HAPN

EX-99.1

2 q326exhibit991er.htm

EX-99.1

Document

EXHIBIT 99.1

Happen, Inc. Reports Third Quarter 2026 Results

Record $76.8 Million Pre-Tax Income, 15.0% ROE, and 15.8% ROTCE

Grew Originations 26% Year-over-Year, Increased Diluted EPS 35% Year-over-Year to $0.50

Raising Diluted EPS and Narrowing Originations Annual Guidance Ranges

SAN FRANCISCO – October 28, 2026 – Happen, Inc. (Nasdaq: HAPN), parent company of Happen Bank, a digital bank built for the Motivated Middle, today announced financial results for the third quarter ended September 30, 2026.

“We had another great quarter, effectively navigating the dynamic rate environment to deliver record pre-tax income of $76.8 million and a return on tangible common equity of 15.8%, while growing originations 26% year-over-year to $3.3 billion,” said Scott Sanborn, CEO, Happen, Inc. “Our new brand is taking root, our core business is performing well, we continue to outperform on credit, marketplace demand remains strong. We’re also effectively delivering against each of our growth initiatives, including starting to scale into the $500 billion home improvement market.”

Third Quarter 2026 Results

Highlights:

•Delivered growth across lending businesses, resulting in a 26% increase in quarterly originations.

•Added distribution partners in the home improvement business, with a strong pipeline of interest.

•Continued multi-year credit outperformance versus competitor set, with ~40% lower delinquencies.

•Crossed $10 billion in loans sold through proprietary structured certificates programs, reflecting robust marketplace demand.

•AI-powered agent support tools led to >90% automation rate on originations and record originations efficiency.

•Ongoing execution of the Stock Repurchase and Acquisition Program, with cumulative utilization of $59 million through September.

•Won numerous prestigious awards, including Money.com’s Best Bank, Finovate’s Best Customer Experience Award, and Business Insider's America’s Most Innovative Businesses.

Balance Sheet:

•Total assets of $13.3 billion, up 20% year-over-year, primarily due to growth in loans and securities.

•Deposits of $11.5 billion, up 22% year-over-year, with 89% of deposits FDIC-insured.

•Robust available liquidity of $4.2 billion.

•Increased hedging program notional balances to $2.5 billion from $1.5 billion in the prior year.

•Strong capital position with a consolidated Tier 1 leverage ratio of 12.0% and a CET1 capital ratio of 15.7%.

•Book value per common share was $13.81, compared to $12.68 in the prior year.

•Tangible book value per common share was $13.11, compared to $11.95 in the prior year.

Financial Performance:

•Achieved $3.3 billion in origination volume, up 26% compared to the prior year, driven by the successful execution of product and marketing initiatives.

•Total net revenue of $263.2 million, compared to $266.2 million in the prior year, driven by the 2026 election of fair value option (FVO) accounting for all new originations.

•Risk-adjusted revenue of $279.1 million, up 27% compared to the prior year.

•Provision benefit of $15.9 million, compared to an expense of $46.3 million in the prior year, due to strong credit performance and the 2026 election of FVO accounting for all new originations.

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•Net charge-off ratio on total loans and leases held for investment improved to 3.1%, compared to 3.4% in the prior year.

•Profit margin (pre-tax) of 29.2%, compared to 21.5% in the prior year.

•Diluted EPS increased 35% to $0.50, compared to $0.37 in the prior year.

•Return on Equity (ROE) of 15.0% with a Return on Tangible Common Equity (ROTCE) of 15.8%.

Summary Financial Highlights:

Three Months Ended

($ in millions, except per share amounts)September 30, 2026June 30, 2026September 30, 2025

Total net revenue$263.2 $262.9 $266.2

Provision for credit losses(15.9)(10.9)46.3

Non-interest expense202.3 198.1 162.7

Income before income tax expense76.8 75.7 57.2

Income tax expense(17.5)(17.5)(13.0)

Net income$59.3 $58.1 $44.3

Diluted EPS$0.50 $0.50 $0.37

For a calculation of Tangible Book Value Per Common Share, Return on Tangible Common Equity and Risk-Adjusted Revenue, 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, Inc. and 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