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                                                                    EXHIBIT 21.1

                         SUBSIDIARIES OF BANCTENN CORP.


         1.       BANK OF TENNESSEE. Registrant is the sole shareholder of Bank
of Tennessee, a state bank chartered under the laws of the State of Tennessee.

         2.       PARAGON COMMERCIAL BANK. Registrant owns 19.11% of the
outstanding stock of Paragon Commercial Bank ("Paragon"), a banking corporation
organized under the laws of the State of North Carolina. Two of registrant's
directors are also members of the Paragon Board of Directors. Registrant's
affiliates, and their related interests, own, in the aggregate, an additional
10.51% which, for regulatory purposes, is considered to be aggregated with
Registrant's ownership position. The effect of these fact and circumstances is
that Paragon is treated as a subsidiary of registrant for regulatory financial
purposes. Accordingly, registrant takes into account, for its financial
reporting purposes, its direct proportionate share of Paragon's income and
losses.