v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Reportable Segments

The Company defines 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 the Company’s Chief Executive Officer and Chief Financial Officer. This information is reviewed according to the legal organizational structure of the Company’s 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.

Happen Bank

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 income178,791 154,110 226 139 179,017 154,249 
Non-interest income:
Origination fees(1)
163,656 87,574 350 4 164,006 87,578 
Servicing fees(1)
5,638 2,512 5,147 7,652 10,785 10,164 
Gain on sales of loans(1)
21,461 13,540 — — 21,461 13,540 
Net fair value adjustments(1)
(121,594)(30,202)449 2,333 (121,145)(27,869)
Other non-interest income11,317 14,095 1,677 1,789 12,994 15,884 
Total non-interest income80,478 87,519 7,623 11,778 88,101 99,297 
Total net revenue259,269 241,629 7,849 11,917 267,118 253,546 
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 “Note 1. Summary of Significant Accounting Policies” for additional information.
(2)    Total net income from reportable segments reflects net income on a consolidated basis.
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 income354,763 303,763 488 443 355,251 304,206 
Non-interest income:
Origination fees(1)
293,644 157,507 450 15 294,094 157,522 
Servicing fees(1)
10,980 2,710 10,138 12,564 21,118 15,274 
Gain on sales of loans(1)
37,730 25,742 — — 37,730 25,742 
Net fair value adjustments(1)
(211,260)(60,325)1,190 3,205 (210,070)(57,120)
Other non-interest income22,447 27,036 3,805 3,780 26,252 30,816 
Total non-interest income153,541 152,670 15,583 19,564 169,124 172,234 
Total net revenue508,304 456,433 16,071 20,007 524,375 476,440 
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 “Note 1. Summary of Significant Accounting Policies” for additional information.
(2)    Total net income from reportable segments reflects net income on a consolidated basis.

Three Months Ended
June 30,		Six Months Ended
June 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 

Each expense item reported above represents the Company’s “significant segment expenses” as they are separately evaluated by the CODM, with the exception of “Other non-interest expense” which represents “other segment items” and encompasses various miscellaneous operating expenses.
Happen BankHappen, Inc. (Parent only)Total Reportable Segments
 June 30, 2026December 31, 2025June 30, 2026December 31, 2025June 30, 2026December 31, 2025
Assets
Total cash and cash equivalents$899,767 $901,246 $100,930 $127,087 $1,000,697 $1,028,333 
Restricted cash— — 16,557 16,659 16,557 16,659 
Securities available for sale at fair value4,036,374 3,696,626 10,387 10,083 4,046,761 3,706,709 
Loans held for sale at fair value1,773,052 1,762,396 — — 1,773,052 1,762,396 
Loans held for investment at fair value2,084,515 472,301 551 1,013 2,085,066 473,314 
Loans and leases held for investment at amortized cost, net2,993,252 3,997,069 — — 2,993,252 3,997,069 
Property, equipment and software, net273,467 250,168 2,987 3,920 276,454 254,088 
Investment in subsidiary— — 938,499 903,339 938,499 903,339 
Goodwill75,717 75,717 — — 75,717 75,717 
Other assets340,699 316,488 33,683 72,323 374,382 388,811 
Total assets12,476,843 11,472,011 1,103,594 1,134,424 13,580,437 12,606,435 
Liabilities and Equity
Total deposits10,854,299 9,948,426 — — 10,854,299 9,948,426 
Other liabilities193,744 217,930 26,430 36,313 220,174 254,243 
Total liabilities11,048,043 10,166,356 26,430 36,313 11,074,473 10,202,669 
Total equity1,428,800 1,305,655 1,077,164 1,098,111 2,505,964 2,403,766 
Total liabilities and equity$12,476,843 $11,472,011 $1,103,594 $1,134,424 $13,580,437 $12,606,435 

June 30, 2026December 31, 2025
Total assets – reportable segments$13,580,437 $12,606,435 
Intercompany eliminations(1,031,397)(1,038,619)
Total assets – consolidated$12,549,040 $11,567,816 

June 30, 2026December 31, 2025
Total liabilities and equity – reportable segments$13,580,437 $12,606,435 
Intercompany eliminations – liabilities(92,898)(135,281)
Intercompany eliminations – equity(938,499)(903,338)
Total liabilities and equity – consolidated$12,549,040 $11,567,816 

Concentration and Geographic Information
No individual borrower or marketplace investor accounted for 10% or more of total net revenue for any of the periods presented. All of the Company’s revenue is generated in the United States, and all of the long-lived assets are based in the United States.