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Paragon Reports Record-Breaking Fourth Quarter, 2017 Financials


Paragon Bank today announced its 2017 financial earnings, reporting record-breaking revenue and pre-tax income in the fourth quarter of 2017, as well as overall for 2017. The strong numbers were driven by solid loan growth, a healthy net interest margin and continued attention to expense control.

“In addition to the financial records Paragon set during 2017, our team members set a record for community service hours, furthering our commitment to the people and organizations that give so much to us,” said Robert Shaw, Chief Executive Officer at Paragon Bank. “The bank’s continued accomplishments are due in large part to our knowledgeable, dedicated team, and we look forward to a successful 2018.”

In December of 2017, The Tax Cuts and Jobs Act was enacted, which permanently lowered the federal corporate tax rate, effective for tax years including or beginning January 1, 2018. Paragon had a 2017 write-down of net deferred tax assets of approximately $531,000. This write-down is reflected in Paragon’s operating results for the fourth quarter of 2017, as an increase to the provision for income taxes.

Further highlights from the fourth quarter and 2017 include:

  • Gross loans increased $9.2 million during the fourth quarter, or 12.1 percent on an annualized basis, to $315.1 million, the highest level in Paragon’s history. For 2017, loan balances increased 9.1 percent, or $26.2 million.
  • During 2017, total deposits increased approximately $22.8 million, or 8.2 percent.
  • Total revenue was a record $4.9 million for the fourth quarter of 2017, an increase of $161,000 over the third quarter of 2017 and an increase of $284,000 over the fourth quarter of 2016.  The largest component of revenue was a net interest income of $3.6 million, which increased due to record loan volume.
  • Core income for 2017 increased 21.6 percent over core income for the third quarter of this year and increased 27.4 percent over the core income for the fourth quarter of 2016.
  • Net interest margin remained healthy in 2017, with a slight decrease from 4.17 percent in 2016 to 4.08 percent in 2017. Without a $264,000 interest recovery recognized in 2016, net interest margin would have been 4.09 percent.
  • Fourth quarter 2017 core income, which excludes Other Real Estate Owned (OREO) gains and losses, OREO expenses, investment security gains and losses, and the loan loss provision, increased approximately 21.6 percent over core income for the third quarter of 2017 and increased 27.4 percent over the core income for the fourth quarter of 2016.
  • The efficiency ratio for the fourth quarter of 2017 was 69.37 percent, which was an improvement on the third quarter 2017 efficiency ratio of 76.97 percent and on the fourth quarter 2016 efficiency ratio of 74.56 percent. For the full year 2017, the efficiency ratio improved to 74.38 percent compared to 75.75 percent for 2016.

Paragon recently announced it had 96 percent participation in its Assisting the Community Through Service (ACTS) program, where employees volunteered a record-breaking 1,500+ hours, positively impacting more than 50 organizations throughout the city.

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