Safe Harbor cuts loan liability in credit union deal

Colorado-based SHF Holdings Inc. (Nasdaq: SHFS), which does business as Safe Harbor Financial, announced Tuesday it has modified a key credit union partnership agreement, eliminating $1.2 million in indemnity liability from its balance sheet.

The restructured agreement with Partner Colorado Credit Union extends their partnership for four years and removes Safe Harbor’s requirement to maintain loan loss reserves for cannabis industry loans, the company said.

“The modified agreement with PCCU represents a positive and pivotal development for Safe Harbor,” CEO Sundie Seefried said in a statement. “It addresses exposure to contingent liability on our loan portfolio and reaffirms the strength of our longstanding partnership.”

The cannabis banking firm reportedly has processed more than $23 billion in deposit transactions for cannabis operators across 41 states and U.S. territories with regulated markets.

The removal of loan indemnification requirements and adjusted fee structures are expected to “drive improved financial performance and deliver increased value to shareholders,” according to Seefried.

The announcement follows the company’s return to profitability in late 2024. Safe Harbor reported net income of $353,817 in the third quarter, versus a $748,067 loss a year earlier, with loan interest income jumping 48% to $1.3 million.