<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------------------------
FORM 10-QSB
(Mark One)
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
- --- EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997.
OR
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
- --- SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
------------ ------------
Commission File No. 33-95562
BEACH FIRST NATIONAL BANCSHARES, INC.
- -------------------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
South Carolina 57-1030117
- -------------------------------- --------------------------------------------
(State of Incorporation) (I.R.S. Employer Identification No.)
1601 N. Oak Street, Suite 305 Myrtle Beach South Carolina 29577
- -------------------------------------------------------------------------------
(Address of Principal Executive Offices)
(803) 626-2265
- -------------------------------------------------------------------------------
(Issuer's Telephone Number, Including Area Code)
Not Applicable
- -------------------------------------------------------------------------------
(Former Name, Former Address and Former Fiscal Year, if Changed
Since Last Report)
Check whether the issuer (1) filed all reports required to be filed by
section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the issuer was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.
Yes X No
----- -----
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares
outstanding of each of the issuer's classes of common equity as of the latest
practicable date.
Common stock, $1.00 par value per share 735,868 shares issued and
outstanding as of May 6, 1997.
<PAGE> 2
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
BEACH FIRST NATIONAL BANCSHARES, INC.
MYRTLE BEACH, SOUTH CAROLINA
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
ASSETS (Unaudited) (Unaudited)
- ------ ----------- -----------
<S> <C> <C>
Cash $ 724,429 $ 672,929
Federal funds sold 3,080,000 2,560,000
---------- ----------
Total cash & cash equivalents $ 3,804,429 $ 3,232,929
Securities:
Available-for-sale, at fair value 8,136,413 5,080,830
Loans, net 4,030,919 1,077,897
Land, property and equipment, net 906,570 475,205
Other assets 281,370 197,146
---------- ----------
Total Assets $17,159,701 $10,064,007
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Liabilities:
Deposits
Non-interest bearing deposits $ 2,902,863 $ 383,128
Interest bearing deposits 7,361,521 2,634,528
---------- ----------
Total deposits $10,264,384 $ 3,017,656
Other liabilities 40,629 85,582
---------- ----------
Total Liabilities $10,305,013 $ 3,103,238
---------- ----------
Commitments and contingencies
Shareholders' Equity:
Common stock, $1.00 par value,
10,000,000 shares authorized,
735,868 shares issued & outstanding $ 735,868 $ 735,868
Paid-in-capital 6,476,481 6,476,481
Retained deficit (337,293) (261,247)
Unrealized (loss) on fair value
of securities available-for-sale (20,368) 9,667
---------- ----------
Total Shareholders' Equity $ 6,854,688 $ 6,960,769
---------- ----------
Total Liabilities and
Shareholders' Equity $17,159,701 $10,064,007
========== ==========
</TABLE>
Refer to notes to the financial statements.
2
<PAGE> 3
BEACH FIRST NATIONAL BANCSHARES, INC.
MYRTLE BEACH, SOUTH CAROLINA
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
For the three months
ended March 31,
-----------------------
1997 1996
---- ----
<S> <C> <C>
Interest income $213,416 $ 35,181
Interest expense 84,082 11,819
------- -------
Net interest income $129,334 $ 23,362
Provision for possible loan losses 40,500 - -
------- -------
Net interest income after provision
for possible loan losses $ 88,834 $ 23,362
------- -------
Other income
Gain on sale of securities $ 42 $ - -
Service charges 320 - -
Other fees 1,468 - -
------- -------
Total other income $ 1,830 $ - -
------- -------
Salaries and benefits $100,081 $ 20,244
Depreciation 13,828 973
Amortization 4,397 - -
Data processing 4,903 - -
Regulatory fees and assessments 1,613 - -
Stationery, printing and supplies 5,728 990
Other operating expenses 36,160 12,539
------- -------
Total operating expenses $166,710 $ 34,746
------- -------
Net (loss) before taxes $(76,046) $(11,384)
Income taxes - - - -
------- -------
Net (loss) $(76,046) $(11,384)
======= =======
</TABLE>
Refer to notes to the financial statements.
