Commercial real estate and real-estate-secured credit exposure
A large share of lending is tied to local property values and borrower cash flows.
- Scope
- Loan portfolio and collateral values
- Materiality
- high
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.
| % | |
|---|---|
| Deposit accounts | 45% Core funding products including demand, savings, and time deposits. |
| Commercial lending | 30% Loans to businesses, including commercial real estate and C&I lending. |
| Residential mortgage lending | 15% Owner-occupied one- to four-family residential real estate loans. |
| Fee-based banking services | 10% Deposit account fees, debit card fees, loan sale gains, and servicing income. |
The company serves retail depositors, small and middle-market businesses, and commercial borrowers in its local banking...
- Cannabis-related business (CRB) customersprimary
Commercial demand deposit clients using banking, cash handling, and treasury services; important because they are a concentrated funding source.
- Small and middle-market businessesprimary
Businesses buying demand accounts, cash management, and commercial loans to support working capital and expansion.
- Residential mortgage borrowerssecondary
Owner-occupants seeking one- to four-family residential real estate loans.
- Retail deposit customerssecondary
Individuals and households using savings and demand accounts for everyday banking and liquidity.
Security Midwest Bancorp operates as a regional U.S. community bank, with business concentrated in its local market...
- •U.S.-based regional bank with a Midwest operating footprint
- •Lending is concentrated in local real estate and business markets
- •CRB services have been expanded into Kentucky, Ohio, Michigan, and Missouri
- •Local market conditions affect loan demand, deposit flows, and credit quality
- •State cannabis rules influence where CRB banking can be offered
The company is focused on growing core deposits, especially consumer and business demand deposits, to support...
01
Increase core depositsshort-term
Stable demand deposits improve funding flexibility and reduce reliance on higher-cost time deposits.
02
Expand CRB banking relationshipsmedium-term
CRB clients are a distinctive niche that can deepen deposit relationships and service fees.
03
Grow commercial lendingmedium-term
Commercial loans are a core earning asset and support broader relationship banking.
The company is exposed to credit risk from commercial real estate, C&I lending, and real estate-secured loans, where...
Cannabis-related business regulatory exposure
CRB banking is sensitive to state and federal legal changes affecting customer access and compliance.
- Scope
- CRB deposits and fee income
- Materiality
- high
Deposit concentration in CRB customers
A meaningful portion of deposits comes from a specialized customer base, which can be less stable.
- Scope
- Funding base
- Materiality
- high
Interest-rate and funding pressure
Deposit pricing and asset yields move differently, affecting spread economics and deposit retention.
- Scope
- Net interest income
- Materiality
- medium
Cybersecurity and operational disruption
Digital banking, cash management, and third-party processors create operational attack surfaces.
- Scope
- Customer access and transaction processing
- Materiality
- medium
Allowance for credit losses (CECL)
Loan loss reserve and earnings
Loan sale gains and mortgage servicing
Noninterest income
Deposit and funding cost repricing
Net interest income
Fair value and collateral estimates
Asset values and impairment assessment
MIDDLEFIELD BANC CORP
State Commercial Banks
Middlefield Banc Corp is the bank holding company for The Middlefield Banking Company, a community-focused commercial bank serving customers in its primary markets in Ohio.
CSB Bancorp, Inc.
CSBB · State Commercial Banks
FARMERS & MERCHANTS BANCORP INC
FMAO · Savings Institution, Federally Chartered
MidWestOne Financial Group, Inc.
State Commercial Banks
NB Bancorp, Inc.
NBBK · Savings Institutions, Not Federally Chartered
MID PENN BANCORP INC
MPB · State Commercial Banks
: 29/04/2026