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Segment Reporting | 6 Months Ended
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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 Bank |  | Happen, Inc. (Parent only) |  | Total Reportable Segments |  |  |  |
Three Months Ended June 30, | 2026 |  | 2025 |  | 2026 |  | 2025 |  | 2026 |  | 2025 |  |  |  |  |  |  |  |
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 income | 178,791 |  |  | 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 income | 11,317 |  |  | 14,095 |  |  | 1,677 |  |  | 1,789 |  |  | 12,994 |  |  | 15,884 |  |  |  |  |  |  |  |  |
Total non-interest income | 80,478 |  |  | 87,519 |  |  | 7,623 |  |  | 11,778 |  |  | 88,101 |  |  | 99,297 |  |  |  |  |  |  |  |  |
Total net revenue | 259,269 |  |  | 241,629 |  |  | 7,849 |  |  | 11,917 |  |  | 267,118 |  |  | 253,546 |  |  |  |  |  |  |  |  |
Provision for credit losses | 10,917 |  |  | (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 Bank |  | Happen, Inc. (Parent only) |  | Total Reportable Segments |  |  |  |
Six Months Ended June 30, | 2026 |  | 2025 |  | 2026 |  | 2025 |  | 2026 |  | 2025 |  |  |  |  |  |  |  |
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 income | 354,763 |  |  | 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 income | 22,447 |  |  | 27,036 |  |  | 3,805 |  |  | 3,780 |  |  | 26,252 |  |  | 30,816 |  |  |  |  |  |  |  |  |
Total non-interest income | 153,541 |  |  | 152,670 |  |  | 15,583 |  |  | 19,564 |  |  | 169,124 |  |  | 172,234 |  |  |  |  |  |  |  |  |
Total net revenue | 508,304 |  |  | 456,433 |  |  | 16,071 |  |  | 20,007 |  |  | 524,375 |  |  | 476,440 |  |  |  |  |  |  |  |  |
Provision for credit losses | 10,527 |  |  | (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,
| 2026 |  | 2025 |  | 2026 |  | 2025
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 Bank |  | Happen, Inc. (Parent only) |  | Total Reportable Segments |  |  |  |
| June 30, 2026 |  | December 31, 2025 |  | June 30, 2026 |  | December 31, 2025 |  | June 30, 2026 |  | December 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 value | 4,036,374 |  |  | 3,696,626 |  |  | 10,387 |  |  | 10,083 |  |  | 4,046,761 |  |  | 3,706,709 |  |  |  |  |  |  |  |  |
Loans held for sale at fair value | 1,773,052 |  |  | 1,762,396 |  |  | — |  |  | — |  |  | 1,773,052 |  |  | 1,762,396 |  |  |  |  |  |  |  |  |
Loans held for investment at fair value | 2,084,515 |  |  | 472,301 |  |  | 551 |  |  | 1,013 |  |  | 2,085,066 |  |  | 473,314 |  |  |  |  |  |  |  |  |
Loans and leases held for investment at amortized cost, net | 2,993,252 |  |  | 3,997,069 |  |  | — |  |  | — |  |  | 2,993,252 |  |  | 3,997,069 |  |  |  |  |  |  |  |  |
Property, equipment and software, net | 273,467 |  |  | 250,168 |  |  | 2,987 |  |  | 3,920 |  |  | 276,454 |  |  | 254,088 |  |  |  |  |  |  |  |  |
Investment in subsidiary | — |  |  | — |  |  | 938,499 |  |  | 903,339 |  |  | 938,499 |  |  | 903,339 |  |  |  |  |  |  |  |  |
Goodwill | 75,717 |  |  | 75,717 |  |  | — |  |  | — |  |  | 75,717 |  |  | 75,717 |  |  |  |  |  |  |  |  |
Other assets | 340,699 |  |  | 316,488 |  |  | 33,683 |  |  | 72,323 |  |  | 374,382 |  |  | 388,811 |  |  |  |  |  |  |  |  |
Total assets | 12,476,843 |  |  | 11,472,011 |  |  | 1,103,594 |  |  | 1,134,424 |  |  | 13,580,437 |  |  | 12,606,435 |  |  |  |  |  |  |  |  |
Liabilities and Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total deposits | 10,854,299 |  |  | 9,948,426 |  |  | — |  |  | — |  |  | 10,854,299 |  |  | 9,948,426 |  |  |  |  |  |  |  |  |
Other liabilities | 193,744 |  |  | 217,930 |  |  | 26,430 |  |  | 36,313 |  |  | 220,174 |  |  | 254,243 |  |  |  |  |  |  |  |  |
Total liabilities | 11,048,043 |  |  | 10,166,356 |  |  | 26,430 |  |  | 36,313 |  |  | 11,074,473 |  |  | 10,202,669 |  |  |  |  |  |  |  |  |
Total equity | 1,428,800 |  |  | 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, 2026 |  | December 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, 2026 |  | December 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.

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