3
<PAGE> 4
BEACH FIRST NATIONAL BANCSHARES, INC.
MYRTLE BEACH, SOUTH CAROLINA
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
--------------------
1997 1996
---- ----
<S> <C> <C>
Cash flows used by operating activities: $ (133,419) $(60,209)
---------- -------
Cash flows from investing activities:
Purchase of securities, AFS (3,103,094) - -
Purchase of fixed assets (445,193) - -
(Increase) in loans (2,993,522) - -
---------- -------
Net cash used in investing activities $(6,541,809) $ - -
---------- -------
Cash flows from financing activities:
Proceeds from borrowings $ - - $116,000
Increase in deposits 7,246,728 - -
---------- -------
Net cash provided by
financing activities $ 7,246,728 $116,000
---------- -------
Net increase in cash
and cash equivalents $ 571,500 $ 55,791
Cash and cash equivalents,
beginning of period 3,232,929 4,639
---------- -------
Cash and cash equivalents,
end of period $ 3,804,429 $ 60,430
========== =======
</TABLE>
Refer to notes to the financial statements.
4
<PAGE> 5
BEACH FIRST NATIONAL BANCSHARES, INC.
MYRTLE BEACH, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
MARCH 31, 1997
NOTE 1 - BASIS OF PRESENTATION
The accompanying financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-QSB. Accordingly, they do not include all
the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management,
all adjustments (consisting of normal recurring accruals) considered necessary
for a fair presentation have been included. Operating results for the
three-month period ended March 31, 1997 are not necessarily indicative of the
results that may be expected for the year ending December 31, 1997. For
further information, refer to the financial statements and footnotes thereto
included in Form 10-KSB for the year ended December 31, 1996.
NOTE 2 - SUMMARY OF ORGANIZATION
Beach First National Bancshares, Inc., Myrtle Beach, South Carolina
(the "Company"), was incorporated July 28, 1995 under the laws of the State of
South Carolina for the purpose of operating as a bank holding company with
respect to a then proposed de novo bank, Beach First National Bank, Myrtle
Beach, South Carolina (the "Bank").
The Company offered its common stock for sale to the public under an
initial public offering price of $10 per share. As of December 31, 1996, when
the offering was terminated, 735,868 shares were sold, resulting in net
proceeds of $7,212,349.
During 1996, the Company obtained regulatory approval to operate a
national bank in Myrtle Beach, South Carolina. The Bank opened for business on
September 23, 1996, with a total capitalization of $6.3 million. Upon the
opening of the Bank, the Company ceased to exist as a "development stage
enterprise" as its planned principal operations had commenced. The Bank's
deposits are each insured up to $100,000 by the Federal Deposit Insurance
Corporation.
The Company authorized the issuance of 10 million shares of common
stock, $1 par value per share. No holder of common stock: (i) has preemptive
rights with respect to the issuance of shares of that or any other class of
common stock or (ii) is entitled to cumulative voting rights with respect to
the election of directors. The Company also
5
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BEACH FIRST NATIONAL BANCSHARES, INC.
MYRTLE BEACH, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
MARCH 31, 1997
authorized the issuance of up to 10 million shares of preferred stock, issuable
in series, the relative rights and preferences of which shall be designated by
the Board of Directors.
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Reclassification. The consolidated
financial statements include the accounts of the Company and the Bank. All
significant intercompany accounts and transactions have been eliminated in
consolidation. Certain prior year amounts have been reclassified to conform to
the current year presentation.
Basis of Accounting. The accounting and reporting policies of the
Company conform to generally accepted accounting principles and to general
practices in the banking industry. The Company uses the accrual basis of
accounting by recognizing revenues when earned and expenses when incurred,
without regarding time of receipt or payment of cash.
Organizational Costs. In accordance with the Financial Accounting
Standards Board ("FASB") Statement No. 7, the Company and the Bank capitalized
all direct organizational costs that were incurred in the expectation that they
would generate future revenues or otherwise be of benefit after the Bank opened
for business. These capitalized costs are amortized over a sixty-month period
using the straight line method. As of March 31, 1997, total organizational
costs, net of amortization amounted to $79,150.
