AN IMPORTANT LETTER FROM LEXICON BANK

Dear Valued Clients and Concerned Citizens,

As the federal government shutdown takes effect, we remain committed to supporting you and ensuring your banking needs are met without disruption. Lexicon Bank would like to assure you that this situation will have no direct impact on our operations. We are open for business and fully operational, regardless of what is happening in our nation’s capital. For your peace of mind, Lexicon Bank would like you to understand the following:

  • This is an ongoing issue over spending within the federal government that does not directly affect our institution.
  • While we continue to monitor the situation, our bank and the broader banking sector remain strong, and your FDIC-insured deposits remain fully protected.
  • As noted above, the shutdown of the US Government does not impact our FDIC insurance coverage limits nor our overall safety and soundness. Lexicon Bank maintains high levels of liquidity to support our client deposit accounts, ensuring your deposits are readily available. At June 30, 2025, our total cash and cash equivalents and securities were $205 million, representing approximately 60% of our outstanding deposits. Additionally, we have third-party relationships to provide full FDIC insurance coverage for your deposits through IntraFi. If you have any questions, please contact your Lexicon Bank representative.

While our bank is not directly affected by the shutdown, the Small Business Administration (SBA) and several other federal agencies will be impacted. Here are some important points to know:

  • SBA Loans Already Approved: If your SBA loan has already been approved by the SBA (loan number issued), your file will continue to move forward without interruption.
  • SBA Loans Awaiting Approval: If your loan is still in review and awaiting SBA approval, that step will be paused until the SBA reopens. Unfortunately, we will not be able to receive final authorization during the shutdown period.
  • New SBA Applications: You can still submit your application. Our team will continue underwriting, collecting documentation, and preparing your file internally. This ensures that once SBA systems are operational again, we can move quickly on your behalf.

Your Lexicon Bank representative will be in contact with you throughout this entire interruption so you know how you may be affected. We understand that loan timelines can be critical for your business plans. Please know:

  • We remain fully available. Our team will continue working behind the scenes to advance every application as far as possible without SBA approval.
  • We will keep you informed. As soon as SBA systems are live again, we will contact you immediately to update you on the next steps.
  • Your business is our priority. While some parts of the process may temporarily pause, we are committed to minimizing delays and positioning your application for the fastest possible turnaround once approvals resume.

Lexicon Bank stands ready to assist anyone affected by the shutdown. If you are a federal employee, we are here to help. Please be aware of the following:

  • We recognize and appreciate that some of our clients may be concerned about how the federal government shutdown could affect things such as paychecks for federal employees and government contractors, federal benefits payments, National Flood Insurance Program payments and other government programs. We stand ready to work with and support our clients who may be facing any hardships due to the current circumstances.
  • We encourage federal employees and others in need to reach out to us as soon as possible to discuss their personal situation and see what help may be available, including (potential fee waivers, payment deadline extensions, or other accommodations offered by Lexicon Bank).
  • Other clients may also have broader concerns about the shutdown’s impact on the economy and the markets. If you have investment accounts through our bank or have questions, please contact us and we will be happy to speak with you.
  • Our bank will continue to support our clients through major challenges such as this shutdown just as we did during the pandemic and previous interruptions in government operations.

Anyone with additional questions or concerns about how the federal government shutdown may affect Lexicon Bank in particular and/or local banking in general, please contact customerservice@lexiconbank.com or call 702.780.7700.

Thank you for your understanding. We are hoping for a quick resolution to this unfortunate situation.

Best,

Stacy Watkins
President & CEO

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