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

Exhibit 99.1

Contact:     Walt Standish, President and Chief Executive Officer

                  843.916.7813

                  Gary Austin, Executive Vice President and Chief Financial Officer

                  843.916.7806

Myrtle Beach, SC, February 29, 2008 – Beach First National Bancshares, Inc. is correcting its unaudited 2007 year end results announced on January 28, 2008. Net income for the year ended December 31, 2007 was $5,876,630, rather than $6,262,195 as previously reported. The correction is solely attributable to a revision to reflect the proper tax treatment of deductions relating to the exercise of 75,675 stock options.
 
During the Company’s review process for the preparation of the Annual Report and Form 10-K with the SEC, the Company reconsidered the accounting treatment relating to the proper tax treatment of deductions relating to stock options and determined that the tax benefit relating to the stock options should not be recorded as part of current earnings but instead should be recorded as an adjustment to shareholders' equity. This change resulted in an increase in income tax expense and a reduction in net income of $385,565, but has no effect on the Company's shareholders' equity.

As corrected, the Company's net income for the year ended December 31, 2007 decreased 5.15 percent, totaling $5,876,630, or $1.18 per diluted share, when compared to the $6,195,728, or $1.27 per diluted share, reported for the year ended December 31, 2006. While the Company's loans increased 24%, its net interest margin declined to 4.20% in 2007 from 4.62% in 2006. The slower net interest income growth and the increase in noninterest expense contributed to the decline in current year’s earnings.

The Company expects market conditions to remain unsettled in 2008, but believes it is well positioned to handle the challenges. Walt Standish, president and chief executive officer of the Company, stated, "During the first quarter of 2008, we expect to open our seventh location, a branch at 73^rd Avenue North in Myrtle Beach. We are also investing in technology we believe will help make banking easier for our customers, and we are building brand awareness of the bank in the markets we serve. We believe we will be well prepared to handle the challenges of 2008 and will be poised to take advantage of opportunities as economic conditions improve.”
 

Additional Year-End Highlights

Total assets grew to $606.0 million, which represents an increase of 16.5 percent from December 31, 2006. Total loans grew to $509.9 million, a 24.0 percent increase over the December 31, 2006 figure. Total deposits grew to $464.2 million, an increase of 11.5 percent from December 31, 2006.

Return on average equity was 12.01 percent for the year ended December 31, 2007, compared to 14.53 percent for the year ended December 31, 2006. Return on average assets was 1.04 percent for the year ended December 31, 2007, compared to 1.33 percent for the same period a year ago. The net interest margin stood at 4.20 percent at December 31, 2007, compared to 4.62 percent at December 31, 2006. Book value per share was $10.85 per share at December 31, 2007, compared to $9.53 per share at December 31, 2006.
 
 

Beach First Announces Year-End Results                               P. 2

Beach First operates 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. A seventh location is scheduled to open during the second quarter of 2008 at 7202 North Kings Highway in Myrtle Beach. The bank’s mortgage lending division operates eight mortgage offices in the Carolinas and mid-Atlantic states. 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, greater than expected noninterest expenses, excessive loan losses, regulatory actions or changes and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. For a more detailed description of factors that could cause or contribute to such differences, please see our Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.
 
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 (Unaudited)

	December 31,
	2007			2006
Assets
Cash and due from banks	$	4,992,634		$	5,198,945
Federal funds sold and short term investments		566,044			14,010,667
Investment securities		65,677,993			68,474,531
Loans, net		496,496,900			392,848,582
Mortgage loans held for sale		6,475,619			12,478,222
Federal Reserve Bank stock		984,000			984,000
Federal Home Loan Bank stock		3,395,300			2,475,600
Property and equipment, net		15,746,143			14,344,330
Cash value of life insurance		3,554,807			3,424,586
Investment in BFNB Trusts		310,000			310,000
Other assets		7,788,978			5,651,876
Total assets	$	605,988,418		$	520,201,339
Liabilities and shareholders’ equity
Liabilities
Deposits
Non-interesting bearing	$	33,138,936		$	37,194,469
Interest bearing		431,059,409			379,162,660
Total deposits		464,198,345			416,357,129
Advances from Federal Home Loan Bank		55,000,000			37,500,000
Federal funds purchased and other borrowings		18,288,148			7,209,820
Junior subordinated debentures		10,310,000			10,310,000
Other liabilities		5,613,875			3,364,811
Total liabilities		553,410,368			474,741,760
Commitments and contingencies
Shareholders’ equity
Common stock, $1 par value, 10,000,000 shares authorized,
4,845,018 shares issued and outstanding at December 31, 2007
and 4,768,413 at December 31, 2006		4,845,018			4,768,413
Paid-in capital		29,494,912			28,657,576
Retained earnings		18,583,425			12,706,795
Accumulated other comprehensive loss		(345,305	)		(673,205	)
Total shareholders’ equity		52,578,050			45,459,579
Total liabilities and shareholders’ equity	$	605,988,418		$	520,201,339

