Paragon Bank reported solid results from the first quarter of 2014, with a pre-tax earnings increase of 119% over the first quarter of 2013. Adding to this news is Paragon’s announcement earlier this month that it transitioned to a state charter.
“Although the banking environment remains challenging, opportunities exist for a community bank that focuses on the customer’s needs,” said Robert Shaw, Chief Executive Officer at Paragon Bank. “We look forward to building on our strong start to 2014.”
During the first quarter, Paragon introduced iPay Biz 2.0, a new solution designed to streamline the back-office functions for small business. iPay Biz allows small businesses to pay bills online, track company spending and process payroll for employees.
Additional highlights from the first quarter include:
- Even though Paragon began recording income tax expense in 2014, net income for the first quarter was 30% higher than the first quarter of 2013.
- Net interest income increased to $2.6 million, which is an increase of 15.30% over the fourth quarter of 2014 and an increase of 33.09% over the first quarter of 2013.
- Paragon experienced solid loan growth, with an increase of $12.2 million or 6.18%. Over the last 12 months, loans have increased nearly 18%.
- Net interest margin for the first quarter was 4.10%, which is higher than the margin of 3.53% for the fourth quarter of 2013 and higher than 3.43% for the first quarter of 2013.
- Total assets increased to $280.6 million at the end of the first quarter, compared to $272.7 million at the end of fourth quarter 2013. Over the last 12 months, total assets have increased 11.70%.
- So far this year, nonperforming assets have decreased approximately 8% to $7.2 million. The percentage of nonperforming assets to total assets decreased to 2.57% at March 31, compared to 5.42% at March 31, 2013, and 2.88% at December 31, 2013.
- Book value per share increased to $7.61 at March 31, 2014, compared to $7.46 at the end of fourth quarter 2013.