U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)

 X       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
--       EXCHANGE ACT OF 1934
         For the quarterly period ended:  June 30, 2000
                                          -------------

___      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934
         For the transition period from _______________ to ________________

                        Commission file number: 33-95562

                      BEACH FIRST NATIONAL BANCSHARES, INC.
                      -------------------------------------
        (Exact name of small business issuer as specified in its charter)

         South Carolina                             58-1030117
    ------------------------                        ----------
    (State of Incorporation)            (I.R.S. Employer Identification No.)



             1550 N. Oak Street, Myrtle Beach, South Carolina 29577
     ---------------------------------------------------------------------
                    (Address of principal executive offices)


                                 (843) 626-2265
               --------------------------------------------------
                           (Issuer's telephone number)

                                 Not Applicable

   (Former name, former address and former fiscal year, if changed since last
                                    report)


     Check whether the issuer: (1) has filed all reports required to be filed by
Section 13 or 15(d) of the  Securities  Exchange  Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file such
reports),  and (2) has been subject to such filing  requirements for the past 90
days. Yes X No

     State the number of shares  outstanding of each of the issuer's  classes of
common equity, as of the latest practicable date:

    On July 31, 2000,  735,868  shares of the issuer's  common stock,  par value
$1.00 per share, were issued and outstanding.

<PAGE>

PART I
FINANCIAL INFORMATION

Item 1.  Financial Statements.

              Beach First National Bancshares, Inc. and Subsidiary
                          Myrtle Beach, South Carolina
                           Consolidated Balance Sheets
<TABLE>
<CAPTION>

                                                                            June 30,                 December 31,
                                                                     2000           1999                1999
                                                                     ----           -----               ----
                                                                  (unaudited)      (unaudited)        (audited)
                                                                  ----------       -----------        ---------

          ASSETS

<S>                                                        <C>                 <C>                   <C>
Cash and due from banks                                       $     1,907,434     $    1,075,619        $  2,516,526
Federal funds sold and short term investments                       2,420,111          1,500,000                   -
Investment securities available for sale                            8,734,992          8,904,424           9,283,159
Loans, net                                                         39,503,435         26,037,884          32,129,114
Premises and equipment, net                                         1,434,503          1,465,587           1,446,424
Real estate acquired in settlement of loans                                 -            165,153              99,820
Other assets                                                          957,357            560,499             680,352
                                                              ---------------     --------------        ------------
      Total assets                                            $    54,957,832     $   39,707,166        $ 46,155,395
                                                              ===============     ==============        ============

          LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES:

Deposits

   Noninterest bearing deposits                                  $  7,439,197       $  5,522,841        $  5,864,480
   Interest bearing deposits                                       40,698,952         27,600,591          30,971,540
                                                              ---------------      -------------        ------------
     Total deposits                                                48,138,149         33,123,432          36,836,020
Other borrowings                                                            -                  -           2,820,000
Other liabilities                                                     449,113            166,392             186,062
                                                              ---------------     --------------        ------------
     Total liabilities                                             48,587,262         33,289,824          39,842,082
                                                              ---------------     --------------        ------------

SHAREHOLDERS' EQUITY:

Common stock, $1 par value; 10,000,000 shares
   authorized; 735,868 shares issued and outstanding                  735,868            735,868             735,868
Paid-in capital                                                     6,476,481          6,476,481           6,476,481
Accumulated retained deficit                                        ( 608,910)          (728,632)           (687,898)
Accumulated other comprehensive income (loss)                        (232,869)           (66,375)           (211,138)
                                                                    ---------     --------------        ------------
     Total shareholders' equity                                     6,370,570          6,417,342           6,313,313
                                                              ---------------  -  --------------        ------------
      Total liabilities and shareholders' equity              $    54,957,832     $   39,707,166        $ 46,155,395
                                                              ===============     ==============        ============

</TABLE>

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.


<PAGE>
<TABLE>
<CAPTION>
              Beach First National Bancshares, Inc. and Subsidiary
                          Myrtle Beach, South Carolina
                      Consolidated Statements of Operations
                                   (Unaudited)
                                                            Six Months Ended                 Three Months Ended
                                                                June 30,                          June 30,
                                                                --------                          --------
                                                           2000             1999             2000              1999
                                                           ----             ----             ----              ----
<S>                                            <C>                 <C>               <C>                  <C>
INTEREST INCOME
   Interest and fees on loans                          $ 1,706,816       $ 1,077,015         $ 901,296        $ 575,756
   Investment securities                                   304,691           312,096           150,620          141,437
   Federal funds sold and short term investments            33,497            18,688            30,371           10,058
                                                         ---------         ---------         ---------         --------
          Total interest income                          2,045,004         1,407,799         1,082,287          727,251

INTEREST EXPENSE
   Deposits                                                965,759           658,501           538,450          331,910
   Other borrowings                                         53,406             2,608            16,686              276
                                                         ---------         ---------         ---------         --------
          Total interest expense                         1,019,165           661,109           555,136          332,186

          Net interest income                            1,025,839           746,690           527,151          395,065

PROVISION FOR POSSIBLE LOAN LOSSES                         111,732            69,668            73,000           38,500
                                                         ---------         ---------         ---------         --------
          Net interest income after provision
             for possible loan losses                      914,107           677,022           454,151          356,565
                                                         ---------         ---------         ---------         --------

