Paragon Commercial Corporation recently announced a two-for-one stock split effective July 1, 2003. The decision was approved at its May 27, 2003 shareholder's meeting held at Carolina Country Club. The stock split will increase the number of shares outstanding to 6,280 shares.
"We made the decision to do this based on the success Paragon has enjoyed and the Board's desire to reward our owners with additional liquidity for their investment, " President & CEO, Bob Hatley stated.
Since opening in Raleigh, N.C. on May 10, 1999, trading has been at or greater than the original $52,500.00 per share price. While most new de-novo banks in the last four years have struggled to maintain their initial offering price, Paragon has had a waiting list of investors wanting to purchase more shares at or above the initial offering. Based on recent trades, Paragon's stock has increased in value by 50% or 13% per year since inception.
"We think this is indicative of our excellent asset quality and growth while keeping operating overhead low relative to assets of all North Carolina banks", added Hatley. "Paragon's net income has increased dramatically since inception. We believe our success is a reflection of our unique business plan and our target market."
As of April 30, 2003, net income was $672,000 versus $410,000 April 30, 2002. This represents an increase of 64%. Overhead to Assets ratio of 1.86 represents 50 basis points more efficient than the next most efficient bank in North Carolina.
The Bank conducts business through its single location on Glenwood Avenue in Raleigh but utilizes its courier service and electronic banking to extend its services to it business clients. Paragon offers a broad array of products to commercial clients, business owners and other targeted customers, either through its own products or through affiliated companies that have partnered with the Bank.
Mr. Hatley added that Paragon could not have achieved the outstanding performance without the bank's excellent products, systems and employees.
"We have worked hard to ensure we have acquired high performing employees and quality services to achieve our unique business plan. Our clients want to work with employees who have the knowledge and professionalism to help them operate their businesses successfully," commented Hatley. "We strive to be our client's advocate and we are constantly looking for the right solution for their business needs."
Paragon recently announced the addition of John Towles, Client Development Officer responsible for Private Banking. Towles has been in Banking for over 17 years, all of which have been in Wake, Durham and Orange Counties with Wachovia Bank. He most recently served as Relationship Manager in the Wealth Management Group.
"We are excited to have an account officer with John's private banking experience," stated Hatley. "John has had a strong following in Wake County - particularly with professionals that have a significant net worth. John has an excellent reputation in Wake County as someone who can provide exceptional financial planning."
Paragon Commercial Bank was the first business-only bank to open in North Carolina. Paragon provides banking products and services tailored to meet the needs of medium sized operating companies, commercial real estate companies, residential construction firms, technology and professional service firms including attorneys, health care providers and accountants.