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

	For the years ended December 31,
	2007		2006			2005
Interest income
Loans and fees on loans	$	41,064,557	$	33,091,838		$	18,938,675
Investment securities		3,698,507		2,886,528			1,838,313
Federal funds sold and short term investments		319,985		485,515			127,961
Other		23,970		22,929			15,682
Total interest income		45,107,019		36,486,810			20,920,631
Interest expense
Deposits		18,802,056		13,711,212			5,912,891
Advances from FHLB, federal funds purchased and other borrowings		2,877,462		1,546,286			747,209
Junior subordinated debentures		802,455		771,740			528,812
Total interest expense		22,481,973		16,029,238			7,188,912
Net interest income		22,625,046		20,457,572			13,731,719
Provision for loan losses		2,045,600		2,174,400			2,184,000
Net interest income after provision for loan losses		20,579,446		18,283,172			11,547,719
Noninterest income
Service fees on deposit accounts		568,760		514,285			549,689
Mortgage production related income		4,911,705		2,136,250			249,757
Merchant income		665,811		164,229			17,806
Gain (loss) on sale of investment securities		7,904		(57,276	)		(3,935	)
Income from cash value life insurance		152,086		143,717			89,809
Gain (loss) on sale of fixed assets		6,324		583,011			142
Other income		1,265,194		453,145			214,609
Total noninterest income		7,577,784		3,937,361			1,117,877
Noninterest expenses
Salaries and wages		7,760,272		6,018,633			3,371,922
Employee benefits		1,646,093		1,138,653			675,496
Supplies and printing		199,977		126,705			101,889
Advertising and public relations		615,552		387,056			295,509
Professional fees		725,122		311,627			327,130
Depreciation and amortization		1,060,255		518,551			539,406
Occupancy		1,719,491		1,065,091			724,313
Data processing fees		748,446		547,747			455,646
Mortgage production related expense		1,153,246		258,277			-
Merchant processing		623,947		167,866			-
Other operating expenses		2,680,943		1,982,463			1,053,867
Total noninterest expenses		18,933,344		12,522,669			7,545,178
Income before income taxes		9,223,886		9,697,864			5,120,418
Income tax expense		3,347,256		3,502,136			1,760,775
Net income	$	5,876,630	$	6,195,728		$	3,359,643
Basic net income per common share	$	1.22	$	1.30		$	0.85
Diluted net income per common share	$	1.18	$	1.27		$	0.83
Weighted average common shares outstanding:
Basic		4,817,911		4,764,072			3,975,864
Diluted		4,977,097		4,874,562			4,059,865

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

	For the Three Months ended
	December 31,
	2007		2006
Interest income
Loans and fees on loans	$	10,469,876	$	9,656,861
Investment securities		914,919		849,295
Federal funds sold and short term investments		30,818		156,241
Other		6,065		6,013
Total interest income		11,421,678		10,668,410
Interest expense
Deposits		4,821,890		4,208,272
Advances from FHLB and federal funds purchased		738,031		479,355
Junior subordinated debentures		309,305		202,762
Total interest expense		5,869,226		4,890,389
Net interest income		5,552,452		5,778,021
Provision for loan losses		1,094,800		395,800
Net interest income after provision for
loan losses		4,457,652		5,382,221
Noninterest income
Service fees on deposit accounts		141,781		132,674
Mortgage production related income		703,826		1,085,289
Merchant income		148,700		59,442
Gain on sale of investment securities		7,904		-
Income from cash value life insurance		37,936		36,721
Gain on sale of fixed assets		825		-
Other income		245,357		166,434
Total noninterest income		1,286,329		1,480,560
Noninterest expenses
Salaries and wages		1,776,178		1,813,244
Employee benefits		415,890		376,156
Supplies and printing		49,903		37,164
Advertising and public relations		119,585		118,614
Professional fees		269,919		(38,984	)
Depreciation and amortization		267,273		152,804
Occupancy		388,034		359,809
Data processing fees		220,328		158,415
Mortgage production related expenses		136,876		187,457
Merchant processing		134,027		56,707
Other operating expenses		715,464		768,701
Total noninterest expenses		4,493,477		3,990,087
Income before income taxes		1,250,504		2,872,694
Income tax expense		506,797		1,041,683
Net income	$	743,707	$	1,831,011
Basic net income per common share	$	0.15	$	0.38
Diluted net income per common share	$	0.15	$	0.38
Weighted average common shares outstanding:
Basic		4,843,182		4,768,413
Diluted		4,958,040		4,879,701

Beach First National Bancshares, Inc. and Subsidiaries
Myrtle Beach, South Carolina
Asset Quality Ratios and Other Data
(Unaudited)

	December 31,			December 31,			December 31,
	2007			2006			2005
Net Income	$	5,876,630		$	6,195,728		$	3,359,643
Average assets		564,196,922			464,599,310			311,887,493
Average equity		48,932,435			42,652,928			29,553,166
Average loans		458,703,105			372,791,961			251,305,542
End of period loans		509,908,135			411,214,857			311,788,722
Return on average assets		1.04	%		1.33	%		1.08	%
Return on average equity		12.01	%		14.53	%		11.37	%
Allowance for loan losses		6,935,616			5,888,052			4,364,287
Net charge-offs		948,036			650,635			241,552
Allowance for loan losses to total loans		1.36	%		1.43	%		1.40	%
Net charge-offs to average total loans		0.21	%		0.17	%		0.10	%
Total non performing loans		2,902,888			1,624,511			1,111,264
Total other real estate owned		15,000			15,000			62,947
Total nonperforming assets		2,917,888			1,639,511			1,174,211
Nonperforming loans as a percent of total loans		0.57	%		0.40	%		0.36	%
Total nonperforming assets as a percent of total assets		0.48	%		0.31	%		0.29	%
Allowance for loan losses to nonperforming loans		238.92	%		362.45	%		392.73	%
Interest rate spread		3.63	%		4.06	%		4.13	%
Net interest margin		4.20	%		4.62	%		4.60	%