Century-old Springfield bank rebrands as Arlo Bank amid $14M acquisition

Arlo Financial Holdings Inc.’s acquisition of Springfield-based Systematic Savings Bank (OTC: SSSB) was completed today. The century-old bank with a branch in downtown Springfield is now Arlo Bank.

Investor group Arlo Financial announced its planned purchase of Systematic Savings Bank in April. It received regulatory approvals from the Federal Reserve Board, the Federal Deposit Insurance Corp. and the Missouri Division of Finance in August, according to past Springfield Business Journal reporting. Springfield banker Mark Bybee, who leads the investor group and is president and CEO of Arlo Bank, said this morning the deal closed right around $14 million. In the acquisition, Arlo Bank became a wholly-owned subsidiary of Arlo Financial.

The deal was subject to approval by Systematic shareholders, who were scheduled to meet Sept. 23, and was part of a planned $25 million capital raise necessary to close the deal. Bybee would not comment on the status of the capital raise.

Bybee said Arlo Bank will operate from the bank’s existing location at 318 South Ave. as expansion plans at a different location are being considered.

In a news release, Bybee expressed gratitude to the Systematic board for the chance to build on the bank’s legacy. He said that while the bank has rebranded to Arlo Bank, the group’s commitment to customers, the community and their team remains strong. Bybee said the investment in the bank aims to broaden the range of products and services, enhance technology, and improve community accessibility.

Systematic President and CEO Derek Fraley previously announced his intention to exit the company. Although Fraley is still listed as president on the bank’s website, Bybee confirmed he is no longer an employee of the bank. Fraley, who could not be reached immediately for comment this morning, became the bank's leader in 2017.

Bybee said Arlo Bank has 15 employees, including all of Systematic’s workers minus Fraley and Chief Lending Officer Brad Weaver, who he said is retiring. Most of the bank’s new employees come from OakStar, where Bybee previously served as president. Arlo Bank’s employees include:
• Ryan Jones, chief lending officer
• Kenny Hickerson, chief financial officer
• Jessie Tindall, director of client services
• Maddie Walker, chief operations officer
• Corey Harmon, senior loan officer
• Rebekah Renshaw, loan operations manager

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 said the bank used Springfield-based Hook Creative LLC for its rebranding, which has already taken place for the interior and exterior of the branch. A new website, Arlo.bank, is expected to launch next week. Bybee said Arlo is an old English name meaning fortified hill, projecting strength and stability.

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.