MYRTLE BEACH, S.C., Oct. 16, 2007 (PRIME NEWSWIRE) -- Beach First National Bancshares, Inc. (Nasdaq:BFNB) today announced that its year-to-date net income grew 17.6 percent over figures reported for the same period in 2006.
Net income for the nine months ended September 30, 2007, increased 17.6 percent, totaling $5,132,922 or $1.04 per diluted share, when compared to the $4,364,717, or $0.90 per diluted share, reported for the nine months ended September 30, 2006. Net income for the quarter ended September 30, 2007, grew 5.3 percent, totaling $1,822,106 or $0.37 per diluted share, when compared to the $1,729,819, or $0.35 per diluted share reported for the quarter ended September 30, 2006.
"Current market conditions have made for an even more challenging environment for banks during 2007," said Walt Standish, Beach First president and chief executive officer. "The unsettled housing market, disruptions in the credit markets, and the ensuing Federal Reserve interest rate cut have all factored into bank performance across the industry this year. Beach First has weathered these conditions well and we are optimistic about the future."
Standish continued, "The expansion of our North Myrtle Beach office will be completed in November of this year, while plans for our newest office at 73rd Avenue North in Myrtle Beach are proceeding well, and we expect to open in the first quarter of 2008. We also continued to strengthen our mortgage lending team despite the recent turmoil in the housing markets, so we can take advantage of opportunities when conditions improve."
Additional Third Quarter Highlights
Total assets grew to $571.4 million, which represents an increase of 16.1 percent from September 30, 2006. Total deposits grew to $440.3 million, an increase of 15.0 percent from September 30, 2006. Total loans grew to $471.8 million, a 16.8 percent increase over the September 30, 2006 figure.
Annualized return on average equity was 14.34 percent for the nine months ended September 30, 2007, compared to 13.93 percent for the nine months ended September 30, 2006. Annualized return on average assets was 1.24 percent for the nine months ended September 30, 2007, compared to 1.30 percent for the same period a year ago. Return on average shareholders' equity was 14.53 percent for the three months ended September 30, 2007, compared to 15.78 percent for the three months ended September 30, 2006. Return on average assets was 1.26 percent for the three months ended September 30, 2007, compared to 1.36 percent for the same period a year ago.
The net interest margin was 4.24 percent for the quarter ended September 30, 2007, compared to 4.57 percent for the same period a year ago. Book value per share stood at $10.70 per share at September 30, 2007, compared to $9.14 per share at September 30, 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 first 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.
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
September 30, December 31,
2007 2006 2006
---- ---- ----
(unaudited) (unaudited) (audited)
-------
ASSETS
Cash and due from banks $ 5,067,749 $ 6,694,944 $ 5,198,945
Federal funds sold and short
term investments 359,278 235,866 14,010,667
Investment securities
available for sale 69,093,920 62,892,627 68,474,531
Loans, net 458,997,863 389,971,616 392,848,582
Mortgage Loans Held for Sale 6,392,792 8,174,321 12,478,222
Federal Reserve Bank stock 984,000 984,000 984,000
Federal Home Loan Bank stock 3,395,300 2,475,600 2,475,600
Premises and equipment, net 15,303,367 11,197,614 14,344,330
Cash value life insurance 3,522,501 3,393,144 3,424,586
Investment in BFNB Trusts 310,000 310,000 310,000
Other assets 7,958,718 5,705,823 5,651,876
------------ ------------ ------------
Total assets $571,385,488 $492,035,555 $520,201,339
============ ============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposits
Noninterest bearing
deposits $ 40,317,614 $ 35,560,935 $ 37,194,469
Interest bearing deposits 399,947,404 347,223,536 379,162,660
------------ ------------ ------------
Total deposits 440,265,018 382,784,471 416,357,129
Advances from Federal Home
Loan Bank 55,000,000 37,500,000 37,500,000
Other borrowings 9,281,626 14,780,469 7,209,820
Junior subordinated
debentures 10,310,000 10,310,000 10,310,000
Other liabilities 5,202,383 3,085,054 3,364,811
------------ ------------ ------------
Total liabilities 520,059,027 448,459,994 474,741,760
------------ ------------ ------------
SHAREHOLDERS' EQUITY:
Common stock, $1 par value;
10,000,000 shares authorized;
shares issued and outstanding -
