HAPN

Happen Bank’s second quarter was marked by a positive market reaction, as the company delivered results in line with revenue expectations and posted a significant beat on GAAP earnings per share. Management credited robust loan origination growth, improved net interest income, and disciplined underwriting as central to the quarter’s performance. CEO Scott Sanborn highlighted the official launch of the Happen Bank brand and increased adoption of its LevelUp Checking and Savings products as key contributors. Additionally, the bank’s entry into the home improvement lending market began to ramp, supported by its proprietary credit risk models and focus on high-credit-quality customers. Is now the time to buy HAPN? Find out in our full research report (it’s free). Revenue: $262.9 million vs analyst estimates of $262.4 million (5.8% year-on-year growth, in line) EPS (GAAP): $0.50 vs analyst estimates of $0.42 (18.4% beat) EPS (GAAP) guidance for the full year is $1.85 at the midpoint, beating analyst estimates by 6.6% Operating Margin: 28.8%, up from 21.7% in the same quarter last year Market Capitalization: $2.21 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Bill Ryan (Seaport Research Partners) asked about the impact of new lending products on originations growth. CEO Scott Sanborn explained that while home improvement lending is still small, expansion is on track and expected to drive growth next year. Giuliano Bologna (Compass Point) inquired about asset yield trends and hedging strategy. CFO Drew LaBenne detailed that yields will trend lower as legacy portfolios run off, and the hedging program will scale with balance sheet growth to manage interest rate risks. David Scharf (Citizens Capital Markets) questioned the sustainability of strong origination growth. Sanborn attributed recent performance to ramped marketing channels and product enhancements, while maintaining credit discipline and targeting a balanced mix of new and repeat borrowers. Vincent Caintic (BTIG) asked about marketplace loan investor appetite and future product mix. LaBenne confirmed robust investor demand and clarified that home improvement and auto loans are retained on the balance sheet, while only personal loans are sold through the marketplace. Crispin Love (Piper Sandler) sought clarity on credit normalization and net interest margin outlook. LaBenne noted that net charge-offs are outperforming but are expected to gradually normalize depending on product mix, and that net interest margin will likely trend toward 6% by year-end. In the coming quarters, the StockStory team will be watching (1) the scaling and performance of the home improvement lending business as partnerships and originations ramp, (2) the effectiveness of new brand and marketing initiatives in driving customer acquisition and engagement, and (3) ongoing efficiency gains from AI-driven operational improvements and their impact on margins. Additionally, we will monitor any expansion into new lending products, such as home equity loans, as indicators of future growth trajectories. Happen Bank currently trades at $19.10, up from $18.75 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Happen (HAPN) is back in focus after reporting second quarter results, including net income of US$58.15 million, diluted EPS of US$0.50, updated earnings guidance for 2026, and new credit charge off figures. See our latest analysis for Happen. The latest results have sparked a 3.82% one-day share price gain to US$18.75. This follows a period where the 30-day share price return declined 6.72%, while the 1-year total shareholder return is 44.79%, suggesting longer term momentum remains stronger than recent trading. If Happen's earnings update has you considering where else returns could come from, it may be worth scanning other financials with solid credit profiles using our 18 top founder-led companies After Happen's earnings jump, firmer guidance, and the latest share price pop, the key question now is whether current levels still offer an appealing trade off between upside potential and the risks on the credit and earnings side. Against Happen's last close of $18.75, the most widely followed narrative points to a fair value of $23.95, using a 7.65% discount rate and a detailed set of earnings and margin assumptions. Read the complete narrative. Want to see what is behind that earnings engine for Happen, and how revenue, margins and the chosen earnings multiple combine to support a higher fair value? Result: Fair Value of $23.95 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are still clear risks for Happen, including heavier competition in personal lending and potential regulatory changes that could pressure margins and growth assumptions. Find out about the key risks to this Happen narrative. If the mixed signals around Happen leave you unsure, act while the information is fresh and review the data for yourself, starting with the 4 key rewards and 1 important warning sign. Do not stop at Happen. Broaden your watchlist with other stocks that fit clear, disciplined criteria so you are not relying on a single earnings story. Target steady cash generators by scanning companies filtered for resilient balance sheets and fundamentals using the solid balance sheet and fundamentals stocks screener (49 results). Hunt for potential mispricings by reviewing companies assessed as high quality yet possibly overlooked through the screener containing 20 high quality undiscovered gems. Prioritise stability in choppy markets by focusing on businesses with lower risk profiles using the 84 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HAPN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Happen has rebranded as Happen Bank and listed on Nasdaq at a time when its stock price tells a mixed story for investors, with a strong 123.5% return over the past three years set against valuation checks that do not clearly signal a bargain or a stretch. Over the last three years, Happen has returned 123.5%, which puts recent short term share price softness into the context of a strong longer term run. The launch of the Happen Bank brand and the upgraded price target from BTIG may support expectations for earnings improvement, while any disappointment in those earnings or in the interest rate backdrop could weigh on how much investors are willing to pay for the stock. Happen scores 4 out of 6 on Simply Wall St's valuation checks, which is a mixed picture rather than a clear bargain or clear overvaluation, and you can see the breakdown at 4. The issue now is whether Happen's recent share price, after its rebrand and Nasdaq listing, still offers enough value for investors who are considering the stock today. Happen delivered 44.8% returns over the last year. See how this stacks up to the rest of the Consumer Finance industry. The P/E ratio suits a bank like Happen because earnings per share are a key focus for shareholders. Happen currently trades on a P/E of 12.3x. That sits above the Consumer Finance industry average of about 8.9x and the peer average of 8.9x, so the stock is not priced at a simple discount to the sector on this measure. The fair P/E ratio implied by Simply Wall St’s model is 20.4x, based on factors such as Happen’s expected returns on equity and risk profile. Compared with the current 12.3x multiple, this indicates that the market is applying a lower earnings multiple than the model would imply. Despite the recent rebrand to Happen Bank and the Nasdaq listing, which have helped focus attention on the company, the stock still trades below this modelled P/E level. On the P/E multiple, Happen stock currently appears undervalued relative to the fair ratio implied by its fundamentals according to this model. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Happen help bridge the gap between the current valuation puzzle and the assumptions behind it by spelling out what would need to happen to Happen's growth, margins and earnings for the stock to be worth materially more or less than today's price, and they sit on the company’s Community page. Each one treats fair value as a thesis about Happen's business that you can track over time rather than a single static estimate. One of the top community narratives on Happen: 15% undervalued Read one of the top narratives on Happen Do you think there's more to the story for Happen? Head over to our Community to see what others are saying! For Happen, the current market multiple suggests the stock screens as undervalued relative to the earnings profile implied by the modelled fair P/E. At the same time, the broader valuation checks are mixed, so the gap is not a clear green light and leaves room for both optimism and caution. What matters most from here is whether Happen can deliver on the earnings path that would justify a higher multiple, rather than relying on the rebrand and listing alone to drive the story. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HAPN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Loan Originations: Increased 29% year-over-year to $3.1 billion. Pretax Income: Reached a record $76 million, up 40% from the prior year. Return on Tangible Common Equity: Nearly 16%. Net Interest Income: Increased 16% to $179 million. Noninterest Income: $84 million, up 10% sequentially, down 11% year-over-year. Origination Fees: $164 million, up 87% year-over-year. Total Revenue: Grew 6% to $263 million. Net Interest Margin: 6.1%, flat year-over-year. Provision for Credit Losses: Benefit of approximately $11 million. Net Charge-Off Ratio: Improved to 3.2% from 3.8% in the prior year. Total Expenses: $198 million, up 28% year-over-year. Pretax Profit Margin: Reached a new high of 28.8%. Diluted Earnings Per Share: $0.50, up 52% from the prior year. Tangible Book Value Per Share: Increased to $12.89. Total Assets: Grew to $12.5 billion, up 16% year-over-year. Total Deposits: $10.8 billion, an increase of 18% compared to the prior year. Share Repurchase Program: $50 million used to purchase approximately 3 million shares. Full Year Originations Guidance: Updated to $12.2 billion to $12.6 billion. Full Year Diluted EPS Target: Raised to $1.80 to $1.90. Q3 Loan Originations Guidance: $3.2 billion to $3.35 billion. Q3 Diluted EPS Guidance: $0.43 to $0.48. Warning! GuruFocus has detected 4 Warning Signs with HAPN. Is HAPN fairly valued? Test your thesis with our free DCF calculator. Release Date: July 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Happen Inc (NASDAQ:HAPN) reported a 29% year-over-year growth in loan originations, reaching $3.1 billion. The company