Beach First National Bancshares (BFNB) 8-K Beach First Announces Second Quarter Results

Exhibit 99.1

News Release

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

Banking Should Always Be This Easy.

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 Second Quarter Results

Myrtle Beach, SC, July 23, 2009 — Beach First National Bancshares, Inc., parent of Beach First National Bank (NASDAQ: BFNB) has announced its second quarter and year to date 2009 results.

Walt Standish, president and chief executive officer, stated, “During the second quarter, our financial performance continued to be affected by the decline in real estate values in the markets we serve. The largest impact on our financial performance resulted from a 34% increase in our allowance for loan losses over first quarter 2009. We recognize that the remainder of the year will be challenging for Beach First, as real estate values remain at historically low levels.”

“Despite the economic difficulties, Beach First continues to attract new customers to the bank by offering innovative products and exemplary service. We have grown our local business and consumer deposits and also announced our new lock box service for business customers. In addition, our mortgage lending division recorded its second consecutive quarter of record performance, as we continue to meet borrowing needs in this difficult economy,” Standish said.

For the three months ended June 30, 2009, the company recorded a net loss of $4,860,754 or ($1.00) per diluted share. The largest factor was a provision for loan loss expense of $6.4 million in the second quarter.

Standish said, “We are seeing positive factors at work in the local economy as the tourism markets in the Grand Strand and Hilton Head Island areas appear to be weathering the difficult economic circumstances. Evidence now indicates that the first 60 days of the prime tourist season have been much better than expected, with occupancy levels that are higher this year than in 2008.”

Additional Financial Data

• The Company ended the second quarter of 2009 with a Tier 1 Capital to average assets ratio of 7.01% and with a Total Capital to risk weighted assets ratio of 10.73%.

• Total deposits were $574.1 million at the end of the second quarter 2009.

• Total loans were $558.8 million at the end of the second quarter 2009.

• The loan loss reserve stands at 2.43% of portfolio loans.

• Book value per share stood at $8.17 per share at June 30, 2009.

• Beach First has not held and does not hold any Fannie Mae or Freddie Mac stock.

• Beach First has not held and does not hold any subprime mortgages or any subprime mortgage backed securities.

(M O R E)

Beach First Announces Second Quarter Results P. 2

Beach First National Bank is a $688.3 million financial institution headquartered in Myrtle Beach, South Carolina. In addition to its multi-state mortgage lending division, 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 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 include but are not limited to (1) statements regarding potential future economic recovery, (2) statements with respect to Beach First’s plans, objectives, expectations and intentions and other statements that are not historical facts, and (3) other statements identified by words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” and “projects,” as well as similar expressions are subject to risks, uncertainties, and other factors, 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.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (2) the strength of the United States economy in general and the strength of the local economies in which the company will conduct operations may be different than expected resulting in, among other things, a deterioration in the credit quality or a reduced demand for credit, including the resultant effect on the company’s loan portfolio and allowance for loan losses; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for loan loss, the rates of loan growth, or adverse changes in asset quality in Beach First’s loan portfolio, which may result in increased credit risk-related losses and expenses; (4) changes in the U.S. legal and regulatory framework; (5) the risk that the preliminary financial information reported herein by Beach First and the current preliminary analysis of Beach First will be different when the Beach First review is finalized; and (6) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) and the impact of such conditions on the company. Additional factors that could cause Beach First’s results to differ materially from those described in the forward-looking statements can be found in Beach First’s reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov). All subsequent written and oral forward-looking statements concerning the company or any person acting on its behalf is expressly qualified in its entirety by the cautionary statements above. Beach First does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

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

	June 30,			December 31,			June 30,
	2009			2008			2008
	(unaudited)			(audited)			(unaudited)
Assets
Cash and due from banks	$	9,416,829		$	4,830,112		$	10,473,167
Short-term investments		730,196			1,469,273			3,087,016
Federal funds sold		18,663,000			5,111,000			—
Total cash and cash equivalents		28,810,025			11,410,385			13,560,183
Investment securities		81,545,530			70,594,811			69,059,993
Portfolio loans, net of unearned		536,855,345			551,156,821			553,385,016
Allowance for loan losses (ALL)		(13,034,291	)		(8,642,651	)		(7,646,053	)
Portfolio loans, net of ALL		523,821,054			542,514,170			545,738,963
Mortgage loans held for sale		21,966,286			7,210,088			6,528,090
Federal Reserve Bank stock		1,119,000			1,014,000			984,000
Federal Home Loan Bank stock		3,660,600			3,545,100			3,545,100
Premises and equipment, net		15,075,040			15,624,792			16,089,907
Cash value of life insurance		3,741,947			3,674,106			3,616,025
Investment in BFNB Trusts		310,000			310,000			310,000
OREO and repossessed assets		5,064,325			3,111,741			2,365,000
Other assets		12,498,417			9,806,424			7,720,769
Total assets	$	697,612,224		$	668,815,617		$	669,518,030
Liabilities and shareholders’ equity
Liabilities
Deposits
Noninterest bearing deposits	$	29,798,351		$	24,628,632		$	37,345,807
Interest bearing deposits		544,338,588			508,730,077			491,735,048
Total deposits		574,136,939			533,358,709			529,080,855
Advances from Federal Home Loan Bank		55,000,000			55,000,000			55,000,000
Federal funds purchased		—			—			7,383,200
Other borrowings and repurchase agreements		12,979,509			16,165,022			10,937,468
Junior subordinated debentures		10,310,000			10,310,000			10,310,000
Other liabilities		5,605,626			4,263,797			3,706,225
Total liabilities	$	658,032,074		$	619,097,528		$	616,417,748
Shareholders’ equity
Common stock, $1 par value; 10,000,000 shares authorized; 4,845,018 issued and outstanding at June 30, 2009, December 31, 2008, and at June 30, 2008		4,845,018			4,845,018			4,845,018
Paid-in capital		29,522,583			29,513,166			29,503,750
Retained earnings		5,056,241			14,875,309			19,803,645
Accumulated other comprehensive income (loss)		156,308			484,596			(1,052,131	)
Total shareholders’ equity		39,580,150			49,718,089			53,100,282
Total liabilities and shareholders’ equity	$	697,612,224		$	668,815,617		$	669,518,030

