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Happen, Inc. Reports Record-Setting Third Quarter for 2026

Happen, Inc. (Nasdaq: HAPN), the parent company of Happen Bank, recognized for its focus on the Motivated Middle, unveiled its financial results for the third quarter of 2026, ending September 30. The company reported pre-tax income of $76.8 million, marking a notable return on equity (ROE) of 15.0% and return on tangible common equity (ROTCE) of 15.8%. The positive results reflect Happen's effective navigation of the ever-changing rate environment and its strategic initiatives in a new brand identity.

Key Financial Highlights

The financial report showcased a considerable 26% year-over-year surge in loan originations, reaching an impressive $3.3 billion, demonstrating Happen's effective execution of its growth strategies. The diluted earnings per share (EPS) rose by 35%, reaching $0.50, further signaling the company's solid performance in the market.

Scott Sanborn, CEO of Happen, Inc., emphasized, "We had another great quarter, effectively navigating the dynamic rate environment to deliver record pre-tax income while growing originations significantly year-over-year. Our new brand is taking root, and we are outperforming on credit and marketplace demand."

Among the highlights, Happen Bank successfully added distribution partners in the home improvement sector - emerging as a key focus in tapping into the substantial $500 billion market. The company also credited the rollout of AI-driven support that has resulted in over 90% automation in originations and unprecedented efficiency in processing loans.

Financial Performance Insights

• - Total Net Revenue: Happen reported $263.2 million, slightly down from $266.2 million in the same quarter last year, attributed to the shift to Fair Value Option (FVO) accounting for new originations.
• - Loan Originations: The robust origination volume and the continued diversification in lending contributed to strong financial metrics including a profit margin of 29.2% compared to 21.5% a year prior.
• - Credit Performance: Non-performing loans remained under control, with net charge-off ratios improving to 3.1%, showcasing Happen's solid credit performance amid growing loan volumes.

Corporate Developments

The company is steadfast in its corporate rebranding, transitioning from LendingClub to emphasize its digital-first approach. This rebranding not only enhanced Happen's market recognition but also reinforced its strategy of merging deposits, lending, and marketplace banking.

Moreover, Happen's ongoing initiatives to adopt multiple AI applications aim to boost operational efficiency while providing a more seamless experience for customers, driving continued growth in both customer acquisition and profitability.

With a robust balance sheet of $13.3 billion in assets and $11.5 billion in deposits, Happen Bank is adequately positioned to manage its liquidity and support its strategic initiatives. As part of its commitment to enhancing shareholder value, the company continues to execute its stock repurchase program, accumulating $59 million in utilization.

Looking Ahead

Looking forward, Happen has narrowed its full-year guidance for 2026, forecasting loan originations between $12.3 billion and $12.4 billion and raising its diluted EPS guidance to a projected range of $1.87 to $1.92. The expectations hinge on stable interest rates and an optimistic consumer environment.

Sanborn remains bullish on the opportunities lying ahead, highlighting their focus on ensuring margin strength amidst rising rates while achieving significant annual growth.

As Happen, Inc. forges its path forward, the emphasis will remain on leveraging innovative fintech solutions and strategic partnerships aimed at achieving significant advancements in the marketplace for motivated consumers.

To delve deeper into Happen's financial performance, you can access the full report on their investor relations page or tune in to the upcoming conference call set for this week, where key financial stakeholders will discuss the results in greater detail.

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For more details regarding Happen Bank and its initiatives, visit Happen's website.