4,842,766 at September 30, 2007;
4,768,512 at September 30, 2006;
and 4,768,413 at
December 31, 2006 4,842,766 4,768,512 4,768,413
Paid-in capital 29,110,906 28,657,576 28,657,576
Retained earnings 17,839,719 10,878,299 12,706,795
Accumulated other
comprehensive income (loss) (466,930) (728,826) (673,205)
------------ ------------ ------------
Total shareholders' equity 51,326,461 43,575,561 45,459,579
------------ ------------ ------------
Total liabilities and
shareholders' equity $571,385,488 $492,035,555 $520,201,339
============ ============ ============
Beach First National Bancshares, Inc. and Subsidiaries
Myrtle Beach, South Carolina
Consolidated Statements of Income
(Unaudited)
Nine Months Ended Three Months Ended
September 30, September 30,
------------- -------------
2007 2006 2007 2006
---- ---- ---- ----
INTEREST INCOME
Interest and
fees on loans $30,643,888 $23,439,481 $10,587,658 $ 8,816,443
Investment securities 2,783,588 2,048,424 934,016 786,308
Fed funds sold & other 298,077 330,493 147,841 93,509
----------- ----------- ----------- -----------
Total interest
income 33,725,553 25,818,398 11,669,515 9,696,260
INTEREST EXPENSE
Deposits 13,980,166 9,502,940 4,780,404 3,651,980
Advances from
the FHLB and
federal funds
purchased 1,705,203 1,066,931 734,416 379,518
Junior subordinated
debentures 967,591 568,977 327,606 202,150
----------- ----------- ----------- -----------
Total interest
expense 16,652,960 11,138,848 5,842,426 4,233,648
Net interest income 17,072,593 14,679,550 5,827,089 5,462,612
PROVISION FOR
POSSIBLE LOAN LOSSES 950,800 1,778,600 278,800 591,200
----------- ----------- ----------- -----------
Net interest income
after provision
for possible
loan losses 16,121,793 12,900,950 5,548,289 4,871,412
----------- ----------- ----------- -----------
NONINTEREST INCOME
Service fees on
deposit accounts 426,979 381,611 148,956 119,663
Gain on sale of loans 703,222 258,842 208,389 258,842
Retail mortgage
origination income 2,126,300 527,841 493,648 406,968
Income from cash value
life insurance 114,150 106,996 39,734 36,469
Miscellaneous loan
fee income 1,514,357 264,278 354,040 264,278
Other income 1,406,447 970,221 559,428 150,803
----------- ----------- ----------- -----------
Total noninterest
income 6,291,455 2,509,789 1,804,194 1,237,022
----------- ----------- ----------- -----------
NONINTEREST EXPENSES
Salaries and wages 5,984,093 4,205,389 1,636,798 1,715,590
Employee benefits 1,230,203 762,497 422,781 328,788
Supplies and printing 150,074 89,542 56,988 30,181
Advertising and public
relations 495,967 268,441 178,916 95,658
Professional fees 455,203 350,610 182,379 81,435
Depreciation and
amortization 789,185 365,747 266,224 115,621
Occupancy 1,335,255 705,281 469,710 299,392
Data processing fees 528,118 389,333 175,057 142,557
Other operating
expenses 3,471,769 1,448,729 1,132,224 589,519
----------- ----------- ----------- -----------
Total noninterest
expenses 14,439,867 8,585,569 4,521,077 3,398,741
----------- ----------- ----------- -----------
Income before
income taxes 7,973,381 6,825,170 2,831,406 2,709,693
INCOME TAX EXPENSE 2,840,459 2,460,453 1,009,300 979,874
----------- ----------- ----------- -----------
Net income $ 5,132,922 $ 4,364,717 $ 1,822,106 $ 1,729,819
=========== =========== =========== ===========
BASIC NET INCOME
PER COMMON SHARE $ 1.07 $ 0.92 $ 0.38 $ 0.36
=========== =========== =========== ===========
DILUTED NET INCOME
PER COMMON SHARE $ 1.04 $ 0.90 $ 0.37 $ 0.35
=========== =========== =========== ===========
Beach First National Bancshares, Inc. and Subsidiaries
Myrtle Beach, South Carolina
Asset Quality Ratios and Other Data
(Unaudited)
(In thousands)
Sept. 30, Sept. 30, Dec. 31,
--------- --------- --------
2007 2006 2006
---- ---- ----
Total nonperforming loans $ 550 $2,615 $1,625
Allowance for loan losses 6,397 5,671 5,888
Return on average equity (annualized) 14.34% 13.93% 14.53%
Return on average assets (annualized) 1.24% 1.30% 1.33%
Nonperforming loans as a percent of
total loans 0.12% 0.65% 0.40%
Nonperforming assets, past due and
restructured loans to total assets 0.15% 0.62% 0.31%
Net charge-offs to average total loans 0.12% 0.13% 0.17%
Allowance for loan losses to total loans 1.36% 1.40% 1.43%
Allowance for loan losses to
nonperforming loans 1,163.70% 216.85% 362.45%
For the For the
Three Months Year
Ended Ended
Sept. 30, Dec. 31,
--------- --------
2007 2006 2006
---- ---- ----
Interest rate spread 3.64% 4.04% 4.06%
Net interest margin 4.24% 4.57% 4.62%
Return on average equity 14.53% 15.78% 14.53%
Return on average assets 1.26% 1.36% 1.33%