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, Senior Vice President and Chief Financial Officer, 843.916.7806

FOR IMMEDIATE RELEASE

Beach First Earnings Grow 84 Percent in 2006
7^th Consecutive Year of Strong Financial Performance

Myrtle Beach, SC, January 22, 2007 – Beach First National Bancshares, Inc, (NASDAQ: BFNB) today announced that its 2006 year-end earnings increased 84 percent over figures reported for 2005.

Net income for the year ended December 31, 2006 totaled $6,195,728, or $1.27 per diluted share, an increase of 84 percent over the amount of $3,359,643, or $0.83 per diluted share, for the year ended December 31, 2005. Total assets ended the year at $520 million, an increase of 31 percent from figures reported for 2005. Total deposits grew 34 percent to $416 million, and total loans grew 32 percent to $411 million.

Return on average assets was 1.33 percent for the year ended December 31, 2006, compared to 1.08 percent for the same period a year ago. Return on average shareholders’ equity was 14.53 percent for the year ended December 31, 2006, compared to 11.37 percent for the same period a year ago. The net interest margin improved to 4.62 percent at December 31, 2006, compared to 4.60 percent at December 31, 2005. Book value per share stood at $9.54 per share at December 31, 2006, compared to $8.23 per share at December 31, 2005.

Walt Standish, president and chief executive officer, said, “Beach First completed its seventh consecutive year of strong financial performance in 2006. We believe our community bank philosophy is at the heart of our success, as it continues to resonate with customers who are drawn to our local bank service and convenient locations. When we combine this strong level of service with the healthy economies in the markets our bank serves, it yields robust performance. We are also pleased to have made the move to our new headquarters at Grissom Parkway in late December and invite the public to visit this beautiful and environmentally friendly space.”

Beach First National Bancshares, Inc. is the parent of Beach First National Bank, a $520 million financial institution headquartered in Myrtle Beach, South Carolina. Beach First is the Grand Strand’s only locally-owned bank, operating six banking locations 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, and recently moved into its new headquarters at the corner of 38^th Avenue North and Grissom Parkway in Myrtle Beach. The company’s stock trades on the NASDAQ Global Market under the symbol BFNB and the website iswww.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
Consolidated Balance Sheets

	December 31,
	2006			2005
Assets
Cash and due from banks	$	5,198,945		$	4,284,868
Federal funds sold and short term investments		14,010,667			25,521,071
Investment securities		68,474,531			43,975,876
Loans, net		405,326,804			307,424,435
Federal Reserve Bank stock		984,000			534,000
Federal Home Loan Bank stock		2,475,600			2,011,400
Property and equipment, net		14,344,330			6,672,507
Cash value of life insurance		3,424,586			3,301,417
Other assets		5,961,876			3,753,663,659
Total assets	$	520,201,339		$	397,389,234
Liabilities and shareholders’ equity
Liabilities
Deposits
Non-interesting bearing	$	37,194,469		$	31,152,603
Interest bearing		379,162,660			279,741,607
Total deposits		416,357,129			310,894,210
Advances from Federal Home Loan Bank		37,500,000			34,000,000
Other borrowings		7,209,820			1,504,009
Junior subordinated debentures		10,310,000
Other liabilities		3,364,811			1,555,602
Total liabilities		474,741,760			358,263,821
Commitments and contingencies
Shareholders’ equity
Common stock, $1 par value, 10,000,000 shares authorized,
4,763,987 shares issued and outstanding at December
31, 2006 and 4,754,937 at December 31, 2005		4,763,987			4,754,937
Paid-in capital		28,659,487			28,572,864
Retained earnings		12,709,310			6,513,582
Accumulated other comprehensive loss		(673,205	)		(715,970	)
Total shareholders’ equity		45,459,579			39,125,413
Total liabilities and shareholders’ equity	$	520,201,339		$	397,389,234

Consolidated Statements of Income

	For the Years ended December 31,
	2006		2005			2004
Interest income
Loans and fees on loans	$	33,096,343	$	18,938,675		$	10,418,114
Investment securities		2,897,719		1,838,313			1,098,986
Federal funds sold and short term investments		469,819		127,961			75,702
Other		22,929		15,682			4,069
Total interest income		36,486,810		20,920,631			11,511,596,871
Interest expense
Deposits		13,711,212		5,912,891			2,799,558
Advances from FHLB and federal funds purchased		1,546,286		747,209			394,946
Junior subordinated debentures		771,740		528,812			136,943
Total interest expense		16,029,238		7,188,912			3,331,447
Net interest income		20,457,572		13,731,719			8,265,424
Provision for loan losses		2,174,400		2,184,000			1,340,000
Net interest income after provision for
loan losses		18,283,172		11,547,719			6,925,424
Noninterest income
Service fees on deposit accounts		514,286		549,689			536,077
Gain on sale of loans		60,392		14,610			-
Gain (loss) on sale of investment securities		1,007		(3,935	)		37,395
Income from cash value life insurance		143,717		89,809			161,544
Income from mortgage operations		2,136,250		249,757			134,865
Other income		1,172,013		217,947			167,544
Total noninterest income		4,027,665		1,117,877			1,037,425
Noninterest expenses
Salaries and wages		6,018,633		3,371,922			2,556,452
Employee benefits		1,138,653		675,496			501,347
Supplies and printing		126,705		101,889			89,560
Advertising and public relations		387,056		295,509			239,256
Professional fees		311,627		327,130			190,138
Depreciation and amortization		518,551		539,406			446,158
Occupancy		1,102,406		724,313			476,736
Data processing fees		547,747		455,646			343,275
Other operating expenses		2,461,595		1,053,867			838,945
Total noninterest expenses		12,612,973		7,545,178			5,681,867
Income before income taxes		9,697,864		5,120,418			2,280,982
Income tax expense		3,502,136		1,760,775			845,060
Net income	$	6,195,728	$	3,359,643		$	1,435,922
Basic net income per common share	$	1.30	$	0.84		$	0.48
Diluted net income per common share	$	1.27	$	0.83		$	0.46
Weighted average common shares outstanding:
Basic		4,764,072		3,975,864			3,015,993
Diluted		4,874,562		4,059,865			3,133,931

(Unaudited)
(In thousands)

Asset Quality Ratios and Other Data	December 31,			December 31,			December 31,
	2006			2005			2004
Total nonperforming loans	$	1,625		$	1,111		$	78
Allowance for loan losses		5,888			4,364			2,422
Nonperforming loans as a percent of total
loans		0.40	%		0.36	%		0.04	%
Nonperforming assets, past due and
restructured loans to total assets		0.31	%		0.28	%		0.03	%
Net charge-offs to average total loans		0.17	%		0.10	%		0.43	%
Allowance for loan losses to total loans		1.43	%		1.40	%		1.26	%
Allowance for loan losses to
nonperforming loans		362.45	%		392.80	%		3,105.13	%

	For the year ended
	December 31,
	2006			2005			2004
Interest rate spread		4.06	%		4.10	%		3.95	%
Net interest margin		4.62	%		4.67	%		4.30	%