Beach First National Bancshares (BFNB) 8-K Beach First Announces Third Quarter 2009 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 Third Quarter 2009 Results

Myrtle Beach, SC, November 5, 2009 — Beach First National Bancshares, Inc., parent of Beach First National Bank (NASDAQ: BFNB) has announced its results for the third quarter and year to date 2009.

“During the third quarter, we continued to grow our bank by adding personal and business customers,” said Walt Standish, president and chief executive officer. “Information recently announced by the FDIC shows that our bank ranks 5^th in market share in Horry County out of a total of 27 banks and 4^th in market share on Hilton Head Island out of 19 banks. As a local community bank, we play an important part in the growth of our communities by helping our customers, by being a major employer, and by giving back to the community in many ways,” he said.

“We also accomplished several goals that we believe position us well for future growth and success,” Standish said. “We’ve expanded our menu of business services which will greatly enhance our opportunities to develop new customer relationships. We introduced E-Statements, a new service which gives customers the option to receive their bank statements electronically. This environmentally friendly product is a win-win for customers and the bank, providing added convenience, while saving paper and time, and cutting costs,” he said.

Standish said, “We are dedicated to helping our customers find financial solutions during a complex economy. The bank analyzed its loan portfolio and has increased its reserve for potential loan losses to almost $15 million. In addition, we have more than $25.8 million in equity in the Company at this time,” Standish said.

While we believe the economic picture is improving from a year ago, the decline in real estate values along coastal South Carolina, and especially in Horry County, continues to impact customers and in turn, the financial performance of the bank. For the three months ended September 30, 2009, the Company recorded a net loss of $14,197,821, or ($2.93) per diluted share. The net loss for the three months ended September 30, 2009 was impacted by a non-cash $8.2 million tax valuation allowance.

The Company evaluated the expected realization of its current and deferred tax assets totaling $11.3 million, primarily comprised of future tax benefits associated with the allowance for loan losses and net operating loss carryforwards, and concluded that a valuation allowance of $8.2 million was required for the deferred tax asset. The valuation allowance is a non-cash item. The remaining federal income tax receivable of $3.1 million as of September 30, 2009 will be received when the Company files its federal income tax return for 2009. This issue has become more common in the current banking environment and has been addressed similarly by many publicly traded companies.

(M O R E)

Beach First Announces Third Quarter 2009 Results P. 2

As a step to further strengthen its financial condition, the Company has hired Sandler O’Neill + Partners, L.P., a nationally recognized investment banking firm, to assist the Company in its analysis of strategic alternatives.

Standish said, “Despite the ongoing challenges, the bank continues to gain new customers and expand relationships with existing customers by offering excellent service and robust products that meet important loan and deposit needs in our communities. We are seeing signs of economic improvement in our markets, and are confident that as the real estate markets improve, it will have a positive effect on our customers and the bank’s performance,” he stated.

Standish announced that as part of the bank’s oversight by the Office of the Comptroller of the Currency (OCC), the bank’s board of directors has signed a consent order designed to strengthen the bank’s financial condition and operations. “This document has a similar content to the formal agreement signed with the OCC last October. The order supports the continued efforts of the bank and provides direction for further improvements,” Standish said, “Our management team remains focused on these issues and on taking the appropriate actions to address the challenges we face.”

Additional Financial Data

• The Company ended the third quarter of 2009 with a Tier 1 Capital to average assets ratio of 5.23% and with a Total Capital to risk weighted assets ratio of 8.53%.

• Total deposits were $549.9 million at the end of the third quarter 2009.

• Total loans were $526.7 million at the end of the third quarter 2009.

• The loan loss reserve stands at 2.88% of portfolio loans.

• Book value per share stood at $5.34 per share at September 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.

Beach First National Bank is a $646 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. These forward-looking statements 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.

(M O R E)

Beach First Announces Third Quarter 2009 Results P. 3

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; (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; and (7) whether Beach First will be able to accomplish the directives contained in the Order and continue as a going concern. 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.

