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

Banking Should Always Be This Easy.

News Release

3751 Grissom Parkway, Suite 100
Myrtle Beach, SC 29577
843.626.2265

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

Beach First Announces Earnings for First Quarter 2008

Myrtle Beach, SC, April 28, 2008 — Beach First National Bancshares, Inc. (NASDAQ: BFNB) announced first quarter net income of $883,713, along with record growth in loans and deposits.

Net income for the three months ended March 31, 2008, totaled $883,713 or $0.18 per diluted share, an 18.8 percent increase over the previous quarter, but down significantly from figures reported for the first quarter 2007. The decrease is primarily a result of rate changes that impact our floating rate loans and an increase in the reserve for loan losses.

Total assets grew to $638.8 million, which represents an increase of 15.6 percent from March 31, 2007. Total deposits grew to $493.9 million, an increase of 11.0 percent from March 31, 2007. Total loans grew to $538.9 million, a 20.3 percent increase over the March 31, 2007 figure.

“The economic factors that impacted the banking industry’s performance in the latter half of 2007 have continued into 2008,” said Walt Standish, Beach First president and chief executive officer. “Declining real estate values, unsettled credit markets, and pressure on the net interest margin are issues that banks across the country must continue to manage in 2008. While our earnings increased over the fourth quarter, the real estate markets in Myrtle Beach and Hilton Head Island remain unsettled. We believe that we have a manageable level of problem assets, yet we have increased our loan loss reserve to protect against any further deterioration in real estate values or credit quality.”

Standish added, “The overall growth in our balance sheet indicates that Beach First remains strong and focused on its core banking strengths. During the first quarter, we opened our newest office at 73^rdAvenue North in Myrtle Beach. Response to the new location has been extremely positive as we bring our easy way of doing business to consumers and businesses alike. We are confident that Beach First is well positioned to weather these current economic conditions and to achieve continued growth,” he said.

Additional First Quarter Highlights

o Annualized return on average equity was 6.64 percent for the three months ended March 31, 2008, compared to 14.04 percent for the three months ended March 31, 2007.

o Annualized return on average assets was 0.56 percent for the three months ended March 31, 2007 compared to 1.21 percent for the same period a year ago.

o The net interest margin was 3.45 percent for the quarter ended March 31, 2008, compared to 4.39 percent for the same period a year ago.

o Book value per share stood at $11.11 per share at March 31, 2008 compared to $9.89 per share at March 31, 2007.

(M O R E)

Beach First Announces Earnings for First Quarter 2008                                                                                                                           P. 2

Beach First operates seven 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 bank’s mortgage lending division operates six 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

	March 31,						December 31,
	2008			2007			2007
	(unaudited)			(unaudited)			(audited)
Assets
Cash and due from banks	$	5,544,916		$	7,654,093		$	4,992,634
Federal funds sold and short-term investments		2,091,864			4,655,718			566,044
Investment securities		66,305,216			69,191,574			65,677,993
Portfolio loans, net of unearned		531,546,872			434,129,341			503,432,516
Allowance for loan losses (ALL)		(7,519,960	)		(6,172,091	)		(6,935,616	)
Portfolio loans, net of ALL		524,026,912			427,957,250			496,496,900
Mortgage loans held for sale		7,356,399			13,865,389			6,475,619
Federal Reserve Bank stock		984,000			984,000			984,000
Federal Home Loan Bank stock		3,545,100			2,607,800			3,395,300
Premises and equipment, net		16,188,434			14,967,965			15,746,143
Cash value of life insurance		3,582,672			3,456,029			3,554,807
Investment in BFNB Trusts		310,000			310,000			310,000
Other assets		8,871,724			7,157,396			7,788,978
Total assets	$	638,807,237		$	552,807,214		$	605,988,418
Liabilities and shareholders’ equity
Liabilities:
Deposits
Noninterest bearing deposits	$	35,925,681		$	35,863,807		$	33,138,936
Interest bearing deposits		458,007,313			409,193,216			431,059,409
Total deposits		493,932,994			445,057,023			464,198,345
Advances from Federal Home Loan Bank		55,000,000			37,500,000			55,000,000
Federal funds purchased and other borrowings		21,153,488			7,133,561			18,288,148
Junior subordinated debentures		10,310,000			10,310,000			10,310,000
Other liabilities		4,595,991			5,526,823			5,613,875
Total liabilities		584,992,473			505,527,407			553,410,368
Shareholders’ equity:
Common stock, $1 par value; 10,000,000 shares
authorized; 4,845,018 issued and outstanding at
March 31, 2008, 4,779,241 at March 31, 2007, and
4,845,018 at December 31, 2007		4,845,018			4,779,241			4,845,018
Paid-in capital		29,499,043			28,695,185			29,494,912
Retained earnings		19,467,137			14,319,179			18,583,425
Accumulated other comprehensive loss		3,566			(513,798	)		(345,305	)
Total shareholders' equity		53,814,764			47,279,807			52,578,050
Total liabilities and shareholders' equity	$	638,807,237		$	552,807,214		$	605,988,418

