Business
Safe Harbor Financial Modifies Commercial Alliance Agreement with Partner Colorado Credit Union
Loan Indemnification between Companies Eliminated; Change Expected to Strengthen Safe Harbor’s Balance Sheet GOLDEN, Colo., Jan. 07, 2025 (GLOBE NEWSWIRE) --
About this update from Shf Holdings, Inc.
[{"type":"text","content":"Loan Indemnification between Companies Eliminated; Change Expected to Strengthen Safe Harbor’s Balance Sheet\nGOLDEN, Colo., Jan. 07, 2025 (GLOBE NEWSWIRE) -- SHF Holdings, Inc., d/b/a/ Safe Harbor Financial (“Safe Harbor” or the “Company”) (NASDAQ: SHFS), a leader in facilitating financial services and credit facilities to the regulated cannabis industry, announced today a four year extension and modification of its commercial alliance agreement with Partner Colorado Credit Union (“PCCU”). As a result, the $1.2 million of indemnity liability reported on the balance sheet as of September 30, 2024, has been eliminated, and went into effect on January 1, 2025. In addition, as Safe Harbor continues to facilitate loans for its clients with PCCU, the Company will no longer be required to record a loan loss reserve on its income statement. “The modified agreement with PCCU represents a positive and pivotal development for Safe Harbor,” said Sundie Seefried, Chief Executive Officer of Safe Harbor Financial. “Not only does the updated agreement simplify our business processes and better align expenses with income, it addresses exposure to contingent liability on our loan portfolio and reaffirms the strength of our longstanding partnership with PCCU. By adjusting our fee structures and eliminating loan indemnification, Safe Harbor is well-positioned to drive improved financial performance and deliver increased value to shareholders.” About Safe HarborSafe 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 guidance on cannabis-related businesses. Over the past eight years, Safe Harbor has facilitated more than $23 billion in deposit transactions for businesses with operations spanning over 41 states and US territories with regulated cannabis markets. For more information, visit www.shfinancial.org. Cautionary Statement Regarding Forward-Looking StatementsC...