Mimi Carsley: Yes. And J.D., I would just add on, we always look to, first, is there investments within our own business to accelerate growth. We’ve been at that 14% R&D for quite some time, but we’re always open to think about ways to accelerate our strategy and where we can continue to serve our clients through investments in technology. So that’s always a prioritization. And then the other is we’re expecting to pay down the debt substantially. So one thing I would note just from a call out for folks for modeling purposes, you’ll see in the next quarter, a reclassification of our debt. The term loan A goes current in May in a couple of weeks here. And as we plan to, well, being very mindful of the current ratio, we do anticipate paying that down and shifting some of that to the revolver. So it’s not common that a lot of people let their debt go current, but we intend to pay it off.
John Davis: Okay. Great. And then, Greg, it seems like Banno Business is off to a pretty good start. I just would love to get your thoughts longer term where you see the mix of like Banno Business versus retail. I know we’re really early innings today, but just how you think about that over the next, call it, three to five years, just the mix between retail and business in Banno?
Gregory Adelson: Yes. Well, we continue — to your point, I mean, there’s part that I think is important for you to understand is that how we do the revenue model for this is that we basically — it’s an add-on to each of — so the 11.6 million registered users that Dave alluded to, any of our institutions that have a commercial focus that want to add Banno Business, then that add-on price is added to all of their registered users regardless of whether they are being utilized in a business application or not. As you can imagine, there’s a lot of small business owners that are hiding in a retail presence today. And so this creates the opportunity to do both. So for our benefit, any institution that has interest in buying Banno Business, it gets applied to all of their active registered users versus just ones that are kind of allocated to a business application.
So that’s great for us, and that’s kind of how we built the model. As far as, again, continued success, we think there’s a huge opportunity on the credit union side of our business as we continue to see more and more credit unions get focused on this side. And that’s been a lot of the opportunities that we have right now. And then I think more importantly, as we do take the product outside of the Jack Henry base, we think we’re going to be able to go — take the product further up market, maybe even to some institutions that are much larger than the ones that we support today as part of that.
John Davis: Okay. And then maybe just — I really appreciate the clarification there, but maybe the better way to rephrase is, what kind of adoption or what percentage of banks adopting of your current base adopting Banno Business, would you guys kind of consider success over the next, let’s call it, three or five years? Is it 30%, 40%, 80%? Just trying to some guidepost on how thinking about that longer term?
Gregory Adelson: I’d say roughly, it’s in the 60% to 70% just because a lot of our institutions are commercially focused already. So I would say anything north of 60% would be a fairly decent target.
David Foss: I won’t be here anymore. Can I vote for 100%.
Gregory Adelson: I don’t know if we’ll get 100%. I’m not promising. But I really do believe that the — what we’ve seen today based on where we are today, anywhere from 60% to 70% is probably a reasonable approach.
John Davis: Okay, appreciate it. Thanks for the color.
Operator: Our next question comes from Cris Kennedy of William Blair. Please go ahead.
Cristopher Kennedy: Good morning. Thank you for fitting me in. And I’ll echo all the comments for Dave. Just one last one. Just a follow-up to that last question. And clearly, Banno Business is a big initiative. But can you just talk about some of the other opportunities and initiatives that you have to capture that commercial banking opportunity, especially within small businesses?
Gregory Adelson: Yes, it’s a great comment. And actually from — we have several different kind of what I would call, point-to-point solutions that we have. So we have a treasury management solution that we’ve talked about a lot. So there’s a great opportunity to continue to drive that there. We have things that we’re doing on the lending side and the account opening side for small businesses that we continue. We have a small business application in Bill Pay that we use a business bill pay application things that we do on the remote deposit capture side of our businesses as well. So we have a lot of point-to-point solutions that we utilize today, but one of the focuses that I have, and I’ve talked about this in individual meetings is a focus on building a cohesive SMB strategy, and we’ll continue to talk more about what we’re doing, not only with our existing products but what we plan to do as an overarching strategy and solution set.
Cristopher Kennedy: Great, thank you. Thanks for fitting me in.
Gregory Adelson: Sure.
Operator: The next question comes from David Togut of Evercore. Please go ahead.
David Togut: Thank you. Good morning and congratulations, Dave, since this is your last call as CEO, perhaps you could give us a final update on kind of the status of your credit card processing initiative. And then maybe to go along with that, you continue to call out the three big $20 billion asset banks in the pipe. How important is it to the bigger banks that you have a robust credit card processing offering, perhaps is that more important than it might be for the smaller FIs, which tend to be more debit focused?
David Foss: Yes. I don’t — thank you, Dave. I don’t think that it’s a big item of consideration regardless of the size of the bank. It’s all about where they are with their strategy, where they are with their relationship with whoever they’re their process there is. The decision regarding core is a totally independent decision from who am I going to do debit and credit with and what am I looking for as far as functionality and all that. And I think that whole decision process has been conflated in the industry in the past few years as some of our competitors have tried to try to sell a narrative that if you have the quarter, you’re going to get the card business that’s not necessarily true. You have to provide great service and great product on the card side in order to win that business.
So they’re really divorced of each other. As far as the — where are we at on the credit side, so I didn’t mention in my script, but we did sign three additional credit customers in the quarter. So we’re continuing to make progress there. But you’ll recall, Dave, when I first started talking about our move and getting into credit, I said at the time, this will be a slow grower for us. It’s not that everybody is looking for Jack Henry to offer credit, but there are some customers who want the same processor to provide debit and credit at the same time on the same platform. And so it was a necessary offering for us, but we never had an expectation that it was going to be a really fast grower or become a really significant part of our revenue stream and sure enough, that’s the position that we’re in today.