Investment Securities. The Company adopted Statement of Financial
Accounting Standards No. 115, "Accounting for Certain Investment in Debt and
Equity Securities" ("SFAS 115") upon incorporation on July 28, 1995. SFAS 115
requires investments in equity and debt securities to be classified into three
categories:
1. Held-to-maturity securities: These are securities which the
Company has the ability and intent to hold until maturity.
These securities are stated at cost, adjusted for amortization
of premiums and the accretion of discounts.
2. Trading securities: These are securities which are bought and
held principally for the purpose of selling in the near
future. Trading securities are reported at fair market value,
and related unrealized gains and losses are recognized in the
income statement.
6
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BEACH FIRST NATIONAL BANCSHARES, INC.
MYRTLE BEACH, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
MARCH 31, 1997
3. Available-for-sale securities: These are securities which are
not classified as either held-to-maturity or as trading
securities. These securities are reported at fair market
value. Unrealized gains and losses are reported, net of tax,
as separate components of shareholders' equity. Unrealized
gains and losses are excluded from the income statement.
Loans, Interest and Fee Income on Loans. Loans are stated at the
principal balance outstanding. Unearned discount, unamortized loan fees and
the allowance for possible loan losses are deducted from total loans in the
statement of condition. Interest income is recognized over the term of the
loan based on the principal amount outstanding. Points on real estate loans
are taken into income to the extent they represent the direct cost of
initiating a loan. The amount in excess of direct costs is deferred and
amortized over the expected life of the loan.
Loans are generally placed on non-accrual status when principal or
interest becomes ninety days past due, or when payment in full is not
anticipated. When a loan is placed on non-accrual status, interest accrued but
not received is generally reversed against interest income. If collectibility
is in doubt, cash receipts on non-accrual loans are not recorded as interest
income, but are used to reduce principal.
Allowance for Possible Loan Losses. The provisions for loan losses
charged to operating expenses reflect the amount deemed appropriate by
management to establish an adequate reserve to meet the present and foreseeable
risk characteristics of the current loan portfolio. Management's judgement is
based on periodic and regular evaluation of individual loans, the overall risk
characteristics of the various portfolio segments, past experience with losses
and prevailing and anticipated economic conditions. Loans which are determined
to be uncollectible are charged against the allowance. Provisions for loan
losses and recoveries on loans previously charged-off are added to the
allowance.
The Company adopted Statement of Financial Accounting Standards No.
114, "Accounting by Creditors for Impairment of a Loan," ("SFAS 114") upon
incorporation on July 28, 1995. Under the new standard, a loan is considered
impaired, based on current information and events, if it is probable that the
Company will be unable to collect the scheduled payments of principal or
interest when due according to the contractual terms of the loan agreement.
The measurement of impaired loans is generally based on the present value of
expected future cash flows discounted at the historical effective interest
rate, except that all collateral-
7
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BEACH FIRST NATIONAL BANCSHARES, INC.
MYRTLE BEACH, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
MARCH 31, 1997
dependent loans are measured for impairment based on the fair value of the
collateral.
In October, 1994, FASB issued Statement of Financial Accounting
Standards No. 118, "Accounting by Creditors for Impairment of a Loan - Income
Recognition and Disclosure" ("SFAS 118"). SFAS 118 amends SFAS 114 to allow a
creditor to use existing methods for recognizing interest income on an impaired
loan, rather than the methods prescribed in SFAS 114.
Property and Equipment. Furniture and equipment are stated at cost, net
of accumulated depreciation. Depreciation is computed using the straight line
method over the estimated useful lives of the related assets. Maintenance and
repairs are charged to operations, while major improvements are capitalized.
Upon retirement, sale or other disposition of property and equipment, the cost
and accumulated depreciation are eliminated from the accounts, and gain or loss
is included in income from operations.
Income Taxes. The consolidated financial statements have been
prepared on the accrual basis. When income and expenses are recognized in
different periods for financial reporting purposes and for purposes of
computing income taxes currently payable, deferred taxes are provided on such
temporary differences.
