Three de Novo Banks in the Southeastern U.S. Grow with Jack Henry

Rhea-AI Summary

Jack Henry (Nasdaq: JKHY) reports significant growth for three de novo banks in the Southeastern U.S. - Craft Bank, RockPointBank, and Moultrie Bank & Trust. These banks, established within the last four years, have experienced steady growth using Jack Henry's modern technology platform. Key factors contributing to their success include:

• Local ownership and decision-making
• Rapid population growth in the Southeast
• Jack Henry's robust technology solutions

Craft Bank ($230M assets) and RockPointBank ($280M assets) focus on serving SMBs, while Moultrie Bank & Trust ($100M assets) caters to both retail and commercial customers. All three banks highlight Jack Henry's role in enabling them to compete with larger institutions while providing personalized banking experiences.

Positive

• Three de novo banks using Jack Henry's technology platform report significant growth
• Craft Bank reached $230 million in assets
• RockPointBank achieved $280 million in assets
• Moultrie Bank & Trust attained $100 million in assets
• RockPointBank aims to reach $1 billion in assets within its first decade
• Jack Henry's solutions help de novo banks compete with larger institutions

Negative

• None.

Insights

Financial Analyst

The growth of Craft Bank, RockPointBank and Moultrie Bank & Trust, enhanced by Jack Henry’s technology, underscores the relevance of efficient tech solutions in the banking sector. For investors, this news depicts Jack Henry (Nasdaq: JKHY) as a important enabler for small banks aiming to compete against larger institutions. Jack Henry's ability to provide customized, scalable platforms has evidently fueled these banks' swift expansion. This suggests a robust demand for Jack Henry's services, potentially driving its revenue growth. The banks' ability to attract customers and increase their assets despite being relatively new highlights the strategic value of Jack Henry's technology, which could positively influence their stock's long-term performance.

Market Research Analyst

Jack Henry’s role in the growth of these de novo banks indicates a broader trend in the banking industry where localized firms leverage innovative solutions to bridge service gaps left by larger banks' consolidation. This dynamic also suggests a rising market for tech providers like Jack Henry, who cater to specific regional banking needs. The sustained growth reported by these banks reflects positively on Jack Henry's market positioning and their ability to adapt to the needs of diverse banking clients. For retail investors, the implication is a stable, potentially growing market for Jack Henry's services, driven by the increasing establishment of community-focused banks.

Tech Expert

Jack Henry’s technology ecosystem, including solutions like JHA Treasury Management and Banno Digital Platform, has proven important in enabling de novo banks to offer competitive services. The high adoption and satisfaction rates among these banks suggest that Jack Henry’s platforms are reliable and effective. The scalability and flexibility of their technology allow small banks to operate efficiently and provide a level of service comparable to larger institutions. This technological advantage can lead to increased client retention and acquisition, further establishing Jack Henry as a leader in financial tech solutions. For investors, this signifies a company with strong, adaptable technological foundations that can support sustained growth in the banking sector.

Craft Bank, RockPointBank and Moultrie Bank & Trust win on innovation and service 

MONETT, Mo., July 22, 2024 /PRNewswire/ -- Jack Henry^™ (Nasdaq: JKHY) is pleased to share that Craft Bank, RockPointBank and Moultrie Bank & Trust have experienced significant growth in recent years, powered by Jack Henry's modern and open technology platform.

Craft Bank and Moultrie Bank & Trust, both based in Georgia, and Tennessee-based RockPointBank all have been established within the last four years. They were launched to serve communities with limited access to local financial services due to industry consolidation, and they have experienced steady growth since their inception. They attribute the success to several key factors: local ownership, focus, and decision-making; the rapid population boom in the Southeast; and support from Jack Henry, a robust technology provider that enables them to compete with larger institutions while still providing personalized banking experiences.

Craft Bank is a $230 million-asset commercial bank in metro Atlanta serving small and medium-sized businesses (SMBs), mainly in professional services and manufacturing. Jack Henry's hosted core processing solution helps the bank operate efficiently, while commercial solutions like JHA Treasury Management^™ have met SMBs' business management needs.     

