SHF Holdings Inc., also known as Safe Harbor Financial (NASDAQ: SHFS), announced its successful exit from a defaulted $3.1 million loan. The Golden-based company, which offers financial services to the regulated cannabis industry, not only recovered the principal in full but also an accrued interest of over $200,000. The recovered funds will be reallocated into the company’s lending and credit line capacity, strengthening its financial position.
Executive Vice President and Chief Operating Officer Dan Roda spoke about the company’s strength in managing risks, stating, “Safe Harbor has established a strong lending program that meets the financial requirements of our clients while generating appropriate risk adjusted loan interest income for the business. The strength of our program is our underwriting criteria, which has resulted in only one non-performing loan over its history. That we recouped the full value of this loan, plus accrued interest and expenses, not only validates the balanced approach to our lending program, but it also significantly improves the overall quality of our loan portfolio and increases our lending capacity to service our clients’ credit needs.”
The recalled loan was a first-lien one, originating in 2021, with Class A industrial real estate in Denver securing it. This property’s solid underlying fundamentals facilitated the successful exit of the loan, validating Safe Harbor’s underwriting approach once again. As of March 31, 2024, this loan was the only one in default in the company’s portfolio.
Safe Harbor offers compliance, monitoring and validation services to financial institutions, serving traditional banking needs of cannabis, hemp, CBD and ancillary operators. Over the past nine years, Safe Harbor has facilitated more than $21 billion in deposit transactions in over 41 states and U.S. territories with regulated cannabis markets.
Source: Press Release