Raleigh, N.C. - Paragon Commercial Bank recently reported record earnings of $2.5 million for 2003. This represented 26.5% growth over 2002. Total assets ended the year at $276 million, which represented an increase of 31% over 2002.

Paragon, which opened in May of 1999, continues to be one of the top performing banks in the nation that began operations in the last five years. The American Bankers Association recently reported that Paragon was number 91 of all banks in the nation and number one in North Carolina based on profit per employee.

"This is a reflection of our unique business plan, an excellent staff, board of directors and dynamic market in which we operate," President & CEO, Robert C. Hatley stated. "We have some very high expectations and we attribute our continued success to these key attributes."

Paragon's return on assets and return on equity were 1.08% and 12.84% respectively. These two measures indicate how well a bank is generating a return on its assets and a return for its shareholders. Paragon continued to be one of the leading banks in the nation in overhead to average assets with a ratio of 1.72. This is a key measure of how efficient the bank is in controlling its expenses and utilizing its assets.

"We have a dedicated staff willing to go the extra mile for our clients," Hatley stated in explaining these key ratios. "We are committed to giving our clients an exceptional level of service that they would otherwise not receive banking elsewhere."

Paragon's loan portfolio grew by $58 million in 2003. This represented a 34% growth over the previous year. Paragon's Net Interest Margin was 3.71% at year-end. This was higher than 2002 when the bank reported a Net Interest Margin of 3.45%. Net Interest Margin is a reflection of how well the bank is generating yield on its earning assets while at the same time controlling the cost of deposits.

Hatley noted that loan quality continued to be strong and this was a reflection of the talented Client Development Officers working at Paragon.

"We are very fortunate to have some very talented Client Development Officers who not only have excellent business development skills but also have excellent credit quality skills," Hatley added. "We understand that credit quality is critical to any bank's continued success."

Paragon Commercial Bank provides banking products and services tailored to meet the needs of small to medium-size businesses including commercial real estate companies, residential construction firms and professional service firms. These professional firms include attorneys, health care providers and accountants. Paragon also provides residential mortgages, wealth management and corporate finance services to it its list of high profile clients.

Paragon Commercial Bank is headquartered in Glenwood Plaza, 3605 Glenwood Ave., Suite 100, Raleigh, NC 27612. Paragon Commercial Bank can be found on the web at www.paragoncommercial.com.