Beach First National Bancshares (BFNB) 8-K Beach First Announces Restated Year End 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 Restated Year End Results

Myrtle Beach, SC, March 26, 2009 — Beach First National Bancshares, Inc. is correcting its unaudited 2008 year end results announced on January 27, 2009. Net loss for the year ended December 31, 2008 was $3,708,116, rather than $2,907,216 as previously reported. The corrections relate primarily to an increase in our allowance for loan losses and an adjustment to a gain incurred on loan sales. These revisions relate only to the 4^th quarter and annual results for 2008 and will not affect any financial statements previously filed by Beach First with the SEC for any period.

Walt Standish, president and chief executive officer, stated, “As we reviewed our allowance for loan losses and the related accounts, we found these adjustments needed to be made to properly reflect our 2008 results.”

“During the fourth quarter, we took additional steps to recognize the decline in local real estate values and the impact on our customers. Beach First has increased its reserve for loan loss ratio to 1.55% for potential losses in the portfolio. In spite of the ongoing economic challenges facing our markets, Beach First continues to serve the needs of our customers with quality service and competitive rates,” Standish said.

Additional Financial Data

• Total deposits grew to $533.4 million, an increase of 14.9 percent from December 31, 2007.

• Total portfolio loans grew to $551.2 million, a 9.48 percent increase over the December 31, 2007 figure.

• The Company ended 2008 with a Tier 1 Capital to average assets ratio of 8.95% and with a Tier 1 Capital to risk weighted assets ratio of 11.29%.

(M O R E)

Beach First Announces Restated Year End Results P. 2

• Annualized return on average equity was (6.94) percent for the year ended December 31, 2008, compared to 12.01 percent for the year ended December 31, 2007. The net interest margin was 3.06 percent for the year ended December 31, 2008, compared to 4.20 percent for the same period a year ago.

• Book value per share stood at $10.26 per share at December 31, 2008, compared to $10.85 per share at December 31, 2007.

• 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 $668.8 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 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

	December 31,
	2008			2007
	(unaudited)			(audited)
Assets
Cash and due from banks	$	4,830,112		$	4,992,634
Federal funds sold and short-term investments		6,580,273			566,044
Investment securities		70,594,811			65,677,993
Portfolio loans, net of unearned		551,156,821			503,432,516
Allowance for loan losses (ALL)		(8,642,651	)		(6,935,616	)
Portfolio loans, net of ALL		542,514,170			496,496,900
Mortgage loans held for sale		7,210,088			6,475,619
Federal Reserve Bank stock		1,014,000			984,000
Federal Home Loan Bank stock		3,545,100			3,395,300
Premises and equipment, net		15,624,792			15,746,143
Cash value of life insurance		3,674,106			3,554,807
Investment in BFNB Trusts		310,000			310,000
OREO and Repossessed Assets		3,111,741			15,000
Other assets		9,806,424			7,773,978
Total assets	$	668,815,617		$	605,988,418
Liabilities and shareholders’ equity
Liabilities:
Deposits
Noninterest bearing deposits	$	24,628,632		$	33,138,936
Interest bearing deposits		508,730,077			431,059,409
Total deposits		533,358,709			464,198,345
Advances from Federal Home Loan Bank		55,000,000			55,000,000
Federal funds purchased and other borrowings		16,165,022			18,288,148
Junior subordinated debentures		10,310,000			10,310,000
Other liabilities		4,263,797			5,613,875
Total liabilities		619,097,528			553,410,368
Commitments and contingencies
Shareholders’ equity:
Common stock, $1 par value; 10,000,000 shares authorized; 4,845,018 issued and outstanding at December 31, 2008 and 4,845,018 at December 31, 2007		4,845,018			4,845,018
Paid-in capital		29,513,166			29,494,912
Retained earnings		14,875,309			18,583,425
Accumulated other comprehensive loss		484,596			(345,305	)
Total shareholders’ equity		49,718,089			52,578,050
Total liabilities and shareholders’ equity	$	668,815,617		$	605,988,418

