Superstorm Sandy leads to regulatory agreement at Jack Henry

Jan. 31--Jack Henry and Associates, the Missouri-based provider of services to community banks and credit unions, reached a written agreement with banking regulators over deficiencies in its disaster recovery plans.

Kevin Williams, chief financial officer of the Monett, Mo.-based company, said the agreement stems from Superstorm Sandy, which hit the Northeast in October 2012.

Jack Henry operated an item processing center in Lyndhurst, N.J., that was knocked out by the storm, and it took the company a while to get the operation running again, Williams said.

"We've made huge investments to date," Williams said. "We've been working with the regulators for the past 15 months and we're in total compliance with the letter."

Williams said the company had notified its customers about the agreement in December, when he said the Office of the Comptroller of the Currency had posted a notice of the agreement online.

The 16-page agreement was made public Friday through the Federal Deposit Insurance Corp. The FDIC, the Comptroller of the Currency and the Federal Reserve Bank of St. Louis were each party to the agreement.

The deficiencies had been identified in a December 2012 supervisory letter and in a February 2013 examination report, the agreement said.

Jack Henry shares were down 61 cents at $59.06 in late morning trading.

To reach Mark Davis, call 816-234-4372 or send email to mdavis@kcstar.com.

___

(c)2014 The Kansas City Star (Kansas City, Mo.)

Visit The Kansas City Star (Kansas City, Mo.) at www.kansascity.com

Distributed by MCT Information Services