Paragon Bank posted a 4 percent gain in net income in the third quarter that the Raleigh-based bank attributed largely to growth in its loan portfolio.
Paragon’s loan portfolio rose by $60 million to $1.16 billion during the third quarter.
Paragon Commercial, the bank’s corporate parent, reported Wednesday that its net income totaled $3.5 million, up from $3.3 million a year ago. However, net income per share fell 9 cents to 64 cents, a consequence of a 19 percent increase in total shares outstanding resulting from the company’s recent initial public offering.
Paragon’s shares previously were traded over the counter but switched to the Nasdaq stock exchange in conjunction with its June IPO. That stock offering was considered an IPO because the bank initially was funded by private investors and it didn’t issue any new stock when its shares began trading over the counter.
Paragon, which has branches in Raleigh, Cary and Charlotte, had $1.48 billion in assets as of Sept. 30.
Net interest income totaled $11.8 million, up from $10.7 million a year ago. Those gains were partially offset by a $391,000 loan loss provision as the company boosted its allowance for loan losses in line with the growth in total loans. The year-ago quarter also benefited from a $145,000 gain from the sale of securities.
Paragon shares were trading at $39.08, down 54 cents, early Wednesday afternoon. The company went public at $34 a share.