NONINTEREST INCOME
   Service fees on deposit accounts                        118,344             65,44            62,987           37,681
   Loss on sale of investment securities                    (6,104)          (23,170)           (3,597)         (10,313)
   Other income                                             18,745            16,559             9,646            8,405
                                                         ---------         ---------         ---------         --------
         Total noninterest income                          130,985            58,832            69,036           35,773
                                                         ---------         ---------         ---------         --------
NONINTEREST EXPENSES
   Salaries and wages                                      455,238           328,423           251,727          167,932
   Employee benefits                                        41,120            32,142            21,707           16,629
   Supplies and printing                                    22,674            17,901            10,765            8,682
   Advertising and public relations                         33,162            22,870            15,955           11,670
   Professional fees                                        64,930            58,367            29,743           28,391
   Depreciation and amortization                            92,294           102,010            47,849           51,781
   Occupancy                                                23,865            20,785            12,145           10,832
   Data processing fees                                     45,685            35,168            23,162           15,774
   Other operating expenses                                140,498           104,186            61,521           52,081
                                                         ---------         ---------         ---------         --------
          Total noninterest expenses                       919,466           721,852           474,574          363,772
                                                         ---------         ---------         ---------         --------

          Income before income taxes                       125,626            14,002            48,613           28,566

INCOME TAX EXPENSE                                          46,638             1,815            17,979            4,864
                                                         ---------         ---------         ---------         --------

          Net income                                     $  78,988          $ 12,187         $  30,634         $ 23,702
                                                         =========          ========         =========         ========

BASIC NET INCOME PER COMMON
    SHARE                                                $    .11          $     .02          $    .04          $   .03
                                                         =========          ========         =========         ========
DILUTED NET INCOME PER COMMON
    SHARE                                                $    .10          $     .02          $    .04          $   .03
                                                         =========          ========         =========         ========
</TABLE>
<PAGE>

<TABLE>
<CAPTION>

              Beach First National Bancshares, Inc. and Subsidiary
           Consolidated Statements of Changes in Shareholders' Equity
                                   (Unaudited)
                                                                                                             Accumulated
                                                                                                              Other         Total
                                                            Common stock         Paid-in      Retained   Comprehensive shareholders'
                                                        Shares       Amount      Capital       Deficit        loss         Equity
                                                         ------       ------      -------   -----------   ------------- -----------
<S>                                                <C>         <C>          <C>           <C>         <C>             <C>
BALANCE, DECEMBER 31, 1998                             735,868     $ 735,868  $ 6,476,481   $ (740,819) $      2,126    $ 6,473,656
   Net income                                                -             -            -       12,187             -         12,187
   Other comprehensive loss, net of income taxes:
        Unrealized loss on investment securities             -             -            -            -       (91,671)       (91,671)
        Less reclassification adjustments for losses
            included in net loss                             -             -            -            -        23,170         23,170
                                                                                                                         ----------
   Comprehensive loss                                        -             -            -            -             -        (56,314)
                                                       -------     ---------  -----------   ----------  ------------    -----------
BALANCE, JUNE 30, 1999                                 735,868     $ 735,868  $ 6,476,481   $ (728,632) $    (66,375)   $ 6,417,342
                                                       =======     =========  ===========   ==========  ============    ===========


                                                                                                            Accumulated
                                                                                                              Other         Total
                                                        Common stock         Paid-in      Retained       Comprehensive Shareholders'
                                                     Shares        Amount       Capital       Deficit            Loss      Equity
                                                    ------        ------       -------       -------       ------------- -----------

BALANCE, DECEMBER 31, 1999                           735,868      $ 735,868  $ 6,476,481  $ (687,898) $   (211,138)   $ 6,313,313
   Net income                                              -              -            -      78,988             -         78,988
   Other comprehensive loss, net of income taxes:
        Unrealized loss on investment securities           -              -            -           -       (25,577)       (25,577)
        Less reclassification adjustments for losses
            included in net income                         -              -            -           -         3,846          3,846
   Comprehensive loss                                      -              -            -           -             -        (57,257)
BALANCE, JUNE 30, 2000                               735,868      $ 735,868  $ 6,476,481  $ (608,910) $   (232,869)   $ 6,370,570
                                                     =======      =========  ===========  ==========   ===========    ===========

</TABLE>
The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

<PAGE>
<TABLE>
<CAPTION>

              Beach First National Bancshares, Inc. and Subsidiary
                          Myrtle Beach, South Carolina
                      Consolidated Statements of Cash Flows
                                   (Unaudited)

                                                                                            Six Months Ended
                                                                                                June 30,
                                                                                       2000               1999
                                                                                       ----               ----
OPERATING ACTIVITIES
<S>                                                                                 <C>              <C>
   Net income                                                                     $    78,988        $    12,187
   Adjustments  to  reconcile  net  income
       to net cash  provided  by  operating activities:
        Deferred income taxes                                                          42,198              1,815
        Provisions for loan losses                                                     77,152             69.668
        Depreciation and amortization                                                  92,294            102,010
        Writedown on real estate acquired in settlement of loans                       15,000                  -
        Loss on sale of investment securities                                           6,104             23,170
        Increase (decrease) in other assets                                          (316,324)            22,237
        Increase (decrease) in other liabilities                                      263,049            (21,191)
                                                                                     --------           --------
           Net cash provided by operating activities                                  258,461            209,896
                                                                                     --------           --------
INVESTING ACTIVITIES
   Purchase of investment securities                                                 (209,313)        (1,363,470)

   Proceeds from sale or call of investment securities                                717,973          3,858,454

   Decrease (increase) in Federal funds sold & short term investments             (2,420,111)            750,000
   Increase in loans, net                                                         (7,451,473)         (5,275,211)
   Purchase of premises and equipment                                                (71,578)            (28,799)
   Proceeds from sale of ORE                                                          84,820             124,921
                                                                                  ----------          ----------
        Net cash used in investing activities                                     (9,349,682)         (1,934,105)
                                                                                  ----------          ----------
FINANCING ACTIVITIES
   Decrease in Federal funds purchased                                            (2,820,000)           (158,912)
   Net increase in deposits                                                       11,302,129           1,988,390
                                                                                  ----------          ----------
          Net cash provided by financing activities                                8,482,129           1,829,479
                                                                                  ----------          ----------
          Net increase (decrease) in cash and cash equivalents                      (609,092)            105,270

CASH AND CASH EQUIVALENTS, BEGINNING
   OF PERIOD                                                                   $   2,516,526        $    970,349
                                                                                ============         ===========
CASH AND CASH EQUIVALENTS, END OF
   PERIOD                                                                      $   1,907,434        $  1,075,619
                                                                                ============         ===========
CASH PAID FOR
   Income taxes                                                                $       3,770        $          -
                                                                                ------------        ------------
   Interest                                                                    $     978,929        $    650,474
                                                                                ------------        ------------

</TABLE>

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.
<PAGE>


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.  The Bank  completed its
third full year of operations in 1999 and has grown  substantially since opening
in September 1996.  Comparisons of the Bank's results for the periods  presented
should be made with an understanding of the Bank's short history.

