Blanchard, Yancey era ends as they rotate off TSYS Board of Directors

An era in the Columbus banking and financial services industry ended quietly Thursday morning at the annual TSYS shareholders meeting on the company’s downtown campus.

With little fanfare, Jim Blanchard and Jimmy Yancey, both 75, rotated off the TSYS Board of Directors this week. Both are former chairmen of Synovus, which birthed and owned TSYS until the electronic payment processing company and regional banking company started separating in 2007.

For the first time in more than 57 years, neither Blanchard nor Yancey will be actively involved in either of the companies they helped guide through the 1970s, ’80s, ’90s and into the new century.

“There is probably a little symbolism there,” Blanchard said of the two reaching the exit at the same time.

Yancey summed up his mandatory departure from the board at age 75 in much the same manner Blanchard did.

“I am not happy, but I am not sad,” Yancey said, as TSYS executives, board members and shareholders wished him well. “I think it has been a good ride. It has been a wonderful experience to be a part of Synovus and a part of Total Systems.”

For Yancey, the ride started in 1960 when he was hired as a teller at Columbus Bank and Trust Co. As he moved up in the bank hierarchy, he was involved in the critical decisions that launched TSYS into a major player in the credit card processing industry.

Blanchard joined CB&T in 1974 as the chief executive officer and led a hometown bank that became a regional banking company with growing assets.

Retired TSYS Chairman Phil Tomlinson, who remains on the company’s Board of Directors, called Blanchard and Yancey “legends.” Tomlinson had the history with Blanchard and Yancey to properly note the significance of the moment.

“Frankly,” Tomlinson said, “I am a little sad because I hate to see a good thing come to an end.”

Tomlinson credited the fact that Blanchard and Yancey allowed TSYS, even though it was controlled by Columbus Bank & Trust Co. and Synovus, to operate in a way that was not restrictive.

“One of the greatest things that did is they did not try and make TSYS into a bank,” Tomlinson said. “They owned it, but they let us do it.”

Blanchard said that was a deliberate decision.

“The truth is most organizations that are not banks do not thrive and prosper under a bank ownership,” Blanchard said. “This is a major exception. And we spent a lot of time making sure that we didn’t mess it up because it was owned by a bank.”

And it was not easy, Blanchard said.

“We had a bank — and it was a good bank and this was not a bank,” he said. “Most banks can’t own something that isn’t a bank successfully because they try and fit it into the same size fits all like a bank. We were diligent in not letting that happened.”

In 1966, CB&T purchased its first mainframe computer and made the decision to put the excess computing capacity to work.

“We decided we were not going to be limited by a lack of imagination,” Yancey said.

The IBM computer was purchased and it took about 25 percent of its capacity to compute deposits.

“We had 75 percent capacity left and we had to decide what to do with it,” Yancey said. “We made the decision to put the credit cards on it, but there was no program for that and we had to create our own. It worked.”

The proof of what was accomplished was evident in the Thursday’s shareholders meeting.

TSYS Chairman and Chief Executive Officer M. Troy Woods noted that if an investor had purchased $10,000 in TSYS stock at $15 per share when the company went public in 1983, that investment, if it had not been touched, would be worth about $2.6 million today.

He acknowledged the roles Blanchard and Yancey were critical architects in growing TSYS from a $15 million company in 1983 to a $4.5 billion company today. To make his point, Woods noted that on Wednesday as the New York Stock Exchange advanced, TSYS gained almost $700 million in market capitalization in a single day.

“I can speak on behalf of the entire management team and the board to say that these two gentlemen are among our most loyal supporters, astute advisers and greatest champions,” Woods said. “We are indebted to both of you and deeply appreciate your leadership and steadfast support.”

Synovus Chairman and CEO Kessel Stelling, who now holds jobs held by both Blanchard and Yancey, attended the annual meeting and a dinner on Wednesday night in which the retiring directors were honored. He called it a historic moment because of the roles played by Blanchard and Yancey over the years.

“Although their formal influence might have ended today, their influence and impact on these companies will go forward for many years,” Stelling said. “I often refer to both of them when I'm talking to my team members. They both have had a tremendous influence over the years.”

Blanchard and Yancey are proud of the success story TSYS has become.

“I think it has so far exceeded whatever visions and expectations we had, although we were optimistic we could build a company and compete,” Blanchard said. “It is incredible what they have been able to do. They are market leader in every category. It is a wonderful tribute to the executives and the team that have build such a tremendous company.”

Yancey echoed the sentiments.

“I am very proud of what we have done here,” he said. “And I am proud of what we are leaving.”

This story was originally published April 27, 2017 at 1:26 PM with the headline "Blanchard, Yancey era ends as they rotate off TSYS Board of Directors."