Beach First National Bancshares (BFNB) 8-K 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

Beach First Announces Second Quarter Earnings

Myrtle Beach, SC, July 28, 2008 – Beach First National Bancshares, Inc. (NASDAQ: BFNB) announced second quarter net income of $336,507 or $0.07 per diluted share. Year to date net income totaled $1,220,220 or $0.25 per diluted share.

Beach First continues to experience solid growth, despite a decline in net income in 2008. Total assets grew to $670 million, which represents an increase of 14.6 percent from June 30, 2007. Total deposits grew to $533 million, an increase of 16.4 percent from June 30, 2007.  Total portfolio loans grew to $553 million, a 24.3 percent increase over the June 30, 2007 figure.

“We are proud of our performance during one of the most challenging banking environments in the history of the Myrtle Beach and Hilton Head Island markets,” said Walt Standish, Beach First president and chief executive officer.  “The rapid decline in both interest rates and residential real estate values has negatively impacted our earnings. During the second quarter, we also absorbed the one-time costs related to a significant upgrade of our core processing software. This upgrade was needed to position the bank for future growth,” he said.

Standish added, “The decline in real estate values greatly affected credit quality throughout our markets. We have taken a conservative approach in identifying problem loans and maintaining reserves to weather any further deterioration. We maintain a healthy capital position and the real estate markets have shown signs of bottoming. Combined with a more stable interest rate environment, this should result in better performance for the remainder of the year,” Standish said.

Additional Second Quarter Highlights

· Annualized return on average equity was 4.56 percent for the six months ended June 30, 2008, compared to 14.12 percent for the six months ended June 30, 2007.

· Annualized return on average assets was 0.38 percent for the six months ended June 30, 2008, compared to 1.20 percent for the same period a year ago.

· The net interest margin was 3.27 percent for the six months ended June 30, 2008, compared to 4.35 percent for the same period a year ago.

· Book value per share stood at $10.96 per share at June 30, 2008, compared to $10.10 per share at June 30, 2007.

(M O R E)

Beach First Announces Earnings for Second Quarter 2008

Beach First National Bank is a $670 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 National 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.

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Beach First National Bancshares, Inc. and Subsidiaries

Myrtle Beach, South Carolina

Consolidated Balance Sheets

	June 30,						December 31,
	2008			2007			2007
	(unaudited)			(unaudited)			(audited)
Assets
Cash and due from banks	$	13,560,183		$	6,592,898		$	4,992,634
Federal funds sold and short-term investments	—			26,072,380			566,044
Investment securities	69,059,993			69,656,884			65,677,993
Portfolio loans, net of unearned	553,385,016			445,308,418			503,432,516
Allowance for loan losses (ALL)	(7,646,053		)	(6,331,806		)	(6,935,616		)
Portfolio loans, net of ALL	545,738,963			438,976,612			496,496,900
Mortgage loans held for sale	6,528,090			12,073,613			6,475,619
Federal Reserve Bank stock	984,000			984,000			984,000
Federal Home Loan Bank stock	3,545,100			3,395,300			3,395,300
Premises and equipment, net	16,089,907			15,320,929			15,746,143
Cash value of life insurance	3,616,025			3,488,334			3,554,807
Investment in BFNB Trusts	310,000			310,000			310,000
Other assets	10,085,769			7,391,740			7,788,978
Total assets	$	669,518,030		$	584,262,690		$	605,988,418
Liabilities and shareholders’ equity
Liabilities
Deposits
Noninterest bearing deposits	$	37,345,807		$	37,320,198		$	33,138,936
Interest bearing deposits	495,927,217			420,950,438			431,059,409
Total deposits	533,273,024			458,270,636			464,198,345
Advances from Federal Home Loan Bank	55,000,000			55,000,000			55,000,000
Federal funds purchased and other borrowings	14,128,499			7,058,507			18,288,148
Junior subordinated debentures	10,310,000			10,310,000			10,310,000
Other liabilities	3,706,225			4,749,438			5,613,875
Total liabilities	616,417,748			535,388,581			553,410,368
Shareholders’ equity
Common stock, $1 par value; 10,000,000 shares authorized; 4,845,018 issued and outstanding at June 30, 2008, 4,836,916 at June 30, 2007, and 4,845,018 at December 31, 2007	4,845,018			4,836,916			4,845,018
Paid-in capital	29,503,751			29,050,951			29,494,912
Retained earnings	19,803,644			16,017,612			18,583,425
Accumulated other comprehensive loss	(1,052,131		)	(1,031,370		)	(345,305		)
Total shareholders’ equity	53,100,282			48,874,109			52,578,050
Total liabilities and shareholders’ equity	$	669,518,030		$	584,262,690		$	605,988,418

