QUARTERLY FINANCIAL RESULTS
LEXICON BANCORP REPORTS CONSOLIDATED FINANCIAL RESULTS AS OF AND FOR THE THREE & SIX MONTHS ENDED JUNE 30, 2026
Key Highlights
- Net income of $1.5 million increased 14.9% or $194 thousand for the quarter ended June 30, 2026
- $17.8MM in loan originations were added in the second quarter, $10.8MM of which has been funded as of June 30, 2026
- Opened 204 new deposit accounts during the quarter, contributing to 13.4% year-over-year deposit growth
- Non-interest bearing deposits were 58.8% of total deposits at June 30, 2026, versus 56.5% of total deposits at June 30, 2025
- Strong on-balance sheet liquidity sources with cash and cash equivalents of $214.9 million and investment securities of $25.9 million
- Book value per share grew to $14.39, up 18.93% year over year
- ROAA increased from 0.98% at June 30, 2025 to 1.32% at June 30, 2026, a 38% improvement year-over-year
- ROAE increased from 11.72% at June 30, 2025 to 16.40% at June 30, 2026
- The newly formed SBA Lending Division originated loans totaling $9.98 million during the first half of 2026, $5.5 million of which was closed in the second quarter. Loans sold were $3.05 million in the second quarter and $7.26 million year-to-date, resulting in net gain on sales of SBA loans totaling $213 thousand for the quarter and $415 thousand for the 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, 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.
A Message from Our President & CEO
At Lexicon, we remain focused on building a strong organization that creates long-term value for our shareholders, clients, team members, and community. Through disciplined execution, strategic investments, and a continued focus on long-term value creation, we are strengthening our organization's foundation while remaining true to the relationship-driven approach that has defined us since the beginning. Our financial results reflect the strength of the organization we continue to build, supported by continued profitability, a strong liquidity position, and a high-quality funding base, with nearly 59% of our deposits held in non-interest-bearing accounts.
We also took meaningful steps to further strengthen our leadership team for the future. Diane York joined as Chief Financial Officer, bringing extensive financial leadership experience, while Karla Wright joined as Chief Operations Officer and Chief Information Officer, bringing additional operational and technology leadership and expertise. At the same time, we were proud to recognize two exceptional leaders from within our organization. Hilary Nelson was promoted to Chief Risk Officer, reflecting her outstanding leadership in strengthening our enterprise risk and compliance functions. Leo Moschioni, a member of Lexicon's founding leadership team, was promoted to Senior Executive Vice President and Chief Credit Officer in recognition of his leadership in building the strong credit culture that has supported our growth since inception.
We were also pleased to receive our 18th consecutive BauerFinancial 5-Star Superior rating during the quarter, an independent recognition that reflects the financial strength, stability, and prudent management that remain central to our long-term strategy. In May, we also had the opportunity to meet with many of our shareholders at our Annual Meeting, and I would like to sincerely thank everyone who joined us, as well as all of our shareholders for your continued confidence in Lexicon and our vision for the future.
As we look ahead, we remain committed to investing in our people, expanding our capabilities, and building an organization that is truly built for what comes next. We appreciate the trust our shareholders, clients, and team members place in us every day, and we look forward to continuing that journey together.
Unaudited Consolidated Financial Results
For the period ended June 30, 2026, net income was $2.8 million year to date and $1.5 million for the quarter. Net income increased $194 thousand quarter over quarter. The overall increase in net income was driven by the following key changes:
- Net interest income increased by $168 thousand over the prior quarter, driven by a slight increase in average interest-bearing cash balance and ancillary income recognized on early payoff loans.
- Decreased provision for credit losses by $152 thousand compared to prior quarter, primarily driven by flat loan growth in the second quarter. A provision of $45 thousand in the second quarter was attributed to an increase in construction loans of over $3MM which holds a higher risk weighting, resulting in the overall increase to the Allowance for Credit Loss. The Bank continues to maintain a sound allowance for credit losses, given the current economic environment.
- Increased non-interest expenses by $101 thousand, attributable to increased salaries and benefits due to an additional 8 FTEs, and an increase in technology costs related to new initiatives.
Lexicon’s annualized return on average assets and return on average equity for the six months ended June 30, 2026, were 1.32% and 16.40%, respectively.
Loans, net of fees, decreased slightly to $201.5 million as of June 30, 2026, reflecting net payoffs of $1.3 million for the quarter. Net loans grew $24 million or 13.54%, from June 30, 2025. The loan portfolio continues to perform well, with nonaccrual loans totaling $1.5 million at June 30, 2026. The allowance for credit losses to total loans was 1.63% on June 30, 2026, compared to 1.67% on June 30, 2025.
Total deposits were $399.6 million on June 30, 2026, with non-interest-bearing deposits improving to 58.8% of total deposits from 56.5% 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 50.4% as of June 30, 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 $214.9 million, or 53.8% of total deposits, on June 30, 2026. Additionally, we have combined unused lines of credit totaling approximately $114.7 million, or 28.7% of total deposits, on June 30, 2026. The combined cash and cash equivalents and unused lines of credit represent 82.5% 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 $36.7 million on June 30, 2026, compared to $30.8 million on June 30, 2025, driven by net income and a decrease in the net unrealized losses on available for sale (“AFS”) securities by $400 thousand, which totaled $1.45 million on June 30, 2026, compared to $1.85 million a year ago.
Lexicon Bank’s Tier 2 Capital Ratio was 22.21% (10% required to be well-capitalized), Tier I Capital Ratio was 20.96% (8% required to be well-capitalized), and the Tier I Leverage Capital Ratio was 9.77% (5% required to be well-capitalized). Tier 1 and Tier 2 Capital totaled $44.6 million and $47.2 million, respectively, on June 30, 2026.
As of June 30, 2026, Lexicon’s consolidated total assets were $446.9 million, an increase of $60.4 million from June 30, 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.
