MYRTLE BEACH, S.C., Jan. 28, 2008 (PRIME NEWSWIRE) -- Beach First National Bancshares, Inc. (Nasdaq:BFNB) today announced increases in 2007 year-end earnings and total assets over figures reported for the same period in 2006.
Net income for the year ended December 31, 2007 increased 1.07 percent, totaling $6,262,195 or $1.26 per diluted share, when compared to the $6,195,728 or $1.27 per diluted share, reported for the year ended December 31, 2006. Total assets grew to $606.0 million, which represents an increase of 16.5 percent from December 31, 2006.
Walt Standish, president and chief executive officer, said, "Beach First has held its own in the face of many challenges, showing some earnings improvement, which is evidence of our relative strength in the market. The banking industry as a whole has had to manage through many challenges in 2007, as declining home sales, turmoil in the credit markets, and pressure on the net interest margin have been issues for banks across the country."
Standish added, "While we expect market conditions to remain unsettled in 2008, we will continue to operate from a position of strength. During the second quarter of 2008, we expect to open our seventh location, a branch at 73rd Avenue North in Myrtle Beach. We are investing in technology to make banking easy for our customers, and we are touting our brand to build awareness of our bank in the markets we serve. We believe we are well prepared to handle the challenges of 2008 and are poised to take advantage of opportunities as economic conditions improve."
Additional Year-End Highlights
Total loans grew to $509.9 million, a 24.0 percent increase over the December 31, 2006 figure. Total deposits grew to $464.2 million, an increase of 11.5 percent from December 31, 2006.
Return on average equity was 12.80 percent for the year ended December 31, 2007, compared to 14.53 percent for the year ended December 31, 2006. Return on average assets was 1.11 percent for the year ended December 31, 2007, compared to 1.33 percent for the same period a year ago. The net interest margin stood at 4.20 percent at December 31, 2007, compared to 4.62 percent at December 31, 2006. Book value per share was $10.85 per share at December 31, 2007, compared to $9.53 per share at December 31, 2006.
Beach First operates six banking locations in Myrtle Beach, Surfside Beach, North Myrtle Beach, Pawleys Island, and Hilton Head Island, South Carolina. Beach First offers a full line of banking products and services, including NetTeller internet banking. A seventh location is scheduled to open during the second quarter of 2008 at 7202 North Kings Highway in Myrtle Beach. The bank's mortgage lending division operates eight mortgage offices in the Carolinas and mid-Atlantic states. 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,
-----------------------------
2007 2006
------------- -------------
Assets
Cash and due from banks $ 5,197,574 $ 5,198,945
Federal funds sold and short term
investments 361,104 14,010,667
Investment securities 65,677,993 68,474,531
Loans
Loans, net of unearned income 503,432,516 398,736,636
Mortgage loans held for sale 6,475,619 12,478,221
------------- -------------
Total Loans 509,908,135 411,214,857
Allowance for Loan Loss (6,935,616) (5,888,052)
Loans, net of allowance 502,972,519 405,326,805
------------- -------------
Federal Reserve Bank stock 984,000 984,000
Federal Home Loan Bank stock 3,395,300 2,475,600
Property and equipment, net 15,746,143 14,344,330
Cash value of life insurance 3,554,807 3,424,586
Investment in BFNB Trusts 310,000 310,000
Other assets 7,788,978 5,651,875
------------- -------------
Total assets $ 605,988,418 $ 520,201,339
============= =============
Liabilities and Shareholders' Equity
Liabilities
Deposits
Non-interesting bearing $ 33,138,936 $ 37,194,469
Interest bearing 431,059,409 379,162,660
------------- -------------
Total deposits 464,198,345 416,357,129
------------- -------------
Advances from Federal Home Loan Bank 55,000,000 37,500,000
Other borrowings 18,288,147 7,209,820
Junior subordinated debentures 10,310,000 10,310,000
Other liabilities 5,613,877 3,364,811
------------- -------------
Total liabilities 553,410,369 474,741,760
------------- -------------
Shareholders' Equity
Common stock, $1 par value, 10,000,000
shares authorized, 4,845,018 shares
issued and outstanding at December 31,
2007 and 4,768,413 at December 31,
2006 4,845,018 4,768,413
Paid-in capital 29,109,348 28,657,576
Retained earnings 18,968,989 12,706,795
Accumulated other comprehensive loss (345,305) (673,205)
------------- -------------
Total shareholders' equity 52,578,050 45,459,579
------------- -------------
Total liabilities and shareholders'
equity $ 605,988,419 $ 520,201,339
============= =============
Beach First National Bancshares, Inc. and Subsidiaries
Myrtle Beach, South Carolina
Consolidated Statements of Income
For the Years ended December 31,
----------------------------------------
2007 2006 2005
------------ ------------ ------------
Interest income
Loans and fees on loans $ 41,075,377 $ 33,096,343 $ 18,938,676
Investment securities 3,698,507 2,897,719 1,838,313
Federal funds sold and
short term investments 309,165 469,819 127,961
Other 23,970 22,929 15,681
Total interest income 45,107,019 36,486,810 20,920,631
------------ ------------ ------------
Interest expense
Deposits 18,802,056 13,711,212 5,912,891
Advances from FHLB and
federal funds purchased 2,443,234 1,546,286 747,209
Junior subordinated
debentures 1,236,683 771,740 528,812
------------ ------------ ------------
