MYRTLE BEACH, S.C., July 18, 2006 (PRIMEZONE) -- Beach First National Bancshares, Inc. (Nasdaq:BFNB) today announced that earnings for the six months ended June 30, 2006 grew 130.1%, when compared with the same period last year.
Net income for the three months ended June 30, 2006, increased 114.6%, totaling $1,423,091, or $0.44 per diluted share, when compared to the $663,251, or $0.29 per diluted share, reported for the quarter ended June 30, 2005. There was double digit growth in earnings, deposits, and loans as compared to June 30, 2005. Total assets grew to $461.9 million, an increase of 45.6% from the same period a year ago. Total deposits grew to $370.7 million, an increase of 48.9% from the same period a year ago. Total loans grew to $380.6 million, a 52.3% increase over the same period a year ago. Net income includes a one time gain of $366,030 on the sale of real estate and approximately $163,800 in one time expenses related to the formation of the mortgage division. (See reconciliation of GAAP to non-GAAP below.)
Beach First National Bancshares, Inc. provides non-GAAP measures for operating income, net income and net income per share data as supplemental information regarding Beach First National Bancshares' core business operational performance. Beach First National Bancshares believes that these non-GAAP financial measures are an indication of Beach First National Bancshares' baseline performance before gains, losses or other charges that are considered by management to be outside Beach First National Bancshares' core business operational results. Beach First National Bancshares uses core business operational results for its internal budgeting and measurement purposes and to develop its perspective and understanding of Beach First National Bancshares performance historically, currently and prospectively. The core business operational results are also used by Beach First National Bancshares to provide a consistent method of comparison to historical periods and to the performance of competitors and peer group companies.
Net income for the six months ended June 30, 2006, increased 130.1%, totaling $2,634,898, or $0.81 per diluted share, when compared to the $1,145,101, or $0.52 per diluted share, reported for the six months ended June 30, 2005.
Return on average shareholders' equity was 12.88% for the six months ended June 30, 2006 (annualized), compared to 11.52 % for the six months ended June 30, 2005 (annualized). The net interest margin was 4.50% for the period ended June 30, 2006, when compared to 4.51% for the same period a year ago. Book value per share was $12.86 per share at June 30, 2006, compared to $11.92 per share at June 30, 2005.
Walt Standish, president and chief executive officer, said, "Our financial performance is attributed to robust growth in the balance sheet with deposits and loans showing strong gains. During the second quarter, we greatly expanded our mortgage lending operations, adding more than 35 originators and closers, along with mortgage loan production offices in Little River and in North Carolina, Virginia, and Maryland. We also began preparations for the move to our new headquarters on Grissom Parkway to take place later this fall."
Beach First National Bancshares, Inc. is the parent of Beach First National Bank, a $462 million financial institution headquartered in Myrtle Beach, South Carolina. Beach First operates six 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 and mortgage lending. The company's stock trades on the NASDAQ Global Market under the symbol BFNB and the website is www.beachfirst.com.
The Beach First National Bank logo is available at http://media.primezone.com/prs/single/?pkgid=703
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, 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. 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,
2006 2005 2005
---- ---- -----
(unaudited) (unaudited) (audited)
ASSETS
Cash and due from banks $ 7,656,305 $ 5,554,721 $ 4,284,868
Federal funds sold and
short term investments 1,140,600 9,951,047 25,521,071
Investment securities
available for sale 55,981,528 42,618,511 43,975,876
Loans, net 375,325,808 246,481,357 307,424,435
Federal Reserve Bank stock 984,000 309,000 534,000
Federal Home Loan Bank
stock 2,318,100 1,336,400 2,011,400
Premises and equipment, net 9,573,056 5,118,058 6,672,507
Cash value life insurance 3,361,903 3,240,520 3,301,417
Other assets 5,517,653 2,680,283 3,663,660
------------ ------------ ------------
Total assets $461,858,953 $317,289,897 $397,389,234
============ ============ ============
LIABILITIES AND
SHAREHOLDERS' EQUITY
LIABILITIES:
Deposits
Noninterest bearing
deposits $ 32,062,917 $ 30,108,671 $ 31,152,603
Interest bearing deposits 338,648,329 218,839,604 279,741,607
------------ ------------ ------------
Total deposits 370,711,246 248,948,275 310,894,210
Advances from Federal Home
Loan Bank 32,500,000 19,000,000 34,000,000
Other borrowings 4,971,581 -- 1,504,009
Junior subordinated
debentures 10,310,000 10,310,000 10,310,000
Other liabilities 2,546,114 1,264,036 1,555,602
------------ ------------ ------------
Total liabilities 421,038,941 279,522,311 358,263,821