Consolidated Statements of Income

Beach First National Bancshares, Inc. and Subsidiaries

Myrtle Beach, South Carolina

	Six Months Ended June 30,				Three Months Ended June 30,
	2008		2007		2008		2007
Interest income
Interest and fees on loans	$	19,463,997	$	20,024,549	$	9,304,543	$	10,324,311
Investment securities	1,906,342		1,849,572		907,898		944,729
Fed funds sold and short term investments	86,885		144,570		15,283		72,093
Other	9,445		11,860		4,133		5,961
Total interest income	21,466,669		22,030,551		10,231,857		11,347,094
Interest expense
Deposits	9,659,697		9,199,762		4,562,572		4,732,478
Advances from the FHLB, federal funds purchased and other borrowings	1,452,282		1,188,302		709,347		651,344
Junior subordinated debentures	311,726		396,982		137,348		199,514
Total interest expense	11,423,705		10,785,046		5,409,267		5,583,336
Net interest income	10,042,964		11,245,505		4,822,590		5,763,758
Provision for loan losses	1,314,000		622,000		568,000		320,800
Net interest income after provision for possible loan losses	8,728,964		10,623,505		4,254,590		5,442,958
Noninterest income
Service fees on deposit accounts	209,477		278,023		55,433		142,535
Mortgage production related income	1,663,699		3,287,803		923,698		1,515,131
Merchant income	384,829		259,226		231,142		162,661
Income from cash value life insurance	72,583		74,416		39,056		37,657
Gain on sale of fixed asset	220		4,780		—		930
Other income	516,053		583,014		217,509		341,725
Total noninterest income	2,846,861		4,487,262		1,466,838		2,200,639
Noninterest expense
Salaries and wages	3,673,688		4,347,295		1,975,807		2,014,863
Employee benefits	799,853		807,422		398,645		406,516
Supplies and printing	104,916		93,086		52,649		41,904
Advertising and public relations	318,942		317,052		136,542		173,446
Professional fees	339,160		272,824		196,724		144,836
Depreciation and amortization	550,206		522,961		281,269		270,363
Occupancy	806,242		865,545		395,627		401,262
Data processing fees	636,525		353,062		450,225		181,605
Mortgage production related expenses	379,018		816,378		209,351		435,681
Merchant Processing	406,182		280,026		248,505		168,197
Other operating expenses	1,661,621		1,293,140		852,257		768,941
Total noninterest expenses	9,676,353		9,968,791		5,197,601		5,007,614
Income before income taxes	1,899,472		5,141,976		523,827		2,535,983
Income tax expense	679,252		1,831,159		187,320		937,550
Net income	$	1,220,220	$	3,310,817	$	336,507	$	1,698,433
Basic net income per common share	$	0.25	$	0.69	$	0.07	$	0.35
Diluted net income per common share	$	0.25	$	0.67	$	0.07	$	0.34
Weighted average common shares outstanding - basic	4,845,018		4,793,924		4,845,018		4,818,556
Weighted average common shares outstanding - diluted	4,914,943		4,949,533		4,904,199		4,967,124

Beach First National Bancshares, Inc. and Subsidiaries

Myrtle Beach, South Carolina

Summary Financial Data

(Unaudited)

	Six months		Six months		Three months		Three months
	June 30, 2008		June 30, 2007		June 30, 2008		June 30, 2007
Net Income	$	1,220,220	$	3,310,817	$	336,507	$	1,698,433
Average assets	644,435,195		549,867,459		654,199,617		562,138,555
Average equity	53,477,841		46,898,398		53,754,741		47,912,520
Average loans	537,617,439		442,197,589		548,767,543		455,738,148
End of period loans	559,913,106		457,382,031		559,913,106		457,382,031
Return on average assets	0.38%		1.20%		0.21%		1.21%
Return on average equity	4.56%		14.12%		2.50%		14.18%
Allowance for loan losses	$	7,646,053	$	6,331,806	$	7,646,053	$	6,331,806
Net charge-offs	603,563		178,246		441,907		161,085
Allowance for loan losses to total loans	1.37%		1.38%		1.37%		1.38%
Net charge-offs to average total loans (annualized)	0.23%		0.08%		0.32%		0.14%
Total nonperforming loans	$	13,003,335	$	1,431,960	$	13,003,335	$	1,431,960
Total other real estate owned	2,365,000		328,775		2,365,000		328,775
Total nonperforming assets	15,368,335		1,760,735		15,368,335		1,760,735
Nonperforming loans as a percent of total loans	2.32%		0.31%		2.32%		0.31%
Total nonperforming assets as a percent of total assets	2.30%		0.30%		2.30%		0.30%
Allowance for loan losses to nonperforming loans (coverage)	58.80%		442.18%		58.80%		442.18%
Interest rate spread	2.83%		3.79%		2.70%		3.75%
Net interest margin	3.27%		4.35%		3.09%		4.31%