2025 Lexicon Bancorp Annual Report by LexiconBank

A MESSAGE FROM THE CHAIRMAN

Lexicon Bank was founded with a bold vision: to challenge conventional thinking about what a community bank can be and how it can serve the community. That spirit continues to guide us as we ask our leadership team to pursue ambitious initiatives, embrace opportunity, and push the envelope in the markets we serve. I am proud of the progress we have made and confident in the path ahead as we continue building a strong, innovative bank that creates lasting value for our clients, our communities, and our investors.

OUR MISSION

Empower our clients to interpret, reach and exceed their financial goals.

Empower our bankers and team members to embrace an inclusive culture and provide exceptional, concierge-like customer service that goes above and beyond client expectations.

Develop and deliver personalized solutions that complement our clients’ needs.

Unleash the economic potential of Southern Nevada by partnering with professionals, small businesses and non-profits.

CORE VALUES

Integrity, Service First, Urgency, Innovation, Collaboration, Respect, and Communication.

A LETTER FROM THE CEO PRESIDENT &

DEAR SHAREHOLDERS & COMMUNITY PARTNERS OF LEXICON BANCORP,

When I reflect on 2025, I see a year defined by clear strategic focus and intentional momentum, built through execution, discipline, teamwork, and community partnerships. As Lexicon Bancorp and Lexicon Bank, collectively (“Lexicon”), marked its sixth year of service to Southern Nevada, we did so with pride in our progress and confidence in the foundation we continue to strengthen. Six years into our journey, we remain guided by our One Vision: Building Southern Nevada’s premier community bank through disciplined growth, exceptional service, and meaningful relationships through community engagement.

The results of this focused and intentional momentum were evident by the following:

• In 2025, Lexicon’s consolidated net income nearly doubled compared to 2024, reflecting disciplined growth and the continued strength of our client relationships.

• Core deposits increased by more than 50%, demonstrating the confidence businesses and individuals place in Lexicon as their primary banking partner.

• Our lending activity also remained strong and intentional. Among Nevada’s nine standalone community banks, Lexicon achieved the thirdhighest loan growth during the year, generated organically through client and community relationships.

• Increased our book value per share to $13.34, up 19.01% since the end of 2024.

These accomplishments highlight both the effectiveness of our strategy and the dedication of our team in building value for our shareholders.

We also executed key initiatives designed to support sustainable, longterm growth while preserving the relationship-driven culture that defines Lexicon. We invested in expanding our commercial and smallbusiness banking capabilities, ensuring we are well equipped to serve our clients today and into the future. In early 2026, Lexicon surpassed $200 million in outstanding loans, one of the fastest such milestones achieved among Southern Nevada community banks and a reflection of the trust clients place in our team and approach.

Our nationwide SBA team has helped broaden Lexicon’s reach. While Southern Nevada remains our home and cultural anchor, more of our clients now operate across multiple markets, allowing us to extend our footprint

thoughtfully without sacrificing focus or service quality.

Lexicon’s commitment to service and relationship banking also continued to be recognized by the communities we serve. In December, the Las Vegas Review-Journal’s Best of Las Vegas Awards honored Lexicon for the fifth consecutive year, awarding gold distinctions for Best Bank, Best Commercial Banking, Best Commercial Lending, and Best Finance Customer Service. In 2025, we were also newly recognized for Best Checking Account, an honor driven by the voices of our communities and clients across Southern Nevada.

Lexicon also continued to support a wide range of nonprofit organizations focused on strengthening Southern Nevada and improving lives across our region. We put the “unity” in community, fostering connection, collaboration, and investment among the organizations and leaders working to make a difference. One experience was particularly meaningful. At the Girl Scouts of Southern Nevada’s Dessert Before Dinner Gala, I spent time with Sadie, a young Girl Scout whose curiosity and optimism for the future left a lasting impression. Her passion was a powerful reminder of why investing in our community and the next generation of leaders matters.