-30-

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

	September 30,			December 31,			September 30,
	2009			2008			2008
	(unaudited)			(audited)			(unaudited)
Assets
Cash and due from banks	$	10,391,051		$	4,830,112		$	6,716,033
Short-term investments		11,115,155			1,469,273			1,594,955
Federal funds sold		5,611,000			5,111,000			8,219,000
Total cash and cash equivalents		27,117,206			11,410,385			16,529,988
Investment securities		76,834,314			70,594,811			70,501,563
Portfolio loans, net of unearned income		519,394,361			551,156,821			553,485,128
Allowance for loan losses (ALL)		(14,984,114	)		(8,642,651	)		(7,663,434	)
Portfolio loans, net of ALL		504,410,247			542,514,170			545,821,694
Mortgage loans held for sale		7,317,872			7,210,088			5,328,679
Federal Reserve Bank stock		1,119,000			1,014,000			1,014,000
Federal Home Loan Bank stock		3,660,600			3,545,100			3,545,100
Premises and equipment, net		14,818,906			15,624,792			15,908,455
Cash value of life insurance		3,776,303			3,674,106			3,641,485
Investment in BFNB Trusts		310,000			310,000			310,000
OREO and repossessed assets		9,652,972			3,111,741			2,381,215
Other assets		7,264,836			9,806,424			7,916,168
Total assets	$	656,282,256		$	668,815,617		$	672,898,347
Liabilities and shareholders’ equity
Liabilities
Deposits
Noninterest bearing deposits	$	27,070,150		$	24,628,632		$	33,358,001
Interest bearing deposits		522,875,848			508,730,077			503,350,295
Total deposits		549,945,998			533,358,709			536,708,296
Advances from Federal Home Loan Bank		55,000,000			55,000,000			55,000,000
Federal funds purchased		—			—			—
Other borrowings and repurchase agreements		9,590,868			16,165,022			11,537,176
Junior subordinated debentures		10,310,000			10,310,000			10,310,000
Other liabilities		5,580,158			4,263,797			5,341,014
Total liabilities	$	630,427,024		$	619,097,528		$	618,896,486
Shareholders’ equity
Common stock, $1 par value; 10,000,000 shares authorized; 4,845,018 issued and outstanding at September 30, 2009, December 31, 2008, and at September 30, 2008		4,845,018			4,845,018			4,845,018
Paid-in capital		29,527,291			29,513,166			29,508,457
Retained earnings		(9,141,581	)		14,875,309			20,005,060
Accumulated other comprehensive income (loss)		624,504			484,596			(356,674	)
Total shareholders’ equity		25,855,232			49,718,089			54,001,861
Total liabilities and shareholders’ equity	$	656,282,256		$	668,815,617		$	672,898,347

