Systematic Savings Bank to convert charter

Photo courtesy Systematic Savings Bank

Systematic Savings Bank will offer pink-sheet shares to customers and the public.

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Systematic Savings Bank is moving to convert its charter in an initiative designed to raise capital and expand the company's capabilities.

Springfield-based Systematic Savings Bank is seeking approval from the Missouri Division of Finance and Federal Deposit Insurance Corp. to switch to a stock savings bank from a mutual savings bank, according to a news release. President and CEO Derek Fraley this morning told Springfield Business Journal the change would mean Systematic Savings Bank would trade pink-sheet shares over the counter. An investor relations website would be created, and quarterly and yearly earnings data would be released, he said.

"This conversion from mutual to stock form will enable us to continue to expand our lending and investment activities and to diversify our operations," Fraley said in the release.

Through the change, Systematic Savings Bank plans to offer current and some former depositors and borrowers shares in the company. If shares remain, they'll be made available to the general public in a direct community offering. An independent appraisal is slated to determine the size of the offering.

The company plans to file its conversion application with the Missouri Division of Finance and FDIC in the next couple of weeks.

"Following conversion, customers will continue to enjoy the same broad range of deposit and loan services at the same branch location by the same staff," Fraley said in the release. "Conversion will not affect interest rates we pay or charge, any balance requirements or maturities of either deposit or loan terms."

With $37.7 million in assets as of Dec. 31, Systematic Savings Bank operates downtown at 318 South Ave.