A Message from the Chairman: Standing With You Through Economic Uncertainty

April 9, 2025


Dear Lexicon Bank Stakeholders,

We have all seen the turbulent conditions over the last week, which have likely raised many questions and potential concerns about the broader economic environment. Whether it's headlines about market volatility, shifts in interest rates, changes to trade and tariff policies, or the general uncertainty in the air, I want to take a moment to offer some perspective as a fellow member of this community as to how Lexicon continues to lead through times of uncertainty.

None of us can predict the duration of this new economic uncertainty. It could be a few weeks, months, or potentially longer. But what I do know is that Lexicon is here to help our clients, our community, and our local economy weather the economic storm, just as we always have.

We’ve built Lexicon with resilience in mind. We remain well-capitalized, highly liquid, and fully committed to the long-term health of our clients and the local economy. While some financial institutions may focus on maximizing short-term gains, we’ve chosen a different path. We’ve consistently prioritized safety, stability, and thoughtful decision-making—even when that means holding more cash on our balance sheet instead of chasing short term yield. That enables us to provide a steady hand when others can’t.

Despite the broader economic uncertainty, I want to share a few facts that reflect the strength and stability we’ve worked hard to build. These are not just numbers on a spreadsheet—they are the result of consistent, measured decisions over time.

At the close of 2024:

• Consolidated Net Income rose to $2.2 million, up 131% from the prior year.
• Returns on Average Assets and Shareholders’ Equity were 0.79% and 8.26%, respectively.
• Total Assets grew to $288.1 million, a 5% increase year-over-year.
• Loans grew to $171.9 million (excluding PPP), and we maintained a healthy 1.5% allowance for credit losses, or $2.6 million.
• Deposits increased 8% to $256.4 million.
• Shareholders’ Equity grew to $28.6 million, reflecting a 10% increase in book value per share to $11.21.
• We maintained a Community Bank Leverage Ratio of 10.5%, well above the regulatory requirement of 9.0%.
• Importantly, on-balance sheet liquidity totaled $111.7 million, representing 44% of total deposits, along with other funding sources.

These results are a byproduct of a long-term mindset. We don’t chase trends. We manage responsibly, conserve liquidity, and prioritize the trust our clients place in us.

So what does this mean for you?

It means that if you're experiencing challenges—whether you're a small business client with a loan, a depositor with questions, or simply someone trying to plan ahead—we're here for you. If you need to talk through your unique situation, we’ll sit down with you. If you need flexibility, we’ll explore it with you. If you need assurance, we’ll provide it. No red tape, no complicated lingo. Just people helping people.

Lexicon Bank is proud to be the financial backbone for many in Southern Nevada. We take that role seriously. We don’t pretend to have a crystal ball, but we have an experienced team, a strong foundation, and a clear commitment: to help keep things moving forward, one relationship at a time.

If you’d like to speak with someone directly, our President and CEO, Stacy Watkins, can be reached at 702.780.7702. Our COO/CFO, James Gordon, is also available at 702.780.7704. And as always, we invite you to contact us with any questions or concerns.

Thank you for your trust in us. We're here for you—and we’re firmly rooted in this community.

Warm regards,

Russell Rosenblum
Chairman of the Board
Lexicon Bancorp | Lexicon Bank

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 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.