Beach First posts massive loss
Beach First National Bancshares, days after demoting Walt Standish from his position as chief executive, announced Tuesday it lost a staggering $30 million in 2009.
That’s a substantially increase over 2008, when the Myrtle Beach-based parent of Beach First National Bank lost $3.7 million.
For the quarter ended Dec. 31, Beach First posted a deficit of $6.1 million, compared to $4 million a year earlier.
“… the decline in real estate values in our Grand Strand and Hilton Head Island markets has continued to affect our customers, and in turn, the bank’s performance,” Standish said in a statement. “After careful analysis of the loan portfolio, we continue to increase our reserve for potential loan losses.”
Over the past year, Beach First has seen its assets decline more than 8 percent, to $613 million, according to information filed with the US Securities and Exchange Commission.
Stock in Beach First is trading for around $1.20 a share.
Standish was replaced as CEO on an interim basis by John S. Poelker, the company announced last week.
Standish retained the title of president of both Beach First National Bancshares and Beach First National Bank.
Also last week, the company announced that Standish’s employment agreement would not automatically renew following the end of its current term on March 1, 2010.
The notice, according to the SEC filing, was not a notice of termination and stated that Standish would continue to serve at the will of the board of directors without a written employment agreement.