Springfield, MO

Michael Brady is out at Systematic Savings Bank, and the board charged Derek Fraley with turning around at least $1.3 million in losses in recent years.
Michael Brady is out at Systematic Savings Bank, and the board charged Derek Fraley with turning around at least $1.3 million in losses in recent years.

Systematic Savings Bank replaces president

Posted online

President Michael Brady has left Systematic Savings Bank after three decades – the last several years marked by increasing financial losses.

Derek Fraley quickly took the reins July 19, after being drafted from BancorpSouth Inc. (NYSE: BXS) where he served as vice president and commercial lender since mid-2014.

Neither Brady nor Systematic Board Director Jeff Seifried could be reached for comment by deadline, but Fraley said this morning he’s strategizing ways to increase the bank’s deposits and loans.

“They haven’t been profitable for a long, long time,” said Fraley, in his second day on the job.

Facing net operating losses of $667,000 in 2016, $445,000 in 2015 and $265,000 in 2014, Fraley said the board has charged him with turning around the financials.

“We’re a 94-year-old institution,” he said. “We’re going to celebrate 100 years here soon and I want to celebrate the 100 years with a great earnings year – I want to celebrate our 95th year with a great earnings year.”

His plan includes a continuation of changes Brady put in place to move the institution from a savings-and-loan model to a conventional bank model, with more commercial loans.

Fraley also wants to increase the number of short-term loans and decrease the number of long-term loans – to protect the bank from rising interest rates.

“In other words, take something that’s very long and sell it into the market, and go into something a little shorter. So as the yield curve rises, we have the opportunity to keep reinvesting into a higher yield curve,” he said.

He’s identified the bank’s need for new deposit offerings to attract more liquid capital, possibly borrowing wholesale money from other banks in order to increase loan capacity.

Systematic has operated downtown at 318 South Avenue since 1923 and officials added a loan center December 2016 at 1322 E. Kingsley St.

Systematic has about $30 million in assets. In BancorpSouth, Fraley comes from a multistate regional bank with $14.8 billion in assets. He’s also worked for Guaranty Bank and UMB Financial Corp. during his 19-year banking career.


No comments on this story |
Please log in to add your comment
Editors' Pick

Crossroads in Republic ripe for industrial park

Two buildings in a budding Republic industrial park just might be the welcome mat officials need.

Most Read
SBJ Live logo
Giving Employees a Career Choice

“We think it’s a good thing if every employee has a number of choices. Maybe they’ll want to stay and make a career at Amazon and we welcome that,” says Juan Garcia, Director - Associate …

Training Bootcamp: Training Needs Assessment All workplace problems have root causes. When will training be the solution? Sherry Coker, OTC Center for Workforce Development business development director, provides you the framework of a training needs assessment, which will uncover the root causes of a workplace problem and help you determine if training is the solution. A download is available at with a complete outline for an effective training needs assessment. This is sponsored content. Duration: 2:29
Don’t Micro-Manage Are you guilty of micromanaging your employees? “If we’re going to require them to be that educated when they come to work for us, should we not let them do their job? They should know so much …
Seek Wisdom from Many “My whole life goal is to change the world, one connection at a time,” says Keisha Mabry. Mabry, who is an author, speaker, and social entrepreneur, says she had a “quarter-life crisis” and …
DNA Uncovers Best Version of You A simple swab of the inside of your cheek can lead to optimizing your nutrition and fitness program, personal medication profile, in addition to your ancestry. According to Austin O’Reilly, owner …