Record $75.7 Million Pre-Tax Income, 15.1% ROE, and 15.9% ROTCE
Grew Originations 29% Year-over-Year; Increased Diluted EPS 52% Year-over-Year to $0.50
Successfully 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%.
Summary Financial Highlights:
Three Months Ended
-------------------------------------------------------
($ in millions,
except per share June 30, March 31, June 30,
amounts) 2026 2026 2025
----------------- ----------------- ----------------- -----------------
Total net revenue $ 262.9 $ 252.3 $ 248.4
Provision for
credit losses (10.9) 0.4 39.7
Non-interest
expense 198.1 184.5 154.7
----------------- ----------------- ----------------- -----------------
Income before
income tax
expense 75.7 67.3 54.0
----------------- ----------------- ----------------- -----------------
Income tax
expense (17.5) (15.7) (15.8)
----------------- ----------------- ----------------- -----------------
Net income $ 58.1 $ 51.6 $ 38.2
================= ================= ================= =================
Diluted EPS $ 0.50 $ 0.44 $ 0.33
================= ================= ================= =================
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 Bank$(TM)$ , 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
Third Quarter 2026
----------------- ------------------
Loan originations $3.20B to $3.35B
----------------- ------------------
Diluted EPS $0.43 to $0.48
----------------- ------------------
Full Year 2026
----------------- ------------------
Loan originations $12.2B to $12.6B
----------------- ------------------
Diluted EPS $1.80 to $1.90
----------------- ------------------
About Happen Bank
Happen Bank(TM) -- 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.
Contacts
For Investors:
IR@happen.com
Media Contact:
Press@happen.com
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.
HAPPEN, INC.
OPERATING HIGHLIGHTS
(In thousands, except percentages or as noted)
(Unaudited)
As of and for the three months ended % Change
-------------------------------------------------------------------------- -------------
June 30, March 31, December 31, September 30, June 30,
2026 2026 2025 2025 2025 Q/Q Y/Y
----------------- ------------ ----------- --------------- ---------------- ------------ ----- ------
Operating Highlights:
Net interest
income $ 179,017 $ 176,234 $ 163,027 $ 158,439 $ 154,249 2 % 16 %
Non-interest
income 83,838 76,017 103,444 107,792 94,186 10 % (11) %
----------------- ------------ ----------- --------------- ---------------- ------------
Total net revenue 262,855 252,251 266,471 266,231 248,435 4 % 6 %
Provision for
credit losses (10,917) 390 47,158 46,280 39,733 N/M N/M
Non-interest
expense 198,115 184,533 169,284 162,713 154,718 7 % 28 %
----------------- ------------ ----------- --------------- ---------------- ------------
Income before
income tax
expense 75,657 67,328 50,029 57,238 53,984 12 % 40 %
----------------- ------------ ----------- --------------- ---------------- ------------
Income tax
expense (17,509) (15,725) (8,475) (12,964) (15,806) 11 % 11 %
----------------- ------------ ----------- --------------- ---------------- ------------
Net income $ 58,148 $ 51,603 $ 41,554 $ 44,274 $ 38,178 13 % 52 %
================= ============ =========== =============== ================ ============
Diluted EPS $ 0.50 $ 0.44 $ 0.35 $ 0.37 $ 0.33 14 % 52 %
Total loan
originations (in
millions)(1) $ 3,145 $ 2,669 $ 2,637 $ 2,656 $ 2,433 18 % 29 %
----------------- ------------ ----------- --------------- ---------------- ------------
Current period
originations
sold or held
for sale $ 2,039 $ 1,717 $ 2,090 $ 2,027 $ 1,702 19 % 20 %
Current period
originations
held for
investment $ 1,107 $ 952 $ 547 $ 629 $ 731 16 % 51 %
Total servicing
portfolio (in
millions)(2) $ 14,596 $ 13,854 $ 13,423 $ 12,986 $ 12,524 5 % 17 %
----------------- ------------ ----------- --------------- ---------------- ------------
Loans serviced
for others $ 8,231 $ 7,750 $ 7,601 $ 7,612 $ 7,185 6 % 15 %
Performance Metrics:
Net interest
margin 6.14 % 6.28 % 5.98 % 6.18 % 6.14 %
Profit margin(3) 28.8 % 26.7 % 18.8 % 21.5 % 21.7 %
Return on average
equity (ROE)(4) 15.1 % 13.7 % 11.3 % 12.4 % 11.1 %
Return on
tangible common
equity
(ROTCE)(5)(6) 15.9 % 14.5 % 11.9 % 13.2 % 11.8 %
Return on average
total assets
(ROA)(7) 1.9 % 1.8 % 1.5 % 1.7 % 1.5 %
Marketing expense
as a % of loan
originations(1) 1.99 % 2.08 % 1.73 % 1.53 % 1.38 %
Average balance -
total loans and
leases held for
investment $ 5,108,678 $ 4,797,639 $ 4,767,573 $ 4,890,619 $ 4,899,272 6 % 4 %
Net charge-offs -
total loans and
leases held for
investment $ 40,599 $ 42,493 $ 47,852 $ 41,899 $ 46,078 (4) % (12) %
----------------- ------------ ----------- --------------- ---------------- ------------
Net charge-off
ratio - total
loans and leases
held for
investment(8) 3.2 % 3.5 % 4.0 % 3.4 % 3.8 %
----------------- ------------ ----------- --------------- ---------------- ------------
Capital Metrics:
Common equity
Tier 1 capital
ratio 16.9 % 17.0 % 17.4 % 18.0 % 17.5 %
Tier 1 leverage
ratio 11.9 % 11.9 % 12.0 % 12.3 % 12.2 %
Book value per
common share $ 13.58 $ 13.19 $ 13.01 $ 12.68 $ 12.25 3 % 11 %
Tangible book
value per common
share(6) $ 12.89 $ 12.49 $ 12.30 $ 11.95 $ 11.53 3 % 12 %
----------------- ------------ ----------- --------------- ---------------- ------------ ----- ------
(1) Beginning in the first quarter of 2026, includes all loans originated
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