Paragon Bank Reports Most Profitable First Half of the Year in Company History

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August 13, 2019
MEMPHIS, Tenn., August 13, 2019 – Paragon Bank (OTCBB: PGNN.OB) today announced its 2019 second quarter financial earnings, with a net income of $696,000, which was approximately 11% over the first quarter of 2019. Through the first six months of 2019, net income was $1.3 million, which was the most profitable first half of the year in Paragon history. 

“We are proud to report a solid first half of 2019, which is a direct reflection of our team’s dedication to both our business and the customers we serve,” said Robert Shaw, Chief Executive Officer at Paragon Bank. “As we are settling into the third quarter, we anticipate sustained improvements, while providing the highest level of service to our customers and remaining dedicated to our efforts to help small businesses grow and succeed.”

Additional highlights from the second quarter and first six months of 2019 include:

•    During the second quarter, loans in the core bank increased $2.6 million, or approximately 4%. 
•    Demand deposits increased by $4.9 million, or 6.5%, during the second quarter.
•    Core deposits have increased $6.3 million during the first six months of 2019, which is an annualized growth rate of approximately 5%.
•    During the second quarter of 2019, total revenue increased 9% over the first quarter, due to increased loan volumes and gains on sales of loans. 
•    Net interest margin increased to 3.68% in the second quarter, from 3.64% during the first quarter. Year-to-date, the net interest margin has decreased from 3.9% during 2018 to 3.66% during 2019.
•    Due to increased loan volumes and higher loan rates, interest income has increased 8%, or $686,000, during the first six months of 2019. 
•    Total noninterest income increased $318,000, or 35%, during the second quarter. The largest increase was due to gains on sales of government guaranteed loans.
•    Noninterest expense increased $188,000 during the second quarter but was less than the second quarter of 2018. Through the first six months of 2019, noninterest expense is approximately 2% less than the first six months of 2018.
•    During the second quarter, nonperforming assets decreased 24% to just under $1 million. The ratio of nonperforming assets to total assets decreased from .32% to .25%, which continues to be well below the healthy benchmark of 1%.

In addition to the numerous financial records set in the first half of 2019, Paragon held its fifth annual housing and job fair at the Hickory Hill Community Center, bringing in its highest number of attendees to-date. Additionally, the bank plans to host the 2019 Outlook Memphis Economic Summit next month. 

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
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Kimberly McManis, PR Account Executive
(901) 278-3773