Memphis, Tenn., December 3, 2019 – Paragon Bank (OTCBB: PGNN.OB) today announced its 2019 third quarter financial earnings, showing continued increasing profitability. For the third quarter, net income was $1.0 million, which was an increase of 47% over the third quarter of 2018 and 45% over the second quarter of 2019. Year-to-date, net income was $2.3 million, a 19% increase over the first three quarters of 2018.
“We are excited to share our continued record-breaking results, having completed the most profitable first three quarters in Paragon history,” said Robert Shaw, Chief Executive Officer at Paragon Bank. “This accomplishment is a direct reflection our customers and hard-working staff. We look forward to ending the year strongly.”
Highlights from the third quarter and the first nine months of 2019 included:
• During the third quarter, gross loans increased by $6.3 million to $340.8 million, an annualized increase of 7.42%.
• Core deposits increased $11.8 million, or almost 17% on an annualized basis, during the third quarter.
• Income from retail, commercial and mortgage banking areas increased 30% over the second quarter of 2019 and more than doubled the profits from the third quarter of 2018.
• Net interest margin for the third quarter was 3.64%, compared to 3.68% for the second quarter of this year. This decrease was primarily due to a reduction of loan fees received during the quarter of almost $47,000.
• For the third quarter, noninterest income increased approximately $15,000, or 1.4% over the same period in 2018. A decrease in gains on the sale of Small Business Administration (SBA) loans was offset by increases in fee income, service charge income, mortgage banking, and Business Manager income. Year-to-date noninterest income has increased approximately 1%.
• Noninterest expense decreased 10% from the third quarter of 2018 and approximately 9% from the second quarter of this year. Aided by reductions in incentive pay, health care costs, regulatory assessments, and occupancy expense, year-to-date noninterest expense is approximately 5%, or $531,000 less than the first nine months of 2018.
• At September 30, 2019, total nonperforming assets totaled $1.1 million. The ratio of nonperforming assets to total assets was a healthy .25%.
In addition to the numerous financial successes in the first nine months of 2019, Paragon held its second Outlook Memphis Economic Summit in September. This year’s event included a presentation of informative data compiled by the University of Memphis Sparks Bureau of Business and Economic Research, along with panel of local experts who answered questions on how the Memphis economy and local consumer confidence have changed in the past year and how this could affect attendees’ business.
About Paragon Bank
Since its founding in 2005, Paragon Bank has maintained a solid focus on the community and customer service and in 2018 opened its full-service Oxford Banking Center. For nearly 15 years, Paragon has delivered innovative products and financial expertise, convenience, and a deep understanding of what both businesses and individuals need from a bank, in order to provide solutions that make a difference. In the areas of business or personal banking, lending options or wealth management, Paragon delivers cutting edge technology, an experienced team and the most service-oriented staff of any community bank.
For more information about Paragon Bank, please call (901) 273-2900, the Oxford Banking Center at (662) 259-8306 or visit us online at www.bankparagon.com.
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