Systematic Savings Bank acquisition approved by regulators

Last edited 1:56 p.m., Aug. 16, 2024 [Editor's note: Additional information has been added.]

The proposed acquisition of Springfield-based Systematic Savings Bank (OTC: SSSB) is one step closer to completion.

Investor group Arlo Financial Holdings Inc., which announced its planned $14 million purchase of Systematic Savings Bank in April, has received regulatory approvals from the Federal Reserve Board, the Federal Deposit Insurance Corp. and the Missouri Division of Finance, according to a news release.

"This transition is accompanied by additional capital and a highly accomplished team of bankers to complement their current team of quality bankers, further strengthening our commitment to building robust banking relationships throughout southwest Missouri," said Springfield banker Mark Bybee, who leads the investor group, in a statement to Springfield Business Journal. "We look forward to enhancing our service and continuing to support our community with renewed enthusiasm."

The deal is subject to approval by Systematic shareholders during a special meeting scheduled for Sept. 23, according to the release. Officials expect the acquisition to be finalized in October.

Upon completion of the deal, Systematic would be renamed Arlo Bank and become a wholly owned subsidiary of Arlo Financial. Bybee said he would serve as president and CEO of Arlo Bank.

“We are thrilled to continue the legacy of Systematic within the community through our rebranding to Arlo Bank,” he said in the statement.

Reached by email this morning, Systematic President and CEO Derek Fraley said he intends to exit the company. He did not say whether he has a new job lined up. Fraley became the bank's leader in 2017 after previously working for BancorpSouth, according to past reporting.

Bybee, who previously served as president of OakStar Bank, provided a list of new employees who are joining Arlo Bank in addition to Systematic's workforce. They are:
• Ryan Jones, former chief lending officer at Oakstar Bank
• Kenny Hickerson, former chief credit officer at Oakstar Bank
• Jessie Tindall, former head of private banking at Oakstar Bank
• Maddie Walker, former retail operating manager at Oakstar Bank
• Corey Harmon, former commercial loan officer at Central Bank
• Rebekah Renshaw, former commercial portfolio manager at Oakstar Bank

Bybee said Arlo Bank would start with 15 employees, including all of Systematic’s workers minus Fraley and Chief Lending Officer Brad Weaver, who he said is retiring.

When announcing the deal in April, Arlo officials said plans were in the works to raise at least $25 million of capital. Declining to disclose details, Bybee said Arlo Financial has the required capital necessary to close the deal.

Bybee said the Arlo Bank board includes membership by himself; Jones; Glenn Larson of The Larson Group – Peterbilt of Springfield; orthopedic surgeon David Hicks; Layne McBride, retired bank executive of OakStar; entrepreneur and philanthropist Justin French; real estate developer and entrepreneur Greg Snider; real estate developer and entrepreneur Steve Strobel; Lee McLean of SVN/Rankin Co.; and Linda Moore of Salt & Light Pilates LLC.

Bybee declined to discuss location plans for Arlo Bank. Systematic currently operates its sole branch in downtown Springfield at 318 South Ave.

Founded in 1923, Systematic became public on the over-the-counter market amid the pandemic, according to past reporting. Systematic had $64.6 million in total assets, $52.6 million in net loans receivable, $47.2 million in deposits and $10.5 million in total stockholders’ equity as of Dec. 31, 2023.