Results of Operations

EARNINGS REVIEW

The  Company's  net income was $78,988,  or $.11 per common  share,  for the six
months  ended June 30, 2000 as compared to a net income of $12,187,  or $.02 per
common share,  for the six months ended June 30, 1999.  The Company's net income
was $30,634,  or $.04 per common share, for the three months ended June 30, 2000
as  compared to net income of $23,702,  or $.03 per common  share,  for the same
period of 1999.  The  improvement  in net income  reflects the Bank's  continued
growth,  as average  earning assets  increased to $46.7 million during the first
six months of 2000 from $34.6 million during the same period of 1999. The return
on  average  assets  for the six  month  period  ended  June 30 was .31% in 2000
compared to .06% in 1999;  the return on average equity was 2.50% in 2000 versus
 .39% in 1999.

During the first half of 2000, net interest income  increased to $1,025,839 from
$746,690 in the same period of 1999. The growth in net interest  income resulted
from an increase of $637,205 in interest income, partially offset by an increase
in interest  expense of $358,056.  For the three months ended June 30, 2000, net
interest income increased to $527,151 from $395,065 during the comparable period
of 1999.  The net  interest  spread  was 3.25% in the  first six  months of 2000
compared to 3.11% during the same period of 1999.  The net  interest  margin was
4.40% for the six month  period  ended June 30,  2000  compared to 4.36% for the
same period of 1999.

The  provision for loan losses was $111,732 for the six month period and $73,000
for the three month period ended June 30, 2000,  compared to $69,668 and $38,500
for the six month and three month  periods  ended June 30, 1999.  The  Company's
allowance  for loan losses as a percentage of its period end loans was 1.21% and
1.24% at June 30, 2000 and 1999,  respectively.  Net charge-offs totaled $34,580
for the first half of 2000. In the same period of 1999, there were $6,115 in net
charge offs.  The Company had $39,056 in  non-performing  loans at June 30, 2000
and $14,350 at June 30, 1999.

Noninterest  income for the six month period  ended June 30, 2000 was  $130,985,
compared to $58,832 in the same period of 1999  resulting from the $15.0 million
increase in deposits from June 30, 1999 to June 30, 2000. This was due primarily
to an  increase  in service  fees on deposits  accounts  resulting  from a $15.0
million  growth in deposits  from June 30, 1999 to June 30, 2000.  For the three
month periods ended June 30, 2000 and 1999,  noninterest  income was $69,036 and
$35,773, respectively.

Noninterest  expense was  $919,466 for the six month period ended June 30, 2000,
which was an increase of  $197,614  over the same period of 1999.  For the three
months ended June 30,  noninterest  expense was $474,574 in 2000 and $363,772 in
1999.  These  increases in noninterest  expense reflect  increases  primarily in
salaries,  advertising  and  pubic  relations,  data  processing  fees and other
expenses related to the growth of the Bank as well the writedown to market value
of real estate acquired in settlement of loans.

Net Interest Income

The primary source of revenue for the Company is net interest  income,  which is
the difference  between income on  interest-bearing  assets and interest paid on
deposits and  borrowings  used to support such  assets.  Net interest  income is
determined by the rates earned on the Company's  interest-earning assets and the
rates paid on its  interest-bearing  liabilities as well as the relative amounts
of interest-bearing assets and interest-bearing liabilities. Presented below are
various  components of assets and  liabilities,  interest income and expense and
yields/costs for the periods indicated.
<PAGE>

<TABLE>
<CAPTION>

                Average Balances, Income and Expenses, and Rates

                                        For the six months ended                    For the six months ended
                                              June 30, 2000                               June 30, 1999
                                              -------------                               -------------

                                    Average         Income/      Yield/        Average         Income/       Yield/
                                    Balance         Expense       Rate         Balance         Expense        Rate
                                    -------         -------       ----         -------         -------        ----
Federal funds sold & short
<S>                         <C>               <C>                 <C>    <C>             <C>                   <C>
    term investments           $    1,048,089    $     33,497        6.41% $      787,459  $     18,688          4.79%

Investment securities               9,071,724         304,691        6.74%      9,970,539       312,096          6.31%

Loans                              36,627,129       1,706,816        9.35%     23,816,870     1,077,015          9.12%
                               ---------------   ------------  ----------- --------------  ------------    -----------
     Total earning assets      $   46,746,942    $  2,045,004        8.77% $   34,574,868  $  1,407,799          8.21%
                               ==============    ============  =========== ==============  ============    ===========

Interest-bearing deposits      $   35,207,192    $    965,759       5.50%  $   26,034,775        658,501         5.10%
Other borrowings                    1,796,099          53,406       5.96%          94,756          2,608         5.55%
                               --------------    ------------  ----------- --------------  -------------   -----------

     Total interest-bearing

            liabilities        $   37,003,291    $  1,019,165       5.52%  $   26,129,531  $    661,109          5.10%
                               ==============    ============  ==========  ==============  ============    ===========

Net interest spread                                                 3.25%                                        3.11%
Net interest income/margin                       $  1,025,839       4.40%                  $    746,690          4.36%
                                                 ============  ==========                  ============    ===========
</TABLE>

