Memphis, TN, May 21, 2016 --(PR.com
)-- Paragon Bank (OTCBB: PGNN.OB) today reported that the first quarter of 2016 was the most profitable in the bank's more than 10-year history. Total revenue increased to $4.2 million, which compares to the previous record of $3.5 million during the fourth quarter of 2015, and is an increase of 19%. Revenue also increased 40.7% from the first quarter of 2015. The improvement in earnings was due in large part to increased loan volume, income from the Paragon Small Business Capital Group and interest recovered on a previously charged off-loan.
"Thanks to our dedicated team members and loyal customers, we are proud to share that this has been the most successful quarter in Paragon's history," said Robert Shaw, Chief Executive Officer at Paragon Bank. "This has set the tone for the rest of 2016, and we look forward to continue building on such a tremendous start."
In addition to a stronger-than-budgeted revenue for the first quarter of 2016, the bank's Atlanta-based Small Business Capital Group continued to have an increased number of loan approvals from the U.S. Small Business Administration. Furthermore, the group's recent Preferred Lenders Program status from the SBA will expedite loan approval and continue improving customer service.
During the first quarter, Paragon started a Specialty Lending division, which is headed by veteran banker Thomas "Tee" Shipmon. This division makes short-term build-out loans to franchises, through which the borrower has a commitment for permanent SBA financing from another lender. Paragon also added three new members to its Board of Directors: Rudi Scheidt Jr., Chairman of Bridge Capital Asset Funding; Anita Vaughn, former Chief Executive Officer of Baptist Memorial Hospital for Women; and Steve Bargiacchi, Chief Executive Officer of ProTech Systems Group.
Other highlights from the first quarter include:
- Net income for the quarter was $418,835, compared to $269,147 for the fourth quarter of 2015 and a loss of $152,839 in the first quarter of 2015.
- Noninterest income for the first quarter of 2016 totaled $1.2 million, 65.4% greater than the fourth quarter of 2015. This was caused by a 70.6% increase in income from the Small Business Capital Group, a 36.2% increase in mortgage banking income and a 31.5% increase in Solutions income, which includes Paragon’s wealth insurance, BusinessManager and payroll revenue.
- Core income increased 34% from the fourth quarter of 2015.
- Gross loans increased $15.6 million, or 6.3%, in the first quarter of 2016 from $245.6 million to $261.1 million. Paragon Small Business Capital Group loans increased $12.5 million, or 70.8%.
- Total deposits increased $13.1 million, or 5.2%, during the first quarter of 2016 from $251.3 million to $264.4 million.
- Demand deposits increased 1.4% during the first quarter of 2016, and have increased 13.3% over the last 12 months.
- Net interest margin for the first quarter of 2016 was 4.13%, compared to 3.90% for the fourth quarter of 2015 and 3.59% for the first quarter of 2015.
- Book value per share increased from $7.94 to $8.06 during the first quarter of 2016.
About Paragon Bank
Since its founding in 2005, Paragon Bank has maintained a solid focus on the community and customer service. For more than 10 years, Paragon has delivered innovative products and financial expertise, convenience, and a deep understanding of what both businesses and individuals need from a bank, in order to provide solutions that make a difference. In the areas of business or personal banking, lending options or wealth management, Paragon delivers cutting edge technology, an experienced team and the most service-oriented staff of any community bank.
For more information about Paragon Bank, please call (901) 273-2900 or visit us online at www.bankparagon.com.