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%