The corporate parent of Raleigh-based Paragon Bank reported a 22 percent jump in net income in the fourth quarter.
The bank attributed the increase primary to higher net interest income driven by loan growth, which was partially offset by a higher allowance for loan losses needed to keep pace with the expanded loan portfolio and a larger loss stemming from the write-down of foreclosed properties.
“2016 proved to be the most successful year in Paragon’s 17-year history,” CEO Bob Hatley said in a prepared statement.
Net income totaled $3.6 million, up from $3 million a year ago. Net income per share totaled 67 cents, an increase of 2 cents. The lower increase in net income per share was a result of the company’s initial public offering in June, which boosted the number of shares outstanding by about 18 percent.
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Loans outstanding stood at $1.17 billion as of Dec. 31, up $25.9 million from the end of the third quarter.
For all of 2016, the bank’s net income rose 19 percent to $13.4 million.
Paragon has a branch in Raleigh, Cary and Charlotte and boasts $1.5 billion in assets.