MYRTLE BEACH, S.C., July 19, 2007 (PRIME NEWSWIRE) -- Beach First National Bancshares, Inc. (Nasdaq:BFNB) today announced that its earnings grew 19.4 percent in the second quarter of 2007 and 25.7 percent in the six months ended June 30, 2007.
Net income for the quarter ended June 30, 2007, increased 19.4 percent, totaling $1,698,433 or $0.34 per diluted share, when compared to the $1,423,091, or $0.29 per diluted share, reported for the quarter ended June 30, 2006. Net income for the six months ended June 30, 2007, increased 25.7 percent, totaling $3,310,817, or $0.67 per diluted share, when compared to the $2,634,898, or $0.54 per diluted share, reported for the six months ended June 30, 2006.
In making the announcement, Walt Standish, president and chief executive officer, said, "I am pleased to report that Beach First continues to perform well in a period of strong growth for the bank and increased competition in the markets we serve. During the second quarter, we further expanded our mortgage lending operation into the Raleigh area, adding more than 25 originators in this exciting market. We also continued to build the infrastructure needed for a growing bank by improving information systems and adding support staff."
Additional Second Quarter Highlights
Annualized return on average shareholders' equity was 14.12 percent for the six months ended June 30, 2007, compared to 12.88 percent for the six months ended June 30, 2006. Annualized return on average assets was 1.20 percent for the six months ended June 30, 2007, compared to 1.22 percent for the same period a year ago. The net interest margin was 4.35 percent for the quarter ended June 30, 2007, when compared to 4.50 percent for the same period a year ago. Book value per share stood at $10.10 per share at June 30, 2007, compared to $8.57 per share at June 30, 2006.
Total assets grew to $584.3 million, which represents an increase of 26.5 percent from June 30, 2006. Total deposits grew to $458.3 million, an increase of 23.6 percent from June 30, 2006. Total loans grew to $457.4 million, a 20.2 percent increase over the June 30, 2006 figure.
Beach First operates six banking locations in Myrtle Beach, Surfside Beach, North Myrtle Beach, Pawleys Island, and Hilton Head Island, South Carolina, and eight mortgage offices in the Carolinas and mid-Atlantic states. Beach First 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
June 30, December 31,
2007 2006 2006
---- ---- ----
(unaudited) (unaudited) (audited)
ASSETS
Cash and due from banks $ 6,592,898 $ 7,656,305 $ 5,198,945
Federal funds sold and
short term investments 26,072,380 1,140,600 14,010,667
Investment securities
available for sale 69,656,885 55,981,528 68,474,531
Loans, net 438,976,611 371,267,988 392,848,582
Mortgage Loans Held for Sale 12,073,613 4,057,820 12,478,222
Federal Reserve Bank stock 984,000 984,000 984,000
Federal Home Loan Bank stock 3,395,300 2,318,100 2,475,600
Premises and equipment, net 15,320,930 9,573,056 14,344,330
Cash value life insurance 3,488,332 3,361,903 3,424,586
Other assets 7,701,741 5,517,653 5,961,876
------------- ------------- -------------
Total assets $ 584,262,690 $ 461,858,953 $ 520,201,339
============= ============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposits
Noninterest bearing
deposits $ 37,320,198 $ 32,062,917 $ 37,194,469
Interest bearing deposits 420,950,438 338,648,329 379,162,660
------------- ------------- -------------
Total deposits 458,270,636 370,711,246 416,357,129
Advances from Federal
Home Loan Bank 55,000,000 32,500,000 37,500,000
Other borrowings 7,058,507 4,971,581 7,209,820
Junior subordinated
debentures 10,310,000 10,310,000 10,310,000
Other liabilities 4,749,438 2,546,114 3,364,811
------------- ------------- -------------
Total liabilities 535,388,581 421,038,941 474,741,760
------------- ------------- -------------
SHAREHOLDERS' EQUITY:
Common stock, $1 par value;
10,000,000 shares authorized;
shares issued and
outstanding - 4,836,916
at June 30, 2007, 4,761,762
at June 30, 2006, and
4,768,413 at
December 31, 2006 4,836,916 4,761,762 4,768,413
Paid-in capital 29,050,951 28,628,641 28,657,576
Retained earnings 16,017,612 9,148,480 12,706,795
Accumulated other