As  reflected  above,  for the first half of 2000 the  average  yield on earning
assets amounted to 8.77%, while the average cost of interest-bearing liabilities
was 5.52%.  For the same period of 1999, the average yield on earning assets was
8.21% and the  average  cost of  interest-bearing  liabilities  was  5.10%.  The
increase  in the  yield on  earning  assets  is  attributable  to a  significant
increase in outstanding  loans which earn higher rates than other  components of
earning  assets.  This increase in average  loans of $12.8 million  reflects the
Bank's success in continuing to build its customer base. The net interest margin
is computed by subtracting  interest  expense from interest  income and dividing
the resulting figure by average interest-earning assets. The net interest margin
for the six month  period  ended June 30, 2000 was 4.40% and for the same period
of 1999 was 4.36%.  This  increase  was the result of growth in average  earning
assets  of $12.2  million,  partially  offset  by a $10.9  million  increase  in
interest-bearing liabilities. In addition, the weighted average rates on earning
assets increased by 56 basis points while the rate on deposits increased by only
42 basis points.  The increase in  outstanding  balances is consistent  with the
Bank's expansion of its core base of loans and deposits.

The following table presents the changes in the Company's net interest income as
a result of changes in the  volume and rate of its  interest-earning  assets and
interest-bearing liabilities. The change in net interest income is primarily due
to  increases  in the volume of both loans and  deposits  rather than changes in
average rates.

                                     Analysis of Changes in Net Interest Income

                                  ---------------------------------------------
                                   Three months ended June 30, 2000 versus 1999
                                  ---------------------------------------------
                                               Volume     Rate        Net change
                                               ------     ----        ----------

Federal funds sold & short term investments  $  8,330    $  6,479     $ 14,809
Investment securities                         (30,188)      22,783      (7,405)
Loans                                         596,956      32,845      629,801
                                              -------      ------      -------
     Total earning assets                     575,098      62,107      637,205

Interest-bearing deposits                     251,607      55,651      307,258
Other borrowings                               50,587         211       50,798
                                               ------         ---       ------
     Total interest-bearing liabilities       302,194      55,862      358,056
                                              -------      ------      -------

Net interest income                          $272,904     $ 6,245     $279,149
                                             ========      ======      =======



<PAGE>


Provision for Loan Losses

The  provision for loan losses was $111,732 for the first six months of 2000 and
$69,668 for the same period of 1999. For the three month periods ending June 30,
2000 and 1999,  these  figures  were  $73,000  and  $38,500,  respectively.  The
increases  were the result of  management's  assessment  of the  adequacy of the
reserve for possible loan losses given the size,  mix and quality of the current
loan portfolio. Management anticipates loan growth will continue to be strong in
2000 and that it will  continue to increase the amount of the provision for loan
losses as the portfolio  grows.  See also  "Allowance  for Possible Loan Losses"
below.

Noninterest Income

Noninterest  income  increased  to $130,985 in the first six months of 2000 from
$58,832 in the same period of 1999.  For the three  months  ended June 30, 2000,
noninterest  income was  $69,036 in 2000 and  $35,773 in 1999.  Service  fees on
deposit accounts,  the largest component of noninterest  income,  increased from
$65,443 for the first six months of 1999 to  $118,344  during the same period of
2000. This category of noninterest  income increased due to growth in the number
of deposit  accounts as well as increased  fee-related  activities of customers.
The net loss on the sale of  investment  securities  decreased  to  $6,104  from
$23,170 for the six month  period  ended June 30,  2000 and 1999,  respectively.
These losses  primarily  relate to paydowns on mortgage  backed  securities  and
result  from  movements  in market  interest  rates  since the  securities  were
acquired.

Noninterest Expense

Total noninterest  expense increased from $721,852 for the six months ended June
30, 1999 to  $919,466  for the same period of 2000,  and from  $363,772  for the
three  months  ended June 30, 1999 to  $474,574 in the same period of 2000.  The
increase in noninterest  expense reflects an increase in most expense categories
as a result of the growth of the assets of the Bank to $55.0 million at June 30,
2000 from $39.7 million at June 30, 1999. Salary and wages increased by $126,815
during the six months  ended June 30, 2000 and $83,795  during the three  months
ended June 30, 2000 compared to the same periods in 1999, and employee  benefits
increased  by $8,978  and $5,078  during  these  periods.  These  increases  are
primarily  the  result  of  increased   incentive-based   compensation  programs
implemented in 2000 for all employees as well as severance  payments  payable to
Mr.  Horn,  the Bank's  former  President  whose  resignation  was  effective in
February 2000.

Advertising and public relations expense increased by $10,292 for the first half
of 2000  compared  to 1999 and  increased  $4,285 in the second  quarter of 2000
compared  to the same  period of 1999.  This  growth is the result of  increased
media and promotional expenses.  Depreciation and amortization expense decreased
by $9,716 from the first half of 1999 to the same period of 2000,  and  declined
by $3,932 in the second  quarter of 2000 compared to 1999.  This decline was due
to the fact that  equipment  purchased when the bank opened in 1996 has now been
fully depreciated.

For the six month period ended June 30, 2000, data processing  expense increased
to $45,685 from $35,168  during the same period of 1999.  During the three month
period ended June 30, data processing  expense increased to $23,162 in 2000 from
$15,774 in 1999. Data  processing fees are directly  related to increases in the
volume of loan and deposit  accounts and associated  transaction  activity.  The
category of other  expenses  increased  to $140,498  for the first six months of
2000 compared to $104,186 for the same period of 1999,  and increased to $61,521
during  the three  month  period  ended June 30,  2000 from  $52,081 in the same
period  of 1999.  This  increase  was due to the  growth of  operating  expenses
associated  with the expansion of loans and deposits and the writedown to market
value of real estate acquired in settlement of loans.


<PAGE>
BALANCE SHEET REVIEW

Investment Securities

Total  securities  averaged  $ 9.1  million  in the first six months of 2000 and
totaled  $8.7  million  at June 30,  2000.  In the same  period  of 1999,  total
securities  averaged $10.0 million and totaled $8.9 million at June 30, 1999. At
June 30, 2000, the Company's total  investment  securities  portfolio had a book
value of $9,089,599  and a market value of $8,734,992 for an unrealized net loss
of $354,607.  The Company primarily invests in U.S.  Government Agency Mortgage-
backed securities.