Effective upon incorporation on July 28, 1995, the Company adopted
Statement of Financial Accounting Standards No. 109, "Accounting for Income
Taxes" ("SFAS 109"). Under SFAS 109, deferred tax assets and liabilities are
recognized for the expected future tax consequences of events that have been
recognized in the consolidated financial statements or tax return. Deferred
tax assets and liabilities are measured using the enacted tax rates expected to
apply to taxable income in the years in which those temporary differences are
expected to be realized or settled.
Statement of Cash Flows. For purposes of reporting cash flows, cash and
cash equivalents include cash on hand, amounts due from banks and federal funds
sold. Generally, federal funds are purchased or sold for one day periods.
Net (Loss) Per Share. Information concerning net income/(loss) per
share was omitted from the face of the Statement of Operations since that
information is not indicative of the capital structure of the ongoing entity.
Notwithstanding the above, for the quarters ended March 31, 1997 and 1996, net
loss per share amounted to $(.10) and $(1,138.40), respectively.
8
<PAGE> 9
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
The following discussion contains forward-looking statements that involve risks
and uncertainties. The Company's actual results may differ materially from the
results discussed in the forward-looking statements, and the Company's
operating performance each quarter is subject to various risks and
uncertainties that are discussed in detail in the Company's filings with the
Securities and Exchange Commission, including the "Risk Factors" section in the
Company's Registration Statement on Form S-1 (Registration Number 33-95562) as
filed with and declared effective by the Securities and Exchange Commission.
Beach First National Bancshares, Inc., Myrtle Beach, South Carolina (the
"Company"), was incorporated July 28, 1995 under the laws of the State of South
Carolina for the purpose of operating as a bank holding company with respect to
a then proposed de novo bank, Beach First National Bank, Myrtle Beach, South
Carolina (the "Bank"). The Company sold 735,868 shares of its $1.00 common
stock for $7,212,349, net of expenses. The Company commenced principal
operations on September 23, 1996 when the Bank opened for business.
Total consolidated assets increased by $7.1 million to $17.2 million during the
three-month period ended March 31, 1997. The increase was generated primarily
through a $7.2 million increase in deposits. The funds were used to increase
loans by $3.1 million, investment securities by $3.0 million, federal funds
sold by $520,000 and fixed assets by $430,000.
Liquidity and Sources of Capital
Liquidity is the Company's ability to meet all deposit withdrawals immediately,
while also providing for the credit needs of customer. The March 31, 1997
financial statements evidence a liquidity position, consisting of total cash
and cash equivalents, of $3.8 million, representing 22.2% of total assets.
Investment securities amounted to $8.1 million, representing 47.4% of total
assets; these securities provide a secondary source of liquidity since they can
be converted into cash in a timely manner. The Company's ability to maintain
and expand its deposit base and borrowing capabilities also serve as a source
of liquidity. For the three-month period ended March 31, 1997, total deposits
increased from $3.0 million to $10.2 million, representing an annualized
increase of 960%. Note, however, that the Company does not expect to maintain
or duplicate this growth rate. The Company's management closely monitors and
seeks to maintain appropriate levels of interest earning assets and interest
bearing liabilities so that maturities of assets are such that adequate funds
are provided to meet customer withdrawals and loan demand. Management expects
asset growth to continue at a deliberate and controllable pace during the
coming months and believes capital should continue to be adequate. However,
no assurances can be given in this regard, as rapid growth,
9
<PAGE> 10
deterioration in loan quality and poor earnings, or a combination of these
factors, could change the Company's capital position in a relatively short
period of time.
The Bank currently maintains a level of capitalization substantially in excess
of the minimum capital requirements by the Bank's primary regulators, the OCC.
Bank's Minimum required
March 31, 1997 by regulator
-------------- ------------
Leverage ratio 43.5% 4.0%
Risk weighted ratio 88.7% 8.0%
Results of Operations
Since principal banking operations only commenced on September 23, 1996, a
comparison of the March 31, 1997 results (when banking operations were in
progress) to those of March 31, 1996 are not meaningful. This discussion will
therefore concentrate on the March 31, 1997 results.
