MYRTLE BEACH, S.C., Oct. 17, 2006 (PRIMEZONE) -- Beach First National Bancshares, Inc. (Nasdaq:BFNB) today announced that its net income for the nine months ended September 30, 2006, increased 104.7 percent over figures reported for the same period in 2005.
Net income for the quarter ended September 30, 2006 increased 75.1 percent, totaling $1,729,819, or $0.53 per diluted share, when compared to $987,551, or $0.30 per diluted share, for the same period a year ago. As of September 30, 2006, total assets were $492.0 million, which represents an increase of 44.0 percent compared to September 30, 2005. Total deposits grew to $382.8 million, an increase of 43.3 percent from September 30, 2005. Total loans grew to $403.8 million, a 43.9 percent increase from September 30, 2005.
Net income for the nine months ended September 30, 2006 increased $2,232,065, totaling $4,364,717, or $1.34 per diluted share, an increase of 104.7 percent when compared to $2,132,652, or $0.83 per diluted share, for the nine months ended September 30, 2005.
Return on average shareholders' equity was 13.93 percent for the nine months ended September 30, 2006 (annualized), compared to 10.81 percent for the same period in 2005 (annualized). The net interest margin declined slightly to 4.57 percent at September 30, 2006, compared to 4.65 percent at September 30, 2005. Book value per share was $13.71 per share at September 30, 2006, compared to $12.06 per share at September 30, 2005.
Walt Standish, president and chief executive officer, said, "Beach First's third quarter performance can be attributed to our favorable net interest margin, fueled by our ability to meet strong loan demand and by growth of deposits as we have promoted competitive and special rates in all markets. During the third quarter, we continued to make progress on our new headquarters at the corner of 38th Avenue North and Grissom Parkway in Myrtle Beach and expect to occupy the new building in December 2006."
Beach First National Bancshares, Inc. is the parent of Beach First National Bank, a $492.0 million financial company 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. The company's stock trades on the NASDAQ Global Market under the symbol BFNB and the website is beachfirst.com.
The Beach First National Bank logo can be found 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 September 30, December 31, 2006 2005 2005 ---- ---- ---- ASSETS (unaudited) (unaudited) (audited) --------- --------- ------- Cash and due from banks $ 6,694,944 $ 5,156,506 $ 4,284,868 Federal funds sold and short term investments 235,866 607,305 25,521,071 Investment securities available for sale 62,892,627 45,392,922 43,975,876 Loans, net 398,145,937 276,693,072 307,424,435 Federal Reserve Bank stock 984,000 534,000 534,000 Federal Home Loan Bank stock 2,475,600 1,448,900 2,011,400 Premises and equipment, net 11,197,614 5,112,738 6,672,507 Cash value life insurance 3,393,144 3,271,008 3,301,417 Investment in BFNB Trusts 310,000 310,000 -- Other assets 5,705,823 3,290,746 3,663,660 ------------ ------------ ------------ Total assets $492,035,555 $341,817,197 $397,389,234 ============ ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES: Deposits Noninterest bearing deposits $ 35,560,935 $ 34,066,310 $ 31,152,603 Interest bearing deposits 347,223,536 233,029,902 279,741,607 ------------ ------------ ------------ Total deposits 382,784,471 267,096,212 310,894,210 Advances from Federal Home Loan Bank 37,500,000 21,500,000 34,000,000 Other borrowings 14,780,469 3,080,000 1,504,009 Junior subordinated debentures 10,310,000 10,310,000 10,310,000 Other liabilities 3,085,054 1,626,547 1,555,602 ------------ ------------ ------------ Total liabilities 448,459,994 303,612,759 358,263,821 ------------ ------------ ------------ SHAREHOLDERS' EQUITY: Common stock, $1 par value; 10,000,000 shares authorized; shares issued and outstanding - 3,179,008 at September 30, 2006, 3,168,458 at September 30, 2005 and 3,169,958 at December 31, 2005 3,179,008 3,168,458 3,169,958 Paid-in capital 30,247,080 30,277,536 30,157,843 Retained earnings 10,878,299 5,286,591 6,513,582 Accumulated other comprehensive income (loss) (728,826) (528,147) (715,970) ------------ ------------ ------------ Total shareholders' equity 43,575,561 38,204,438 39,125,413 ------------ ------------ ------------ Total liabilities and shareholders' equity $492,035,555 $341,817,197 $397,389,234 ============ ============ ============ Beach First National Bancshares, Inc. and Subsidiaries Myrtle Beach, South Carolina Consolidated Statements of Operations (Unaudited) Nine Months Ended Three Months Ended September 30, September 30, ------------- ------------- 2006 2005 2006 2005 ---- ---- ---- ---- INTEREST INCOME Interest and fees on loans $23,439,481 $13,143,631 $ 8,816,443 $ 5,178,211 Investment securities 2,048,424 1,326,583 786,308 485,766 Fed funds sold and short term investments 330,493 121,432 93,509 48,141 ----------- ----------- ----------- ----------- Total interest income 25,818,398 14,591,646 9,696,260 5,712,118 INTEREST EXPENSE Deposits 9,502,940 3,991,768 3,651,980 1,549,433 Short-term borrowings 1,066,931 428,115 379,518 152,914 Long-term borrowings-junior subordinated debt 568,977 362,427 202,150 152,913 ----------- ----------- ----------- ----------- Total interest expense 11,138,848 4,782,310 4,233,648 1,855,260 Net interest income 14,679,550 9,809,336 5,462,612 3,856,858 PROVISION FOR POSSIBLE LOAN LOSSES 1,778,600 1,643,000 591,200 544,000 ----------- ----------- ----------- ----------- Net interest income after provision for possible loan losses 12,900,950 8,166,336 4,871,412 3,312,858 ----------- ----------- ----------- ----------- NONINTEREST INCOME Service fees on deposit accounts 381,611 407,166 119,663 124,897 Gain on sale of loans 60,392 14,610 -- -- Gain on sale of mortgage loans 258,842 -- 258,842 -- Loss on sale of investment securities -- (3,935) -- (13,600) Income from cash value life insurance 106,996 68,371 36,469 21,472 Income from mortgage operations 792,119 180,541 671,245 74,224 Other income 909,829 157,166 150,803 61,778 ----------- ----------- ----------- ----------- Total noninterest income 2,509,789 823,919 1,237,022 268,771 ----------- ----------- ----------- ----------- NONINTEREST EXPENSES Salaries and wages 4,205,389 2,634,429 1,715,590 982,170 Employee benefits 762,497 491,417 328,788 166,455 Supplies and printing 89,542 75,487 30,181 25,964 Advertising and public relations 268,441 215,279 95,658 78,334 Professional fees 350,610 225,388 81,435 76,618 Depreciation and amortization 365,747 398,350 115,621 138,976 Occupancy 705,281 545,179 299,392 183,313 Data processing fees 389,333 335,706 142,557 115,494 Other operating expenses 1,448,729 735,046 589,519 274,362 ----------- ----------- ----------- ----------- Total noninterest expenses 8,585,569 5,656,281 3,398,741 2,041,686 ----------- ----------- ----------- ----------- Income before income taxes 6,825,170 3,333,974 2,709,693 1,539,943 INCOME TAX EXPENSE 2,460,453 1,201,322 979,874 552,392 ----------- ----------- ----------- ----------- Net income $ 4,364,717 $ 2,132,652 $ 1,729,819 $ 987,551 =========== =========== =========== =========== BASIC NET INCOME PER COMMON SHARE $ 1.37 $ .86 $ .54 $ .31 =========== =========== =========== =========== DILUTED NET INCOME PER COMMON SHARE $ 1.34 $ .83 $ .53 $ .30 =========== =========== =========== =========== Weighted average common shares outstanding: Basic 3,175,051 2,476,052 3,178,470 3,168,458 Diluted 3,248,391 2,563,420 3,254,874 3,255,826 Beach First National Bancshares, Inc. and Subsidiaries Myrtle Beach, South Carolina (Unaudited) (In thousands) Asset Quality Ratios and Other Data September 30, September 30, December 31, 2005 ------------- ------------- ----------------- 2006 2005 ---- ---- Total nonperforming loans $ 2,615 $ 1,010 $ 1,111 Allowance for loan losses 5,671 3,902 4,364 Nonperforming loans as a percent of total loans 0.65% 0.36% 0.36% Nonperforming assets, past due and restructured loans to total assets 0.62% 0.32% 0.28% Net charge-offs to average total loans 0.13% 0.07% 0.10% Allowance for loan losses to total loans 1.40% 1.39% 1.40% Allowance for loan losses to nonperforming loans 216.85% 386.24% 392.80% For the nine months ended For the Year ended September 30, December 31, ------------- ------------ 2006 2005 2005 ---- ---- ---- Interest rate spread 4.04% 4.22% 4.10% Net interest margin 4.57% 4.65% 4.67%