achieved record pretax income of $76 million and increased return on tangible common equity to nearly 16%. Happen Inc (NASDAQ:HAPN) successfully launched the Happen Bank brand, enhancing its market identity and customer engagement. The company is leveraging AI to improve productivity, reduce costs, and enhance customer experience, including a 65% reduction in after-call work. Happen Inc (NASDAQ:HAPN) is expanding into the home improvement financing market, with positive market response and originations ramping as expected. The company faces challenges from an adverse rate environment, impacting fair value adjustments and sales prices. Noninterest income decreased by 11% year-over-year, affected by the switch to fair value accounting. Marketing expenses increased by 28% year-over-year, reflecting higher investment in acquisition channels. The transition to fair value accounting has led to a decrease in asset yields, impacting net interest margin. The company anticipates potential pricing pressure due to rising benchmark rates, which could affect future fair value marks. Q: Can you provide insight into the contribution of new product launches like home improvement and major purchase to your year-over-year growth in volume? A: Scott Sanborn, CEO: All consumer businesses are growing and contributing to year-on-year growth. Home improvement is still nascent, and we expect significant growth next year as infrastructure and partnerships are established. Q: How are day 1 fair value adjustments expected to trend in the current quarter? A: Andrew LaBenne, CFO: Benchmarks are up 15 to 20 basis points, impacting day 1 marks. We've accounted for this in our guidance, expecting some pricing pressure but stable underlying fundamentals. Q: What is driving the strong origination growth, and how does it align with your medium-term targets? A: Scott Sanborn, CEO: We're achieving high-end growth targets due to reactivated marketing channels and improved product experiences. This growth is not driven by changes in credit posture but by marketing efficiency and product iteration. Q: How is investor demand for your marketplace loans, and what is the expected mix of loans held for investment versus marketplace sales? A: Andrew LaBenne, CFO: Investor demand is strong, with more appetite than we can fill while meeting balance sheet goals. We hold higher quality paper on balance sheet, with personal loans sold through the marketplace. Q: What are your expectations for net charge-offs and credit performance in the long term? A: Andrew LaBenne, CFO: Credit performance is exceeding expectations, with net charge-offs improving. Long-term targets for personal loans are 4.5% to 5%, with potential mix effects from lower charge-off products like home improvement and auto. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Happen (HAPN) came out with quarterly earnings of $0.5 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.33 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +19.05%. A quarter ago, it was expected that this company that connects borrowers and lenders online would post earnings of $0.38 per share when it actually produced earnings of $0.44, delivering a surprise of +15.79%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Happen, which belongs to the Zacks Banks - Southwest industry, posted revenues of $262.86 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.14%. This compares to year-ago revenues of $248.43 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Happen shares have lost about 4.7% since the beginning of the year versus the S&P 500's gain of 8.3%. While Happen has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Happen was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.44 on $265.94 million in revenues for the coming quarter and $1.75 on $1.04 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southwest is currently in the top 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. FinWise Bancorp (FINW), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 29. This company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of -17.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. FinWise Bancorp's revenues are expected to be $46.02 million, up 83.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Happen Inc. (HAPN) : Free Stock Analysis Report FinWise Bancorp (FINW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in LendingClub Corporation? Here are five stocks we like better. Strong second-quarter performance: Loan originations rose 29% year over year to $3.1 billion, while record pre-tax income reached $76 million and diluted EPS increased 52% to $0.50. Revenue grew 6% to $263 million, supported by record net interest income. Credit and investor demand remained favorable: The held-for-investment net charge-off ratio improved to 3.2% from 3.8% a year earlier, while marketplace volume increased 20%. Management said investor demand exceeded the company’s current capacity to supply loans. Outlook and expansion raised: Full-year originations guidance was increased to $12.2 billion-$12.6 billion and diluted EPS guidance to $1.80-$1.90. The company is expanding through its Happen Bank brand, home-improvement lending, deposit products and AI-driven efficiency initiatives. LendingClub: A Digital Bank