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

	Three Months Ended				For the Year Ended
	March 31,				December 31,
	2008		2007		2007
	(unaudited)		(unaudited)		(audited)
Interest income
Interest and fees on loans	$	10,159,454	$	9,700,238	$	41,064,557
Investment securities		998,444		904,843		3,698,507
Federal funds sold and short term investments		71,602		72,477		319,985
Other		5,312		5,899		23,970
Total interest income		11,234,812		10,683,457		45,107,019
Interest expense
Deposits		5,097,125		4,467,284		18,802,056
Advances from the FHLB, federal funds purchased
and other borrowings		742,935		536,958		2,877,462
Junior subordinated debentures		174,378		197,468		802,455
Total interest expense		6,014,438		5,201,710		22,481,973
Net interest income		5,220,374		5,481,747		22,625,046
Provision for loan losses		746,000		351,200		2,045,600
Net interest income after provision for loan losses		4,474,374		5,130,547		20,579,446
Noninterest income
Service fees on deposit accounts		154,044		135,488		568,760
Mortgage production related income		740,001		1,772,672		4,911,705
Merchant income		153,687		96,565		665,811
Gain on sale of investment securities		-		-		7,904
Income from cash value life insurance		33,527		36,759		152,086
Gain on sale of fixed assets		220		3,850		6,324
Other income		298,544		241,289		1,265,194
Total noninterest income		1,380,023		2,286,623		7,577,784
Noninterest expense
Salaries and wages		1,697,881		2,332,432		7,760,272
Employee benefits		401,208		400,906		1,646,093
Supplies and printing		52,267		51,182		199,977
Advertising and public relations		182,400		143,606		615,552
Professional fees		142,436		127,989		725,122
Depreciation and amortization		268,937		252,598		1,060,255
Occupancy		410,615		464,283		1,719,491
Data processing fees		186,300		171,457		748,446
Mortgage production related expense		169,667		380,697		1,153,246
Merchant processing		157,677		111,829		623,947
Other operating expenses		809,364		474,198		2,680,943
Total noninterest expenses		4,478,752		4,911,177		18,933,344
Income before income taxes		1,375,645		2,505,993		9,223,886
Income tax expense		491,932		893,609		3,347,256
Net income	$	883,713	$	1,612,384	$	5,876,630
Basic net income per common share	$	0.18	$	0.34	$	1.22
Diluted net income per common share	$	0.18	$	0.33	$	1.18
Weighted average common shares outstanding - basic		4,845,018		4,769,102		4,817,911
Weighted average common shares outstanding - diluted		4,925,485		4,926,803		4,977,067

Beach First National Bancshares, Inc. and Subsidiaries
Myrtle Beach, South Carolina
Summary Financial Data
(Unaudited)

	Three months			Three months			Full year
	March 31,			March 31,			December 31,
	2008			2007			2007
Net Income	$	883,713		$	1,612,384		$	5,876,630
Average assets		634,628,092			533,374,207			564,196,922
Average equity		53,201,254			45,926,801			48,932,435
Average loans		526,467,333			428,506,579			458,703,105
End of period loans		538,903,271			447,994,730			509,908,135
Return on average assets		0.56	%		1.21	%		1.04	%
Return on average equity		6.64	%		14.04	%		12.01	%
Allowance for loan losses	$	7,519,960		$	6,172,091		$	6,935,616
Net charge-offs		161,656			17,161			948,036
Allowance for loan losses to total loans		1.40	%		1.38	%		1.36	%
Net charge-offs to average total loans (annualized)		0.12	%		0.02	%		0.21	%
Total nonperforming loans	$	5,119,312		$	1,088,422		$	2,902,888
Total other real estate owned		1,545,647			670,310			15,000
Total nonperforming assets		6,664,959			1,758,732			2,917,888
Nonperforming loans as a percent of total loans		1.24	%		0.24	%		0.57	%
Total nonperforming assets as a percent of total assets		1.04	%		0.32	%		0.48	%
Allowance for loan losses to nonperforming loans (coverage)		146.89	%		567.07	%		238.92	%
Interest rate spread		2.96	%		3.84	%		3.63	%
Net interest margin		3.45	%		4.39	%		4.20	%