comprehensive income (loss) (1,031,370) (1,718,871) (673,205)
------------- ------------- -------------
Total shareholders' equity 48,874,109 40,820,012 45,459,579
------------- ------------- -------------
Total liabilities and
shareholders' equity $ 584,262,690 $ 461,858,953 $ 520,201,339
============= ============= =============
Beach First National Bancshares, Inc. and Subsidiaries
Myrtle Beach, South Carolina
Consolidated Statements of Income
(Unaudited)
Six Months Ended Three Months Ended
June 30, June 30,
-------- --------
2007 2006 2007 2006
---- ---- ---- ----
INTEREST INCOME
Interest and
fees on
loans $ 20,056,229 $ 14,623,038 $ 10,339,772 $ 7,799,168
Investment
securities 1,849,572 1,262,116 944,729 679,972
Fed funds sold 138,378 226,075 69,351 81,022
Other 11,860 10,910 5,960 5,653
------------ ------------ ------------ ------------
Total interest
income 22,056,039 16,122,139 11,359,812 8,565,815
INTEREST EXPENSE
Deposits 9,199,762 5,850,959 4,732,477 3,154,070
Advances from
the FHLB
and federal
funds
purchased 970,787 687,414 541,971 345,525
Junior
subordinated
debentures 639,985 366,827 321,605 189,580
------------ ------------ ------------ ------------
Total interest
expense 10,810,534 6,905,200 5,596,053 3,689,175
Net interest
income 11,245,505 9,216,939 5,763,759 4,876,640
PROVISION FOR
POSSIBLE
LOAN LOSSES 722,000 1,187,400 370,800 665,200
------------ ------------ ------------ ------------
Net interest
income after
provision
for possible
loan losses 10,523,505 8,029,539 5,392,959 4,211,440
------------ ------------ ------------ ------------
NONINTEREST INCOME
Service fees
on deposit
accounts 278,023 261,948 142,535 133,982
Gain on sale
of loan -- 60,392 -- 38,133
Gain on sale
of fixed
asset 4,780 -- 930 --
Income from
cash value
life
insurance 74,416 70,526 37,657 35,676
Income from
mortgage
operations 3,287,803 120,874 1,514,605 54,489
Other income 842,240 759,026 311,500 698,967
------------ ------------ ------------ ------------
Total
noninterest
income 4,487,262 1,272,766 2,007,227 961,247
------------ ------------ ------------ ------------
NONINTEREST EXPENSES
Salaries and
wages 4,347,295 2,489,799 2,014,864 1,466,316
Employee
benefits 807,422 433,710 406,516 199,403
Supplies and
printing 93,086 59,361 41,903 30,922
Advertising
and public
relations 317,052 172,783 173,446 89,268
Professional
fees 272,824 269,176 144,836 191,654
Depreciation
and
amortization 522,961 250,125 207,222 119,723
Occupancy 865,545 405,889 270,992 216,405
Data
processing
fees 353,062 246,776 181,605 129,807
Other operating
expenses 2,289,544 859,209 1,322,819 505,538
------------ ------------ ------------ ------------
Total noninterest
expenses 9,868,791 5,186,828 4,764,203 2,949,036
------------ ------------ ------------ ------------
Income before
income taxes 5,141,976 4,115,477 2,635,983 2,223,651
INCOME TAX
EXPENSE 1,831,159 1,480,579 937,550 800,560
------------ ------------ ------------ ------------
Net income $ 3,310,817 $ 2,634,898 $ 1,698,433 $ 1,423,091
============ ============ ============ ============
BASIC NET
INCOME PER
COMMON SHARE $ 0.69 $ 0.55 $ 0.35 $ 0.30
============ ============ ============ ============
DILUTED NET
INCOME PER
COMMON SHARE $ 0.67 $ 0.54 $ 0.34 $ 0.29
============ ============ ============ ============
Beach First National Bancshares, Inc. and Subsidiaries
Myrtle Beach, South Carolina
Asset Quality Ratios and Other Data
(Unaudited)
(In thousands)
June 30, June 30, December 31,
2007 2006 2006
-------- -------- ------------
Total nonperforming loans $ 1,432 $ 1,696 $ 1,625
Allowance for loan losses 6,332 5,329 5,888
Return on average equity
(annualized) 14.12% 12.88% 14.53%
Return on average assets
(annualized) 1.20% 1.22% 1.33%
Nonperforming loans as a
percent of total loans 0.31% 0.45% 0.40%
Nonperforming assets, past
due and restructured
loans to total assets 0.25% 0.37% 0.31%
Net charge-offs to average
total loans 0.04% 0.06% 0.17%
Allowance for loan losses
to total loans 1.38% 1.40% 1.43%
Allowance for loan losses to
nonperforming loans 442.18% 314.31% 362.45%
For the Year
For the three months ended
Ended June 30, December 31,
--------------------- -------------
2007 2006 2006
---- ---- ----
Interest rate spread 3.80% 3.95% 4.06%
Net interest margin 4.35% 4.50% 4.62%