ProfitStars'® Clients Outperform Industry on Lending Margins, Interest Income, Overall Loan Quality

MONETT, Mo., Sept. 23 /PRNewswire/ -- Jack Henry & Associates Inc. (Nasdaq: JKHY), a leading provider of integrated technology solutions and data processing services for financial institutions, today announced that, on average, clients of its ProfitStars division outperform the industry in terms of net interest margin (NIM), net interest income (NII) growth, and loan quality. ProfitStars is a division of Jack Henry & Associates that provides solutions to improve the performance of financial institutions and diverse corporate entities.

ProfitStars examined common clients that leverage both its Margin Maximizer Suite, a loan and deposit pricing solution that maximizes financial institutions' opportunity to meet overall profitability objectives, and BusinessManager, an accounts receivable financing solution that equips banks to maintain lasting, profitable relationships with small- to mid-sized business customers. Their performance during the last two years was measured against more than 4,000 other U.S. community banks of comparable size.

The study revealed that common Margin Maximizer and BusinessManager clients outperform other community banks in NIM by 36 basis points. ProfitStars' pricing strategy recommendations typically generate an improvement of 10 to 50 NIM basis points within the first year following implementation. Also found in the comparison was a more rapidly increased NII for ProfitStars' clients – at an 8 percent growth rate – compared to an industry average of just 5.92 percent. These clients additionally maintain an overall better loan quality based on the Texas Ratio.

According to David Foss, president of ProfitStars, "Good loans are hard to find right now, so it is more important than ever that financial institutions identify opportunities to expand customer relationships while maximizing margins on existing business to achieve growth and profitability objectives. ProfitStars' clients are equipped to strategically select and price their loans as well as support them through their life. The result is reduced exposure to risk and maximized earnings, as is evidenced by our study."

ProfitStars recently launched its Commercial Lending Online Knowledge Center to create a central repository of best practices for financial institutions of how to lend efficiently without sacrificing quality or performance. The microsite – http://discover.profitstars.com/commercial-lending-knowledge-center – educates customers and prospects on moving beyond traditional lending strategies, whether diversifying their portfolio or expanding their commercial business base by bringing in new deposits, growing earnings, and enhancing asset quality.

About ProfitStars

ProfitStars, a division of Jack Henry & Associates, Inc., provides best-of-breed solutions that improve the performance of financial institutions of all asset sizes and charters, and diverse corporate entities. These solutions facilitate revenue and growth, risk mitigation and control, and cost control; and complement virtually any core information processing platform. Additional information is available at www.profitstars.com.

About Jack Henry & Associates, Inc.

Jack Henry & Associates, Inc. (NASDAQ: JKHY) is a leading provider of computer systems and ATM/debit card/ACH transaction processing services primarily for financial services organizations. Its technology solutions serve more than 11,200 customers nationwide, and are marketed and supported through four primary brands. Jack Henry Banking™ supports banks ranging from de novo to mid-tier institutions with information processing solutions. Symitar™ is the leading provider of information processing solutions for credit unions of all sizes. ProfitStars provides highly specialized products and services that enable financial institutions of every asset size and charter, and diverse corporate entities to mitigate and control risks, optimize revenue and growth opportunities, and contain costs. iPay Technologies operates as a leading electronic bill pay provider supporting banks and credit unions with turnkey, highly configurable retail and small business electronic payment platforms. Additional information is available at www.jackhenry.com.

Statements made in this news release that are not historical facts are forward-looking information. Actual results may differ materially from those projected in any forward-looking information. Specifically, there are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. Additional information on these and other factors, which could affect the Company's financial results, are included in its Securities and Exchange Commission (SEC) filings on Form 10-K, and potential investors should review these statements. Finally, there may be other factors not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from any forward-looking information.

SOURCE Jack Henry & Associates, Inc.