QUARTERLY FINANCIAL RESULTS
LEXICON BANCORP REPORTS CONSOLIDATED FINANCIAL RESULTS AS OF AND FOR THE THREE MONTHS ENDED MARCH 31, 2026
Key Highlights
- Net income of $1.30 million this quarter increased 116.45% from $602 thousand for the quarter ended March 31, 2025
- Loans, net of fees, grew to $202.83 million, up 14.95% year over year
- Total deposits increased to $413.71 million, up 12.08% year over year
- Non-interest bearing deposits were 61.76% of total deposits
- Total assets increased to $460.39 million, up 14.52% year over year
- Strong on-balance sheet liquidity sources with cash and cash equivalents of $225.16 million and investment securities of $27.68 million
- Book value per share grew to $13.84, up 19.18% year over year
- The SBA Lending Division, formed in August 2025, produced loans totaling $3.03 million during the first quarter of 2026, with loans sold of $2.49 million, resulting in net gain on sales of SBA loans totaling $202 thousand for the quarter.
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 ended March 31, 2026, and 2025. 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.
“At Lexicon, our focus remains on building meaningful momentum while staying grounded in the principles that have guided us since day one. In the first quarter, we surpassed $200 million in outstanding loans, one of the fastest such milestones achieved among Southern Nevada community banks, reflecting the continued trust our clients place in us and the strength of the relationships we are building.
This momentum is supported by strong financial performance and continued growth across our balance sheet, driven by disciplined execution and sustained client demand. Our core funding, liquidity, and capital position remain key strengths as we scale the franchise.
We also made meaningful progress across our lending platform, including continued expansion in our Commercial and SBA businesses. The early success of our SBA Lending Division, along with increased adoption of our digital SBA platform, highlights our commitment to delivering accessible, efficient solutions for business owners.
As we grow, we remain focused on investing in our team and technology while maintaining strong risk discipline. Our 17th consecutive 5-star rating from BauerFinancial reflects the stability of our institution and our long-term approach to value creation. We are proud of the progress we’ve made and remain committed to delivering meaningful results for our shareholders, clients, and our community,” says Stacy Watkins, President and CEO.
For the three months ended March 31, 2026, net income was $1.30 million compared to $602 thousand for the three months ended March 31, 2025. The overall increase in net income was driven by the following key changes:
- Higher net interest income by $1.40 million, driven by higher levels of loans and interest-bearing cash balances, partially offset by lower overall short-term interest rates
- Decreased provision for credit losses by $110 thousand, primarily driven by an approximate $176 thousand included in last year’s provision due to tariff and related economic uncertainties. The Bank continues to maintain a sound allowance for credit losses, given the current economic environment.
- Higher non-interest income by $287 thousand, primarily from continued growth in client deposit accounts, gain on sale of SBA Loans of $202 thousand, and a $34 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 $897 thousand, attributable to increased salaries and benefits, marketing/sponsorships, professional fees, technology costs, expansion of SBA and commercial lending, and expenses to support continued growth
Lexicon’s annualized return on average assets and return on average equity for the three months ended March 31, 2026, improved to 1.17% and 15.10%, respectively.
Loans, net of fees, grew to $202.83 million as of March 31, 2026, reflecting net growth of $26.38 million, or 14.95%, from March 31, 2025, 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 $1.52 million at March 31, 2026. The allowance for credit losses to total loans was 1.55% on March 31, 2026, compared to 1.64% on March 31, 2025.
Total deposits were $413.71 million on March 31, 2026, with non-interest-bearing deposits improving to 61.76% of total deposits from 56.42% 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 49.03% as of March 31, 2026. 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 $225.16 million, or 54.42% of total deposits, on March 31, 2026. Additionally, we have combined unused lines of credit totaling approximately $113.91 million, or 27.53% of total deposits, on March 31, 2026. The combined cash and cash equivalents and unused lines of credit represent 81.96% 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 $35.33 million on March 31, 2026, compared to $29.65 million on March 31, 2025, driven by net income and a decrease in the net unrealized losses on available for sale (“AFS”) securities by $351 thousand, which totaled $1.48 million on March 31, 2026, compared to $1.83 million a year ago.
Lexicon Bank’s Tier 2 Capital Ratio was 21.39% (10% required to be well-capitalized), Tier I Capital Ratio was 20.14% (8% required to be well-capitalized), and the Tier I Leverage Capital Ratio was 9.72% (5% required to be well-capitalized). Tier 1 and Tier 2 Capital totaled $43.09 million and $45.77 million, respectively, on March 31, 2026.
As of March 31, 2026, Lexicon’s consolidated total assets were $460.39 million, an increase of $58.36 million from March 31, 2025, 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. LexiconBank 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 Bank helps to foster Southern Nevada's economy and community—ultimately helping to grow and develop the region's local businesses. Lexicon is redefining banking as it should be in Southern Nevada by creating a concierge-like experience for businesses, regardless of size. LexiconBank 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 member 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.