Growing Again Like a Fintech Happen Inc. reported second-quarter results marked by higher loan originations, record pre-tax income and continued credit outperformance, while also outlining plans to expand its product set and newly launched Happen Bank brand. Chief Executive Officer Scott Sanborn said loan originations increased 29% from a year earlier to $3.1 billion, while pre-tax income reached a record $76 million. Return on tangible common equity rose to nearly 16%. → MarketBeat Week in Review – 07/20- 07/24 Congress Beat the Market Again—Here Are the 3 Stocks They Bought “We’re growing and growing profitably despite the adverse rate environment,” Sanborn said, citing loan demand, credit performance, marketplace activity and growth in banking products. Chief Financial Officer Drew LaBenne said second-quarter originations exceeded the high end of the company’s guidance range. Net interest income increased 16% to a record $179 million, supported by a larger portfolio of interest-earning assets and lower funding costs. Total revenue rose 6% to $263 million. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit AI-Powered Lending Stock Surges on Rate Cut Hopes Non-interest income was $84 million, up 10% sequentially but down 11% from a year earlier. LaBenne said the year-over-year comparison was affected by Happen’s move to fair-value accounting in 2026. Under the new approach, origination fees are recognized immediately, while credit performance is reflected through fair-value adjustments rather than provision expense. Origination fees rose 87% year over year to $164 million. Total fair-value markdowns were $121 million, compared with $89 million in the first quarter, reflecting higher originations, growth in loans carried at fair value and higher benchmark rates during the period. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Happen reported a pre-tax profit margin of 28.8%, pre-tax income of $76 million, and diluted earnings per share of $0.50. Diluted EPS was up 52% from a year earlier and above the company’s prior guidance range, LaBenne said. Tangible book value per share increased to $12.89. Total expenses rose 28% year over year to $198 million, primarily due to higher marketing spending. Marketing expense increased by about $7 million sequentially, though marketing as a percentage of originations improved to 2% as the company emphasized more efficient acquisition channels. Management said credit quality remained a central differentiator. The company reported an approximately $11 million provision benefit, reflecting observed and projected performance in its portfolio under the current expected credit loss framework. The net charge-off ratio for the held-for-investment portfolio improved to 3.2% from 3.8% a year earlier. LaBenne said charge-off ratios are expected to rise toward longer-term target levels as the portfolio matures, though the ultimate portfolio mix will also matter as lower-loss products grow. Sanborn said Happen has continued to outperform its competitive set on credit by more than 40%, which has supported loan investor demand. Marketplace volume grew 20% year over year, with participation from existing and new investors. Loan sale prices remained stable when adjusted for changes in benchmark rates, management said. LaBenne said investor demand exceeded the company’s current capacity to supply loans while meeting its balance-sheet objectives. Happen sells personal loans through its marketplace, while home-improvement, auto and major-purchase finance loans are being retained on the balance sheet. During the quarter, the company officially introduced the Happen Bank brand. Sanborn said the rebranding is intended to reflect a broader role in consumers’ financial lives, with a focus on what the company calls the “motivated middle”: high-FICO, higher-income and digitally engaged consumers managing their finances actively. The company highlighted growth in its LevelUp checking and savings products. New LevelUp Checking accounts opened in the second quarter were four times the prior-year level, with borrowers accounting for more than half of new accounts. Borrowers represented 20% of new LevelUp Savings accounts opened year to date, according to Sanborn. Happen also began originating home-improvement loans during the quarter. Sanborn said the product is still in an early phase, with the company adding a second partner near the end of the quarter and expecting more partners over time. Management expects home-improvement loans, which target higher-FICO and higher-income homeowners, to generate returns similar to the personal-loan portfolio. Management also described expanded use of artificial intelligence across the business. Sanborn said roughly 90% of employees regularly use the company’s AI infrastructure. In the call center, Happen operated with 10% fewer employees year over year despite nearly 30% loan-volume growth. Its AI member-service agent, Penny, resolved 30% more calls than the prior system, while AI servicing tools contributed to a 65% reduction in after-call work and a 10% decline in average call time, he said. For the full year, Happen raised the lower end of its originations outlook and now expects $12.2 billion to $12.6 billion in loan originations. The company increased its diluted EPS target