Security Midwest Bancorp, Inc.
Security Midwest Bancorp, Inc. is a U.S. savings institution holding company centered on Security Bank and its banking subsidiaries. The company provides deposit, lending, and cash-management services, with a notable focus on commercial banking relationships and cannabis-related business customers in its operating markets.
Fiscal year 2025 · change from previous year
Development 2024–2025
Business
Share of revenueCore funding products including demand, savings, and time deposits.
Loans to businesses, including commercial real estate and C&I lending.
Owner-occupied one- to four-family residential real estate loans.
Deposit account fees, debit card fees, loan sale gains, and servicing income.
Customers
The company serves retail depositors, small and middle-market businesses, and commercial borrowers in its local banking footprint. A distinctive customer base is cannabis-related business (CRB) clients, which use the bank for commercial demand deposits and related cash-management services. It also serves mortgage borrowers and other consumers through deposit and lending products.
Commercial demand deposit clients using banking, cash handling, and treasury services; important because they are a concentrated funding source.
Businesses buying demand accounts, cash management, and commercial loans to support working capital and expansion.
Owner-occupants seeking one- to four-family residential real estate loans.
Individuals and households using savings and demand accounts for everyday banking and liquidity.
Strategy
The company is focused on growing core deposits, especially consumer and business demand deposits, to support relationship banking and lower funding costs. It is also building its loan portfolio around owner-occupied residential real estate and commercial lending, while extending CRB services into additional states and improving digital and treasury tools. These priorities are intended to deepen customer relationships and diversify funding and fee income.
Stable demand deposits improve funding flexibility and reduce reliance on higher-cost time deposits.
CRB clients are a distinctive niche that can deepen deposit relationships and service fees.
Commercial loans are a core earning asset and support broader relationship banking.
Geography
Security Midwest Bancorp operates as a regional U.S. community bank, with business concentrated in its local market area in the Midwest. The company has also expanded CRB services into additional states, including Kentucky, Ohio, Michigan, and Missouri, which broadens its deposit and service footprint. Geography matters because lending is tied to local real estate and business conditions, while CRB activity adds state-level regulatory complexity.
Risks
The company is exposed to credit risk from commercial real estate, C&I lending, and real estate-secured loans, where borrower performance and collateral values can change with local economic conditions. It also faces concentration risk from CRB deposits and regulatory risk because cannabis-related banking depends on state and federal policy. As a public bank, it must also manage cybersecurity, interest-rate sensitivity, and deposit competition.
A large share of lending is tied to local property values and borrower cash flows.
Exposure: Loan portfolio and collateral values
CRB banking is sensitive to state and federal legal changes affecting customer access and compliance.
Exposure: CRB deposits and fee income
A meaningful portion of deposits comes from a specialized customer base, which can be less stable.
Exposure: Funding base
Deposit pricing and asset yields move differently, affecting spread economics and deposit retention.
Exposure: Net interest income
Digital banking, cash management, and third-party processors create operational attack surfaces.
Exposure: Customer access and transaction processing
Accounting
Judgemental itemsManagement must estimate expected losses across residential and commercial loans, which can materially change provision expense.
Impact: Loan loss reserve and earnings
Gain-on-sale income and servicing fees vary with origination and sale volume, affecting noninterest income.
Impact: Noninterest income
Changes in deposit mix between demand, savings, and CDs affect interest expense and reported spread.
Impact: Net interest income
Real estate-secured lending and investment securities require valuation judgments that can affect asset carrying values.
Impact: Asset values and impairment assessment
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Last updated: 29/04/2026