Safe Harbor Financial Successfully Exits $3.1 Million Loan in Default, Collecting 100% of Principal, Plus Over $200,000 in Accrued Interest
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$3.3 Million Reallocated to Lending and Credit Line Capacity
GOLDEN, Colo., July 09, 2024 (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 that it successfully exited a $3.1 million loan that was previously in default. In addition to the full repayment of the principal, Safe Harbor received $202,175 in accrued interest, all of which will be reallocated into its lending and credit line capacity.
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 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 $3.1 million first-lien loan was originated in 2021 and secured by Class A industrial real estate in the Denver metropolitan area. The strength of the underlying fundamentals of the property helped facilitate a successful exit of the loan, further demonstrating the soundness 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 guidance on cannabis-related businesses. Over the past nine years, Safe Harbor has facilitated more than $21 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.