MYRTLE BEACH, S.C., April 28, 2008 (PRIME NEWSWIRE) -- Beach First National Bancshares, Inc. (Nasdaq:BFNB) announced first quarter net income of $883,713, along with record growth in loans and deposits.
Net income for the three months ended March 31, 2008, totaled $883,713 or $0.18 per diluted share, an 18.8 percent increase over the previous quarter, but down significantly from figures reported for the first quarter 2007. The decrease is primarily a result of rate changes that impact our floating rate loans and an increase in the reserve for loan losses.
Total assets grew to $638.8 million, which represents an increase of 15.6 percent from March 31, 2007. Total deposits grew to $493.9 million, an increase of 11.0 percent from March 31, 2007. Total loans grew to $538.9 million, a 20.3 percent increase over the March 31, 2007 figure.
"The economic factors that impacted the banking industry's performance in the latter half of 2007 have continued into 2008," said Walt Standish, Beach First president and chief executive officer. "Declining real estate values, unsettled credit markets, and pressure on the net interest margin are issues that banks across the country must continue to manage in 2008. While our earnings increased over the fourth quarter, the real estate markets in Myrtle Beach and Hilton Head Island remain unsettled. We believe that we have a manageable level of problem assets, yet we have increased our loan loss reserve to protect against any further deterioration in real estate values or credit quality."
Standish added, "The overall growth in our balance sheet indicates that Beach First remains strong and focused on its core banking strengths. During the first quarter, we opened our newest office at 73rd Avenue North in Myrtle Beach. Response to the new location has been extremely positive as we bring our easy way of doing business to consumers and businesses alike. We are confident that Beach First is well positioned to weather these current economic conditions and to achieve continued growth," he said.
Additional First Quarter Highlights
* Annualized return on average equity was 6.64 percent for the three months ended March 31, 2008, compared to 14.04 percent for the three months ended March 31, 2007. * Annualized return on average assets was 0.56 percent for the three months ended March 31, 2007 compared to 1.21 percent for the same period a year ago. * The net interest margin was 3.45 percent for the quarter ended March 31, 2008, compared to 4.39 percent for the same period a year ago. * Book value per share stood at $11.11 per share at March 31, 2008 compared to $9.89 per share at March 31, 2007.
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 bank's mortgage lending division operates six 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.
The Beach First National Bank logo is available at http://www.primenewswire.com/newsroom/prs/?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, 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
March 31, December 31,
2008 2007 2007
---- ---- -----
(unaudited) (unaudited) (audited)
Assets
Cash and due from banks $ 5,544,916 $ 7,654,093 $ 4,992,634
Federal funds sold and
short-term investments 2,091,864 4,655,718 566,044
Investment securities 66,305,216 69,191,574 65,677,993
Portfolio loans, net of
unearned 531,546,872 434,129,341 503,432,516
Allowance for loan losses
(ALL) (7,519,960) (6,172,091) (6,935,616)
------------ ------------ ------------
Portfolio loans, net of ALL 524,026,912 427,957,250 496,496,900
Mortgage loans held for sale 7,356,399 13,865,389 6,475,619
Federal Reserve Bank stock 984,000 984,000 984,000
Federal Home Loan Bank stock 3,545,100 2,607,800 3,395,300
Premises and equipment, net 16,188,434 14,967,965 15,746,143
Cash value of life insurance 3,582,672 3,456,029 3,554,807
Investment in BFNB Trusts 310,000 310,000 310,000
Other assets 8,871,724 7,157,396 7,788,978
------------ ------------ ------------
Total assets $638,807,237 $552,807,214 $605,988,418
============ ============ ============
Liabilities and shareholders'
equity
Liabilities:
Deposits
Noninterest bearing
deposits $ 35,925,681 $ 35,863,807 $ 33,138,936
Interest bearing deposits 458,007,313 409,193,216 431,059,409
------------ ------------ ------------
Total deposits 493,932,994 445,057,023 464,198,345
Advances from Federal Home
Loan Bank 55,000,000 37,500,000 55,000,000
Federal funds purchased and
other borrowings 21,153,488 7,133,561 18,288,148
Junior subordinated
debentures 10,310,000 10,310,000 10,310,000
Other liabilities 4,595,991 5,526,823 5,613,875
------------ ------------ ------------
Total liabilities 584,992,473 505,527,407 553,410,368
------------ ------------ ------------
Shareholders' equity:
Common stock, $1 par value;
10,000,000 shares
authorized; 4,845,018