Contractual  maturities and yields on the Company's  investment  securities (all
available  for sale) at June 30, 2000 are as follows.  Expected  maturities  may
differ from contractual maturities because issuers may have the right to call or
prepay obligations with or without call or prepayment penalties.
<TABLE>
<CAPTION>

                               Investment Securities Maturity Distribution and Yields

                                                 June 30, 2000

                                                 After one but          After five but
                        Within one year        Within five years       Within ten years        After ten years
                        ---------------        -----------------       ----------------        ---------------
                       Amount      Yield       Amount       Yield      Amount      Yield      Amount       Yield
                       ------      -----       ------       -----      ------      -----      ------       -----

<S>                 <C>           <C>        <C>       <C>       <C>          <C>         <C>          <C>
U.S. Treasury          $  ----        ----%     ----      $  ----   $  ----       ----%      $   ----       ----%
U.S. Govt Agencies        ----        ----      ----         ----   662,398       7.30%          ----       ----
Mortgage-backed           ----        ----      ----         ----      ----       ----      8,114,151       6.13%
Other                     ----        ----      ----         ----      ----       ----        313,050       6.68%
                       -------       -----      ----      -------  --------     ------      ---------       ----
     Total             $  ----       0.00%      ----      $  ----  $662,398      7.30%     $8,427,201       6.15%
                       =======       =====     =====      =======  ========     =====      ==========       ====

</TABLE>

At  June  30,  2000,  short-term  investments  totaled  $2,420,111  compared  to
$1,500,000  as of June 30,  1999.  These  funds  are one  source  of the  Bank's
liquidity and are generally  invested in an earning  capacity on an overnight or
short-term basis.

Loans

At June 30, 2000,  net loans (gross  loans less the  allowance  for loan losses)
totaled $39.5 million,  an increase of $13.5 million from June 30, 1999. Average
gross loans  increased from $23.8 million with a yield of 9.12% in the first six
months  of 1999 to $36.6  million  with a yield of 9.35% in 2000.  The  interest
rates  charged on loans vary with the degree of risk and the maturity and amount
of the loan.  Competitive pressures,  money market rates,  availability of funds
and government regulations also influence interest rates.

Since loans typically  provide higher yields than other types of earning assets,
one of the  Bank's  goals is for loans to  represent  the  largest  category  of
earning  assets.  Much progress was made in the effort as loans at June 30, 2000
were 78.2% of earning assets, versus 71.8% at June 30, 1999.


<PAGE>

<TABLE>
<CAPTION>

         The  following  table shows the  composition  of the loan  portfolio by
category at June 30, 2000 and 1999.

                                     Composition of Loan Portfolio

                                           June 30, 2000                   June 30, 1999
                                                         Percent                        Percent
                                      Amount            of Total    Amount              of Total
                                      ------            --------    ------              --------

<S>                                <C>               <C>         <C>                <C>
Commercial                               $7,009,860        17.5%       $4,544,554         17.2%
Real estate - construction                4,159,907        10.4%        2,598,765          9.8%
Real estate - mortgage                   24,079,385        60.1%       15,398,846         58.3%
Consumer                                  4,807,928        12.0%        3,885,456         14.7%
                                      -------------       -----       -----------        -----
      Loans, gross                       40,057,080       100.0%        26,427,621       100.0%
                                                          =====                          =====
Unearned income                            (67,615)                     (62, 969)
Allowance for possible loan losses        (486,030)                     (326,768)
                                      ------------                    ----------
      Loans, net                       $39,503,435                   $26,037,884
                                      ============                    ==========
</TABLE>

The  principal  component of the Company's  loan  portfolio at June 30, 2000 and
1999 was mortgage  loans,  which  represented  60.1% and 58.3% of the portfolio,
respectively.  In the context of this discussion,  a "real estate mortgage loan"
is defined as any loan, other than loans for construction  purposes,  secured by
real  estate,  regardless  of the purpose of the loan.  The Company  follows the
common  practice  of  financial  institutions  in the  Company's  market area of
obtaining a security interest in real estate whenever  possible,  in addition to
any  other  available  collateral.  The  collateral  is taken to  reinforce  the
likelihood  of the  ultimate  repayment  of the loan and tends to  increase  the
magnitude of the real estate loan portfolio  component.  Generally,  the Company
limits it  loan-to-value  ratio to 80%. Due to the short time the  portfolio has
existed,  the current mix may not be  indicative of the ongoing  portfolio  mix.
Management will attempt to maintain a relatively  diversified  loan portfolio to
help reduce the risk inherent in concentrations of collateral.

The following table sets forth the maturity  distribution,  classified according
to  sensitivity  to changes in interest  rates,  for selected  components of the
Company's loan portfolio as of June 30, 2000.

<TABLE>
<CAPTION>

      Loan Maturity Schedule and Sensitivity to Changes in Interest Rates

                                          June 30, 2000

                                             After one but      After
                            One year       Within five          Five
                             or less            Years           Years         Total
                            --------       ---------------    ---------      ------

<S>                   <C>             <C>               <C>           <C>
Commercial                $ 3,095,092     $   3,797,275     $   117,493   $  7,009,860

Real estate                 2,933,323        18,861,191       2,284,871     24,079,385
Construction                2,531,728         1,168,179         460,000      4,159,907
Consumer                    1,714,976         2,559,569         533,383      4,807,928
     Total gross loans    $10,275,119     $  26,386,214     $ 3,395,747   $ 40,057,080
                           ==========     =============      ==========   ============
Fixed Interest Rate         3,005,270        25,505,658       3,322,287     31,833,215
Variable Interest Rate      7,269,849           880,556          73,460      8,223,865
                           ----------     -------------      ----------    -----------
     Total gross loans    $10,275,119     $  26,386,214     $ 3,395,747   $ 40,057,080
                           ==========     =============      ==========   ============
</TABLE>
<PAGE>

The  information  presented  in the  above  table is  based  on the  contractual
maturities  of the  individual  loans,  including  loans which may be subject to
renewal  at their  contractual  maturity.  Renewal  of such  loans is subject to
review  and  credit  approval,  as well as  modification  of  terms  upon  their
maturity.  Actual repayments of loans may differ from maturities reflected above
because  borrowers  may have the right to  prepay  obligations  with or  without
prepayment penalties.

