During the early 1970s, Jack Henry and Jerry Hall are believed to have been the only two computer users in Monett, Missouri – a small town in the picturesque lake region of the Ozark Mountains.

As a self-proclaimed "broken down accountant" working in public and private accounting practices, Jack Henry entered the banking industry as the data processing manager for Gillioz Bank & Trust. "There were two software packages available for the banking industry. I know because I purchased one of them … and it didn't work."

Jerry Hall was data processing manager for the Jumping Jacks division of the U.S. Shoe Company. "Jack and I would often ride to meetings in Springfield together and discuss the good opportunities to be had in the software business."

According to Jack, "At that time, in-house computer systems were very expensive and only the largest banks could afford them. As a result, all of the smaller banks had to send their information to the larger ones for processing. We knew the smaller banks were tired of having their computer work done elsewhere and we actually created this business to equip those banks with everything they need to do their own data processing."

Gillioz Bank & Trust was acquired and Jack's position was eliminated. "I started stirring around for another way to make a living. I enjoyed data processing and was a reasonably strong programmer. So I decided there was an outside chance to make a living helping small banks."

An integrated software system that allowed banks to tie customer accounts together for inquiry and management purposes had not been developed. The state-of-the-art IBM computer was the System/32. "The System/32 was about the size of a large desk and it had 16K and about 16MB of disk storage. It did one job at a time and the printer, CPU, and console were one unit. The screen was a reflection in a hole about three by five inches," Jack recalled.

In 1976, "The plan for the formation of Jack Henry & Associates (JHA) was carefully conceived … on the back of a napkin in a hotel coffee shop."

Jack Henry & Associates opened for business in space rented from an engine repair shop for $40 a month. A computer was borrowed, and Jerry's decision to join the venture made "associates" a reality.

On that borrowed computer, Jack visualized and wrote the first software package – CIF 32 (the genesis of today's CIF 20/20®) – based on intuition, common sense, and the innovative customer information file concept.

According to Jerry, "In the early days, we did everything ourselves. We developed the software and we installed the systems. It was hard work."

In 1977, JHA was incorporated and generated $9,360 in revenue. "We were able to cash most of our paychecks and buy a company car that had been repossessed by the First State Bank of Purdy … no lights."

Progress continued, "associates" were added, and more office space was needed. JHA relocated to an unused corner of the Friend Tire Company. The borrowed computer was replaced with a System/32 that JHA shared with the First State Bank of Purdy – a loyal JHA client to this day. Since the computer had only one library and limited disk space, Jack and Jerry had to take all of the bank's files off at night and put them back on before the bank opened the next morning.

As the demand for human resources grew, "We hired and trained quite a few kids just out of school because we couldn't afford experienced personnel." And this recruiting strategy worked. In 1979, Mike Henry, current Chairman of Board, joined his father's company after graduating from Monett High School. Mike recalls, "We did whatever it took to make our software work. And sometimes that meant working for days straight. A lot of time was spent sleeping on banks' computer room floors."

In 1980, Mike Henry's classmate, Tony Wormington, now President of JHA, joined the company while he was still a student at Monett High.

In 1981, the first building – J1 – was built on the 134 acre Monett campus that still houses the company's headquarters. Consistent with Jack and Jerry's practical natures, that first building, which offices JHA's CEO, President, and CFO today, was built so it could serve as the residence for Jack or Jerry if the company's progress did not continue.

On October 29, 1985, an Initial Public Offering made JHA a public company trading 1.5 million primary shares on the NASDAQ exchange under the symbol JKHY.

JHA also entered the hardware business that year and began remarketing IBM computer equipment directly to its clients.

In 1986, JHA expanded its market presence and potential by introducing its core processing system designed to run on IBM's System 38. CIF 38 was designed to support the specific functional requirements of the next tier of larger banks.

JHA also made its first in a series of more than 45 acquisitions, purchasing FinSer Capital Corporation, a Texas-based brokerage firm. Unfortunately, there was no beginners luck and this first acquisition lost money. It was divested in 1989.

Based on the "short but sweet" life span of the System/38, by 1988 CIF 38 had evolved into the AS/400-based SilverLake System®, and was being successfully installed in larger banks.

