Earnings Grow 43% at Beach First in 2003


MYRTLE BEACH, S.C., Jan. 20, 2004 (PRIMEZONE) -- Beach First National Bancshares, Inc. (OTCBB:BFNB), parent of Beach First National Bank, has announced its fifth consecutive year of strong earnings growth. Net income for year ended December 31, 2003, increased 42.6%, totaling $1,008,931 or $0.77 per basic share, when compared to the $707,271 or $0.54 per basic share reported for 2002. Return on average equity for the year completed December 31, 2003 increased 34.5% to 7.05% compared to 5.24% in 2002.

Total assets grew to $165.1 million, which represents an increase of 39.4% over the previous year. Total deposits grew to $137.6 million, an increase of 37.8% in 2003. Total loans grew to $135.6 million, a 45.3% increase over the previous year.

Walt Standish, president and chief executive officer, said, "We are pleased to report this robust performance in a year of rapid growth for Beach First National. We opened new offices in North Myrtle Beach and Hilton Head Island, while expanding our product menu to include internet banking. Our emphasis on providing community banking service along with quality financial products continues to resonate with customers in existing and new markets. Our ability to grow and develop new customer relationships fuels our balance sheet growth and financial performance," Standish said.

Beach First National Bancshares, Inc. is the parent of Beach First National Bank, a $165 million financial institution headquartered in Myrtle Beach, South Carolina. Beach First operates offices in Myrtle Beach, Surfside Beach, North Myrtle Beach, and Hilton Head Island, South Carolina and offers a full line of banking products and services, including NetTeller internet banking service. The company's stock trades under the symbol BFNB.



      Beach First National Bancshares, Inc. and Subsidiary

                    Consolidated Balance Sheets

                                                 December 31,
                                       --------------   -------------
                                            2003              2002
                                       --------------   -------------
 Assets

 Cash and due from banks               $    4,886,682   $   4,457,614
 Federal funds sold and
  short term investments                    4,598,520       5,429,214
 Investment securities                     11,918,074       7,552,282
 Loans, net                               133,851,712      92,024,574
 Federal Reserve Bank stock                   309,000         164,700
 Federal Home Loan Bank stock                 575,000         200,000
 Property and equipment, net                4,477,943       4,577,770
 Other assets                               4,476,105       4,002,671
                                        -------------   -------------
   Total assets                         $ 165,093,036   $ 118,408,825
                                        =============   =============
 Liabilities and shareholders'
  equity

 Liabilities

 Deposits

   Non-interesting bearing              $  22,942,621   $  19,316,292
   Interest bearing                       114,645,442      80,549,745
                                        -------------   -------------
      Total deposits                      137,588,063      99,866,037

 Advances from Federal
  Home Loan Bank                           11,500,000       4,000,000
 Other liabilities                          1,272,080         614,420
                                        -------------   -------------

      Total liabilities                   150,360,143     104,480,457


 Shareholders' equity

   Common stock, $1 par value,
    10,000,000 shares authorized,
    1,318,368 shares issued and
    outstanding at December
    31, 2002 and 1,323,768 at
    December 31, 2003                       1,323,768       1,318,368
   Paid-in capital                         11,837,299      11,787,899
   Retained earnings                        1,718,321         709,390
   Accumulated other
    comprehensive income                     (146,495)        112,711
                                        -------------   -------------

   Total shareholders' equity              14,732,893      13,928,368
                                        -------------   -------------
   Total liabilities and
    shareholders' equity                $ 165,093,036   $ 118,408,825
                                        =============   =============



                 Consolidated Statements of Income

                                   For the years ended December 31,
                               ------------------------------------
                                   2003         2002         2001
                               ------------------------------------
 Interest income

   Loans and fees
    on loans                    $7,927,496   $5,898,801   $5,040,259
   Investment securities           505,829      413,289      446,585
   Federal funds sold and
    short term investments          62,937       73,206      242,601
                                ----------   ----------   ----------

    Total interest income        8,496,261    6,385,296    5,729,445

 Interest expense

    Deposits and
     borrowings                  2,482,917    2,095,499    2,704,990
                                ----------   ----------   ----------

    Net interest income          6,013,344    4,289,797    3,024,455

 Provision for
  possible loan losses             713,000      539,000      467,000
                                ----------   ----------   ----------

  Net interest income
   after provision for
   possible loan losses          5,300,344    3,750,797    2,557,455
                                ----------   ----------   ----------

 Noninterest income

 Service fees on
  deposit accounts                 490,694      420,128      295,624
 Gain on sale of
  loan                                -          96,886         -
 Gain on sale of
  investment securities            134,530          997         -
 Other income                      356,998      213,613       85,488
                                ----------   ----------   ----------


 Total noninterest income          982,222      731,624      381,112
                                ----------   ----------   ----------
 Noninterest expenses

  Personnel costs                2,475,513    1,744,051    1,297,201
  Advertising and public
   relations                       168,138      117,077       81,605
  Occupancy and Equipment          790,811      560,364      354,563
  Other operating expenses       1,249,530      934,438      670,387
                                ----------   ----------   ----------

   Total noninterest
    expenses                     4,683,992    3,355,930    2,403,756
                                ----------   ----------   ----------

  Income before
   income taxes                  1,598,574    1,126,491      534,811

 Income tax expense                589,643      419,220       75,517
                                ----------   ----------   ----------

   Net income                   $1,008,931     $707,271     $459,294
                                ==========   ==========   ==========
 Basic net income
  per common share                   $0.77        $0.54        $0.46

 Diluted net income
  per common share                   $0.75        $0.53        $0.46

 Weighted average
  number of common
  Shares outstanding

    Basic                        1,318,835    1,318,368      990,302
                                ==========   ==========   ==========
    Diluted                      1,343,402    1,324,979    1,000,369
                                ==========   ==========   ==========


            

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