Our continued progress is made possible by our people. Their expertise, accountability, and commitment to doing what is right for our clients, our communities, and one another set Lexicon apart. Their dedication to hightouch service, collaboration, and thoughtful execution fuels our progress and strengthens our culture.

Looking ahead to 2026 and beyond, we are confident in Lexicon’s direction. Our disciplined operating model, strong culture, and commitment to relationship banking position us well to navigate change, pursue opportunity, and create long-term value.

On behalf of our Board of Directors and the entire Lexicon team, thank you for your continued confidence and partnership. We look forward to building on our momentum together.

BOARD OF DIRECTORS

RUSSELL ROSENBLUM CHAIRMAN

ROBYN CASPERSEN VICE-CHAIR

CEDRIC

GENE

EXECUTIVE MANAGEMENT TEAM

STACY WATKINS

President & Chief Executive Officer, Director

JAMES GORDON

Executive Vice President, Chief Operating & Financial Officer

SENIOR SALES LEADERSHIP

CAVALIERI

Senior Vice President, Market Executive, Commercial Banking

Executive Vice President, Chief Credit Officer

Senior Vice President, Director of SBA Division

ANNA

TONY VAHSHOLTZ

LEO MOSCHIONI

FINANCIAL PERFORMANCE OVERVIEW

During 2025, Lexicon remained committed to building value for our shareholders through a focus on growth and profitability by executing our strategic plan while remaining focused on providing excellent service to our clients and communities. A few highlights from 2025 are as follows:

• Consolidated Net Income for 2025 was $4.38 million, up 95.14%, compared to $2.24 million in 2024.

• Returns on Average Assets and Equity were 1.08% and 14.03%, respectively.

• Consolidated Total Assets were $433.80 million at December 31, 2025, up 50.57%, compared to $288.10 million at December 31, 2024.

• Loans were $196.19 million, up 13.81%.

• Allowance for credit losses totaled $3.04 million, or 1.55% of loans.

• Deposits were $387.94 million, up 51.32%, driven by a $121.38 million increase in noninterest-bearing deposits.

• Consolidated Shareholders’ Equity was $34.05 million, reflecting a book value per share of $13.34, up 19.01%.

• Each of our capital ratios exceeded the requirements to be considered well-capitalized, led by a Total Risk-based Capital ratio of 21.45%, which is above the requirement of 8.00%.

• On-balance sheet liquidity resources was $232.81 million, consisting of cash, cash equivalents, and investment securities, representing over 60% of total deposits.

Our growth and operating results underscore our commitment to deliver growth, strength, and value to our stakeholders through ever changing market dynamics. We are well-positioned to continue meeting the needs of our current and future clients throughout Southern Nevada.

For 17 consecutive quarters, we’ve earned a 5-Star Rating from BauerFinancial, Inc., recognizing our continued financial strength and stability. Our consistency has placed Lexicon Bank among the toptier financial institutions in the country, underscoring our commitment to sound banking practices and exceptional service.

“Community banks like Lexicon Bank are perfectly positioned to provide the specialized support that is unique to their area,” observes Karen L. Dorway, president of BauerFinancial. “These banks promote local growth by investing back into the same neighborhoods their deposits come from. By fostering these local relationships, they are highly supportive of and accountable to their clients. This, in turn, allows them to anticipate new needs and desires and get the wheels in motion to satisfy those as well.”

FINANCIAL PERFORMANCE

For 2025, consolidated net income totaled $4.38 million, compared to $2.24 million in 2024 and $969 thousand in 2022. Our net income for 2025 represented a Return on Average Assets (ROAA) and Return on Average Equity (ROAE) of 1.08% and 14.03%, respectively, reflecting our short-term goals of 1.00% and $12.50%, respectively.

Interest income increased from $15.00 million to $20.17 million, attributable to overall balance sheet growth, while interest expense decreased from $4.51 million to $4.05 million due to a change in our mix of deposits together with a lower rate environment. Net interest margin increased by 20 basis points, from 3.91% to 4.11%.

