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Paragon reports revenue record and highest total loans in third quarter

11-12-15

Paragon Bank today reported a very successful third quarter of 2015, producing record revenues, the highest total loans in bank history and an improved net interest margin. This record-breaking period stems from a 57 percent drop in nonperforming assets, which are at their lowest levels since 2007, and the continued progress of the Small Business Capital Group (SBCG) based in Atlanta. Due to increases in Small Business Administration (SBA) income, mortgage income and solutions product income, core non-interest income for the first three quarters of 2015 increased 82.3 percent over the same period in 2014 to $910,000.

“This was a very strong quarter for the bank, and we credit the success to the efforts of our remarkable team,” said Robert Shaw, chief executive officer at Paragon Bank. “We believe that a healthy workplace attracts talented team members, who, in turn, provide exceptional customer service and long-term profitability for our shareholders.”

In their first year as part of Paragon, the Small Business Capital Group remains the leading SBA lender based in Tennessee for the fiscal year that ended September 30, 2015. Over that time period, the Paragon SBCG had $41.9 million in SBA loans approved by the SBA, and has closed $29.9 million.

Additional highlights from the third quarter include:

  • Total revenue for the third quarter was a record $3.3 million, an increase of 3.1 percent over the second quarter of 2015 and 11.8 percent over the third quarter of 2014. Year-to-date, non-interest income through September 30, 2015, was 119.9 percent higher than the first nine months of 2014.
  • Nonperforming assets dropped 57 percent during the third quarter of 2015, from $5.7 million to $2.5 million. The ratio of nonperforming assets to total assets dropped from 1.94 percent at June 30, 2015, to 0.84 percent at September 30, 2015.
  • Non-interest income for the third quarter of 2015 was 35.8 percent higher than the third quarter of 2014.  
  • Net interest margin for the third quarter of 2015 increased to 3.67 percent compared to 3.60 percent during the second quarter of 2015.
  • Gross loans increased $5.4 million, or 9.2 percent, during the third quarter to reach $237.5 million. During the first nine months of 2015, gross loans increased $22.3 million, or 10.4 percent.
  • Total deposits have increased 8 percent as of September 30, 2015, while core deposits have increased 3.3 percent. Year-to-date, demand deposits have grown 18.7 percent.
  • Net interest income, adjusted for a one-time recovery of $287,000 during the first nine months of 2014, remained stable through the third quarter of 2015.

As part of its #PB10for10 campaign to celebrate the bank’s 10th anniversary, Paragon made its 10th delivery of blankets to Le Bonheur Children’s Hospital, hosted its 10th back-to-school celebration at Hawkins Mill Elementary School and was the title sponsor for the 2015 Book It 5K.

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