to $1.80 to $1.90. For the third quarter, Happen expects originations of $3.2 billion to $3.35 billion and diluted EPS of $0.43 to $0.48. LaBenne said the wider origination range accounts for the operational complexity associated with the brand transition. The company ended the quarter with $12.5 billion in assets and $10.8 billion in deposits, up 16% and 18%, respectively, from a year earlier. Happen had $2.1 billion of notional balances in caps and interest-rate swaps at quarter-end. It also said it had used $50 million of its $100 million share-repurchase authorization to buy about 3 million shares through the second quarter. LendingClub Corporation operates an online lending marketplace that connects borrowers seeking personal and small business credit with individual and institutional investors. The platform leverages technology to streamline the loan application and underwriting process, offering unsecured personal loans, auto refinancing, and small business loans. In addition to lending products, LendingClub provides high-yield savings accounts and certificates of deposit through its banking charter, following its acquisition of Radius Bank in 2021. Founded in 2006 by Renaud Laplanche, LendingClub pioneered peer-to-peer lending in the United States, helping to democratize access to credit and investment opportunities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "LendingClub Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Digital lending platform Happen Bank (NYSE:HAPN) met Wall Street’s revenue expectations in Q2 CY2026, with sales up 5.8% year on year to $262.9 million. Its GAAP profit of $0.50 per share was 19.4% above analysts’ consensus estimates. Is now the time to buy Happen Bank? Find out in our full research report. Revenue: $262.9 million vs analyst estimates of $262.4 million (5.8% year-on-year growth, in line) Pre-tax Profit: $75.66 million (28.8% margin) EPS (GAAP): $0.50 vs analyst estimates of $0.42 (19.4% beat) EPS (GAAP) guidance for the full year is $1.85 at the midpoint, beating analyst estimates by 6.5% Market Capitalization: $2.08 billion "Happen delivered a standout quarter, growing originations 29% year-over-year to $3.1 billion, while producing record pre-tax income of $75.7 million and a return on tangible common equity of 15.9%," said Scott Sanborn, CEO, Happen, Inc. Pioneering peer-to-peer lending in the US before evolving into a digital bank, Happen Bank (NYSE:HAPN) operates a marketplace that connects borrowers with lenders, offering personal loans, auto refinancing, and banking services. A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, Happen Bank’s 18.1% annualized revenue growth over the last five years was excellent. Its growth surpassed the average financials company and shows its offerings resonate with customers, a great starting point for our analysis. Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Happen Bank’s annualized revenue growth of 17.9% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong. Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. This quarter, Happen Bank grew its revenue by 5.8% year on year, and its $262.9 million of revenue was in line with Wall Street’s estimates. ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all. Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE. We were impressed by Happen Bank’s optimistic full-year EPS guidance, which blew past analysts’ expectations. We were also glad its EPS outperformed Wall Street’s estimates. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 3.4% to $19.46 immediately after reporting. Happen Bank may have had a good quarter, but does that mean you should invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

Record $75.7 Million Pre-Tax Income, 15.1% ROE, and 15.9% ROTCEGrew Originations 29% Year-over-Year; Increased Diluted EPS 52% Year-over-Year to $0.50Successfully Rebranded to Happen Bank (Nasdaq: HAPN) from LendingClub SAN FRANCISCO, July 27, 2026 /PRNewswire/ -- Happen, Inc. (Nasdaq: HAPN), parent company of Happen Bank, a digital bank built for the Motivated Middle, today announced financial results for the second quarter ended June 30, 2026. "Happen delivered a standout quarter, growing originations 29% year-over-year to $3.1 billion, while producing record pre-tax income of $75.7 million and a return on tangible common equity of 15.9%," said Scott Sanborn, CEO, Happen, Inc. "This is our first quarter operating under the Happen Bank brand, and our results demonstrate exactly what the brand represents: forward momentum. Our core business is firing on all cylinders. We're ramping our entry into the $500 billion home improvement market and we're innovating on behalf of our members, all while growing earnings and increasing returns for our shareholders." Second Quarter 2026 Results Highlights: Launched the new Happen Bank brand. Transferred stock listing from NYSE: LC to Nasdaq: HAPN. Delivering growth across consumer businesses. Began originating loans in the home improvement market. Continued multi-year credit outperformance vs. competitor set, with over 40% lower delinquencies. Record >90% automation rate and AI-powered agent support tools led to record originations efficiency. Executed $12 million of the $100 million Stock Repurchase and Acquisition Program, with