Paragon Commercial Corporation reported that earnings for the first quarter of 2015 increased approximately 49 percent to $2.3 million, compared to $1.6 million for the same period in 2014.
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Fully diluted earnings per share for the first quarter of 2015 were 51 cents compared to 35 cents for 2014. The increase was primarily driven by an increase in net interest income as a result of period over period growth.
Net interest income increased by approximately $1.4 million during the first quarter of 2015 compared to 2014. Net interest income totaled approximately $9.5 million during the period, representing a net interest margin of 3.52 percent on a tax equivalent basis.
Paragon Bank's net interest margin, on a tax equivalent basis, increased from 3.49 percent during the first quarter of 2014.
Total deposits increased by $64.4 million during the first quarter, reaching $948.1 million on March 31. Total deposits have increased by $125.3 million, or 15 percent, since the same period in 2014.
Year over year, demand account balances increased by $52.6 million, while money market and interest checking accounts increased by $139.2 million, increases of 57 percent and 45 percent, respectively. Conversely, time deposits have decreased by $66.5 million, or 16 percent, during the same period.
Loans outstanding increased by $75.6 million during the quarter, from $868.4 million on Dec. 31, 2014 to $944 million on March 31, 2015. Loans have increased by $164.4 million in the year since March 2014.
Total consolidated assets on March 31, 2015 were $1.27 billion, compared to $1.17 billion at the end of 2014.
Paragon Commercial Corporation recorded a loan loss provision of $571,000 in the first quarter of 2015, compared to $538,000 in 2014. As a result, the allowance for loan losses as a percentage of total loans at quarter end increased to 0.80 percent from 0.79 percent.
Asset quality for the company remains very strong. Nonperforming loans were 0.42 percent of total loans on March 31, 2015. As a comparison, all North Carolina banks up to $5 billion in asset size had a median ratio of 0.96 percent for that same ratio in December 2014, or more than two times more problem loans as a percent of their portfolio.
Past due loans plus nonperforming loans as a percent of loans for the company as of December 31, 2014 were 0.47 percent. ■