If things go right, Paragon Commercial (OTCQX:PBNC) could be a really interesting growth story to follow for the coming years. This branch-light bank company is following a model similar to that used by Bank of the Ozarks (NASDAQ:OZRK). That's not to say that Paragon is "the next Bank of the Ozarks," but a bank model focused on service-oriented private lending to businesses and high net worth individuals and efficient non-retail deposit gathering through a small branch footprint can work.
Paragon is one of the very few banks I've looked at recently that looks undervalued. That triggers my paranoia and leads me to question whether I'm overestimating growth/underestimating risk, or whether this is simply a bank that most investors don't really know about yet. Whatever the case, there are things management must address (like improving its deposit base), but the growth potential from this model is worth exploring further.
Read more here:
Paragon Commercial Looking To Drive Growth From A Highly Focused Model