Key Highlights

  • Consensus EPS of 0.46 compares with second-quarter diluted EPS of 0.50, against 0.33 a year earlier.
  • Consensus revenue of USD 271.93 million compares with total net revenue of USD 262.9 million stated for the second quarter.
  • Net interest income was USD 179,017 thousand against USD 154,249 thousand, with the net interest margin at 6.14%.
  • The credit provision was a release of USD 10,917 thousand against a charge of USD 39,733 thousand.

Happen (NASDAQ:HAPN) reports third-quarter results on Wednesday, Oct. 28, after the market closes. Consensus stands at EPS of 0.46 on revenue of USD 271.93 million, and the company has a market capitalization of USD 1.59 billion.

Happen is the parent company of Happen Bank, National Association and other subsidiaries. Second-quarter net income was USD 58,148 thousand against USD 38,178 thousand, and the filing states total net revenue of USD 262.9 million, an increase of 6%.

Estimates Against the Last Reported Quarter

The EPS estimate of 0.46 is below the second-quarter diluted EPS of 0.50, which compared with 0.33 a year earlier. The estimates table does not state its EPS basis. The revenue estimate of USD 271.93 million is above the total net revenue of USD 262.9 million, and the estimates table does not state its revenue basis.

Interest and dividend income was USD 268,935 thousand against USD 237,097 thousand, and interest expense was USD 89,918 thousand against USD 82,848 thousand. Basic EPS was 0.50 against 0.33.

What the Filing Gives and What the Sources Leave Open

The sources supplied include no earnings call transcript or published guidance, so there are no management ranges to set against the estimates. The filing carries no third-quarter figures.

The filing attributes the 6% increase in total net revenue primarily to higher loan origination volume, higher loan sales and loan sale pricing, and higher net interest income due to an increase in total interest-earning assets.

Credit Provision, Noninterest Lines and Loans

Noninterest income was USD 83,838 thousand against USD 94,186 thousand, and noninterest expense was USD 198,115 thousand against USD 154,718 thousand. Income before income taxes was USD 75,657 thousand against USD 53,984 thousand.

Net interest income was USD 179,017 thousand with a margin of 6.14%, against 6.28% in the first quarter. Total loans and leases were USD 6,851,370 thousand against USD 6,232,779 thousand, including loans at fair value of USD 3,858,118 thousand.

Deposits and Equity Position

Total deposits were USD 10,765,267 thousand against USD 9,833,870 thousand at year end, and noninterest-bearing deposits were USD 429,031 thousand. Total liabilities were USD 10,981,575 thousand.

Total equity was USD 1,567,465 thousand against USD 1,500,428 thousand, and the accumulated deficit was USD 92,048 thousand against USD 201,799 thousand. The provision for loan, lease and other losses was a release of USD 10,917 thousand against a charge of USD 39,733 thousand. Net income was USD 58,148 thousand against USD 38,178 thousand, and income before income taxes was USD 75,657 thousand against USD 53,984 thousand. Interest expense was USD 89,918 thousand. The estimates table lists a market capitalization of USD 1.59 billion.

Markers for the Release

Reported EPS against 0.46 and revenue against USD 271.93 million are the headline comparisons. Other markers are net interest margin, credit provisions and noninterest expense.