Independent Banker - January 2021 - 62

CONNECTIONS TRAILBLAZER
" We cut hours out of days and weeks out of
months by learning our systems better and
introducing very precise and consistent
procedures. Most importantly, though, we get
things right the first time, so we don't have to do
the same process two or three times. "
-DEREK FRALEY, SYSTEMATIC SAVINGS BANK
second two quarters of 2019 and
the fi rst two quarters of 2020 were
the fi rst time since 2009 that the
community bank saw four consecutive
quarters of positive earnings. Prior to
that, having to put out red numbers
was a process that Fraley once
described as " soul crushing. "
" We let the participations roll
off or get bought back, so that, as
of March 31, 2020, participations
represented only $4.5 million [of
assets], " he says. " We continue to
scrutinize our expenses and work hard
to continually do rolling projections,
so that we understand what expenses
and events may be on the horizon. "
Hard work and a little luck
If that wasn't enough to turn
Systematic Savings Bank around,
what really helped was Fraley's
decision to demutualize and turn the
bank into a stock savings bank.
" I wanted to do this as quickly as I
could, " he says. " Going from just over
$8 million in capital in December
2012 to just under $5 million in
capital in December 2019 was a tough
thing to overcome. "
Fraley realized that earning
$3 million in capital at a bank with
an asset size of about $40 million at
the time would take a while. " Having
more capital is never a bad thing, and
becoming a stock bank would give
us more fl exibility than we would
otherwise have, " he adds. Under the
new plan, the bank remains a savings
bank but is publicly listed and can go
out and raise capital as necessary.
At the same time, the community
QUICK STAT
42.9%
The growth of Systematic Savings
Bank's total assets between
June 30, 2017 and June 30, 2020
Source: FDIC call reports
62 Q ICBA Independent Banker Q January 2021
bank's board had almost all new
membership, including fi ve directors
from outside the bank and two from
within. " This is a healthy mix that
lets us pack a lot of expertise into the
boardroom, " Fraley says.
Looking back, he says the bank's
newfound success has been the result
of hard work and well-calculated
risks. " Until you actually take over
a sinking ship, you cannot explain
what it is like, " says Fraley, adding
that having an experienced mentor
like Weaver by his side was vital.
" However, Brad has been able to help
me understand what to anticipate. "
The community bank continues to
transform. Fraley looks forward to
2023, when Systematic Savings Bank
turns 100 years old. " I love history
and I love this community, " he says,
" so this is a huge deal. " ƒ
William Atkinson is a writer in Illinois.

Independent Banker - January 2021

Table of Contents for the Digital Edition of Independent Banker - January 2021

Table of Contents
Independent Banker - January 2021 - Intro
Independent Banker - January 2021 - Cover1
Independent Banker - January 2021 - Cover2
Independent Banker - January 2021 - Table of Contents
Independent Banker - January 2021 - 2
Independent Banker - January 2021 - 3
Independent Banker - January 2021 - 4
Independent Banker - January 2021 - 5
Independent Banker - January 2021 - 6
Independent Banker - January 2021 - 7
Independent Banker - January 2021 - 8
Independent Banker - January 2021 - 9
Independent Banker - January 2021 - 10
Independent Banker - January 2021 - 11
Independent Banker - January 2021 - 12
Independent Banker - January 2021 - 13
Independent Banker - January 2021 - 14
Independent Banker - January 2021 - 15
Independent Banker - January 2021 - 16
Independent Banker - January 2021 - 17
Independent Banker - January 2021 - 18
Independent Banker - January 2021 - 19
Independent Banker - January 2021 - 20
Independent Banker - January 2021 - 21
Independent Banker - January 2021 - 22
Independent Banker - January 2021 - 23
Independent Banker - January 2021 - 24
Independent Banker - January 2021 - 25
Independent Banker - January 2021 - 26
Independent Banker - January 2021 - 27
Independent Banker - January 2021 - 28
Independent Banker - January 2021 - 29
Independent Banker - January 2021 - 30
Independent Banker - January 2021 - 31
Independent Banker - January 2021 - 32
Independent Banker - January 2021 - 33
Independent Banker - January 2021 - 34
Independent Banker - January 2021 - 35
Independent Banker - January 2021 - 36
Independent Banker - January 2021 - 37
Independent Banker - January 2021 - 38
Independent Banker - January 2021 - 39
Independent Banker - January 2021 - 40
Independent Banker - January 2021 - 41
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Independent Banker - January 2021 - 48
Independent Banker - January 2021 - 49
Independent Banker - January 2021 - 50
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Independent Banker - January 2021 - 56
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Independent Banker - January 2021 - 61
Independent Banker - January 2021 - 62
Independent Banker - January 2021 - 63
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Independent Banker - January 2021 - 68
Independent Banker - January 2021 - Cover3
Independent Banker - January 2021 - Cover4
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