The provision for credit losses totaled $912 thousand, compared to $450 thousand last year, driven by loan growth, provisions for an uncertain economic environment, and an increase in net charge-offs from $237 thousand in 2024 to $384 thousand in 2025.

Noninterest income increased to $1.72 million, compared to $1.02 million last year, driven by a $146 thousand increase in earnings from our noncontrolling investment in IconTrust, $110 thousand from gains on the sale of SBA loans from our new SBA Loan Division established in 2025, and a $444 thousand increase on deposit and other fee income sources.

Noninterest expenses totaled $11.22 million in 2025, compared to $8.33 million in 2024. The increases in salaries and employee benefits of $1.35 million, $321 thousand in technology expenses, $447 thousand in legal and professional fees, and $375 thousand in marketing, sponsorships, and charitable contributions. Included in those increases was an approximate $900 thousand investment in establishing our new SBA Loan Division. Lexicon Bank’s efficiency ratio improved from 72.37% in 2024 to 62.89% in 2025.

Our effective tax rate was 23.28% in 2025, compared to 17.86% in 2024, due to higher nondeductible expenses and state income taxes.

Loans, net of fees and excluding loans held for sale, grew to $196.19 million as of December 31, 2025, an increase of $23.80 million from 2024. In 2025, the overall loan portfolio’s weighted average interest rate increased to 6.44%, up from 5.86% in 2024. As of December 31, 2025, Lexicon Bank had an allowance for credit losses of $3.04 million, or 1.55% of loans.

OVERVIEW

The year ended with cash and cash equivalents of $205.53 million, or 53% of total deposits. Additionally, Lexicon Bank has unused credit lines available as additional funding, totaling $122 million, or an additional 31% of total deposits. The Bank’s total operating liquidity (cash plus available credit lines and unpledged securities) was $328 million, or approximately 84% of total deposits.

Total investment securities were $26.78 million, comprised of $26.31 million classified as availablefor-sale securities (AFS), which include net unrealized losses of $1.78 million, which decreased $1.11 million from December 31, 2024, before taxes recorded as a reduction of equity, and $1.48 million classified as held-to-maturity (HTM), which exclude unrealized gains of $13 thousand.

Total deposits increased to $387.94 million as of December 31, 2025, from $256.36 million from December 31, 2024, driven by new deposits across all segments of the Bank. The higher level of short-term interest rates by the Federal Reserve placed pricing pressure on deposit rates, decreasing the rate on total deposits from 1.31% to 1.06%. Noninterest-bearing account balances were 62.71% of total deposits as of December 31, 2025, up from 47.54% on December 31, 2024.

At year-end, stockholders’ equity increased by $5.44 million to $34.05 million due to net income of $4.38 million, and a $866 thousand reduction in net unrealized losses on AFS, net of taxes.

As of December 31, 2025, Lexicon Bank’s Tier 1 Capital and Total Tier 2 Capital was $41.77 million and $44.37 million, respectively, with a Total Capital Ratio of 21.45%, Tier 1 Capital Ratio of 20.20% and Tier 1 Leverage Ratio of 9.18%, each of the ratios significantly exceed the minimum requirements to be designated a “well-capitalized bank” by the FDIC. During 2025, Lexicon Bancorp borrowed $7.5 million from a third-party financial institution and injected $7.0 million of the proceeds into Lexicon Bank to further strengthen the regulatory capital ratios.

“This year stands as a powerful reminder of what is possible when we lead with intention and a deep commitment to our community. I am proud of the meaningful impact Lexicon Bank continues to make across Southern Nevada through our community spotlight program, charitable partnerships, and volunteerism. Receiving the Trailblazer Award from the Moonridge Group’s Philanthropy Leaders Summit is especially meaningful, as it affirms our purpose-driven approach and commitment to leadership. As we look ahead, I am excited to build on this momentum together in service of the community we call home.”