Allowance for Possible Loan Losses

We have  established  an allowance for loan losses  through a provision for loan
losses charged to expense.  The allowance  represents an amount which we believe
will be adequate  to absorb  probable  losses on existing  loans that may become
uncollectible.  Our judgment in  determining  the  adequacy of the  allowance is
based on evaluations of the collectibility of loans and takes into consideration
such  factors  as  conditions  that may affect  the  borrower's  ability to pay,
overall portfolio quality, and a review of specific problem loans. We adjust the
amount of the allowance periodically based on changing circumstances. Recognized
losses are charged to the allowance for losses, while subsequent  recoveries are
added to the  allowance.  A loan is impaired when it is probable that we will be
unable to collect all principal and interest payments due in accordance with the
terms of the loan agreement. Individually identified impaired loans are measured
based on the  present  value of  payments  expected  to be  received,  using the
contractual  loan rate as the discount rate.  Alternatively,  measurement may be
based on observable  market prices,  or, for loans that are solely  dependent on
the collateral for repayment,  measurement may be based on the fair value of the
collateral.  If the recorded investment in the impaired loan exceeds the measure
of fair value,  a  valuation  allowance  is  established  as a component  of the
allowance for loan losses.  Changes to the valuation allowance are recorded as a
component of the provision for loan losses.

In addition,  regulatory  agencies  periodically  review our  allowance for loan
losses as part of their examination  process,  and they may require us to record
additions to the allowance based on their judgment about  information  available
to them at the time of their examinations.

At June 30, 2000, the allowance for possible loan losses was $486,030,  or 1.21%
of  outstanding  loans,  compared to an allowance  for  possible  loan losses of
$326,768  or 1.24% of  outstanding  loans,  at June 30,  1999.  In the first six
months of 2000, the Bank had net  charge-offs of $34,580.  In the same period of
1999, there were $6,115 in net charge offs. The Company had non-performing loans
of $39,056 and $14,350 at June 30, 2000 and 1999, respectively.

                            Allowance for Loan Losses

                                              Six months ending June 30,
                                              2000                 1999
                                              ----                 ----

Average loans outstanding               $ 36,627,129         $ 23,816,870
Loans outstanding at period end           40,057,080           26,427,621
Total nonperforming loans                     39,056               14,350

Beginning balance of allowance          $    408,878         $    263,215

Loans charged off                            (34,580)              (6,115)
Total recoveries                                   0                    0
                                        ------------         ------------
Net loans charged off                        (34,580)              (6,115)

Provision for loan losses                    111,732                69,668
                                        ------------         ------------
Balance at period end                   $    486,030         $     326,768
                                        ============         =============

Net charge-offs to average loans                 .09%                  .03%
Allowance as a percent of total loans           1.21%                 1.24%
Nonperforming loans as a
     percentage of total loans                   .09%                  .05%
Nonperforming loans as a
     percentage of allowance                    8.04%                 4.39%

<PAGE>

Deposits and Other Interest-Bearing Liabilities

Average total deposits were $41.5 million and average interest-bearing  deposits
were $35.2 million in the first half of 2000.  Average total deposits were $30.9
million and average  interest-bearing  deposits  were $26.0  million in the same
period of 1999.  The  following  table sets forth the deposits of the Company by
category as of June 30, 2000 and June 30, 1999.
<TABLE>
<CAPTION>

                                         Deposits
                                              June 30, 2000            June 30, 1999
                                                      Percentof                   Percent of
                                          Amount      Deposits        Amount         Deposits
                                          ------      ---------       ------       --------

<S>                              <C>              <C>          <C>                <C>
Demand deposit accounts             $ 7,439,197      15.5%        $     5,522,841     16.8%
NOW accounts                          1,260,919       2.6%              1,032,992      3.1%
Money market accounts                 6,107,185      12.7%              3,693,229     11.1%
Savings accounts                      3,665,125       7.6%              4,725,085     14.2%
Time deposits less than $100,000     18,243,924      37.9%             12,831,695     38.8%
Time deposits of $100,000 or over    11,421,799      23.7%              5,317,590     16.0%
                                  -------------   -------          --------------   ------
     Total deposits                $ 48,138,149     100.0%         $   33,123,432   100.00%
                                  =============   =======          ==============   ======
</TABLE>

Internal  growth,  resulting  primarily  from special  promotions  and increased
advertising generated the new deposits.

Core  deposits,  which  exclude  certificates  of deposit of  $100,000  or more,
provide a relatively  stable funding source for the Company's loan portfolio and
other earning assets. The Company's core deposits were $36.7 million at June 30,
2000  compared to $27.8  million at June 30,  1999. A stable base of deposits is
expected  to be the  Company's  primary  source  of  funding  to meet  both  its
short-term  and  long-term  liquidity  needs in the future.  Core  deposits as a
percentage of total deposits were  approximately 76% at June 30, 2000 and 84% at
June 30, 1999.  The Company's  loan-to-deposit  ratio was 83.1% at June 30, 2000
versus  79.6% at June 30,  1999.  The  average  loan-to-deposit  ratio was 88.2%
during the first six months of 2000 and 77.0% during the same period of 1999.