Total interest expense 22,481,973 16,029,238 7,188,912
Net interest income 22,625,046 20,457,572 13,731,719
Provision for loan losses 2,045,600 2,174,400 2,184,000
------------ ------------ ------------
Net interest income after
provision for loan losses 20,579,446 18,283,172 11,547,719
------------ ------------ ------------
Noninterest income
Service fees on deposit
accounts 568,760 514,285 549,689
Retail mortgage origination
income 2,424,502 1,001,210 249,757
Miscellaneous loan fees 1,766,923 537,490 --
Merchant income 665,811 164,229 17,806
Gain on sale of loans 895,767 658,949 14,610
Income from cash value life
insurance 152,086 143,717 89,809
Gain on sale of fixed assets 6,324 583,011 142
Other income 1,097,611 387,458 196,064
------------ ------------ ------------
Total noninterest income 7,577,784 3,990,349 1,117,877
------------ ------------ ------------
Noninterest expenses
Salaries and wages 7,760,272 6,018,633 3,371,922
Employee benefits 1,646,093 1,138,653 675,496
Supplies and printing 199,977 126,705 101,889
Advertising and public
relations 615,552 387,056 295,509
Professional fees 725,122 311,627 327,130
Depreciation and
amortization 1,060,255 518,551 539,406
Occupancy 1,719,491 1,065,091 724,313
Data processing fees 748,446 547,747 455,646
Other operating expenses 4,458,136 2,461,594 1,053,867
------------ ------------ ------------
Total noninterest expenses 18,933,344 12,575,657 7,545,178
------------ ------------ ------------
Income before income taxes 9,223,886 9,697,864 5,120,418
Income tax expense 2,961,691 3,502,136 1,760,775
------------ ------------ ------------
Net income $ 6,262,195 $ 6,195,728 $ 3,359,643
============ ============ ============
Basic net income per common
share $ 1.30 $ 1.30 $ 0.84
Diluted net income per
common share $ 1.26 $ 1.27 $ 0.83
Weighted average common
shares outstanding:
Basic 4,817,911 4,764,072 3,975,864
============ ============ ============
Diluted 4,977,067 4,874,562 4,059,865
============ ============ ============
Beach First National Bancshares, Inc. and Subsidiaries
Myrtle Beach, South Carolina
Consolidated Statements of Income
For the Three Months ended
December 31,
--------------------------
2007 2006
------------ ------------
Interest income
Loans and fees on loans $ 10,431,489 $ 9,656,861
Investment securities 914,919 849,295
Federal funds sold and short term
investments 28,992 156,241
Other 6,066 6,013
------------ ------------
Total interest income 11,381,466 10,668,410
------------ ------------
Interest expense
Deposits 4,821,890 4,208,272
Advances from FHLB and federal funds
purchased 738,031 479,355
Junior subordinated debentures 269,093 202,762
------------ ------------
Total interest expense 5,829,014 4,890,389
------------ ------------
Net interest income 5,552,452 5,778,021
Provision for loan losses 1,094,800 395,800
------------ ------------
Net interest income after provision for
loan losses 4,457,652 5,382,221
------------ ------------
Noninterest income
Service fees on deposit accounts 141,781 132,674
Retail mortgage origination income 298,202 473,369
Miscellaneous loan fees 252,566 273,212
Merchant income 148,700 59,442
Gain on sale of loans 192,545 339,715
Income from cash value life insurance 37,936 36,721
Other income 214,599 165,427
------------ ------------
Total noninterest income 1,286,329 1,480,560
------------ ------------
Noninterest expenses
Salaries and wages 1,776,178 1,813,244
Employee benefits 415,890 376,156
Supplies and printing 49,903 37,164
Advertising and public relations 119,585 118,614
Professional fees 269,919 (38,984)
Depreciation and amortization 267,273 152,804
Occupancy 388,034 359,809
Data processing fees 220,328 158,415
Other operating expenses 986,367 1,012,865
------------ ------------
Total noninterest expenses 4,493,477 3,990,087
------------ ------------
Income before income taxes 1,250,504 2,872,694
Income tax expense 121,232 1,041,683
------------ ------------
Net income $ 1,129,272 $ 1,831,011
============ ============
Basic net income per common share $ 0.23 $ 0.38
------------ ------------
Diluted net income per common share $ 0.23 $ 0.38
------------ ------------
Weighted average common shares
outstanding:
Basic 4,843,182 4,768,413
============ ============
Diluted 4,958,040 4,879,701
============ ============
Beach First National Bancshares, Inc. and Subsidiaries
Myrtle Beach, South Carolina
Asset Quality Ratios and Other Data
(Unaudited)
December 31, December 31, December 31,
------------ ------------ ------------
2007 2006 2005
----- ---- ----
Net Income $ 6,262,195 $ 6,195,728 $ 3,359,643
Average assets 564,196,922 464,599,310 311,887,493
Average equity 48,932,435 42,652,928 29,553,166
Average loans 458,703,105 372,791,961 251,305,542
End of period loans 509,908,135 411,214,857 311,788,722
Return on average assets 1.11% 1.33% 1.08%
Return on average equity 12.80% 14.53% 11.37%
Allowance for loan losses 6,935,616 5,888,052 4,364,287
Net charge-offs 948,036 650,635 241,552
Allowance for loan losses
to total loans 1.36% 1.43% 1.40%
Net charge-offs to average
total loans 0.21% 0.17% 0.10%
Total non performing loans 2,902,888 1,624,511 1,111,264
Total other real estate owned 15,000 15,000 62,947
------------ ------------ ------------
Total nonperforming assets 2,917,888 1,639,511 1,174,211
Nonperforming loans as a
percent of total loans 0.57% 0.40% 0.36%
Total nonperforming assets
as a percent of total assets 0.48% 0.31% 0.29%
Allowance for loan losses
to nonperforming loans 238.92% 362.45% 392.73%
Interest rate spread 3.63% 4.06% 4.13%
Net interest margin 4.20% 4.62% 4.60%