THE mysterious case of the missing letters on the Airlie Beach sign has been closed with a 19-year-old, Proserpine-born man ordered to pay more than $1500.

Proserpine Magistrates Court heard on Monday that Bailey Alex Hayward's drunken night ended with him being the new owner of the letters B and H.

The disappearance of the letters occurred between August 12 and 15. Whitsunday Regional Council reported the crime to police on August 15 when they noticed the letters had been forcibly removed.

Police prosecutor Sergeant Trent Voigt said the man had been partying at Boom Nightclub on the night of August 13 when the incident occurred.

An image of Hayward on Facebook from CCTV footage identified him as being the offender.

On August 26 police executed a search warrant at his place of residence and Hayward made a full admission of his crime. He told police he had been out drinking with friends and was walking home when he stole the letters.

Sgt Voigt said Hayward told police that "he had thought about returning the letters but took no steps to do so".

Defence solicitor Raymond Taylor, of RJ Taylor Law, said it was "simply spur of the moment" and that his client "didn't give any thoughts to consequences".

Magistrate Simon Young said: "I think this can be summed up as young, dump and stupid."

"Still, you need to learn from this. The maximum penalty is seven years. I'm satisfied this can be put down as a stupid mistake," Mr Young said.

Hayward was ordered to pay $1177 in restitution to the council and $500 recognisance.