Paragon Bank Reports Record-Setting Fourth Quarter, 2018

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March 05, 2019
MEMPHIS, Tenn., March 5, 2019 – Paragon Bank (OTCBB: PGNN.OB) today announced its 2018 fourth quarter financial earnings, reporting record revenue, pre-tax income and net operating income. At December 31, 2018, Paragon had a net income of $1.2 million, an increase of $914,000 or 329 percent over the fourth quarter of 2017. Net income for 2018 increased 49 percent over 2017, primarily due to reduced income taxes.
"We are pleased to share record results for the 2018 calendar year, which are a direct correlation of our team and loyal customers," said Robert Shaw, Chief Executive Officer at Paragon Bank. "We look forward to sustained financial growth as we continue into 2019."
Additional highlights from the fourth quarter and 2018 overall include:
  • Gross loans increased to $326.6 million during the fourth quarter of 2018, an annualized increase of five percent. 
  • At December 31, 2018, Paragon had total assets of $401.4 million, a new record for the bank and an increase of 6.5 percent for the year.
  • Total deposits increased to $343.3 million in 2018, an increase of approximately 14 percent. Core deposits increased nearly 12 percent.
  • The bank's record fourth quarter revenue of $5.2 million increased 11 percent from the third quarter, and eight percent from the fourth quarter of 2017. 
  • Noninterest income increased approximately 21 percent in the fourth quarter, which is approximately four percent over the fourth quarter of 2017. This increase was a result of higher income from the Paragon Small Business Capitol Group.
  • During the fourth quarter of 2018, noninterest expense decreased $317,000 from the third quarter of 2018 and decreased $44,000 from the fourth quarter of 2017. Despite executing several strategic initiatives during the year, including opening the Oxford Banking Center and hosting the first Outlook Paragon Economic Summit, noninterest expense increased less than one percent from 2017. 
  • During the fourth quarter of 2018, nonperforming assets, less government guarantees, decreased $355,000 or 20 percent. The ratio of nonperforming assets to total assets decreased from .46 percent to .36 percent. 
  • At December 31, 2018, the bank’s capital to assets ratio was 10.33 percent.
  • Return on assets (ROA) and return on equity (ROE) were both records for Paragon in 2018. ROA increased .81 percent for 2018, compared to .59 percent for 2017, while ROE increased to 8.04 percent in 2018 compared to 5.65 percent in 2017.
  • During the fourth quarter of 2018, Paragon also began offering pay cards as another tool to improve its small business customers' banking experience.
In addition to the numerous financial records set in 2018, Paragon also set a record for employee service hours provided to the community. Over the course of 2018, 99 percent of Paragon team members participated in its Assisting the Community Through Service (ACTS) initiative, working with 44 nonprofit organizations across the Mid-South. Since the bank began tracking ACTS time in 2008, Paragon team members have provided more than 9,000 hours of community service.
"We are grateful for our team members and the community's continued confidence in Paragon Bank," said Shaw.
About Paragon Bank
Since its founding in 2005, Paragon Bank has maintained a solid focus on the community and customer service. 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 or visit us online at
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Beth Wilson, inferno, (901) 278-3773