Paragon Financial Solutions Announces Authorization of Three-Year $5 Million Stock Repurchase Program

Memphis, Tennessee February 2, 2021 – Paragon Financial Solutions (“Paragon” or the
“Company”) (OTCBB: PGNN) the parent company of Paragon Bank, today announced
that the board of directors of Paragon (the “Board”) has authorized a three-year stock
repurchase program pursuant to which the Company may, from time to time, purchase
up to $5 million of its outstanding shares of common stock. The shares may be
repurchased from time to time in privately negotiated transactions or on the open
market, including pursuant to Rule 10b5-1 trading plans, and in accordance with
applicable regulations of the SEC. The stock repurchase program does not obligate the
Company to purchase any particular number of shares, and the timing and exact
amount of any repurchases will depend on various factors, including the performance of
the Company’s stock price, general market and other conditions, applicable legal
requirements and other factors. The stock repurchase program has an expiration date
of January 31, 2024. The stock repurchase program may be terminated or amended by
the Board at any time prior to the expiration date.

“We believe our stock is an attractive investment at current valuations and offers an
excellent means to build long-term value for our shareholders,” stated Robert Shaw,
President and Chief Executive Officer.

About Paragon Financial Solutions
Paragon Financial Solutions is the parent of Paragon Bank. Paragon Financial
Solutions is currently quoted on the OTCBB under the symbol PGNN. Since its
founding in 2005, Paragon Bank has maintained a solid focus on the community and
customer service. For over 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. 

Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking statements
include, but are not limited to, statements about (i) future financial and operating results;
(ii) Paragon Bank’s plans, objectives, expectations and intentions and other statements
contained in this press release that are not historical facts; and (iii) other statements
identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,”
“seeks,” “estimates,” “targets,” “projects,” or words of similar meaning generally
intended to identify forward-looking statements. These forward-looking statements are
based upon the current beliefs and expectations of the management of Paragon and
are inherently subject to significant business, economic and competitive uncertainties
and contingencies, many of which are beyond the control of Paragon. In addition, these
forward-looking statements are subject to assumptions with respect to future business
strategies and decisions that are subject to change. Actual results may differ materially
from the anticipated results discussed in these forward-looking statements because of
possible uncertainties.
The following factors, among others, could cause actual results to differ materially from
the anticipated results or other expectations expressed in the forward-looking
statements: (1) the assumptions and estimates used by Paragon’s management include
both assumptions as to certain business decisions that are subject to change and, in
many respects, subjective judgment, and thus are susceptible to multiple interpretations
and periodic revisions based on actual experience and business developments, and
thus, may not be realized; (2) legislative or regulatory changes, including changes in
accounting standards, may adversely affect the businesses in which Paragon is
engaged; (3) changes in the interest rate environment may adversely affect net interest
income; (4) continued diversification of assets and adverse changes to credit quality; (5)
competition from other financial services companies in Paragon Bank’s markets could
adversely affect operations; and (6) an economic slowdown that could adversely affect
credit quality and loan originations.

Paragon cautions that the foregoing list of factors is not exclusive. All subsequent
written and oral forward-looking statements concerning other matters attributable to
Paragon or any person acting on its behalf are expressly qualified in their entirety by the
cautionary statements above. Paragon does not undertake any obligation to update any
forward-looking statement to reflect circumstances or events that occur after the date
the forward-looking statements are made.

Contact: Robert Shaw, President and CEO
Paragon Financial Solutions
901.273.2901