Core Insights - First Mid Bank & Trust, with nearly $8 billion in assets, is modernizing its technology infrastructure through a partnership with Jack Henry to enhance operational efficiency and support growth [1][2][4] - The bank has expanded from a rural institution to a full-service financial entity with over 80 branches across multiple states, focusing on both retail and commercial customers [2][6] - Jack Henry's technology will provide a scalable and flexible foundation, reducing manual tasks and streamlining workflows, while offering access to over 950 API-integrated third-party fintechs [3][4] Company Overview - First Mid Bank & Trust has a diversified portfolio that includes a full-service insurance agency and a wealth management division, reflecting its aggressive growth strategy over the past decade [2][6] - Jack Henry is an S&P 500 financial technology company that has been providing technology solutions for nearly 50 years, focusing on innovation and collaboration with financial institutions [5] Strategic Importance - The modernization of First Mid's technology stack is crucial for maintaining competitiveness in a rapidly changing environment, allowing the bank to innovate and better serve its customers [4][6] - Jack Henry's commitment to providing a future-ready platform aligns with First Mid's growth strategy, enabling the bank to continue expanding organically and through acquisitions [4][5]

Core Insights - The article discusses the journey to financial independence through disciplined living and strategic investing, highlighting the transition from financial struggle to freedom within a six-year period [2]. Group 1: Financial Independence Journey - The individual began blogging in 2011 about achieving financial independence by living below means and investing wisely [2]. - Achieved financial freedom at the age of 33 after starting from a position of being "below broke" at age 27 [2]. Group 2: Investment Focus - The content created focuses on dividend growth investing, emphasizing the importance of living off dividends and identifying undervalued high-quality dividend growth stocks [2]. - The strategy includes exploring high-yield investment opportunities and other long-term investment prospects [2].

Jack Henry & Associates (JKHY) 2025 Conference June 11, 2025 01:00 PM ET Speaker0 Hello everybody. Speaker1 Howdy, howdy. Thanks for being with us Mimi. I'm James Fosses, Senior Fintech Analyst here at Morgan Stanley. And before we get started with Mimi Karzly, CFO and Treasurer of Jack Henry, I do have an important disclosure to read. Please see Morgan Stanley research the Morgan Stanley Research Disclosure website at morganstanley.com/researchdisclosures. And as a reminder, the taking of photographs and u ...

Core Insights - Triangle Credit Union has selected Jack Henry's Symitar platform to enhance member services and maintain competitive positioning in the market [1][3] Company Overview - Triangle Credit Union operates eight branches and serves nearly 58,000 members, managing $839 million in assets, a significant increase from $70 million in assets in 1993 [2] - The credit union offers a comprehensive range of personal and business financial services, focusing on progressive and cost-efficient solutions [2] Technology Adoption - Triangle Credit Union sought a reliable technology provider to support its growth and service expansion, valuing Jack Henry's open infrastructure for third-party integrations [3] - The credit union aims to streamline its business lending processes by utilizing Jack Henry LoanVantage, replacing multiple vendors with a single platform [3] Decision-Making Process - The decision to partner with Jack Henry involved thorough stakeholder feedback, ensuring all departments contributed to the selection process [4] - The culture and support provided by Jack Henry, including transparent communication and accessibility to executives, were significant factors in the decision [4] Future Outlook - Jack Henry's technology infrastructure is expected to shape the future of Triangle Credit Union, supporting its business goals and competitive position [5] - Triangle plans to adopt the cloud-native, API-first Jack Henry Platform to unify its services into a single ecosystem for innovation [4]

A month has gone by since the last earnings report for Jack Henry (JKHY) . Shares have added about 5.7% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Jack Henry due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?It turns o ...

