Memphis' Newest Bank
Surpasses Capital Goal
December 8, 2004
Paragon National Bank announced the hiring of an entire Residential Construction Lending group this week. Bob Word, Paragon's new Senior Vice President/Senior Construction Lending Officer, brought with him long-time colleagues Lisa Barthol, Banking Officer; Steve Maury, Vice President/Residential Construction Lender; and Margie Smith, Banking Associate.
Paragon National Bank (in organization) reached a crucial milestone at 2 p.m. today, surpassing the $15 million mark required by the Comptroller of the Currency for a bank charter.
"We've had a good couple of days," said Paragon President Robert Shaw, "and we're ahead of schedule and picking up speed."
Bank organizers originally did not expect to meet this goal until December 10, although they expect to watch investments accelerate between now and December 17, when the stock sale is scheduled to close. The stock offering will end even sooner if the bank reaches its maximum approved capitalization of $25 million before next Friday.
"We have exceeded the amount of capital we need to open, but we are following through on several major commitments that were not included in this total," Shaw added. "The bank startup experts are telling us that 60 percent of the money comes in during the last few days of a stock offering, and those 'last few days' effectively started last Thursday."
Investors' checks totaling over $500,000 arrived last Thursday and Friday (Dec. 2-3), $360,000 on Monday, $255,000 on Tuesday, and $860,000 today.
Shaw said that Paragon's organizers began receiving numerous calls from interested investors several months before they received federal approval to sell stock on September 28.
"Given the number of early calls we got without any solicitation, we knew we would hit the upper limit of the capitalization," Shaw said. "This confirms our belief that, in light of the recent bank mergers in Memphis, a locally-owned bank offers real advantages to banking customers as well as investors," echoing the conclusions of a 2004 FDIC "Future of Banking"* study:
"The willingness of private investors to risk their own money to create new banks is a powerful market test of the viability of small banks," the study stated. "Moreover, a concentration of new banks in areas where large and distant banks have taken over local institutions also suggests that many customers may prefer the more personal approach of community banks."
About Paragon National Bank
Paragon National Bank (In Organization) is the Memphis region's newest, yet best experienced business bank. Paragon's bankers provide small and mid-sized businesses, their owners and executives with a complete package of business banking solutions delivered online and in person. Organizing at a time when familiar Memphis institutions have been absorbed into large, out-of-state holding companies, Paragon confidently promotes local ownership and authentic community engagement from its handpicked teams of respected banking professionals. Paragon's main branch will anchor Paragon Place at 6300 Poplar Ave. at Massey Rd. Visit Paragon online at www.BankParagon.com. For more information about the current stock offering, contact bank organizers at 901.273.2900.
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