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

	Six Months Ended						Three Months Ended
	June 30,						June 30,
	2009			2008			2009			2008
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Interest income
Interest and fees on loans	$	15,268,352		$	19,463,997		$	7,489,393		$	9,304,543
Investment securities		1,613,731			1,906,342			799,375			907,898
Fed funds sold and short term investments		22,723			86,885			15,461			15,283
Other		5,907			9,445			2,705			4,133
Total interest income		16,910,713			21,466,669			8,306,934			10,231,857
Interest expense
Deposits		8,512,734			9,631,937			4,145,632			4,543,330
Advances from the FHLB, federal funds purchased and other borrowings		1,296,883			1,480,042			644,156			728,589
Junior subordinated debentures		196,464			311,726			89,972			137,348
Total interest expense		10,006,081			11,423,705			4,879,760			5,409,267
Net interest income		6,904,632			10,042,964			3,427,174			4,822,590
Provision for loan losses		14,900,000			1,314,000			6,400,000			568,000
Net interest income after provision for loan losses		(7,995,368	)		8,728,964			(2,972,826	)		4,254,590
Noninterest income
Service fees on deposit accounts		107,307			209,477			52,862			55,433
Mortgage production related income		3,966,461			1,663,699			2,257,793			923,698
Merchant income		469,350			384,829			280,726			231,142
Income from cash value life insurance		68,905			72,583			34,356			39,056
Gain on sale of investment securities		306,094			—			255,147			—
Gain on sale of fixed assets		—			220			—			—
(Loss) on sale of OREO (and writedowns)		(905,161	)		(2,891	)		(701,961	)		(2,501	)
Other income		794,931			518,944			86,396			220,010
Total noninterest income		4,807,887			2,846,861			2,265,319			1,466,838
Noninterest expense
Salaries and wages		4,586,998			3,673,688			2,403,920			1,975,807
Employee benefits		871,780			799,853			456,789			398,645
Supplies and printing		55,761			104,916			29,553			52,649
Advertising and public relations		167,934			318,942			80,038			136,542
Professional fees		417,297			339,160			233,799			196,724
Depreciation and amortization		573,248			550,206			286,293			281,269
Occupancy		837,558			806,242			411,010			395,627
Data processing fees		409,051			636,525			206,502			450,225
Mortgage production related expenses		634,993			379,018			380,392			209,351
Merchant processing		381,186			406,182			223,917			248,505
Other operating expenses		2,987,028			1,661,621			2,055,650			852,257
Total noninterest expenses		11,922,834			9,676,353			6,767,863			5,197,601
Income (loss) before income taxes		(15,110,315	)		1,899,472			(7,475,370	)		523,827
Income tax (benefit) expense		(5,291,247	)		679,252			(2,614,616	)		187,320
Net income (loss)	$	(9,819,068	)	$	1,220,220		$	(4,860,754	)	$	336,507
Basic net income (loss) per common share	$	(2.03	)	$	0.25		$	(1.00	)	$	0.07
Diluted net income (loss) per common share	$	(2.03	)	$	0.25		$	(1.00	)	$	0.07
Weighted average common shares outstanding
Basic		4,845,018			4,845,018			4,845,018			4,845,018
Diluted		4,845,018			4,914,943			4,845,018			4,903,612

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

	Three Months						Six months
	June 30,						June 30,
	2009			2008			2009			2008
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Net Income	$	(4,860,754	)	$	336,507		$	(9,819,068	)	$	1,220,220
Average assets		709,633,062			654,199,617			700,506,237			644,435,195
Average equity		44,655,922			53,754,741			46,964,069			53,477,841
Average loans		572,382,243			548,767,543			573,559,350			537,617,439
End of period loans		558,821,631			559,913,106			558,821,631			559,913,106
End of period portfolio loans		536,855,345			553,385,016			536,855,345			553,385,016
Return on average assets		(2.75	)%		0.21	%		(2.83	)%		0.38	%
Return on average equity		(43.66	)%		2.52	%		(42.16	)%		4.59	%
Allowance for loan losses	$	13,034,291		$	7,646,053		$	13,034,291		$	7,646,053
Net charge-offs		3,075,147			441,907			10,508,360			603,563
Allowance for loan losses to total loans		2.33	%		1.37	%		2.33	%		1.37	%
Allowance for loan losses to portfolio loans		2.43	%		1.38	%		2.43	%		1.38	%
Net charge-offs to average total loans (annualized)		2.16	%		0.32	%		3.70	%		0.23	%
Total nonperforming assets as a percent of total assets		6.98	%		2.30	%		6.98	%		2.30	%
Nonperforming loans as a percent of total loans		7.81	%		2.32	%		7.81	%		2.32	%
Allowance for loan losses to nonperforming loans (coverage)		29.88	%		58.80	%		29.88	%		58.80	%
Interest rate spread		1.83	%		2.73	%		1.85	%		2.83	%
Net interest margin		2.03	%		3.09	%		2.08	%		3.27	%