issued and outstanding at
March 31, 2008, 4,779,241
at March 31, 2007, and
4,845,018 at December 31,
2007 4,845,018 4,779,241 4,845,018
Paid-in capital 29,499,043 28,695,185 29,494,912
Retained earnings 19,467,137 14,319,179 18,583,425
Accumulated other
comprehensive loss 3,566 (513,798) (345,305)
------------ ------------ ------------
Total shareholders' equity 53,814,764 47,279,807 52,578,050
------------ ------------ ------------
Total liabilities and
shareholders' equity $638,807,237 $552,807,214 $605,988,418
============ ============ ============
Beach First National Bancshares, Inc. and Subsidiaries
Myrtle Beach, South Carolina
Consolidated Statements of Income
For the Year
Three Months Ended Ended
March 31, December 31,
--------- ------------
2008 2007 2007
---- ---- ----
(unaudited) (unaudited) (audited)
Interest income
Interest and fees on loans $ 10,159,454 $ 9,700,238 $ 41,064,557
Investment securities 998,444 904,843 3,698,507
Federal funds sold and
short term investments 71,602 72,477 319,985
Other 5,312 5,899 23,970
------------ ------------ ------------
Total interest income 11,234,812 10,683,457 45,107,019
Interest expense
Deposits 5,097,125 4,467,284 18,802,056
Advances from the FHLB,
federal funds purchased
and other borrowings 742,935 536,958 2,877,462
Junior subordinated
debentures 174,378 197,468 802,455
------------ ------------ ------------
Total interest expense 6,014,438 5,201,710 22,481,973
Net interest income 5,220,374 5,481,747 22,625,046
Provision for loan losses 746,000 351,200 2,045,600
------------ ------------ ------------
Net interest income after
provision for loan losses 4,474,374 5,130,547 20,579,446
------------ ------------ ------------
Noninterest income
Service fees on deposit
accounts 154,044 135,488 568,760
Mortgage production related
income 740,001 1,772,672 4,911,705
Merchant income 153,687 96,565 665,811
Gain on sale of investment
securities -- -- 7,904
Income from cash value life
insurance 33,527 36,759 152,086
Gain on sale of fixed assets 220 3,850 6,324
Other income 298,544 241,289 1,265,194
------------ ------------ ------------
Total noninterest income 1,380,023 2,286,623 7,577,784
------------ ------------ ------------
Noninterest expense
Salaries and wages 1,697,881 2,332,432 7,760,272
Employee benefits 401,208 400,906 1,646,093
Supplies and printing 52,267 51,182 199,977
Advertising and public
relations 182,400 143,606 615,552
Professional fees 142,436 127,989 725,122
Depreciation and
amortization 268,937 252,598 1,060,255
Occupancy 410,615 464,283 1,719,491
Data processing fees 186,300 171,457 748,446
Mortgage production related
expense 169,667 380,697 1,153,246
Merchant processing 157,677 111,829 623,947
Other operating expenses 809,364 474,198 2,680,943
------------ ------------ ------------
Total noninterest expenses 4,478,752 4,911,177 18,933,344
------------ ------------ ------------
Income before income taxes 1,375,645 2,505,993 9,223,886
Income tax expense 491,932 893,609 3,347,256
------------ ------------ ------------
Net income $ 883,713 $ 1,612,384 $ 5,876,630
============ ============ ============
Basic net income per common
share $ 0.18 $ 0.34 $ 1.22
============ ============ ============
Diluted net income per
common share $ 0.18 $ 0.33 $ 1.18
============ ============ ============
Weighted average common
shares outstanding - basic 4,845,018 4,769,102 4,817,911
Weighted average common
shares outstanding -
diluted 4,925,485 4,926,803 4,977,067
Beach First National Bancshares, Inc. and Subsidiaries
Myrtle Beach, South Carolina
Summary Financial Data
(Unaudited)
Three months Three months Full year
March 31, March 31, December 31,
--------- -------- ------------
2008 2007 2007
---- ---- ----
Net Income $ 883,713 $ 1,612,384 $ 5,876,630
Average assets 634,628,092 533,374,207 564,196,922
Average equity 53,201,254 45,926,801 48,932,435
Average loans 526,467,333 428,506,579 458,703,105
End of period loans 538,903,271 447,994,730 509,908,135
Return on average assets 0.56% 1.21% 1.04%
Return on average equity 6.64% 14.04% 12.01%
Allowance for loan losses $ 7,519,960 $ 6,172,091 6,935,616
Net charge-offs 161,656 17,161 948,036
Allowance for loan losses to
total loans 1.40% 1.38% 1.36%
Net charge-offs to average
total loans (annualized) 0.12% 0.02% 0.21%
Total nonperforming loans $ 5,119,312 $ 1,088,422 2,902,888
Total other real estate owned 1,545,647 670,310 15,000
------------ ------------ ------------
Total nonperforming assets 6,664,959 1,758,732 2,917,888
Nonperforming loans as a
percent of total loans 1.24% 0.24% 0.57%
Total nonperforming assets
as a percent of total assets 1.04% 0.32% 0.48%
Allowance for loan losses to
nonperforming loans
(coverage) 146.89% 567.07% 238.92%
Interest rate spread 2.96% 3.84% 3.63%
Net interest margin 3.45% 4.39% 4.20%