"We started Craft Bank to serve the ZIP codes in metro Atlanta that lacked local bank representation, particularly in the SMB market, and Jack Henry has helped us do just that," said Ross Mynatt, CEO at Craft Bank. "Their commercial solutions have set us apart, enabling us to secure new business after just one demo. We've also appreciated their commitment to top-notch customer service and accessibility to the senior leadership team. Jack Henry enables us to capitalize on the favorable business climate in Georgia, and we're thrilled to be part of their network."

RockPointBank is a $280 million-asset bank in Chattanooga serving local businesses and professionals. The bank delivers its high-touch service through three channels: one branch, a courier service, and Jack Henry's modern and open Banno Digital Platform^™. Moreover, Jack Henry's treasury management platform, JHA Treasury Management, and faster payment hub, JHA PayCenter^™, provide all the tools for businesses to manage their daily financial workflows and connect the bank to both real-time payment rails, giving them a competitive edge.

"The opportunity we envisioned when starting the bank in 2021 has been confirmed," said Hamp Johnston, president and CEO at RockPointBank. "With the Southeast region growing, we're poised to increase our market share and continue to grow organically. Management believes there is an opportunity to reach $1 billion in assets within our first decade, and we are on a promising trajectory to achieve this. Jack Henry's technology has been instrumental in our journey thus far and will continue to support our scaling efforts, allowing us to provide superior customer service both in-person and online."

Moultrie Bank & Trust is the only local bank in Moultrie, Georgia, serving both retail and commercial customers in the southern part of the state. The $100 million-asset bank has had success in residential home construction and aims to expand its reach among SMBs and younger demographics. Jack Henry's innovative and flexible cash management solutions, integrated within consumers' digital banking platform, helps them attract and retain customers while reducing the risk of fraud.

"As a new bank, we only get one opportunity to convince people to switch to us. With Jack Henry, we're able to make a strong first impression," said Donna Lott, president and CEO at Moultrie Bank & Trust. "Their solutions and seamless integrations rival those of larger financial institutions. They are attentive, responsive, and provide robust protection and automation, enabling us to operate securely and efficiently and meet our customers' needs. As we grow and increase our customer base, we're eager to leverage more of Jack Henry's technology and tap into their open ecosystem of third-party fintechs."

"De novo banking requires more strategy, automation, and service focus than ever before," said Jonathan Baltzell, President of Bank Solutions at Jack Henry. "Jack Henry has been a proven technology provider in the space for many years. The success of Craft Bank, RockPointBank, and Moultrie Bank & Trust highlight the importance of starting with the right people and technology. With a flexible, experienced, and innovative technology provider, de novos can leverage their vision and mission to gain a competitive edge. We look forward to continuing to work with de novo institutions to better support local communities across America."

About Jack Henry & Associates, Inc.^® 
Jack Henry™ (Nasdaq: JKHY) is a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve. We are an S&P 500 company that prioritizes openness, collaboration, and user centricity – offering banks and credit unions a vibrant ecosystem of internally developed modern capabilities as well as the ability to integrate with leading fintechs. For more than 48 years, Jack Henry has provided technology solutions to enable clients to innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their accountholders. We empower approximately 7,500 clients with people-inspired innovation, personal service, and insight-driven solutions that help reduce the barriers to financial health. Additional information is available at www.jackhenry.com.

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SOURCE Jack Henry & Associates, Inc.

FAQ

What is the stock symbol for Jack Henry mentioned in the press release?

The stock symbol for Jack Henry mentioned in the press release is JKHY (Nasdaq: JKHY).

How many de novo banks are discussed in the Jack Henry (JKHY) press release?

The press release discusses three de novo banks: Craft Bank, RockPointBank, and Moultrie Bank & Trust.

What are the asset sizes of the three banks mentioned in the Jack Henry (JKHY) news?

Craft Bank has $230 million in assets, RockPointBank has $280 million in assets, and Moultrie Bank & Trust has $100 million in assets.

What is RockPointBank's growth target according to the Jack Henry (JKHY) press release?

RockPointBank aims to reach $1 billion in assets within its first decade of operation.