News
Safe Harbor Financial Successfully Exits $3.1 Million Loan in Default, Collecting 100% of Principal, Plus Over $200,000 in Accrued Interest
Safe Harbor Financial Services, Inc.
$3.3 million reallocated to lending capacity and lines of credit
GOLDEN, Colo., July 9, 2024 (GLOBE NEWSWIRE) — SHF Holdings, Inc., d/b/a/ Safe Harbor Financial (“Safe Harbor” or the “Company”) (NASDAQ: SHFS)Safe Harbor, Inc., a leader in facilitating financial services and lines of credit for the regulated cannabis industry, today announced that it has successfully exited a $3.1 million loan that was previously in default. In addition to the full principal payment, Safe Harbor received $202,175 in accrued interest, all of which will be reallocated toward its loan capacity and line of credit.
Dan Roda, Executive Vice President and Chief Operating Officer of Safe Harbor Financial, stated, “Safe Harbor has established a strong lending program that meets the financial requirements of our customers while generating risk-adjusted loan interest income that is appropriate for the business. The strength of our program is our underwriting criteria, which have resulted in only one non-performing loan in its history. The fact that we recovered the full amount of this loan, plus accrued interest and expenses, not only validates the balanced approach to our lending program, but also significantly improves the overall quality of our loan portfolio and increases our lending capacity to meet our customers’ credit needs.”
The $3.1 million senior loan was originated in 2021 and secured by Class A industrial real estate in the Denver metro area. The strength of the property’s underlying fundamentals helped facilitate a successful exit on the loan, further demonstrating the strength of Safe Harbor’s underwriting approach. This was the only loan in the portfolio in default as of March 31, 2024.
About Safe Harbor
Safe Harbor is among the first service providers to offer compliance, monitoring, and validation services to financial institutions, providing traditional banking services to cannabis, hemp, CBD, and ancillary operators, making communities safer, driving growth in local economies, and fostering long-term partnerships. Safe Harbor, through its financial institution clients, implements high standards of accountability, transparency, monitoring, reporting, and risk mitigation measures, while meeting Bank Secrecy Act obligations in line with FinCEN’s guidance on cannabis-related businesses. Over the past nine years, Safe Harbor has facilitated more than $21 billion in deposit transactions for companies with operations spanning more than 41 U.S. states and territories with regulated cannabis markets. For more information, visit www.shfinancial.org.
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Forward-looking statements
Certain statements contained in this press release constitute “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements may include, but are not limited to, statements with respect to trends in the cannabis industry, including proposed changes in U.S. and state laws, rules, regulations and guidance relating to Safe Harbor’s services; Safe Harbor’s growth prospects and Safe Harbor’s market size; Safe Harbor’s projected financial and operating performance, including relative to its competitors and lending performance; new product and service offerings that Safe Harbor may introduce in the future; the impact of recent volatility in the capital markets, which could negatively affect the price of the Company’s securities; Safe Harbor’s ability to make the same or similar loans in the future; the outcome of any legal proceedings that may be instituted against Safe Harbor; other statements regarding Safe Harbor’s expectations, hopes, beliefs, intentions or strategies regarding the future; and the other risk factors discussed in Safe Harbor’s filings from time to time with the SEC. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “outlook,” “may,” “could,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. These forward-looking statements involve a number of risks and uncertainties (some of which are beyond Safe Harbor’s control) and other assumptions that may cause actual results or performance to differ materially from those expressed or implied by such forward-looking statements. These and other risks are discussed in detail in the periodic reports that Safe Harbor files with the SEC, and investors are urged to review these periodic reports and Safe Harbor’s other filings with the SEC, which can be accessed on the SEC’s website at www.sec.gov, before making an investment decision. Safe Harbor undertakes no obligation to update its forward-looking statements except as required by law.
Contact information
Safe Harbor Media
Nick Callaio, Marketing Manager
720.951.0619
Nick@SHFinancial.org
Investor Relations Safe Harbor
ir@SHFinancial.org
KCSA Strategic Communications
Phil Carlson
safeharbor@kcsa.com