In 1992, JHA began to aggressively acquire companies that primarily expanded its product offering and its client base. Among the client base acquisitions was the 1995 purchase of Liberty™ (a division of Broadway & Seymour). This acquisition marked two important milestones for the company. Jack Prim, now CEO and a member of the company's Board of Directors, joined JHA through this acquisition; and JHA entered the outsourcing business, which significantly increased its recurring revenue and expanded its sales opportunities to include the portion of the bank market that historically outsources information processing.

In 1998, Kevin Williams joined JHA as CFO after a successful career in public accounting practices, where JHA was his client.

In 1999, JHA acquired the Financial Systems Division of BancTec, Inc. to once again expand its market presence and potential. BancTec's Core Director® core processing system enabled JHA to complement its CIF 20/20® and SilverLake systems with a Windows®-based, client/server core processing solution.

In 2000, JHA completed a secondary public offering of 1.8 million additional shares of JKHY.

That same year, JHA materially expanded its presence in the credit union marketplace by acquiring San Diego-based Symitar™. The acquisition of Symitar and its Episys® core processing solution immediately positioned JHA as the leading provider of core systems for credit unions with assets exceeding $25 million.

In 2002, JHA acquired South Carolina-based CU Solutions, adding the Cruise® core processing system to its credit union offering. The ability to support the small and mid-size credit union marketplace with Cruise strategically positioned JHA with a core processing solution for credit unions of all sizes – from the very smallest to the largest.

In 2004, JHA's focused diversification acquisition strategy resulted in the acquisition of a number of companies and products that can be sold outside JHA's core client base to all financial services organizations regardless of charter, asset size, core processing platform; selectively sold outside the financial services industry; and selectively sold internationally.

In 2006, JHA launched its third primary brand – ProfitStars® – to encompass the specialized products and services assembled through its focused diversification acquisition strategy.

In 2007, John W. "Jack" Henry, the company's highly revered co-founder, acting Vice Chairman and Senior Vice President, died of natural causes at the age of 71. Jack was one of the early pioneers in community bank software and was known for his vision, intelligence, quick wit and down-home demeanor. His common sense approach to business and his single vision of doing what is best for JHA customers continue to guide the company's direction.

That same year Symitar signed its 500th Episys client, positioning the company with the largest organic user base in the industry. Five hundred unique credit unions, 500 very diverse evaluations, 500 individual decisions based on distinct selection criteria provide an unprecedented endorsement of the functionality Episys provides.

In 2008 "You Don't Know Jack … or Jerry," a book written by Robert O. Babcock, was released. This fascinating book details the story of how the founders of JHA took a leap of faith that led to unprecedented success in the financial services industry.

In 2009, David Foss was named president of the ProfitStars division based on his industry expertise, real-world understanding of the technology and operational requirements organizations need to succeed today, and his uncompromising commitment to client service and satisfaction.

That same year, JHA acquired Goldleaf Financial Solutions, Inc., a leading provider of integrated technology-based solutions designed to improve the performance of financial institutions. This strategic acquisition expanded JHA's comprehensive product and service offering and enabled the company to leverage a broader market presence, capitalize on increased market potential, and enhance competitive position.

Pemco Technologies, a leading provider of payment processing solutions primarily for the credit union industry, was acquired in 2009 to support JHA's strategic expansion in the growing electronic payments segment of the financial services industry by adding credit card solutions and broadening its ATM and debit card offering.

In 2010, JHA made its largest acquisition to-date with iPay Technologies, the largest independent electronic bill pay provider in the United States. This acquisition added turnkey online bill pay services, technology, and expertise to support JHA's ongoing expansion in the payments industry.

In an interview conducted in 1983, Jack asserted, "There must be thousands of suppliers catering to the financial institutions market. Many ill-conceived ventures with little real chance of success have been brought into being by public or venture capital financial. We're going to see, I'm afraid, a big shakeout of large numbers of them in the future. A relative few will survive and participate in a very lucrative and exciting marketplace. We sure plan to be one of them."

Jack's speculations about the "big shakeout" were correct and his plan for survival worked. Thirty-three years of planned progress – with a few inevitable disappointments along the way – have generated material growth for JHA.

• From one client to more than 11,800 …
• From two associates to more than 4,400 …
• From one core processing system to five industry-leading, competitively distinct platforms that are surrounded by more than 100 complementary products and services …
• From rented space in an engine repair shop to a 134 acre corporate headquarters and more than 50 offices nationwide …
• From one acquisition to more than 45 …
• From an unknown entity to an undisputed industry leader …
• From annual revenue of $9,360 in fiscal 1977 to $746 million in fiscal 2009 …