Paragon Bank today announced its 2017 first quarter financial earnings, reporting a net income of $657,513, an increase of 14.3 percent over the fourth quarter of 2016 and a 57 percent increase over the first quarter of 2016. These results come after the recent opening of the bank’s Oxford Loan Production Office, as well as record-breaking income and loan production volumes in 2016.
“We are pleased by this quarter’s performance, which is a direct reflection of our team’s dedication to both our business and the customers we serve,” said Robert Shaw, Chief Executive Officer at Paragon Bank. "As we move further into the second quarter, we anticipate further progress, working toward gross loan production increases and asset quality improvements, while maintaining the high level of service our customers have come to expect from us.”
Additional highlights from the first quarter of 2017 include:
Total deposits increased $9.5 million, or 13.6 percent, from the first quarter of 2016. Demand deposits increased $1.6 million, which is an annualized growth rate of 9.2 percent
Total revenue increased 3.5 percent over the fourth quarter of 2016, and increased 13.4 percent over the first quarter of 2016.
- Core income increased 10.8 percent over the fourth quarter of 2016, and 46.3 percent over the first quarter of 2016.
- Core noninterest income increased 12 percent over the fourth quarter of 2016 and 11.9 percent over the first quarter of 2016. The largest increase was from the Small Business Capital Group (SBCG), Paragon’s SBA lending group. SBCG income increased $251,000 over the fourth quarter of 2016 and $154,000 over the first quarter of 2016.
- Nonperforming assets decreased to $1.5 million, or 8 percent, bringing the ratio of nonperforming assets to total assets down to .44 percent.
- Net interest margin remained strong for the first quarter of 2017 at 4.13 percent, compared to 4.15 percent for the fourth quarter of 2016, adjusted for interest recoveries and state income tax credits.