------------ ------------ ------------
SHAREHOLDERS' EQUITY:
Common stock, $1 par value;
10,000,000 shares
authorized; shares issued
and outstanding -
3,174,508 at June 30,
2006, 3,168,458 at June
30, 2005, and 3,169,958
at December 31, 2005 3,174,508 3,168,458 3,169,958
Paid-in capital 30,215,895 30,355,287 30,157,843
Retained earnings 9,148,480 4,299,040 6,513,582
Accumulated other
comprehensive income
(loss) (1,718,871) (55,199) (715,970)
------------ ------------ ------------
Total shareholders' equity 40,820,012 37,767,586 39,125,413
------------ ------------ ------------
Total liabilities and
shareholders' equity $461,858,953 $317,289,897 $397,389,234
============ ============ ============
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,
-------- --------
2006 2005 2006 2005
---- ---- ---- ----
INTEREST INCOME
Interest and
fees on loans $14,623,038 $ 7,965,420 $ 7,799,168 $ 4,329,777
Investment
securities 1,262,116 840,818 679,972 447,096
Fed funds sold
& short term
investments 236,985 73,290 86,675 43,091
----------- ----------- ----------- -----------
Total interest
income 16,122,139 8,879,528 8,565,815 4,819,964
INTEREST EXPENSE
Deposits 5,850,959 2,442,335 3,154,070 1,362,078
Advances from
the FHLB and
federal funds
purchased 687,414 275,201 345,525 150,336
Junior
subordinated
debentures 366,827 209,513 189,580 140,500
----------- ----------- ----------- -----------
Total interest
expense 6,905,200 2,927,049 3,689,175 1,652,914
Net interest
income 9,216,939 5,952,479 4,876,640 3,167,050
PROVISION FOR
POSSIBLE LOAN
LOSSES 1,187,400 1,099,000 665,200 599,000
----------- ----------- ----------- -----------
Net interest
income after
provision
for possible
loan losses 8,029,539 4,853,479 4,211,440 2,568,050
----------- ----------- ----------- -----------
NONINTEREST
INCOME
Service fees on
deposit
accounts 261,948 282,269 133,982 141,807
Gain on sale of
loan 60,392 14,610 38,133 --
Gain (Loss) on
sale of
investment
securities -- 9,665 -- 10,195
Income from
cash value
life insurance 70,526 46,899 35,676 21,561
Mortgage loan
referral fees 120,874 106,317 54,489 66,497
Other income 759,026 95,387 698,967 51,907
----------- ----------- ----------- -----------
Total
noninterest
income 1,272,766 555,147 961,247 291,967
----------- ----------- ----------- -----------
NONINTEREST
EXPENSES
Salaries and
wages 2,489,799 1,652,258 1,466,316 858,092
Employee
benefits 433,710 324,962 199,403 153,456
Supplies and
printing 59,361 49,522 30,922 23,206
Advertising and
public
relations 172,783 136,945 89,268 63,974
Legal and
professional
fees 269,176 148,770 191,654 76,062
Depreciation and
amortization 250,125 259,375 119,723 132,891
Occupancy 405,889 361,866 216,405 178,051
Data processing
fees 246,776 220,211 129,807 110,523
Other operating
expenses 859,209 460,686 505,538 230,701
----------- ----------- ----------- -----------
Total
noninterest
expenses 5,186,828 3,614,595 2,949,036 1,826,956
----------- ----------- ----------- -----------
Income before
income taxes 4,115,477 1,794,031 2,223,651 1,033,061
INCOME TAX
EXPENSE 1,480,579 648,930 800,560 369,810
----------- ----------- ----------- -----------
Net income $ 2,634,898 $ 1,145,101 $ 1,423,091 $ 663,251
=========== =========== =========== ===========
BASIC NET INCOME
PER COMMON
SHARE $ .83 $ .54 $ .45 $ .30
=========== =========== =========== ===========
DILUTED NET
INCOME PER
COMMON SHARE $ .81 $ .52 $ .44 $ .29
=========== =========== =========== ===========
Beach First National Bancshares, Inc. and Subsidiaries
Myrtle Beach, South Carolina
Consolidated Statements of Income
(Unaudited)
Asset Quality Ratios and
Other Data June 30, June 30, December 31,
2006 2005 2005
--------- --------- ----------
(In thousands)
Total nonperforming loans $ 1,696 $ 533 $ 1,111
Allowance for loan losses 5,329 3,434 4,364
Nonperforming loans as a
percent of total loans 0.45% 0.21% 0.36%
Nonperforming assets, past
due and restructured loans
to total assets 0.37% 0.17% 0.28%
Net charge-offs to average
total loans 0.06% 0.04% 0.10%
Allowance for loan losses to
total loans 1.40% 1.37% 1.40%
Allowance for loan losses to
nonperforming loans 314.31% 644.85% 392.80%
For the For the
three months Year ended
Ended June 30, December 31,
-------------- ------------
2006 2005 2005
---- ---- ----
Interest rate spread 3.95% 4.14% 4.10%
Net interest margin 4.50% 4.51% 4.67%
Reconciliation of
GAAP to Non-GAAP Six Months Three Months
Measures Ended June 30, Ended June 30,
2006 2005 2006 2005
---- ---- ---- ----
Net income, as
reported (GAAP) $2,634,898 $1,145,101 $1,423,091 $ 663,251
Non-operating items:
Gain on sale of
assets, net of
income taxes (366,030) -- (366,030) --
One time expenses
related to
formation of
mortgage division,
net of income
taxes 163,800 -- 163,800 --
---------- ---------- ---------- ----------
Operating earnings
(net income,
excluding
non-operating
items) $2,837,128 $1,145,101 $1,625,321 $ 663,251
========== ========== ========== ==========
Basic net income per
common share, as
reported .83 .54 .45 .30
Diluted net income
per common share,
as reported .81 .52 .44 .29
Basic net income per
common share,
adjusted non-GAAP .88 .54 .51 .30
Diluted net income
per common share,
adjusted non-GAAP .85 .52 .50 .29