VOL. 132 | NO. 102 | Tuesday, May 23, 2017
Paragon Bank Reports Strong Q1 Earnings
Paragon Bank grew its net income 57 percent over the first quarter of 2016, according to first-quarter earnings numbers released Monday, May 22.
The bank reported net income of $657,513, which is also an increase of 14.3 percent over the fourth quarter of 2016. That comes off of what the bank said was “record-breaking” income and loan production volumes in 2016.
Among other first-quarter highlights, Paragon saw total deposits increase $9.5 million, or 13.6 percent, from the first quarter of 2016. Total revenue increased 3.5 percent over the fourth quarter of 2016 and 13.4 percent over first quarter 2016.
Paragon’s Small Business Capital Group, its SBA lending group, increased its income $251,000 over fourth quarter 2016 and $154,000 over first quarter 2016.
– Andy Meek
Airport Authority Passes MEM Operating Budget
The Memphis-Shelby County Airport Authority has approved a Memphis International Airport budget for fiscal year 2018, which begins July 1.
The $120.4 million operations and maintenance budget sets the fees and charges that airlines pay the airport authority, and also establishes spending authority for the MSCAA staff. It does not, however, include construction project expenditures.
Under the new budget, proposed terminal rates and charges – which are paid by airlines, vendors and other tenants – will drop to $80.51 per square foot, down 12.9 percent from $92.98 per square foot in fiscal 2017. The rental fees are calculated by dividing the terminal’s operating cost by the tenants’ total rented space.
The decrease in terminal rates is due to slightly lower terminal operating costs and increased non-airline revenues, according to MSCAA.
Landing fees dropped slightly to $1.2464 per 1,000 lbs. of landed weight compared to last year’s rate of $1.2662.
Terminal rent and landing fees comprise about 4 percent of airlines’ overall operating costs and do not have a significant effect on airfares.
The budget was unanimously supported by Memphis International Airport’s airline committee partners and approved by the board’s Finance and Administration Committee.
– Daily News staff
Medical District Apartments Sell for $5.2 Million
A 128-unit apartment high-rise in the Memphis Medical District has sold for $5.2 million.
Axon LLC, which has ownership based both in Memphis and California, bought the Park Tower Apartments, located at 57 N. Somerville St., from California-based Memphis Medical Redevelopment Group LLC.
In conjunction with the purchase, Rick Wood and Jon Van Hoozer of Financial Federal Bank arranged $4.5 million in acquisition financing for the property.
“The new buyers own another mid-rise in the Midtown area, so this is a natural progression in their Medical District acquisition program,” Wood said in a statement.
Built in 1957, the nine-story building is on 1.7 acres on the west side of Somerville Street between Jefferson Avenue to the north and Court Avenue to the south, according to the Shelby County Assessor of Property, whose 2017 appraisal of Park Tower is $3.6 million.
Axon plans on implementing a $750,000 upgrade, which will include two new elevators, exterior painting, replacement of HVAC components and a new lobby, fitness room, common area finishes, and an expansion of the ground-level commercial space.
Memphis Medical Redevelopment Group purchased the 95,727-square foot building in 2009, also with financing by Financial Federal Bank, and renovated it in 2009 and 2015.
“The new owner and management team are confident that the occupancy can be sustained at over 90 percent, leased at a higher rental structure than what is being offered in 2017,” Van Hoozer said. “There is nice rental upside on more upscale, well-located product in Midtown.”
– Patrick Lantrip
Tigers’ Kyser Earns Spot On Rimington Watch List
University of Memphis junior center Drew Kyser has been named to the Rimington Trophy Spring Watch List. Kyser is one of seven centers from the American Athletic Conference to earn a spot on the list, which was released Monday, May 22.
A junior from Opelika, Alabama, Kyser graduated from high school a semester early to join the Tigers roster, enabling him to earn playing time right away as a freshman in 2015. After playing off the bench in the season opener, Kyser started at center for the remaining 12 games of the year, helping the Tigers to their 2015 Birmingham Bowl appearance.
Last year, he started all 13 games at center, helping on an offensive line unit that ranked No. 28 in the country in total offense (463.7 yards per game) and No. 14 in passing offense (304.4 yards per game). The Tigers made a second straight bowl appearance since Kyser’s arrival, playing in the Boca Raton Bowl.
In all, Kyser has appeared in 26 straight games heading into his junior season. He is one of four returning starters on the Memphis offensive line, joined by senior Gabe Kuhn, junior Trevon Tate and sophomore Dustin Woodard.
The Rimington Trophy is presented annually to the Most Outstanding Center in NCAA Division I-A College Football and is overseen by the Boomer Esiason Foundation. This season’s award will be presented Jan. 13.
– Don Wade
Alabama Barbecue Team Wins Fifth MIM Championship
The 2017 Memphis in May World Championship Barbecue Cooking Contest wrapped up Saturday, May 20, with an Alabama team taking home a record fifth World Championship.
Chris Lilly and the Big Bob Gibson team from Decatur, Alabama, had been tied for the most World Championships with Myron Mixon’s Jack’s Old South team, which won its fourth championship last year.
“Winning at any level of the Memphis in May World Championship Barbecue Cooking Contest is difficult, as many teams will tell you, so for the Big Bob Gibson team to win a fifth title speaks to their incredible skill,” Memphis in May President and CEO James L. Holt said in a written statement.
Nearly 400 judges served in the World Championship Barbecue Cooking Contest, from tasting the blind judging entries to visiting the teams for on-site judging.
Several local teams took home first-place wins in their categories, including Bad Pig BBQ of Bartlett (Patio Porkers category); Yazoo’s Delta Q of Hernando (Whole Hog); 10 Bones BBQ of Olive Branch (Ribs); Smokin’ with an Attitude of Rossville, Tennessee (Poultry); Uncle Murle’s BBQ Team of Cordova (Seafood); and Swinos of Memphis (Exotic).
Big Bob Gibson took first in the Shoulder category, while The Shed of Ocean Springs, Mississippi, won first in the Kingsford Tour of Champions.
Visit memphisinmay.org for more on other category winners.
– Daily News staff
Pitt & Barbara Hyde Win Simon Philanthropy Award
Memphis-area philanthropists J.R. “Pitt” and Barbara Hyde have been named recipients of the 2017 William E. Simon Prize for Philanthropic Leadership, an annual award administered by The Philanthropy Roundtable that highlights the power of philanthropy to promote positive change and inspire others to support charities that achieve genuine results.
The Hydes will be honored Oct. 27 at the Fairmont Scottsdale Princess Hotel in Scottsdale, Arizona, during a luncheon at the 2017 annual meeting of The Philanthropy Roundtable. The prize includes a $250,000 award, payable to a charity of the Hydes’ choice.
“With the creation of the Hyde Family Foundation, the Hydes have been able to translate their passion for transforming education, strengthening neighborhoods and promoting Memphis’ cultural, civic and environmental assets into tangible results,” The Philanthropy Roundtable said in a statement about the honor. “The Hydes support Shelby County Schools, public charter schools like KIPP: Memphis and parochial and private schools.”
The statement adds the Hydes have been “notably generous to Memphis’ Jubilee Catholic Schools, supporting the effort known as the ‘Memphis miracle,’ the reopening of previously shuttered Catholic schools serving disadvantaged children.”
It also cites their commitment to giving time and money to attract talent and entrepreneurs to Memphis while also strengthening assets such as the urban parks; music and art institutions; and museums, including the National Civil Rights Museum.
– Daily News staff