cumulative utilization through June totaling $50 million. Balance Sheet: Total assets of $12.5 billion, up 16% year-over-year, primarily due to growth in loans and securities. Deposits of $10.8 billion, up 18% year-over-year, with 88% of deposits FDIC-insured. Robust available liquidity of $4.1 billion. Strong capital position with a consolidated Tier 1 leverage ratio of 11.9% and a CET1 capital ratio of 16.9%. Financial Performance: Achieved $3.1 billion in origination volume, up 29% compared to the prior year, driven by the successful execution of product and marketing initiatives. Total net revenue increased 6% to $262.9 million, compared to $248.4 million in the prior year, driven by higher loan origination volume and higher net interest income. Provision benefit of $10.9 million, compared to an expense of $39.7 million in the prior year, due to strong credit performance and the 2026 election of fair value option (FVO) accounting for all new originations. Net charge-offs on total loans and leases held for investment improved to $40.6 million, compared to $46.1 million in the same quarter in the prior year, supported by strong credit performance. Net income and Diluted EPS grew 52% to $58.1 million and $0.50, respectively, compared to $38.2 million and $0.33 in the prior year, respectively. Profit margin (pre-tax) of 28.8%, compared to 21.7% in the prior year. Return on Equity (ROE) of 15.1% with a Return on Tangible Common Equity (ROTCE) of 15.9%. For a calculation of Tangible Book Value Per Common Share and Return on Tangible Common Equity, refer to the "Reconciliation of GAAP to Non-GAAP Financial Measures" tables at the end of this release. 2026 Strategic Priorities & Investments Happen has made important progress on several strategic initiatives: Corporate Rebrand: Rebranded to Happen BankTM, a bank that clears the way for people going places, providing fast and easy access to award-winning products that help them save more of what they earn and earn more on what they save. The new brand reflects the company's transition from a pioneering online lender to a diversified digital-first bank that combines deposits, lending, and a capital-light marketplace bank model. The company completed the transition and began trading on Nasdaq under HAPN in June 2026. Home Improvement Financing: Having previously acquired foundational technology and key talent, Happen Bank is now underwriting and originating home improvement loans and the pipeline of additional new partners is significant. Home improvement is a $500 billion market where Happen Bank has distinct advantages over incumbents and a meaningful opportunity for growth. AI and Operating Efficiency: The company has multiple AI initiatives underway across marketing, product, engineering, operations, customer experience, and compliance, with the goal of improving member experience, driving efficiency, and supporting margin expansion over time. AI-powered automation and agent support tools have already led to record personal loans originations production efficiency and a record-high >90% automation rate for issued loans. New Marketing Channel Investment: The company accelerated investments in new acquisition channels, including paid social and display, ahead of normal seasonal timing in order to build attribution models and data capabilities for the full-year 2026 growth plan. Successful execution of marketing and product initiatives contributed to a 29% year-over-year increase in originations in the second quarter. Transition to Fair Value Option Accounting: Starting January 1, 2026, Happen Bank adopted FVO accounting for all new originations of loans held for investment. This change aligns the accounting treatment for loans held for investment and held for sale, creating a consistent framework across the business and better aligns the timing of revenue recognition with the timing of credit and operational expenses. The company expects this transition will, over time, result in higher return on invested capital. From a financial reporting perspective, under FVO, new loans are marked to fair value at origination, with subsequent changes in fair value, reflecting both credit performance and market conditions, flowing through non-interest income each quarter rather than through a separate provision for credit losses. The company will no longer record a CECL provision on new loan originations. Financial Outlook About Happen Bank Happen Bank™ – formerly LendingClub Bank – is a digital bank built for the Motivated Middle: high-FICO, high-income, digitally savvy consumers actively managing their financial lives. Our difference? We make it easy for them to access award-winning products that help them keep more of what they earn and earn more on what they save. Our products are aligned by design to reward our five million plus members when they take positive financial steps, like saving regularly or making loan payments on time. The Company's success is fueled by our advanced credit underwriting, a proprietary technology platform engineered for innovation, and a marketplace bank model that drives value for members, loan investors, and shareholders alike. The result is affordable credit, meaningful value, and a trusted banking relationship – delivered consistently and profitably at scale. Happen