Net loss for the three-month period ended March 31, 1997 amounted to $76,046,
or $.10 per share. The following is a brief discussion of the more significant
components of net income:
Net interest income represents the difference between interest received on
interest earning assets and interest paid on interest bearing liabilities. The
following presents, in a tabular form, the main components of interest earning
assets and interest bearing liabilities.
<TABLE>
<CAPTION>
Interest Interest
Earning Assets/ Average Income/ Yield/
Bearing Liabilities Balance Cost Cost
- ------------------- ------- -------- ------
<S> <C> <C> <C>
Federal funds sold $ 3,452,222 $ 44,011 5.10%
Securities 7,204,318 114,039 6.33%
Loans 2,350,712 55,366 9.42%
---------- ------- ----
Total $13,007,252 $213,416 6.56%
---------- ------- ----
Deposits $ 7,609,098 $ 84,082 4.42%
---------- ------- ----
Net interest income $129,334
=======
Net yield on earning assets 3.98%
====
</TABLE>
Other income for the three-month period ended March 31, 1997 amounted to
$1,830. On an annualized basis, this represents .04% of total assets.
Management believes this figure is lower than it will be in future periods
because, in order to attract new banking relationships, the Bank implemented an
initial fee structure and charges that are low when compared to other banks but
which the Bank anticipates will increase in the future.
10
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Operating expenses for the three-month period ended March 31, 1997 amounted to
$166,710. On an annualized basis, this represents 3.89% of total assets.
At December 31, 1996, the allowance for loan losses amounted to $16,502. By
March 31, 1997, the allowance had grown to $57,002. Despite the increase,
however, the allowance for loan losses, as a percentage of gross loans,
declined from 1.50% to 1.39% during the three-month period ended March 31,
1997. Management considers the allowance for loan losses to be adequate as of
March 31, 1997. However, there can be no assurance that charge-offs in future
periods will not exceed the allowance for loan losses or that additional
provisions to the allowance will not be required.
11
<PAGE> 12
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Not Applicable
Item 2. Changes in Securities
Not Applicable
Item 3. Defaults Upon Senior Securities
Not Applicable
Item 4. Submission of matters to a vote of security holders
On April 30, 1997, the Company held its Annual Meeting of Shareholders for the
purpose of (a) electing five directors for three-year terms, and (b) approving
the Stock Option Plan.
Each nominee for director received the number of affirmative votes of
shareholders required for such nominee's election in accordance with the Bylaws
of the Company, with 453,248 shares voting for each nominee and 3,200 shares
withholding vote out of a total 735,868 outstanding shares, The five nominees
elected at the meeting were Michael Bert Anderson, Orvis Bartlett Buie, Michael
D. Harrington, Diane W. Sammons, and Rick H. Seagroves. The other directors of
the Company are Raymond E. Cleary III, William Gary Horn, Joe N. Jarrett, Jr.,
Richard E. Lester, Don J. Smith, Jack L. Green, Jr., Samuel Robert Spann, Jr.,
B. Larkin Spivey, Jr., and James C. Yahnis. The Stock Option Plan also
received the requisite number of affirmative votes required for approval
pursuant to the Bylaws of the Company. Of the 735,868 outstanding shares of
the Company, the voting was as follows: 442,338 shares voted for, 5,960 voted
against, and 8,150 abstained.
Item 5. Other Information
Item 6. Exhibits and Report on Form 8-K
(a) Exhibits
<TABLE>
<S> <C>
Exhibit
Number Description
- ------ -----------
1.1. Selling Agent Agreement, dated October 16, 1995, by and between Capital Investment Group, Inc. and the
Company (incorporated by reference to Exhibit 1.1 to the Company's Registration Statement No. 33-95562
on Form S-1).
</TABLE>
12
<PAGE> 13
<TABLE>
<S> <C>
3.1. Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the Company's Registration
Statement No. 33-95562 on Form S-1).
3.2. Bylaws (incorporated by reference to Exhibit 3.2 to the Company's Registration Statement No. 33-95562
on Form S-1).
4.1. Provisions in the Company's Articles of Incorporation and Bylaws defining the rights of holders of the
Common Stock (incorporated by reference to Exhibit 4.1 to the Company's Registration Statement No. 33-
95562 on Form S-1).
