Federal Regulators Give Paragon
Green Light to Raise Capital

September 30, 2004

Paragon National Bank (In Organization) announced today that it received permission from the Office of the Comptroller of the Currency on September 28 to begin its formal offering. With the approval of the bank's offering circular, the organizers are now permitted to raise their equity capital through the sale of the bank's stock.

Robert S. Shaw, Jr., proposed President and CEO of Memphis' newest bank in oganization, says that the "tsunami" of recently announced bank mergers in the region has created a favorable climate for starting a genuinely local bank that is oriented to the needs of small and mid-sized businesses, their owners and executives.

"Paragon will be a local commercial bank owned and operated by members of the community it serves," Shaw said. "With a majority of the Memphis area market-share soon to be based out of state," Shaw said, "we feel that customers who prefer the traditionally superior service of a locally owned and operated bank will soon become our customers."As stated in the offering circular, the organizers will raise between $15 and $25 million from investors, with the minimum investment set at 1,000 shares, or $10,000 and the maximum investment at 5 percent of the total shares sold. In order to keep ongoing overhead to a minimum, the organizers and directors intend to limit the number of shareholders to approximately 400.

Shaw said that Paragon's organizers have received numerous calls from interested investors since June, when plans for the bank were made public. "The number of calls we have gotten without any solicitation is very encouraging," Shaw said, "and we expect to raise the high end of our estimates. This confirms our belief that, in light of the recent bank mergers in Memphis, there is a great deal of interest in a locally-owned bank."

This unsolicited response bolsters one of 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.... 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."

Paragon National Bank (IO) will be open its first office at Paragon Place, 6300 Poplar Avenue, Suite 117 (at the corner of Poplar and Massey in Memphis) with additional branch locations being planned. The bank is scheduled to open the first week in January 2005.

For more information about Paragon National Bank (IO), or to inquire about their offering, please contact Bank organizers at (901) 273-2900 or visit the website at BankParagon.com. Investments into Paragon National Bank (IO) can be made only by obtaining a printed copy of the Offering Circular by contacting the bank or its representatives and following the investment guidelines stated therein.

« Back to News

Recent Announcements