QUARTERLY FINANCIAL RESULTS

LEXICON BANCORP REPORTS CONSOLIDATED FINANCIAL RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024

June 30, 2024 Key Highlights

• Net income of $599 thousand this quarter was up 56.0% over the first quarter of 2024, and up 31.4% from the second quarter of 2023.

• Net income of $983 thousand for the first half of 2024 was up 56.0% over the first half of 2023.

• Core loans grew to $163.9 million, up 14.9% from last year.

• PPP loans decreased to $812,000 from $8.6 million on March 31, 2024.

• Total deposits grew to $260.9 million, up 30.7% from June 30, 2023.

• Non-interest bearing deposits were 48% of total deposits up from 42% last year.

• Strong liquidity sources covering 72% of total deposits at quarter end.

• Grew book value per share to $10.60 at quarter end, up 7.3% from a year ago.

Lexicon Bancorp (“Bancorp”), the parent company for Lexicon Bank (“Bank”) (collectively, “the Company” or “Lexicon”), announces unaudited consolidated financial results as of and for the three and six months ended 2024. Lexicon continues to focus on personalized concierge banking services for clients, reflected in the year-over-year increase in net income driven by the continued growth in core loans and deposits.

“Our momentum from 2023 continues with even stronger results and growth in 2024. Lexicon continues to serve our clients and communities throughout Southern Nevada,” said Stacy Watkins, President and CEO of Lexicon. “We have continued lending across Southern Nevada to support growth and strategic goals while building a diversified deposit base backed by a safe and sound balance sheet and delivering improved operating results for our shareholders.”

For the three months ended June 30, 2024, net income was $599 thousand compared to $456 thousand for the three months ended June 30, 2023. The increase was driven by the following:

• Higher net interest income by $180 thousand from continued growth
• Lower provision for credit losses by $147 thousand driven by lower charges-offs in 2024 partially offset by additional provisions for loan growth
• Higher non-interest income by $146 thousand from continued growth in client deposit accounts
• Increased non-interest expenses by $320 thousand, attributable to growth and increased salaries and benefits together with continued investments in technology

For the six months ended June 30, 2024, net income was $983 thousand compared to $630 thousand for the six months ended June 30, 2023. The increase was driven by the following:

• Higher net interest income by $414 thousand from continued growth
• Lower provisions for credit losses by $140 thousand, driven by no core loan charge-offs in 2024 compared to $148 thousand in core loan charge-offs in 2023
• Higher non-interest income by $216 thousand from continued growth in client deposit accounts
• Higher non-interest expenses by $381 thousand from increased salaries and benefits, together with continued investments in technology

Lexicon’s return on average assets and return on average equity for the six months ended June 30, 2024, improved to 0.70% and 7.46%, respectively, moving us closer to our strategic goals of 1% and 10%, respectively.

Core loans, net of fees, grew to $163.9 million as of June 30, 2024, reflecting net growth of $21.3 million from June 30, 2023, and demonstrating our support for the businesses building and investing in the Southern Nevada community. The core loan portfolio continues to perform well, remaining healthy and strong, with two loans totaling $339,000 that were past due greater than 30 days at June 30, 2024; one of these loans, with a balance of $320,000 was fully repaid after quarter end. The yield on the core loan portfolio was 6.08% for the second quarter of 2024, compared to 5.77% in the second quarter of 2023, reflecting the current higher interest rate environment. The allowance for credit losses to total core loans was 1.53% on June 30, 2024, compared to 1.67% on June 30, 2023.

PPP loans, net of fees, decreased to $812 thousand during the quarter compared to $8.6 million on March 31, 2024. The remaining balances have not received forgiveness from the Small Business Administration (‘SBA”), carry a 1.00% rate, and are scheduled to pay-down over the next couple of years.

Total deposits were $260.9 million on June 30, 2024, with non-interest bearing deposits improving to 47.6% of total deposits from 41.7% a year ago.  The cost of deposits for the second quarter of 2024 increased to 1.86% compared to 1.09% in the second quarter of 2023, which reflects the overall higher interest rate environment. We continue to remain focused on building relationships, many of which are deposit focused, and utilizing third parties to expand FDIC deposit insurance coverage for larger relationships when desired.

