Happen, Inc., formerly known as LendingClub Corporation, reported a notable financial performance for the second quarter of 2026, with total net revenue reaching $262.9 million, a 6% increase from the same period last year. The company's net income also saw significant growth, rising to $58.1 million, or $0.50 per diluted share, compared to $38.2 million, or $0.33 per diluted share, in the prior year. This increase in profitability was primarily driven by higher loan origination volumes, improved loan sale pricing, and an increase in net interest income due to a rise in total interest-earning assets.
In terms of operational metrics, Happen, Inc. reported total loan originations of $3.1 billion for the second quarter, marking an 18% increase from the previous quarter and a 29% increase year-over-year. The company also noted that its total servicing portfolio expanded to $14.6 billion, reflecting a strong demand for its lending products. The total assets of the company increased to $12.5 billion as of June 30, 2026, up from $11.6 billion at the end of 2025, driven by a rise in loans held for investment and securities available for sale.
Strategically, Happen, Inc. has made significant changes, including the election of the fair value option for loans held for investment, which allows for more accurate reflection of the economic performance of these loans. This change has resulted in the immediate recognition of origination fees and marketing costs, enhancing the company's revenue recognition process. Additionally, the company has expanded its digital channels to improve customer engagement and streamline loan origination processes.
The company’s balance sheet reflects a robust growth in deposits, which totaled $10.8 billion as of June 30, 2026, compared to $9.8 billion at the end of 2025. This increase in deposits is indicative of the company's successful customer acquisition strategies and its ability to attract and retain depositors. The allowance for loan and lease losses decreased to $192.9 million from $275.7 million, reflecting improved credit quality and lower net charge-offs, which were reported at $40.6 million for the quarter.
Looking ahead, Happen, Inc. remains optimistic about its growth trajectory, with expectations of continued loan origination growth and improved profitability. The company is focused on leveraging its digital marketplace banking model to enhance customer access to credit and improve returns on savings. Management anticipates that the ongoing strategic initiatives, including the fair value option for loans and enhanced digital capabilities, will position the company favorably in the competitive landscape of financial services.
About Happen, Inc.
LendingClub is a digital marketplace and bank that offers personal loans, auto refinance, and deposit products. It leverages data and technology to expand access to credit, lower borrowing costs, and provide savings solutions. The company sells loans to investors, retains some for investment, and benefits from diversified revenue streams. Its core value lies in innovative, data-driven lending and deposit services targeting consumers and small businesses.
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