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Paragon Bank Reports Strong Growth, New Annual Records and Continued Service Commitment 

03-23-26

Paragon Bank today announced its 2025 fourth quarter and year end financial earnings, reporting year-end net income for 2025 was $7.8 million, a 66% increase over the prior year.

For the sixth consecutive year, net interest income was a record for Paragon. 2025 net interest income of $32.4 million increased $5.1 million, or 19%, over 2024. For the fifth consecutive year, total revenue of $36.5 million for 2025 was also a record for Paragon. Total revenue increased $5.6 million, or 18%.   

“Over the last few years, the Paragon team has worked diligently to position Paragon for increased profitability and growth,” said Robert Shaw, Chief Executive Officer and President at Paragon Bank. “We are pleased to report these record earnings for our shareholders while maintaining Paragon’s commitment to our team members and our communities.”

Additional highlights from the 2025 calendar year include:

• Total loans were $805 million on December 31, 2025. Core loans, which excludes loans originated or purchased and then sold by Paragon’s Small Business Administration and Capital Markets divisions, increased $36.5 million, or 5.9%.
• Paragon’s tangible book value increased from $13.15 per share on December 31, 2024, to $15.13 per share on December 31, 2025, as a result of net income during 2025 and a reduction in the unrealized loss on Paragon’s investment portfolio of $2.1 million.
• Total deposits decreased 2%, created by a reduction in brokered deposits of $103 million. Core deposits, which exclude brokered deposits, increased $86.5 million, or 14.7%. Increasing core deposits is an important strategic goal for Paragon Bank. 
• Paragon’s net interest margin increased from 4.02% during the third quarter to 4.13% during the fourth quarter. The net interest margin for the year was 3.98% compared to 3.68% for 2024. The improvement in net interest margin was primarily a result of a decrease in the cost of deposits and other interest-bearing liabilities due to the decrease in market interest rates.
• During 2025, noninterest income increased $479 thousand, or 13%. This increase was primarily a result of increases in income from Paragon’s Small Business Capital Group, Mortgage division, and Capital Markets division, all of which had double-digit percentage increases. 
• During the fourth quarter, Paragon made a $100 thousand provision for loan losses. This provision was made because of loan growth. On December 31, 2025, the ratio of nonperforming assets to total assets was .15%, down from .17% on December 31, 2024. 

In addition to numerous financial records set in 2025, Paragon Bank garnered other awards and accolades. Paragon won the Top 7(a) Tennessee-based Lender by Dollar Volume award, as one of five private lending partners awarded a top prize in 2025 by the U.S. Small Business Administration District Office for Tennessee. For the eighth consecutive year, Paragon was included in the American Banker’s list of Best Banks to Work For, coming in at number three, the highest in its history. Paragon was also named as a Top Workplace by Commercial Appeal and a Memphis Business Journal’s Best Places to Work finalist.

Records were also broken in service commitments through the bank’s ACTS (Assisting the Community Through Service) Initiative, founded in 2008. In 2025, nearly 94 percent of Paragon team members participated in ACTS, working with 115 nonprofit organizations across the Southeastern United States. The 115 nonprofits served represent the largest single-year collection of organizations served by Paragon since the program’s founding. In 2025, Paragon team members worked 2,935 ACTS hours, a 10% increase, year-over-year, and a new record in the bank’s 20-year history.

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