4.2. Form of Certificate of Common Stock (incorporated by reference to Exhibit 4.1 to the Company's
Registration Statement No. 33-95562 on Form S-1).
10.1. Contract of Sale, dated April 27, 1995, by and between Nadim Baroody, Mary Baroody, Jean P. Saad, and Miray
Saad, as sellers, and Orvis Bartlett Buie, as purchaser (incorporated by reference to Exhibit 10.1 to the
Company's Registration Statement No. 33-95562 on Form S-1).
10.2. Line of Credit Note, dated April 24, 1995, by Sea Group, Ltd. to The Bankers Bank (incorporated by reference to
Exhibit 10.2 to the Company's Registration Statement No. 33-95562 on Form S-1).
10.3. Employment Agreement, dated August 23, 1995, by and between the Company and William Gary Horn (incorporated by
reference to Exhibit 10.3 to the Company's Registration Statement No. 33-95562 on Form S-1).*
10.4. Form of Amended and Restated Escrow Agreement, dated November __, 1995, by and among The Bankers Bank, Capital
Investment Group, Inc., and the Company (incorporated by reference to Exhibit 10.4 to the Company's
Registration Statement No. 33-95562 on Form S-1).
10.5. Amended and Restated Escrow Agreement, dated December 1, 1995, by and among The Bankers Bank, Capital
Investment Group, Inc., and the Company (incorporated by reference to Exhibit 10.5 of the Company's Form 10-KSB
for the fiscal year ended December 31, 1995).
10.6. Amendment to Employment Agreement, dated January 9, 1996, by and between the Company and William Gary Horn
(incorporated by reference to Exhibit 10.6 of the Company's Form 10-KSB for the fiscal year ended December 31,
1995).*
10.7. Stock Option Plan dated as of April 30, 1997 (incorporated by reference to Exhibit 10.7 of the Company's Form
10-KSB for the fiscal year ended December 31, 1996).
</TABLE>
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<TABLE>
<S> <C>
21.1. Subsidiaries of the Company. (incorporated by reference to Exhibit 21.1 of the Company's Form 10-QSB for the
quarter ended March 30, 1996).
27.1. Financial Data Schedule. (for SEC use only).
______________________
* Denotes executive compensation contract or arrangement.
(b) Reports on Form 8-K - No reports on Form 8-K were filed during the quarter ended March 31, 1997
</TABLE>
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<PAGE> 15
SIGNATURES
In accordance with Section 13 or 15(d) of the Securities Exchange Act
of 1934 (the "Exchange Act"), the registrant caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
BEACH FIRST NATIONAL BANCSHARES, INC.
Date: May 13, 1997 By: /s/ William Gary Horn
------------------------
William Gary Horn
President
15
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BEACH FIRST
NATIONAL BANCSHARES, INC. UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED
MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 724,429
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 3,080,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 8,136,413
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 4,087,921
<ALLOWANCE> 57,002
<TOTAL-ASSETS> 17,159,701
<DEPOSITS> 10,264,384
<SHORT-TERM> 0
<LIABILITIES-OTHER> 40,629
<LONG-TERM> 0
0
0
<COMMON> 735,868
<OTHER-SE> 6,118,820
<TOTAL-LIABILITIES-AND-EQUITY> 17,159,701
<INTEREST-LOAN> 55,366
<INTEREST-INVEST> 158,050
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 213,416
<INTEREST-DEPOSIT> 84,082
<INTEREST-EXPENSE> 84,082
<INTEREST-INCOME-NET> 129,334
<LOAN-LOSSES> 40,500
<SECURITIES-GAINS> 42
<EXPENSE-OTHER> 166,710
<INCOME-PRETAX> (76,046)
<INCOME-PRE-EXTRAORDINARY> (76,046)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (76,046)
<EPS-PRIMARY> (.10)
<EPS-DILUTED> (.10)
<YIELD-ACTUAL> 3.92
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 16,502
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 57,002
<ALLOWANCE-DOMESTIC> 56,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,002
</TABLE>
