Paragon Bank Posts 66 Percent Profit Jump, Earning $7.8 Million in 2025

Paragon Bank's profit surged 66% in 2025 to $7.8 million, capping a sixth consecutive year of record net interest income for the North Mississippi lender.

Net interest income reached $32.4 million for the year, up $5.1 million, or 19%, from 2024. Total revenue climbed to $36.5 million, an 18% gain and the fifth straight annual record for the bank.

"Over the last few years, the Paragon team has worked diligently to position Paragon for increased profitability and growth," said Robert Shaw, Chief Executive Officer and President at Paragon Bank. "We are pleased to report these record earnings for our shareholders while maintaining Paragon's commitment to our team members and our communities."

The loan portfolio stood at $805 million on December 31, 2025. Core loans, which exclude amounts originated or purchased through Paragon's Small Business Administration and Capital Markets divisions and then sold, grew $36.5 million, or 5.9%. Total deposit balances fell 2%, but the entire decline traced to a $103 million reduction in brokered deposits. Core deposits, stripped of brokered funds, climbed $86.5 million, or 14.7%, an outcome the bank described as an important strategic goal.

Asset quality held steady. Nonperforming assets represented just 0.15% of total assets on December 31, down from 0.17% a year earlier, and the bank recorded a $100,000 provision for loan losses in the fourth quarter to reflect loan growth.

Noninterest income increased roughly $479,000, or 13%, with the Small Business Capital Group, mortgage operations, and Capital Markets division each posting double-digit percentage gains. Tangible book value per share rose from $13.15 at the end of 2024 to $15.13 by year-end 2025, a climb driven by net income and a $2.1 million reduction in unrealized losses on the investment portfolio.

Paragon added a string of external recognitions in 2025. The U.S. Small Business Administration District Office for Tennessee named the bank one of five private lending partners to receive a top prize, specifically the Top 7(a) Tennessee-based Lender by Dollar Volume award. American Banker placed Paragon on its Best Banks to Work For list for the eighth consecutive year, ranking it No. 3, the highest position in the bank's history. The Commercial Appeal named Paragon a Top Workplace, and the Memphis Business Journal named it a Best Places to Work finalist.

The numbers carry particular weight in Oxford and Lafayette County, where local governments, developers, and homeowners have been managing recovery and rebuilding following the winter storms. Core loan and deposit growth across Paragon's footprint points to strengthening credit flows in North Mississippi heading into 2026.