The corporate parent of Paragon Bank, whose shares are currently traded over the counter, is planning on shifting to the Nasdaq stock exchange in conjunction with a stock offering in which it hopes to raise as much as $28.75 million.
Raleigh-based Paragon Commercial disclosed its plans in documents filed with the Securities and Exchange Commission.
Paragon, which opened its doors in 1999, has branches in Raleigh, Cary and Charlotte and had total assets of $1.34 billion as of March 31. It has $1.04 billion in outstanding loans.
Last year Paragon generated net income of $11.2 million, up 41 percent from 2014. In the first quarter net income totaled $2.8 million, up 23 percent.
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Co-founder and CEO Bob Hatley said the company is in a “quiet period” as a result of the stock offering and he therefore couldn’t comment on its plans.
Although the bank’s shares are already traded over the counter, its stock sale actually is an initial public offering because the bank was initially funded by private investors and it didn’t issue any new stock when its shares began trading over the counter.
Paragon hasn’t yet determined how many shares of stock it hopes to sell, or their price range.
The bank reported that it plans to use funds raised from the stock offering to support the company’s growth, retire outstanding debt and for general corporate purposes, including acquisitions. Paragon has $4.2 million in outstanding debt.
Paragon said it has applied for listing on the Nasdaq exchange under its current ticker symbol, PBNC.
The bank originally operated under the name Paragon Commercial Bank and focused on business customers. But in 2013 it broadened its focus to include “private banking” for the well-heeled.