Jack Henry & Associates (JHA) provides integrated in-house and outsourced software systems for data processing to some 11,300 banks, credit unions, and other financial services companies. Products include core processing systems, electronic funds transfer (EFT) systems, automated teller machine networking products, digital check and document imaging systems, Internet banking tools, and customer relationship management (CRM) software. The company's three primary brands include Jack Henry Banking, Symitar, and ProfitStars. JHA also provides electronic bill payment services through iPay Technologies. It primarily serves small and midsized institutions in the US.
About 96% of the company's revenue comes from its support and service division while remaining revenue is contributed by its hardware and license revenue.
Based in Monett and Springfield, Missouri, JHA has other locations in Houston and Allen, Texas; Albuquerque, New Mexico; Birmingham, Alabama; Lenexa, Kansas; Angola, Indiana; Shawnee Mission, Kansas; Rogers, Arkansas; Oklahoma City; Elizabethtown, Kentucky; and San Diego, spanning more than 20 states.
JHA has enjoyed unprecedented revenue and net income growth over the past decade. In 2015 (ended June 30) it reported record-setting revenue of $1.26 billion, up 3.8% from 2014. The growth was fueled by an 8% increase in service and support revenue. Hardware sales slipped 10%.
The company's profit rose 5% to $211 million, another company high. The company's expenses were up 5% in 2015 from 2014.
JHA's operating cash flow has trended higher, rising to $473 in 2015 from $341 in 2014.
JHA uses a combination of alliances, internal product development, and acquisitions to expand its offerings for its core bank and credit union markets. The company has an alliance with IBM where it sells IBM hardware and equipment, resells maintenance on IBM hardware products, and designs IBM-compatible software. Other hardware by Dell, Digital Check, Lenovo, RDM, and Unisys are bought by JHA at a discount and resold to customers. Hardware sales accounted for 4% of revenue in 2015.
In 2015, the company released the Banno Platform, an digital platform developed to help financial institutions develop digital offerings including mobile applications. The product came from a $28 million acquisition in 2014.
Mergers and Acquisitions
In 2015, the company acquired Bayside Business Solutions, a provider of portfolio management systems for commercial lenders, for $10 million. It was folded into the ProfitStars Lending Solutions Group.