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Happen, Inc.

For the period ended Jun 30, 2026. Filed Jul 30, 2026.

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About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2026 · Filed Jul 30, 2026

HAPN$15.96-1.4%Stored close · as of Nov 6, 2026
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Segment Information

Reportable Segments

We define operating segments to be components of the Company for which discrete financial information is evaluated regularly by the Chief Operating Decision Maker (CODM) to allocate resources and evaluate financial performance. The measure of segment profit used by the CODM in this evaluation is net income. The CODM consists of our Chief Executive Officer and Chief Financial Officer. This information is reviewed according to the legal organizational structure of our operations with products and services presented separately for the parent bank holding company and its wholly-owned subsidiary, Happen Bank, which are both considered reportable segments. Income taxes are recorded on a separate entity basis whereby each operating segment determines income tax expense or benefit as if it filed a separate tax return.

The Happen Bank operating segment represents the national bank legal entity and reflects operating activities after its formation. This segment provides a full complement of financial products and solutions, including loans and deposits. It originates loans to individuals and businesses, retains loans for investment, sells loans to marketplace investors and manages relationships with deposit holders.

Happen, Inc. (Parent Only)

The Happen, Inc. (Parent only) operating segment represents the holding company legal entity and predominately reflects the operations of the Company prior to the formation of Happen Bank. This activity includes, but is not limited to, servicing fee revenue on purchased servicing assets, and interest income and interest expense related to transactions entered into prior to Happen Bank’s formation.

Financial information for the segments is presented in the following tables:

Happen BankHappen, Inc. (Parent only)Total Reportable Segments
Three Months Ended June 30,202620252026202520262025
Interest income:
Interest income$268,709$236,958$226$139$268,935$237,097
Interest expense(89,918)(82,848)——(89,918)(82,848)
Net interest income178,791154,110226139179,017154,249
Non-interest income:
Origination fees(1)163,65687,5743504164,00687,578
Servicing fees(1)5,6382,5125,1477,65210,78510,164
Gain on sales of loans(1)21,46113,540——21,46113,540
Net fair value adjustments(1)(121,594)(30,202)4492,333(121,145)(27,869)
Other non-interest income11,31714,0951,6771,78912,99415,884
Total non-interest income80,47887,5197,62311,77888,10199,297
Total net revenue259,269241,6297,84911,917267,118253,546
Provision for credit losses10,917(39,733)——10,917(39,733)
Non-interest expense:
Compensation and benefits(66,728)(60,207)(1,493)(1,782)(68,221)(61,989)
Marketing(62,580)(33,580)——(62,580)(33,580)
Equipment and software(15,814)(14,474)(32)(21)(15,846)(14,495)
Depreciation and amortization(17,742)(14,251)(410)(1,209)(18,152)(15,460)
Professional services(11,759)(10,019)(230)(281)(11,989)(10,300)
Occupancy(3,639)(2,845)(1,343)(1,942)(4,982)(4,787)
Other non-interest expense(16,928)(15,557)(3,680)(3,661)(20,608)(19,218)
Total non-interest expense(195,190)(150,933)(7,188)(8,896)(202,378)(159,829)
Income tax expense(17,174)(13,534)(335)(2,272)(17,509)(15,806)
Net income(2)$57,822$37,429$326$749$58,148$38,178
Capital expenditures$27,967$90,694$—$—$27,967$90,694

(1) Prior period amounts have been reclassified to conform to the current period presentation. See “Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies” for additional information.

Happen BankHappen, Inc. (Parent only)Total Reportable Segments
Six Months Ended June 30,202620252026202520262025
Interest income:
Interest income$529,654$468,713$488$443$530,142$469,156
Interest expense(174,891)(164,950)——(174,891)(164,950)
Net interest income354,763303,763488443355,251304,206
Non-interest income:
Origination fees(1)293,644157,50745015294,094157,522
Servicing fees(1)10,9802,71010,13812,56421,11815,274
Gain on sales of loans(1)37,73025,742——37,73025,742
Net fair value adjustments(1)(211,260)(60,325)1,1903,205(210,070)(57,120)
Other non-interest income22,44727,0363,8053,78026,25230,816
Total non-interest income153,541152,67015,58319,564169,124172,234
Total net revenue508,304456,43316,07120,007524,375476,440
Provision for credit losses10,527(97,882)——10,527(97,882)
Non-interest expense:
Compensation and benefits(130,823)(117,070)(2,912)(3,308)(133,735)(120,378)
Marketing(117,995)(62,819)——(117,995)(62,819)
Equipment and software(31,107)(29,093)(32)(46)(31,139)(29,139)
Depreciation and amortization(32,734)(26,794)(1,237)(2,575)(33,971)(29,369)
Professional services(23,446)(19,656)(310)(408)(23,756)(20,064)
Occupancy(7,610)(5,246)(3,763)(3,886)(11,373)(9,132)
Other non-interest expense(34,224)(30,004)(5,724)(7,974)(39,948)(37,978)
Total non-interest expense(377,939)(290,682)(13,978)(18,197)(391,917)(308,879)
Income tax expense(32,069)(18,406)(1,165)(1,424)(33,234)(19,830)
Net income(2)$108,823$49,463$928$386$109,751$49,849
Capital expenditures$53,751$103,760$—$—$53,751$103,760

(1) Prior period amounts have been reclassified to conform to the current period presentation. See “Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies” for additional information.

Three Months Ended June 30,Six Months EndedJune 30,
2026202520262025
Total net revenue – reportable segments$267,118$253,546$524,375$476,440
Intercompany eliminations(4,263)(5,111)(9,269)(10,294)
Total net revenue – consolidated$262,855$248,435$515,106$466,146

An analysis of the Company’s results of operations and material drivers and trends of the financial results of the segments presented above are consistent with those provided on a consolidated basis in "Results of Operations."

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.