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

	Nine Months Ended						Three Months Ended
	September 30,						September 30,
	2009			2008			2009			2008
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Interest income
Interest and fees on loans	$	22,403,427		$	28,972,905		$	7,135,075		$	9,508,908
Investment securities		2,351,807			2,757,353			738,076			851,011
Fed funds sold and short term investments		33,845			111,185			11,122			24,300
Other		8,212			13,486			2,305			4,041
Total interest income		24,797,291			31,854,929			7,886,578			10,388,260
Interest expense
Deposits		11,945,734			14,154,313			3,433,000			4,522,376
Advances from the FHLB, federal funds purchased and other borrowings		1,937,910			2,215,458			641,027			735,416
Junior subordinated debentures		273,106			446,256			76,642			134,530
Total interest expense		14,156,750			16,816,027			4,150,669			5,392,322
Net interest income		10,640,541			15,038,902			3,735,909			4,995,938
Provision for loan losses		23,700,000			2,291,000			8,800,000			977,000
Net interest income (loss) after provision for loan losses		(13,059,459	)		12,747,902			(5,064,091	)		4,018,938
Noninterest income
Service fees on deposit accounts		158,692			261,606			51,385			52,129
Mortgage production related income		5,221,676			2,707,666			1,255,215			1,043,967
Merchant income		852,606			737,825			383,256			352,996
Income from cash value life insurance		103,261			102,537			34,356			29,954
Gain (loss) on sale of investment securities		158,830			21,034			(147,264	)		21,034
Gain on sale of fixed assets		—			220			—			—
(Loss) on sale of OREO (and writedowns)		(930,773	)		(409,439	)		(25,612	)		(406,548	)
Other income		1,272,935			810,685			478,004			291,741
Total noninterest income		6,837,227			4,232,134			2,029,340			1,385,273
Noninterest expense
Salaries and wages		6,591,768			5,665,648			2,004,770			1,991,960
Employee benefits		1,268,609			1,245,430			396,829			445,577
Supplies and printing		85,101			152,897			29,340			47,981
Advertising and public relations		189,126			426,432			21,192			107,490
Professional fees		633,746			525,943			216,449			186,783
Depreciation and amortization		850,787			842,634			277,539			292,428
Occupancy		1,227,590			1,190,710			390,032			384,468
Data processing fees		609,928			844,434			200,877			207,909
Mortgage production related expenses		895,670			596,794			260,677			217,776
Merchant processing		689,429			685,406			308,243			279,224
Other operating expenses		4,620,853			2,590,699			1,633,825			929,078
Total noninterest expenses		17,662,607			14,767,027			5,739,773			5,090,674
Income (loss) before income taxes		(23,884,839	)		2,213,009			(8,774,524	)		313,537
Income tax (benefit) expense		132,050			791,374			5,423,297			112,122
Net income (loss)	$	(24,016,889	)	$	1,421,635		$	(14,197,821	)	$	201,415
Basic net income (loss) per common share	$	(4.96	)	$	0.29		$	(2.93	)	$	0.04
Diluted net income (loss) per common share	$	(4.96	)	$	0.29		$	(2.93	)	$	0.04
Weighted average common shares outstanding
Basic		4,845,018			4,845,018			4,845,018			4,845,018
Diluted		4,845,018			4,904,259			4,845,018			4,877,147

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

	Three Months						Nine months
	September 30,						September 30,
	2009			2008			2009			2008
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Net Income		($14,197,821	)	$	201,415			($24,016,889	)	$	1,421,635
Average assets		678,904,379			671,223,216			693,564,980			653,756,864
Average equity		39,065,682			53,174,837			44,302,341			53,376,159
Average loans		545,035,562			564,189,563			563,946,939			546,539,465
End of period loans		526,712,233			558,813,807			526,712,233			558,813,807
End of period portfolio loans		519,394,361			553,485,128			519,394,361			553,485,128
Return on average assets		(8.30	)%		0.12	%		(4.63	)%		0.29	%
Return on average equity		(144.19	)%		1.51	%		(72.48	)%		3.56	%
Allowance for loan losses	$	14,984,114		$	7,663,434		$	14,984,114		$	7,663,434
Net charge-offs		6,850,177			959,619			17,358,537			1,563,182
Allowance for loan losses to total loans		2.84	%		1.37	%		2.84	%		1.37	%
Allowance for loan losses to portfolio loans		2.88	%		1.38	%		2.88	%		1.38	%
Net charge-offs to average total loans (annualized)		4.99	%		0.68	%		4.12	%		0.38	%
Total nonperforming assets as a percent of total assets		10.21	%		3.01	%		10.21	%		3.01	%
Nonperforming loans as a percent of total loans		10.89	%		3.20	%		10.89	%		3.20	%
Allowance for loan losses to nonperforming loans (coverage)		26.14	%		42.84	%		26.14	%		42.84	%
Interest rate spread		2.13	%		2.87	%		1.94	%		2.79	%
Net interest margin		2.30	%		3.11	%		2.15	%		3.21	%