Paragon Bank reported profitable results for the second quarter of 2014, with a pre-tax income increase of 55% over the first quarter of 2014, and a pre-tax income increase of 73% over the first six months of 2013. The continued success was a result of improvement in asset quality, growth in the balance sheet and improved net margin.
“We are pleased with the sustained growth and attribute second quarter profits to our dedicated team,” said Robert Shaw, Chief Executive Officer at Paragon Bank. “It’s been an exciting first half of the year, and we look forward to continuing this trend as we near the fourth quarter.”
Paragon recently introduced the hiring of Richard Harris to the Commercial Lending team and Mark Winburne to the Paragon Wealth Solutions division. Their addition aligns with Paragon’s plan to increase net income through growth of the balance sheet and to increase non-interest income.
Additional highlights from the second quarter include:
- Net income for the second quarter increased 61% over the first quarter of 2014.
- Net interest income increased approximately 3% over the first quarter of 2014, after adjusting for a large recovery recorded during those three months. Net interest income increased 17.45% during the second quarter of 2014 on a non-adjusted basis.
- Gross loans increased to $210.6 million in the second quarter of 2014. Over the last 12 months, loans have increased $27.5 million, or 15.02%.
- Net interest margin was 3.64% for the second quarter of 2014, compared to 3.42% during the second quarter of 2013. The improvement was due to both an increase in the rate and a decrease in the cost to fund those earning assets.
- Total assets increased from $280.6 million at the end of the first quarter to $288.8 million at the end of the second quarter of 2014. Since the end of the second quarter of 2013, total assets have increased $28.5 million, or 11%.
- The ratio of nonperforming assets to total assets decreased from 2.57% at the end of the first quarter of 2014 to 2.35% at the end of the second quarter. At the end of 2013, the ratio was 2.88%. During the first six months of 2014, Paragon has resolved $1.5 million in nonperforming assets with a 78% recovery rate.
- Book value per share increased to $7.75 at June 30, 2014, compared to $7.46 at the end of fourth quarter 2013.