CAPITAL

Under the capital  guidelines of the Office of the  Comptroller of the Currency,
the Bank is required to maintain a minimum total risk-based capital ratio of 8%,
with at least 4% being  Tier 1  capital.  To be  considered  "well-capitalized,"
banks must meet regulatory  standards of 10% for total risk-based capital and 6%
for Tier 1 capital.  Tier 1 capital  consists  of common  shareholders'  equity,
qualifying  perpetual  preferred stock, and minority interest in equity accounts
of consolidated subsidiaries, less goodwill. In addition, the Bank must maintain
a minimum Tier 1 leverage  ratio (Tier 1 capital to total average  assets) of at
least 4%. The  "well-capitalized"  standard for the Tier 1 leverage ratio is 5%.
The following  chart  reflects the risk-based  regulatory  capital ratios of the
Bank at June 30, 2000.


<PAGE>
                                       Analysis of Capital
                                          June 30, 2000
                                      (Amounts in thousands)

                               Required          Actual           Excess
                               --------          ------           ------
                           Amount   %      Amount       %     Amount       %
                           ------   -      ------       -     ------       -
The Bank:
Tier 1 risk-based capital  1,638     4.0%    5,692     13.9%    4,054      9.9%
Total risk-based capital   3,273     8.0%    6,178     15.1%    2,905      7.1%
Tier 1 leverage            1,638     4.0%    5,692     11.0%    4,054      7.0%


         The  Company  believes  that it has  sufficient  capital  to  fund  its
activities on an on-going basis.

LIQUIDITY AND INTEREST RATE SENSITIVITY

Primary  sources of  liquidity  for the  Company  are core  deposits,  scheduled
repayments  on  the  Company's  loans  and  interest  on and  maturities  of its
investments. All securities of the Company have been classified as available for
sale.  Occasionally,  the Company might sell investment securities in connection
with  the  management  of  its  interest  sensitivity  gap  or  to  manage  cash
availability. The Company may also utilize its cash and due from banks, security
repurchase  agreements and federal funds sold to meet liquidity  requirements as
needed.  In addition,  the Company has the ability,  on a short-term  basis,  to
purchase federal funds from other financial institutions. Presently, the Company
has made arrangements with commercial banks for short-term unsecured advances of
up to $3,000,000.  The Company believes that its liquidity and ability to manage
assets will be sufficient to meet its cash requirements over the near term.

The Company  monitors  and  manages  the pricing and  maturity of its assets and
liabilities in order to lessen the potential impact that interest rate movements
could have on its net  interest  margin.  To minimize the effect of these margin
swings,  the balance sheet should be structured so that repricing  opportunities
exist  for  both  assets  and  liabilities  in  roughly  equivalent  amounts  at
approximately the same time intervals Imbalances in these pricing  opportunities
at any point in time constitute interest rate risk.

Interest  rate  sensitivity  refers to the  responsiveness  of  interest-bearing
assets and liabilities to changes in market  interest rates.  The rate sensitive
position,  or gap, is the difference in the volume of rate sensitive  assets and
liabilities  at any  given  time  interval.  Management  generally  attempts  to
maintain a balance between rate sensitive assets and liabilities to minimize the
company's  interest  rate risks.  Interest  rate  sensitivity  can be managed by
repricing  assets  or  liabilities,   selling   securities   available-for-sale,
replacing an asset or liability  at maturity or by adjusting  the interest  rate
during  the life of an asset or  liability.  Managing  the  amount of assets and
liabilities  repricing  in the same  time  interval  helps to hedge the risk and
minimize the impact on net interest income of rising or falling interest rates.


<PAGE>



The interest  rate  sensitivity  position at June 30, 2000 is  presented  below.
Since all rates and yields do not adjust at the same velocity, the gap is only a
general indicator of rate sensitivity.

<TABLE>
<CAPTION>

                                         Interest Sensitivity Analysis

                                                 June 30, 2000

                                                After three
                                                      but          After one but
                                  Within three  Within twelve     within five     After five
                                     month          months           Years           years           Total
                                     -----          ------        -------------      -----           -----
Assets
Earning assets:
   Federal funds sold
<S>                              <C>            <C>             <C>              <C>            <C>
       & short term investments     $ 2,222,111    $    198,000    $         --     $        --    $  2,420,111
   Investment securities                     --       2,239,120              --       6,495,872       8,734,992
   Loans                              9,682,986       1,546,149      25,505,658       3,322,287      40,057,080
                                      ---------       ---------      ----------       ---------      ----------
        Total earning assets       $ 11,905,097    $  3,983,269    $ 25,505,658     $ 9,818,159    $ 51,212,183
                                   ============     ===========    ============     ===========    ============
Liabilities
Interest-bearing liabilities
   Money market and NOW             $ 7,368,104    $         --    $         --     $        --    $  7,368,104
   Savings deposits                   3,665,125              --              --              --       3,665,125
   Time deposits                      5,637,985      15,912,781       8,114,957                      29,665,723
                                      ---------      ----------       ---------     -----------     -----------
        Total interest-bearing
            liabilities            $ 16,671,214    $ 15,912,781    $  8,114,957    $         --    $ 40,698,952
                                   ============     ===========     ===========     ===========     ===========

Period gap                         $ (4,766,117)   $(11,929,512)   $ 17,390,701    $  9,818,159    $ 10,513,231
Cumulative gap                     $ (4,766,117)   $(16,695,529)   $    695,072    $ 10,513,231    $ 10,513,231
Ratio of cumulative gap to
        Total earning assets              (9.31)%        (32.60)%          1.36%          20.53%

</TABLE>

The Company  generally  would benefit from  increasing  market rates of interest
when it has an asset  sensitive gap and generally  would benefit from decreasing
market rates of interest when it is liability  sensitive.  The Company currently
is  liability  sensitive  in time frames less than one year and asset  sensitive
after that.  However,  the Company's gap analysis is not a precise  indicator of
its interest sensitivity  position.  The analysis presents only a static view of
the timing of  maturities  and  repricing  opportunities,  without  taking  into
consideration  that  changes  in  interest  rates do not  affect  all assets and
liabilities  equally.  Net interest income is also impacted by other significant
factors,  including  changes  in the  volume  and  mix  of  earning  assets  and
interest-bearing liabilities.