Board of Directors, Marketing Chair

THE OFFICIAL BANK OF THE

SCAN TO NOMINATE

American Heart Association Heart Walk Booth

American Lung Association in Nevada Pickle Ball Tournament

Boys Town Nevada Winter Coat Drive

Charity Series of Poker

Children’s Heart Foundation Annual Walk with the Heart of a Child

Communities in School Fill the Bus School Supplies Drive

Foster Kinship Toy Drive

Girl Scouts of Southern Nevada CEO in Training

Go Red Day for Heart Awareness

Junior Achievement’s BizTown Ribbon-Cutting

Junior Achievement’s - Financial Literacy Month

2025 BRANCH DRIVES & VOLUNTEER EVENTS

Las Vegas Rescue Mission Food Drive

Living Grace Clean-Up Day

Living Grace Homes Donated Furniture/Clothing Delivery

LVMPD Foundation Back-To-School Backpack Distribution

LVMPD Foundation Easter Egg Stuffing

LVMPD Foundation Halloween Candy Drive

NAIOP Southern Nevada Chapter Roll It Forward Paper Drive

Nevada State University’s Scorpions Give

Scale the STRAT for American Lung Association in Nevada

Scouting America 32nd Annual Good Scout Award Luncheon

United Way Day of Caring at The Center

GIRL SCOUTS OF SOUTHERN NEVADA CEO IN TRAINING COOKIE PITCH

AMERICAN

SOCIETY GAME CHANGER GALA

LAS VEGAS RESCUE MISSION FOOD DRIVE

UNITED WAY DAY OF CARING AT THE CENTER

2025 COMMUNITY AFFILIATIONS

ABA Community Bankers’ Council

California Community Banking Network

Certified Commercial Investment Member Institute

Charity Series of Poker

Crew Commercial Real Estate Women Of LV

Henderson Chamber Of Commerce

Henderson Silver Knights

IWF – International Women’s Forum

Junior Achievement Of Southern Nevada - JA BizTown

Latin Chamber Of Commerce

Las Vegas Chamber Of Commerce – Executive Women’s Council

Las Vegas Desert Dogs

Las Vegas Metropolitan Police Department Foundation

NAIOP CRE Development Association

National Association Of Women Business Owners

Nevada Business Magazine Bankers Roundtable

Nevada School Of The Arts

Nevada State University Foundation

NV Corporate Giving Foundation Risk Management Association

Rebuilding Together Southern Nevada via The FHLBank Ahead Program

The Center

The Nature Conservatory

Three Square Food Bank

U.S. Small Business Administration

UNLV Commercial Banking Advisory Board Wsop

World Series Of Poker

JA BIZTOWN RIBBON CUTTING

STRATEGIC BANKING BUILT FOR

NATIONWIDE SBA LENDING

Our experienced SBA team helps clients navigate the loan process with clarity, care, and confidence, so they can focus on advancing their business and achieving their goals.

REBUILDING TOGETHER SOUTHERN NEVADA

“Lexicon’s charitable giving, support of our fundraisers, media advocacy, and cash-flow solutions have helped us expand our reach and provide essential services to low-income homeowners in our community.”

BOB CLEVELAND, CEO

Dedicated relationship managers commercial loans that align objectives that help their business

THE ABILITY CENTER OF SOUTHERN NEVADA

“After emailing Lexicon for the first time, the Bank’s President called me that same day to schedule a meeting at our gym with a Relationship Manager, I knew right then Lexicon was more than a bank; they were my new community partners.”

CHRIS SALAS, FOUNDER

F.A.I.T.H. WELLNESS SERVICE

“Lexicon Bank gave my business and I a chance while other banks were hesitant. Having a community bank such as Lexicon and support for community events such as our Juneteenth Festival speaks volumes.”

IESHA

CHANEY, COO

FOR GROWING BUSINESSES

managers specialize in structuring align with our clients strategic business succeed.

Nonprofit organizations are pillars of our Southern Nevada community. We’re proud to offer checking solutions specifically designed to meet to meet their needs.