Paragon Bank today announced its third consecutive quarter of record-breaking profitability. Net income during the three-month period increased more than 10 percent to $599 thousand and was significantly higher than the third quarter of 2015, when the Small Business Capital Group was getting started.
“We would not have this continued progress without the dedication and hard work of the entire Paragon team,” said Robert Shaw, Chief Executive Officer at Paragon Bank. “Every team member works to implement our strategic goals, which results in continuous improvement. We look forward to this sustained progress and a strong end to the year.”
Gross loans increased $10.4 million, or more than 15 percent on an annualized basis, during the third quarter of 2016. Year-to-date through September 30, 2016, loans increased $36.1 million. This level of growth has outpaced the overall growth in the Memphis area.
Other highlights from the third quarter include:
- Total revenue for the third quarter was a record $4.8 million, increasing $170 thousand over the second quarter. Through three quarters of 2016, revenue has increased 43 percent, or $4.1 million.
- Net income through September 30, 2016, was $1.6 million, compared to a loss of $178 thousand through the first nine months of 2015.
- Net interest income increased 27 percent over the second quarter of 2016 and is 27 percent higher than the first nine months of 2015.
- Noninterest income through September 30, 2016, increased $2.1 million, or 97 percent, over the first nine months of 2015.
- Demand deposits increased $4.6 million, or 6.9 percent, during the third quarter of 2016. Demand deposits through September 30, 2016, increased $9.4 million, or 15 percent.
- Core deposits increased $16.2 million, or 7.1 percent, during the first three quarters of 2016.
- The book value of Paragon shares increased from $7.94 at December 31, 2015 to $8.37 at September 30, 2016, or at an annualized growth rate of nearly 7.3 percent.