Core Viewpoint - Jack Henry (JKHY) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive earnings outlook that may lead to increased stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is a significant factor influencing stock prices [2][4]. - An increase in earnings estimates typically results in higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock price movements [4]. Company Performance and Investor Sentiment - Rising earnings estimates for Jack Henry suggest an improvement in the company's underlying business, which should encourage investors to push the stock price higher [5]. - The Zacks Consensus Estimate for Jack Henry indicates expected earnings of $5.81 per share for the fiscal year ending June 2025, reflecting an 11.1% year-over-year increase [8]. Zacks Rank System and Historical Performance - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The upgrade of Jack Henry to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - The payments segment constitutes 37% of total revenue, with core and complementary segments each making up roughly one-third of total revenue [7][21] - The company reported a growth rate of approximately 10% in its key revenue, which accounts for 76% of overall revenue [28][29] - The company is targeting a headcount increase of less than 1.5% while maintaining a growth rate of 6-7% [97][100] Business Line Data and Key Metrics Changes - The payments business, which includes card services, is performing well, with card transactions making up 60% of the payments segment [19][72] - The pay center business, which focuses on real-time payments, is growing the fastest among the payment services [73] - The bill pay and remote deposit capture businesses are experiencing steady growth in the mid to lower single digits [74] Market Data and Key Metrics Changes - The company has about 40% of all real-time payment customers live in the market, indicating a strong position in the fast-growing payments sector [73] - Consumer confidence is waning, impacting debit transactions, which make up 90% of the card business [20] Company Strategy and Development Direction - The company is focusing on the SMB market, aiming to provide solutions that enhance deposit growth and customer retention [63][64] - A tech modernization strategy is in place, with a goal to transition clients from on-premise to private and public cloud solutions [41][50] - The company is rationalizing its product offerings, aiming to streamline operations and improve efficiency [102] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic challenges affecting consulting and hardware sales, leading to a slowdown in non-key revenue [11][12] - The company is optimistic about its core business growth and competitive wins, particularly in larger institutions [29][90] - Regulatory changes are expected to facilitate faster acquisition approvals, which could positively impact the market environment [92] Other Important Information - The company has a strong succession planning process, which has facilitated a smooth transition in leadership [8] - The company is ahead of schedule in delivering a full deposit-only core in the public cloud, expected to be available by next year [44][51] Q&A Session Summary Question: How is the macro environment affecting the business? - Management indicated that macro challenges have led to a pullback in consulting services and hardware sales, impacting non-key revenue [11][12] Question: What is the outlook for core business growth? - The core business is expected to continue growing at close to 10%, with a strong pipeline of competitive wins [28][29] Question: How does the company plan to address the SMB market? - The company is developing solutions that provide instantaneous approval and multiple settlement windows to enhance SMB offerings [63][66] Question: What is the strategy for transitioning to cloud services? - The company is focused on moving clients to private and public cloud solutions, with expected revenue lifts from these transitions [41][45] Question: How is the company managing costs in a slower environment? - The company is implementing business process automation and maintaining a cautious approach to headcount growth to manage costs effectively [97][100]

Company Overview - Jack Henry & Associates, Inc. is a financial technology company listed on Nasdaq under the ticker JKHY, providing technology solutions to financial institutions for over 48 years [2] - The company serves approximately 7,500 clients, focusing on innovation, personal service, and insight-driven solutions to enhance financial health [2] Upcoming Events - Greg Adelson, President & CEO of Jack Henry, will present at Bernstein's 41st Annual Strategic Decisions Conference on May 28th at 11:00 a.m. ET [1] - A live webcast of the presentation will be available, with a replay accessible on the company's investor relations website following the event [1]

Core Insights - SouthTrust Bank has selected Jack Henry to modernize its technology infrastructure, aiming to differentiate and streamline operations while pursuing growth [1][3] - The bank, founded in 1934, has $550 million in assets and is focused on expanding its presence in Houston and serving niche markets [2] - The partnership with Jack Henry will enhance customer service, boost efficiency, and integrate with third-party fintechs, while introducing modern digital banking capabilities [3][4] Company Overview - SouthTrust Bank has eight locations in South Texas and Houston, known for strong community ties and long-term customer relationships [2] - The bank aims to reach $2 billion in assets over the next decade, focusing on geographic expansion and organic growth [4] Technology Partnership - Jack Henry's core processing system will eliminate manual tasks and streamline workflows, enhancing the bank's operational efficiency [3] - The introduction of customer-facing products like the Jack Henry Digital Platform and services such as Zelle® and Apple Pay will attract customers [3][4] - Jack Henry emphasizes the importance of innovative and accessible tools for community banks to compete effectively [4] Strategic Goals - SouthTrust Bank's CEO highlighted the need for a technology provider that shares their vision for the future, indicating confidence in Jack Henry's capabilities [4] - The collaboration aims to empower SouthTrust Bank to deliver modern and user-friendly banking experiences to its communities [4]