Our core loan-to-deposit ratio was 63% on June 30, 2024. We continue to leverage our deposit base through the origination of core loans, seeking to move the ratio closer to 80% over time as we serve the needs of businesses in Southern Nevada.

We held cash and cash equivalents of $101.5 million, or 39% of total deposits, on June 30, 2024. Additionally, we have combined unused lines of credit and unpledged securities totaling $87.1 million, or 33% of total deposits on June 30, 2024. The combined cash and cash equivalents, unused lines of credit and unpledged securities represent 72% of total deposits. This combination of liquid assets and available resources provides a strong liquidity position for Lexicon.

Total shareholders’ equity was $27.0 million on June 30, 2024, compared to $25.2 million on June 30, 2023, driven by earnings offset by a decrease in the net unrealized losses on available for sale (“AFS”) securities, which totaled $2.5 million on June 30, 2024, compared to $2.8 million a year ago. Lexicon’s community bank leverage ratio (“CBLR”) was 9.86% with Tier I capital of $29.5 million on June 30, 2024, above the 9% level required to be considered well-capitalized by its primary regulator.

As of June 30, 2024, Lexicon’s consolidated total assets were $299.2 million, an increase from $230.2 million on June 30, 2023, driven by the growth in deposits used to fund the increase in the core loan portfolio.

Upon the formation of Lexicon Bancorp as the holding company for Lexicon Bank in July 2023, all information herein reflects consolidated financial information for Lexicon Bancorp, including Lexicon Bank (therefore, certain information may not match the standalone financial information for Lexicon Bank). Accordingly, presented below is a summary of the Consolidated Selected Financial Data as of and for the periods indicated:

ABOUT LEXICON BANCORP

Lexicon Bancorp was established in July 2023 to become the bank holding company for Lexicon Bank. Founded in 2019, Lexicon Bank is Southern Nevada's community-focused banking partner. Lexicon provides personal, comprehensive banking services to business and individual banking clients, emphasizing creating and nurturing long-term relationships. By providing personalized services to all clients, Lexicon helps to foster Southern Nevada's economy and community—ultimately helping to grow and develop the region's local businesses. The Bank is redefining banking as it should be in Southern Nevada by creating a concierge-like experience for businesses, regardless of size. Lexicon Bank is located in Tivoli Village at 330 S. Rampart Blvd., Suite 150. The Bank is open from 9 A.M. to 5 P.M. Monday through Friday and 10 A.M. to 2 P.M. on Saturdays. Clients can contact us by phone at (702) 780-7700 or online at lexiconbank.com. Follow us on Facebook, Instagram, LinkedIn, and Twitter @lexiconbank. Lexicon Bank is a member of the FDIC.

This press release includes “forward-looking statements,” as such term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the current beliefs of the Company’s Board and executive officers (collectively, “Management”), as well as assumptions made by and information currently available to the Company’s Management. All statements regarding the Company’s business strategy and plans and objectives of Management of the Company for future operations are forward-looking statements. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect” and “intend” and words or phrases of similar meaning, as they relate to the Company or the Company’s Management, are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from the Bank’s expectations (“cautionary statements”) are the effects of the COVID-19 pandemic and related government actions on the Company and its clients, loan losses, changes in interest rates, loss of key personnel, lower lending limits and capital than competitors, regulatory restrictions and oversight of the Company, the secure and effective implementation of technology, risks related to the local and national economy, the Company's implementation of its business plans and management of growth, loan performance, interest rates, and regulatory matters, the effects of trade, monetary and fiscal policies, inflation, the effects of natural disasters, and changes in accounting policies and practices. Based upon changing conditions, if any one or more of these risks or uncertainties materialize, or if any underlying assumptions prove incorrect, actual results may vary materially from those described as anticipated, believed, estimated, expected, or intended. The Bank does not intend to update these forward-looking statements.