QUARTERLY FINANCIAL RESULTS

LEXICON BANCORP REPORTS CONSOLIDATED FINANCIAL RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024

Key Highlights

• Net income of $626 thousand this quarter; compared to $92 thousand last year

• Net income of $1.61 million for the nine months ended September 30, 2024; up 122.7% over the nine months ended September 30, 2023

• Core loans grew to $167.2 million, up 14.7% from last year

• Total deposits grew to $258.4 million, up 16.7% from last year

• Non-interest bearing deposits were 45% of total deposits, up from 41% last year

• Total assets increased to $290.5 million, up 15.9% from last year

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

• Book value per share grew to $11.12 at quarter end, up 14.1% 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 nine months ended September 30, 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 continues with strong operating results and growth in 2024 driven by our concierge service to our clients and communities throughout Southern Nevada,” said Stacy Watkins, President and CEO of Lexicon. “We are continuing to lend across Southern Nevada to support growth and strategic goals while building a diversified deposit base backed by a safe and sound balance sheet, as demonstrated by our 10th consecutive 5-star quarterly rating for financial strength and stability from BauerFinancial, Inc. (BauerFinancial.com).”

Watkins continues, “Recently, Lexicon was featured in Banking Dive, highlighting our successful nonprofit spotlight program, which has helped drive our growth and further reinforce our commitment to community-driven banking. I invite you to read the article: Las Vegas’ Lexicon Bank bets on growth with nonprofits | Banking Dive. We also celebrated the grand opening of our replica branch inside Junior Achievement’s Inspiration Center, where we are proud to support financial education for local youth, helping them develop a real-world understanding of banking and entrepreneurship.

Additionally, we are thrilled to announce our strategic partnership with the Las Vegas Desert Dogs professional lacrosse team. This collaboration underscores our shared focus on community engagement as we work together to uplift Southern Nevada through initiatives that empower local organizations and strengthen the communities we serve.”

For the three months ended September 30, 2024, net income was $626 thousand compared to $92 thousand for the three months ended September 30, 2023. The increase was driven by the following:

• Higher net interest income by $626 thousand driven by continued growth
• Lower provision for credit losses by $114 thousand driven by lower core loan charges-offs in 2024, partially offset by additional provisions attributable to loan growth in 2024
• Higher non-interest income by $73 thousand primarily from continued growth in client deposit accounts
• Increased non-interest expenses by $154 thousand, attributable to increased salaries and benefits together with continued investments in technology to support current and future growth, offset by a $50 thousand decrease in expenses related to the formation of Lexicon Bancorp in 2023

For the nine months ended September 30, 2024, net income was $1.61 million compared to $722 thousand for the nine months ended September 30, 2023. The increase was driven by the following:

• Higher net interest income by $1.04 million driven by continued growth
• Lower provisions for credit losses by $321 thousand, driven by lower core loan charge-offs in 2024 of $8 thousand (excludes a $229 thousand charge-off on a PPP loan in the first quarter of 2024 and reserved in 2023) compared to $248 thousand in core loan charge-offs in 2023
• Higher non-interest income by $290 thousand from a $167 thousand increase in fees from the continued growth in client deposit accounts and a $123 thousand increase in income from our non-controlling equity investment in IconTrust, LLC made effective August 1, 2023
• Higher non-interest expenses by $602 thousand from increased salaries and benefits, together with continued investments in technology, offset by a $50 thousand decrease in expenses related to the formation of Lexicon Bancorp in 2023

Lexicon’s return on average assets and return on average equity for the nine months ended September 30, 2024, improved to 0.75% and 7.99%, respectively, moving us closer to our strategic goals of 1% and 10%, respectively.

Core loans, net of fees, grew to $167.2 million as of September 30, 2024, reflecting net growth of $21.4 million, or 14.7%, from September 30, 2023, and demonstrating our support for the businesses who are building and investing in the Southern Nevada community. The core loan portfolio continues to perform well, remaining healthy and strong, with no loans that were past due greater than 30 days at September 30, 2024. The allowance for credit losses to total core loans was 1.58% on September 30, 2024, compared to 1.30% on September 30, 2023.

PPP loans, net of fees, decreased to $614 thousand during the quarter compared to $10.2 million on September 30, 2023, primarily from the continued forgiveness of the loans. The redeployment of the proceeds from the PPP loan forgiveness proceeds into higher yielding assets was a key contributor to the growth in net interest income over the last two quarters. The remaining balances have not received forgiveness from the Small Business Administration (‘SBA”), which carry a 1.00% rate, and are scheduled to pay down over the next couple of years.

Total deposits were $258.4 million on September 30, 2024, with non-interest bearing deposits improving to 44.8% of total deposits from 41.0% a year ago. We continue to remain focused on building relationships, many of which are primarily deposit focused, and utilizing third parties to expand FDIC deposit insurance coverage for larger relationships when desired.

During the third quarter of 2024, we reduced non-customer certificates of deposits outstanding by $5.5 million, with a weighted-average rate of 5.70%. In addition, we repaid the outstanding Bank Term Funding Program loans totaling $7.5 million with a weighted-average rate of 4.84% in September 2024. These repayments will benefit net interest income in future quarters as overall interest rates have started declining.

Our core loan-to-deposit ratio was 64.7% on September 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 $90.7 million, or 35% of total deposits, on September 30, 2024. Additionally, we have combined unused lines of credit and unpledged securities totaling $94.7 million, or 36.65% of total deposits, on September 30, 2024. The combined cash and cash equivalents, unused lines of credit and unpledged securities represent 71.76% of total deposits. This combination of liquid assets and available resources provides a strong liquidity position for Lexicon and our clients.

Total shareholders’ equity was $28.4 million on September 30, 2024, compared to $24.9 million on September 30, 2023, driven by net income offset by a decrease in the net unrealized losses on available for sale (“AFS”) securities, which totaled $1.8 million on September 30, 2024, compared to $3.2 million a year ago.

Lexicon’s community bank leverage ratio (“CBLR”) was 10.1% with Tier I capital of $30.2 million on September 30, 2024, above the 9% CBLR level required to be considered well-capitalized by our primary regulator.

As of September 30, 2024, Lexicon’s consolidated total assets were $290.5 million, an increase from $250.7 million on September 30, 2023, driven by the growth in deposits used to fund the increase in the core loan portfolio.

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.