Financial Performance - Revenue for the three months ended March 31, 2025, was $585,087,000, an increase of 8.6% compared to $538,562,000 for the same period in 2024[14] - Operating income for the three months ended March 31, 2025, was $138,740,000, representing a 23.7% increase from $112,099,000 in the prior year[14] - Net income for the three months ended March 31, 2025, was $111,108,000, up 27.5% from $87,099,000 for the same period in 2024[14] - Basic earnings per share for the three months ended March 31, 2025, increased to $1.53 from $1.20 in the same period last year, reflecting a 27.5% growth[14] - Net income for the nine months ended March 31, 2025, was $328,144,000, an increase from $280,743,000 in the same period of 2024, representing a growth of approximately 16.9%[19] - Total revenue for the nine months ended March 31, 2025, reached $1,759,916,000, compared to $1,655,631,000 for the same period in 2024, indicating a year-over-year increase of about 6.3%[40] - Diluted earnings per share for the nine months ended March 31, 2025, rose to $4.49 compared to $3.85 for the same period in 2024[80] - The company reported a segment income of $322,106,000 for Core Payments for the nine months ended March 31, 2025, indicating robust profitability in this segment[87] Assets and Liabilities - Total current assets decreased to $593,236,000 as of March 31, 2025, from $632,018,000 as of June 30, 2024[12] - Total liabilities decreased to $895,587,000 as of March 31, 2025, compared to $1,082,117,000 as of June 30, 2024[12] - Retained earnings increased to $3,287,370,000 as of March 31, 2025, from $3,081,690,000 as of June 30, 2024[12] - The company reported a total stockholders' equity of $2,036,431,000 as of March 31, 2025, up from $1,842,364,000 as of June 30, 2024[12] Expenses - Research and development expenses for the three months ended March 31, 2025, were $39,411,000, an increase of 9.9% from $35,993,000 in the same period last year[14] - Total expenses for the nine months ended March 31, 2025, were $1,346,899,000, with Selling, General, and Administrative expenses amounting to $209,839,000[86] - Research and Development expenses for the nine months ended March 31, 2025, totaled $120,192,000, highlighting the company's commitment to innovation[86] Cash Flow and Investments - Cash flows from operating activities for the nine months ended March 31, 2025, were $314,392,000, slightly down from $336,242,000 in 2024, reflecting a decrease of approximately 6.5%[19] - The company’s cash and cash equivalents at the end of the period were $39,870,000, an increase from $27,254,000 at the end of the previous year, showing a growth of about 46.4%[19] - The company’s net cash from investing activities for the nine months ended March 31, 2025, was $(176,317,000), compared to $(164,505,000) in 2024, reflecting an increase in cash outflow of approximately 7.1%[19] Dividends and Shareholder Returns - The company declared dividends of $0.58 per share for the three months ended March 31, 2025, compared to $0.55 per share in the same period in 2024[17] - The company declared a cash dividend of $0.58 per share on May 9, 2025, payable on June 18, 2025, to stockholders of record as of May 29, 2025[88] Taxation - The effective tax rate for the three months ended March 31, 2025, decreased to 21.7% from 23.7% in the prior year quarter[69] - For the nine months ended March 31, 2025, the effective tax rate decreased to 23.0% compared to 23.6% for the same period last fiscal year[70] - The company paid income taxes of $94,553 for the nine months ended March 31, 2025, compared to $70,686 for the same period in 2024[71] - As of March 31, 2025, the company had $22,851 of gross unrecognized tax benefits, with $20,735 potentially affecting the effective tax rate if recognized[71] Debt and Financing - The Company had $80,000 outstanding under the amended and restated credit facility as of March 31, 2025, up from $60,000 at June 30, 2024[64] - The Company entered into a term loan credit agreement with an outstanding balance of $90,000 as of March 31, 2025[65] - Interest paid by the Company during the nine months ended March 31, 2025, was $7,525, a decrease from $11,176 in the same period of 2024[68] - As of March 31, 2025, the company had $170,000,000 in outstanding debt with variable interest rates, with a potential increase in annual interest expense of $1,700,000 for a 1% rise in borrowing rates[152] Future Revenue Recognition - As of March 31, 2025, estimated revenue expected to be recognized in the future related to unsatisfied performance obligations totaled $7,412,480, with approximately 23% expected to be recognized over the next 12 months[46]