IMPACT OF INFLATION

Unlike  most  industrial  companies,  the assets and  liabilities  of  financial
institutions such as the Company and the Bank are primarily  monetary in nature.
Therefore,  interest  rates  have a more  significant  impact  on the  Company's
performance  than do the effects of changes in the general rate of inflation and
changes in prices.  In addition,  interest rates do not necessarily  move in the
same  magnitude as the prices of goods and  services.  As discussed  previously,
management seeks to manage the relationships  between interest  sensitive assets
and  liabilities in order to protect against wide rate  fluctuations,  including
those resulting from inflation.


<PAGE>


YEAR 2000 ISSUES

Like many  financial  institutions,  we rely upon  computers for  conducting our
business and for information systems processing. Industry experts were concerned
that on January 1, 2000,  some computers  would not be able to interpret the new
year properly, causing computer malfunctions.  While we have not experienced any
material computer  malfunctions to date, there remains a risk that our computers
will be unable to read or interpret data on Year 2000-sensitive dates, including
October 10, 2000. Our regulators  have issued  guidelines to require  compliance
with Year 2000 issues.  In accordance with these  guidelines,  we have developed
and executed a plan to ensure that our computer and telecommunication systems do
not have these Year 2000  problems.  We generally  rely on software and hardware
developed by independent third parties for our information  systems.  We believe
that our internal systems and software,  including our network connections,  are
programmed to comply with Year 2000 requirements,  although there is a risk they
may not be. We incurred  approximately  $26,000 in expenses in 1999 to implement
our Year 2000 plan.  Under our plan, we are  continuing to monitor the situation
throughout 2000. Based on information  currently  available,  we believe that we
will not incur significant  additional expenses in connection with the Year 2000
issue.

The Year 2000 issue may also  negatively  affect the business of our  customers,
but to date we are not aware of any material Year 2000 issues affecting them. We
include Year 2000 readiness in our lending  criteria to minimize risk.  However,
this will not  eliminate  the issue,  and any  financial  difficulties  that our
customers  experience  caused by Year 2000 issues could impair their  ability to
repay loans to us.

                     MARKET FOR THE COMPANY'S COMMON EQUITY
                         AND RELATED SHAREHOLDER MATTERS

The Company's  articles of incorporation  authorize it to issue up to 10,000,000
shares of Common Stock, of which 735,868,  for a total of $7,358,680,  were sold
in the initial  public  offering and are  outstanding.  As of July 31, 2000, the
Company had 921 shareholders of record.  There is no established  trading market
in the Common Stock, and one is not expected to develop in the near future.

All  outstanding  shares of Common  Stock of the Company  are  entitled to share
equally in dividends  from funds  legally  available  therefor,  when, as and if
declared by the Board of  Directors.  The  Company  does not plan to declare any
dividends in the immediate future.

PART II -- OTHER INFORMATION

Item 1.  Legal Proceedings.
         -----------------

         There are no material legal  proceedings to which the Company or any of
its subsidiaries is a party or of which any of their property is the subject.

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.
         ---------------------------------------------------

         The  Company's  Bylaws  provides  that the Board of Directors  shall be
divided  into three  classes  with each class to be as nearly equal in number as
possible.  The Bylaws also  provide that the three  classes of directors  are to
have staggered terms, so that the terms of only  approximately  one-third of the
Board members will expire at each annual  meeting of  shareholders.  The current
Class I directors are Raymond E. Cleary,  III, Joe N. Jarrett,  Jr.,  Richard E.
Lester,  and Don J.  Smith.  The current  Class II  directors  are Michael  Bert
Anderson,  Orvis Bartlett Buie,  Michael D. Harrington,  Rick H. Seagroves,  and
Walter E.  Standish,  III. The current  Class III  directors are Vernie E. Dove,
Jack L. Green,  Samuel Robert Spann, Jr., B. Larkin Spivey, and James C. Yahnis.
The Class II directors were up for reelection at this year's annual meeting held
April 19, 2000.  Each of the existing  Class II directors  were reelected at the
annual
<PAGE>



meeting. For Mr. Anderson, 385,871 votes were cast in favor of his reelection as
director,  2,100  votes were  withheld  and no votes  abstained.  For Mr.  Buie,
385,871 votes were cast in favor of his reelection as director, 2,100 votes were
withheld and no votes abstained. For Mr. Harrington,  384,571 votes were cast in
favor of his  reelection  as  director,  3,400 votes were  withheld and no votes
abstained. For Mr. Seagroves, 385,671 votes were cast in favor of his reelection
as director, 2,300 votes were withheld and no votes abstained. For Mr. Standish,
385,871 votes were cast in favor of his reelection as director, 2,100 votes were
withheld  and no votes  abstained.  The terms of the Class  III  directors  will
expire at the 2001  Annual  Shareholders  Meeting,  and the terms of the Class I
directors will expire at the 2002 Annual Shareholders Meeting.

Item 5.  Other Information.
--------------------------

         None.

Item 6.  Exhibits and Reports on Form 8-K.
-----------------------------------------

(a)      Exhibits - See Exhibit Index attached hereto.

(b)      Reports on Form 8-K.

         No  reports on Form 8-K were  filed  during  the period  ended June 30,
2000.


<PAGE>


                                   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:   August 10, 2000                 By:   /s/ Walter E. Standish, III
       ----------------------               -----------------------------
                                                 Walter E. Standish, III
                                                    President

                                             /s/  Ann W. Jones
                                           ------------------------------
                                                  Ann W. Jones
                                              Chief Financial and Principal
                                                  Accounting Officer


<PAGE>



                                  EXHIBIT INDEX

Exhibit
Number                              Description
-------                             -----------

27.1.             Financial Data Schedule for the period ended June 30, 2000.
                  (for SEC use only).