QUARTERLY FINANCIAL RESULTS
LEXICON BANCORP REPORTS CONSOLIDATED FINANCIAL RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025
Key Highlights
- Net income of $1.14 million this quarter compared to $599 thousand for the quarter ended June 30, 2024; and net income of $1.74 million year-to-date, up 77.21% over the $983,000 for the six months ended June 30, 2024
- Loans net of fees grew to $177.47 million, up 7.74% from last year
- Total deposits increased to $352.49 million, up 35.09% from last year
- Non-interest-bearing deposits were 56.47% of total deposits
- Total assets increased to $386.59 million, up 29.22% from last year
- Strong on-balance sheet liquidity sources with cash and cash equivalents of $173.76 million and investment securities of $30.95 million
- Book value per share grew to $12.10, up 14.17% from last year
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 June 30, 2025, and 2024. Lexicon continues to focus on personalized concierge banking services for its clients, as reflected in the year-over-year increase in net income, driven by continued growth in loans and deposits.
“Lexicon Bank’s second-quarter performance demonstrates the power of our strategic focus and disciplined execution,” said Stacy Watkins, President and CEO of Lexicon. “With continued growth in loans, deposits, and assets, alongside strong earnings and improved efficiency, we are proving that our relationship-driven model and commitment to personalized service resonate deeply with our clients and communities. This sustained performance is also reflected in our 14th consecutive 5-Star rating from BauerFinancial—an external validation of our financial strength, risk management, and long-term resilience.”
“As we invest thoughtfully in talent, technology, and strategic partnerships, Lexicon Bank remains well-capitalized, highly liquid, and positioned for continued growth. We are confident in our ability to deliver consistent value to shareholders, support our clients through evolving market conditions, and uphold our mission to be Southern Nevada’s best bank for business.”
For the three months ended June 30, 2025, net income was $1.14 million compared to $599 thousand for the three months ended June 30, 2024. The results were driven by the following changes:
- Higher net interest income by $1.12 million, driven by higher levels of loans and deposits invested in cash
- Decreased provision for credit losses by $13 thousand, driven by lower loan growth for each quarter, while continuing to build the allowance for credit losses, given the current economic uncertainties
- Higher non-interest income by $56 thousand, primarily from continued growth in client deposit accounts; and a $45 thousand increase in the earnings from the Bancorp’s noncontrolling equity investment in IconTrust, a Las Vegas-based trustee services provider
- Increased non-interest expenses by $453 thousand, attributable to increased salaries and benefits, marketing/sponsorships, professional fees, technology costs, and miscellaneous loan expenses to support continued growth
For the six months ended June 30, 2025, net income was $1.74 million compared to $983 thousand for the six months ended June 30, 2024. The results were driven by the following:
- Higher net interest income by $1.88 million from higher levels of loans and deposits invested in cash
- Higher provisions for credit losses by $96 thousand, driven primarily by continuing to build the allowance for credit losses, given the current economic environment
- Higher non-interest income by $142 thousand from continued growth in client deposit accounts; and a $77 thousand increase in the earnings from IconTrust
- Higher non-interest expenses by $871 thousand from increased salaries and benefits, brand awareness, professional fees together with continued investments in technology to support current and future growth
Lexicon’s annualized return on average assets and return on average equity for the six months ended June 30, 2025, improved to .98% and 11.72%, up from .70% and 7.46% from a year ago, respectively, moving closer to Lexicon’s short-term strategic goal of 1% and 10%, respectively.
Loans, net of fees, grew to $177.47 million as of June 30, 2025, reflecting net growth of $12.75 million, or 7.74%, from June 30, 2024, and demonstrating our support for the businesses that are building and investing in the Southern Nevada community. The loan portfolio continues to perform well, with nonaccrual loans totaling $1.85 million at June 30, 2025. The allowance for credit losses to total loans was 1.66% on June 30, 2025, compared to 1.53% on June 30, 2024.
Total deposits were $352.49 million on June 30, 2025, with non-interest-bearing deposits improving to 56.47% of total deposits from 47.58% 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. Deposits are expected to decline as a portion of this quarter’s growth reflected certain temporary deposits placed with the Bank.
Our loan-to-deposit ratio was 50.33% on June 30, 2025. We continue to leverage our deposit base through the origination of loans, seeking to move the ratio higher over time to serve the needs of businesses in Southern Nevada and to increase earnings.
We held cash and cash equivalents of $173.76 million, or 49.29% of total deposits, on June 30, 2025. Additionally, we have combined unused lines of credit and unpledged securities totaling $106.54 million, or 30.22% of total deposits, on June 30, 2025. The combined cash and cash equivalents, unused lines of credit, and unpledged securities represent approximately 79.52% of total deposits. This combination of liquid assets and available resources provides a strong liquidity position.
Total shareholders’ equity was $30.89 million on June 30, 2025, compared to $27.05 million on June 30, 2024, driven by net income and a decrease in the net unrealized losses on available for sale (“AFS”) securities by $627 thousand, which totaled $1.86 million on June 30, 2025, compared to $2.48 million a year ago.
Lexicon’s Tier 2 Capital Ratio was 19.33% (10% required to be well-capitalized), Tier I Capital Ratio was 18.02% (8% required to be well-capitalized), and the Tier I Leverage Capital Ratio was 8.61% (5% required to be well-capitalized). Tier 1 and Tier 2 Capital totaled $32.74 million and $35.12 million, respectively, on June 30, 2025.
As of June 30, 2025, Lexicon’s consolidated total assets were $386.59 million, an increase of $87.41 million from June 30, 2024, driven by the growth in deposits used to fund the increase in the loan portfolio and on-balance sheet liquidity.
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 9 A.M. to 12 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 X. 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.