Bank exists to clear the way for our members to make it happen. Happen, Inc. (Nasdaq: HAPN) – formerly LendingClub Corporation – is the parent company and operator of Happen Bank, National Association, Member FDIC. For more information about Happen Bank, visit https://www.happen.com. Conference Call and Webcast Information Happen, Inc.'s second quarter 2026 webcast and teleconference is scheduled to begin at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Monday, July 27, 2026. A live webcast of the call will be available at https://ir.happen.com under News & Events menu. To listen to the call, register using this link: https://edge.media-server.com/mmc/p/n9sxvwro ten minutes prior to 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time). An audio archive of the call will be available at https://ir.happen.com. Happen, Inc. communicates with its investors and the public, including by disclosing material information pursuant to Regulation FD, through various channels, including its website (including the investor relations page at https://ir.happen.com), social media (including X, LinkedIn and Facebook), filings with the Securities and Exchange Commission, press releases, conference calls and webcasts. Accordingly, we encourage investors and the public to review our communications across all channels. Question Submissions Prior to quarterly earnings, investors have the ability to submit and upvote questions for Happen Bank's management team to consider. To participate, visit the link provided in each quarter's earnings date announcement. ContactsFor Investors:[email protected] Media Contact:[email protected] Non-GAAP Financial Measures To supplement our financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Tangible Book Value (TBV) Per Common Share and Return on Tangible Common Equity (ROTCE). Our non-GAAP financial measures do have limitations as analytical tools and you should not consider them in isolation or as a substitute for an analysis of our results under GAAP. We believe these non-GAAP financial measures provide management and investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies. We believe TBV Per Common Share is an important measure used to evaluate the company's use of equity. TBV Per Common Share is a non-GAAP financial measure representing tangible common equity for the period (common equity reduced by goodwill and customer relationship intangible assets), divided by the ending number of common shares issued and outstanding. We believe ROTCE is an important measure because it reflects the company's ability to generate income from its core assets. ROTCE is a non-GAAP financial measure calculated by dividing annualized net income by the average tangible common equity for the applicable period. For a reconciliation of such measures to the nearest GAAP measures, please refer to the tables on page 11 of this release. Safe Harbor Statement Some of the statements above, including statements regarding our entry into home improvement financing, our AI initiatives, the impact of the transition to fair value option accounting and anticipated future performance and financial results, are "forward-looking statements." The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "predict," "project," "should," "will," "would" and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include: our loan performance, our ability to continue to attract and retain new and existing borrowers and marketplace investors (including retaining long-term investors through the duration of their expected partnership and achieving the anticipated level of purchases); competition; overall economic conditions; our ability to integrate acquired technology; the interest rate and/or regulatory environment; default rates and those factors set forth in the section titled "Risk Factors" in our most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, as well as in our subsequent filings with the Securities and Exchange Commission. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. 16,395(2) %(21) %Gain on sales of loans (2)21,46116,26913,54032 %59 %Net fair value adjustments (2)(121,145)(88,925)(27,869)(36) %(335) %Other non-interest income6,6265,4724,54221 %46 %Total non-interest income83,83876,01794,18610 %(11) %Total net revenue262,855252,251248,4354 %6 %Provision for credit losses(10,917)39039,733N/MN/MNon-interest expense:Compensation and benefits68,22165,51461,9894 %10 %Marketing62,58055,41533,58013 %86 %Equipment and software15,84615,29314,4954 %9 %Depreciation and amortization18,15215,81915,46015 %17 %Professional services11,98911,76710,3002 %16 %Occupancy4,9826,3914,787(22) %4 %Other non-interest expense16,34514,33414,10714 %16 %Total non-interest expense198,115184,533154,7187 %28 %Income before income tax expense75,65767,32853,98412 %40 %Income tax expense(17,509)(15,725)(15,806)11 %11 %Net income$ 58,148$ 51,603$ 38,17813 %52 %Net income per share: Basic EPS$ 0.50$ 0.45$ 0.3311 %52 %Diluted EPS$ 0.50$ 0.44$ 0.3314 %52 %Weighted-average common shares – Basic115,376,906115,400,564114,409,231— %1 %Weighted-average common shares – Diluted117,274,710117,333,435115,692,969— %1 % View original content to download multimedia:https://www.prnewswire.com/news-releases/happen-inc-reports-second-quarter-2026-results-302835538.html