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

	For the years ended December 31,
	2008			2007		2006
	(unaudited)			(audited)		(audited)
Interest income
Interest and fees on loans	$	37,640,681		$	41,064,557	$	33,091,838
Investment securities		3,585,613			3,698,507		2,886,528
Fed funds sold and short term investments		117,346			319,985		485,515
Other		18,355			23,970		22,929
Total interest income		41,361,995			45,107,019		36,486,810
Interest expense
Deposits		18,650,819			18,802,056		13,711,212
Advances from the FHLB, federal funds purchased and other borrowings		2,920,770			2,877,462		1,546,286
Junior subordinated debentures		588,316			802,455		771,740
Total interest expense		22,159,905			22,481,973		16,029,238
Net interest income		19,202,090			22,625,046		20,457,572
Provision for loan losses		10,491,000			2,045,600		2,174,400
Net interest income after provision for possible loan losses		8,711,090			20,579,446		18,283,172
Noninterest income
Service fees on deposit accounts		315,141			568,760		514,285
Mortgage production related income		3,447,728			4,911,705		2,136,250
Merchant income		892,113			665,811		164,229
Gain on sale of investment securities		23,180			7,904		58,283
Income from cash value life insurance		140,997			152,086		143,717
Gain on sale of fixed asset		220			6,324		583,011
Gain (loss) on sale of OREO (and writedowns)		(773,909	)		98,191		(73,678	)
Other income		1,185,603			1,205,504		337,586
Total noninterest income		5,231,073			7,616,285		3,863,683
Noninterest expense
Salaries and wages		7,333,941			7,760,272		6,018,633
Employee benefits		1,744,719			1,646,093		1,138,653
Supplies and printing		204,474			199,977		126,705
Advertising and public relations		521,099			615,552		387,056
Professional fees		742,836			725,122		311,627
Depreciation and amortization		1,124,250			1,060,255		518,551
Occupancy		1,652,406			1,739,101		1,065,091
Data processing fees		1,045,600			748,446		547,747
Mortgage production related expenses		711,747			1,153,246		258,277
Merchant Processing		798,061			623,947		167,866
Other operating expenses		3,801,571			2,699,834		1,908,785
Total noninterest expenses		19,680,704			18,971,845		12,448,991
Income (loss) before income taxes		(5,738,541	)		9,223,886		9,697,864
Income tax expense (benefit)		(2,030,425	)		3,347,256		3,502,136
Net income (loss)	$	(3,708,116	)	$	5,876,630	$	6,195,728
Basic net income (loss) per common share	$	(0.77	)	$	1.22	$	1.30
Diluted net income (loss) per common share	$	(0.77	)	$	1.18	$	1.27
Weighted average common shares outstanding:
Basic		4,845,018			4,817,911		4,764,072
Diluted		4,845,018			4,977,097		4,874,562

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

	For the Three Months ended December 31,
	2008			2007
	(unaudited)			(audited)
Interest income
Loans and fees on loans	$	8,667,776		$	10,469,876
Investment securities		828,260			914,919
Federal funds sold and short term investments		6,161			30,818
Other		4,869			6,065
Total interest income		9,507,066			11,421,678
Interest expense
Deposits		4,496,506			4,821,890
Advances from FHLB, federal funds purchased and other borrowings		705,312			844,287
Junior subordinated debentures		142,060			203,049
Total interest expense		5,343,878			5,869,226
Net interest income		4,163,188			5,552,452
Provision for loan losses		8,200,000			1,094,800
Net interest income after provision for possible loan losses		(4,036,812	)		4,457,652
Noninterest income
Service fees on deposit accounts		53,535			141,781
Mortgage production related income		740,062			703,826
Merchant income		154,288			148,700
Gain on sale of investment securities		2,146			7,904
Income from cash value life insurance		38,460			37,936
Gain on sale of fixed assets		0			825
Gain (loss) on sale of OREO (and writedowns)		(364,470	)		62,444
Other income		374,918			245,357
Total noninterest income		998,939			1,348,773
Noninterest expenses
Salaries and wages		1,668,293			1,776,178
Employee benefits		499,289			415,890
Supplies and printing		51,577			49,903
Advertising and public relations		94,667			119,585
Professional fees		216,893			269,919
Depreciation and amortization		281,616			267,273
Occupancy		461,696			367,944
Data processing fees		201,166			220,328
Mortgage production related expenses		114,953			136,876
Merchant processing		112,655			134,027
Other operating expenses		1,210,872			777,908
Total noninterest expenses		4,913,677			4,535,831
Income (loss) before income taxes		(7,951,550	)		1,250,504
Income tax expense (benefit)		(2,821,799	)		506,797
Net income (loss)	$	(5,129,751	)	$	743,707
Basic net income (loss) per common share	$	(1.06	)	$	0.15
Diluted net income (loss) per common share	$	(1.06	)	$	0.15
Weighted average common shares outstanding:
Basic		4,845,018			4,843,182
Diluted		4,845,018			4,958,040

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

	For the years ended December 31,
	2008			2007			2006
	(unaudited)			(audited)			(audited)
Net Income	$	(3,708,116	)	$	5,876,630		$	6,195,728
Average assets		656,627,095			564,196,922			464,599,310
Average equity		53,400,775			48,932,435			42,652,928
Average loans		549,953,836			458,703,105			372,791,961
End of period loans		558,366,909			509,908,135			411,214,857
End of period portfolio loans		551,156,821			503,432,516			398,736,636
Return on average assets		(0.56	)%		1.04	%		1.33	%
Return on average equity		(6.94	)%		12.01	%		14.53	%
Allowance for loan losses	$	8,642,651		$	6,935,616		$	5,888,052
Net charge-offs		8,783,965			948,036			650,635
Allowance for loan losses to total loans		1.55	%		1.36	%		1.43	%
Allowance for loan losses to portfolio loans		1.57	%		1.38	%		1.48	%
Net charge-offs to average total loans (annualized)		1.60	%		0.21	%		0.17	%
Total nonperforming loans		19,968,441			2,902,888			1,624,511
Total other real estate owned and repossessed assets		3,111,741			15,000			15,000
Total nonperforming assets		23,080,182			2,917,888			1,639,511
Total nonperforming assets as a percent of total assets		3.45	%		0.48	%		0.31	%
Nonperforming loans as a percent of total loans		3.58	%		0.57	%		0.40	%
Allowance for loan losses to nonperforming loans (coverage)		43.28	%		238.92	%		362.45	%
Interest rate spread		2.66	%		3.63	%		4.06	%
Net interest margin		3.06	%		4.20	%		4.62	%