QUARTERLY FINANCIAL RESULTS
LEXICON BANCORP REPORTS CONSOLIDATED FINANCIAL RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025
Key Highlights
- Net income of $1.36 million this quarter compared to $625 thousand for the quarter ended September 30, 2024; and net income of $3.10 million year-to-date, up 92.97% over the $1.61 million for the nine months ended September 30, 2024
- Loans net of fees grew to $191.25 million, up 13.97% from last year
- Total deposits increased to $397.76 million, up 53.93% from last year
- Non-interest-bearing deposits were 63.01% of total deposits, up 116.37% from last year
- Total assets increased to $441.41 million, up 51.95% from last year
- Strong on-balance sheet liquidity sources with cash and cash equivalents of $215.31 million and investment securities of $30.62 million
- Book value per share grew to $12.78, up 14.95% from last year
- In August 2025, Lexicon Bank introduced its SBA Division to expand access to government-guaranteed lending programs for small businesses, locally and nationwide.
- In September 2025, Lexicon Bancorp obtained third-party financing in the amount of $7.5 million, of which $7.0 million was used to increase Lexicon Bank’s capital to support continued growth
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, 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 third-quarter performance demonstrates the strength of our strategy and the discipline of our execution,” said Stacy Watkins, President and CEO of Lexicon. Net income this quarter more than doubled compared to the same period last year, supported by strong growth in loans, deposits, and total assets. Our $7.5 million third-party financing further strengthens our capital base, positioning the Bank to strategically deploy resources, expand lending capacity, and continue delivering value to our shareholders.”
“Lexicon remains a source of stability and confidence for our clients and community, including during the most recent federal government shutdown. Our newly launched SBA Division is fully operational and actively working with borrowers to prepare their applications, ensuring they are positioned to move forward without delay once the SBA approvals resume. Additionally, for any of our valued clients experiencing interruptions during the shutdown or needing assistance, please reach out to a member of our executive team or your relationship manager for guidance. This proactive approach underscores our commitment to supporting small businesses and driving economic growth, even amid uncertainty.”
“Combined with our strong liquidity, sound risk management, capital, and 15th consecutive 5-Star rating from BauerFinancial, these operating results reflect a well-capitalized, resilient institution focused on long-term performance and sustainable shareholder value.”
For the three months ended September 30, 2025, net income was $1.36 million compared to $625 thousand for the three months ended September 30, 2024. The net results were driven by the following key changes:
- Higher net interest income by $1.83 million, driven by higher levels of loans and interest-bearing cash balances
- Increased provision for credit losses by $190 thousand, driven by loan growth, while continuing to maintain a sound allowance for credit losses, given the current economic environment.
- Higher non-interest income by $284 thousand, primarily from continued growth in client deposit accounts, and a $35 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 $959 thousand, attributable to increased salaries and benefits, marketing/sponsorships, professional fees, technology costs, and miscellaneous loan expenses to support continued growth, as well as the approximately $518 thousand of start-up expenses related to the new SBA Division
For the nine months ended September 30, 2025, net income was $3.10 million compared to $1.61 million for the nine months ended September 30, 2024. The net results were driven by the following key changes:
- Higher net interest income by $3.71 million from higher levels of loans and interest-bearing cash balances
- Higher provisions for credit losses by $286 thousand, driven primarily by loan growth, and to maintain the allowance for credit losses, given the current economic environment
- Higher non-interest income by $426 thousand from continued growth in client deposit accounts, and a $111 thousand increase in the earnings from IconTrust
- Higher non-interest expenses by $1.83 million from increased salaries and benefits, brand awareness, professional fees, together with continued investments in technology to support current and future growth, as well as the start-up expenses related to the new SBA Division noted above.
Lexicon’s annualized return on average assets and return on average equity for the nine months ended September 30, 2025, improved to 1.07% and 13.59%, up from .75% and 7.99% from a year ago, respectively, aligning to Lexicon’s strategic goal of 1% and 10%, respectively.
Loans, net of fees, grew to $191.25 million as of September 30, 2025, reflecting net growth of $23.44 million, or 13.97%, from September 30, 2024, and demonstrating our support for businesses building and investing in the Southern Nevada community. The loan portfolio continues to perform well, with nonaccrual loans totaling $1.79 million at September 30, 2025. The allowance for credit losses to total loans was 1.58% on September 30, 2025, compared to 1.57% on September 30, 2024.
Total deposits were $397.76 million on September 30, 2025, with non-interest-bearing deposits improving to 63.01% of total deposits from 44.83% a year ago. We 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.
Our loan-to-deposit ratio was 48.08% as of September 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 $215.31 million, or 54.13% of total deposits, on September 30, 2025. Additionally, we have combined unused lines of credit totaling approximately $118 million, or 29.67% of total deposits, on September 30, 2025. The combined cash and cash equivalents and unused lines of credit represent 101.40% of total deposits. This combination of liquid assets and available resources provides a strong liquidity position for our clients when needed.
Consolidated shareholders’ equity was $32.63 million on September 30, 2025, compared to $28.38 million on September 30, 2024, driven by net income and a decrease in the net unrealized losses on available for sale (“AFS”) securities by $960 thousand, which totaled $1.52 million on September 30, 2025, compared to $2.48 million a year ago.
Lexicon’s Tier 2 Capital Ratio was 21.07% (10% required to be well-capitalized), Tier I Capital Ratio was 19.81% (8% required to be well-capitalized), and the Tier I Leverage Capital Ratio was 8.96% (5% required to be well-capitalized). Tier 1 and Tier 2 Capital totaled $40.37 million and $42.92 million, respectively, on September 30, 2025.
As of September 30, 2025, Lexicon’s consolidated total assets were $441.41 million, an increase of $150.92 million from September 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.
