated debentures		10,310,000			10,310,000			10,310,000
Other liabilities		3,085,054			1,626,547			1,555,602
Total liabilities		448,459,994			303,612,759			358,263,821
SHAREHOLDERS’ EQUITY:
Common stock, $1 par value; 10,000,000 shares authorized;
shares issued and outstanding - 3,179,008 at September 30,
2006, 3,168,458 at September 30, 2005 and 3,169,958 at
December 31, 2005		3,179,008			3,168,458			3,169,958
Paid-in capital		30,247,080			30,277,536			30,157,843
Retained earnings		10,878,299			5,286,591			6,513,582
Accumulated other comprehensive income (loss)		(728,826	)		(528,147	)		(715,970	)
Total shareholders’ equity		43,575,561			38,204,438			39,125,413
Total liabilities and shareholders’ equity	$	492,035,555		$	341,817,197		$	397,389,234

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

	Nine Months Ended					Three Months Ended
	September 30,					September 30,
	2006		2005			2006		2005
INTEREST INCOME
Interest and fees on loans	$	23,439,481	$	13,143,631		$	8,816,443	$	5,178,211
Investment securities		2,048,424		1,326,583			786,308		485,766
Fed funds sold and short term investments		330,493		121,432			93,509		48,141
Total interest income		25,818,398		14,591,646			9,696,260		5,712,118
INTEREST EXPENSE
Deposits		9,502,940		3,991,768			3,651,980		1,549,433
Short-term borrowings		1,066,931		428,115			379,518		152,914
Long-term borrowings-junior subordinated debt		568,977		362,427			202,150		152,913
Total interest expense		11,138,848		4,782,310			4,233,648		1,855,260
Net interest income		14,679,550		9,809,336			5,462,612		3,856,858
PROVISION FOR POSSIBLE LOAN
LOSSES		1,778,600		1,643,000			591,200		544,000
Net interest income after provision
for possible loan losses		12,900,950		8,166,336			4,871,412		3,312,858
NONINTEREST INCOME
Service fees on deposit accounts		381,611		407,166			119,663		124,897
Gain on sale of loans		60,392		14,610			-		-
Gain on sale of mortgage loans		258,842		-			258,842		-
Loss on sale of investment securities				(3,935	)		-		(13,600	)
Income from cash value life insurance		106,996		68,371			36,469		21,472
Income from mortgage operations		792,119		180,541			671,245		74,224
Other income		909,829		157,166			150,803		61,778
Total noninterest income		2,509,789		823,919			1,237,022		268,771
NONINTEREST EXPENSES
Salaries and wages		4,205,389		2,634,429			1,715,590		982,170
Employee benefits		762,497		491,417			328,788		166,455
Supplies and printing		89,542		75,487			30,181		25,964
Advertising and public relations		268,441		215,279			95,658		78,334
Professional fees		350,610		225,388			81,435		76,618
Depreciation and amortization		365,747		398,350			115,621		138,976
Occupancy		705,281		545,179			299,392		183,313
Data processing fees		389,333		335,706			142,557		115,494
Other operating expenses		1,448,729		735,046			589,519		274,362
Total noninterest expenses		8,585,569		5,656,281			3,398,741		2,041,686
Income before income taxes		6,825,170		3,333,974			2,709,693		1,539,943
INCOME TAX EXPENSE		2,460,453		1,201,322			979,874		552,392
Net income	$	4,364,717	$	2,132,652		$	1,729,819	$	987,551
BASIC NET INCOME PER COMMON SHARE	$	1.37	$	.86		$	.54	$	.31
DILUTED NET INCOME PER COMMON SHARE	$	1.34	$	.83		$	.53	$	.30
Weighted average common shares outstanding:
Basic		3,175,051		2,476,052			3,178,470		3,168,458
Diluted		3,248,391		2,563,420			3,254,874		3,255,826

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

(Unaudited)
(In thousands)

Asset Quality Ratios and Other Data	September 30, 2006			September 30, 2005			December 31, 2005
Total nonperforming loans	$	2,615		$	1,010		$	1,111
Allowance for loan losses		5,671			3,902			4,364
Nonperforming loans as a percent of total loans		0.65	%		0.36	%		0.36	%
Nonperforming assets, past due and restructured
loans to total assets		0.62	%		0.32	%		0.28	%
Net charge-offs to average total loans		0.13	%		0.07	%		0.10	%
Allowance for loan losses to total loans		1.40	%		1.39	%		1.40	%
Allowance for loan losses to nonperforming loans		216.85	%		386.24	%		392.80	%

	For the nine months ended				For the Year ended
	September 30,				December 31,
	2006		2005		2005
Interest rate spread		4.04%		4.22%		4.10%
Net interest margin		4.57%		4.65%		4.67%