Safe Harbor Financial Successfully Exits $3.1 Million Loan in Default, Collecting 100% of Principal, Plus Over $200,000 in Accrued Interest
Rhea-AI Summary
Safe Harbor Financial, a leading financial services provider to the regulated cannabis industry, has successfully exited a $3.1 million loan that was previously in default. The company recovered the full principal amount along with $202,175 in accrued interest. This total of $3.3 million will be reallocated to enhance lending and credit line capacity. Dan Roda, EVP and COO, attributes this success to the company’s robust underwriting criteria, which has resulted in only one non-performing loan in its history. The loan, originated in 2021 and secured by Class A industrial real estate in Denver, underscores Safe Harbor's effective risk management and strengthens its loan portfolio.
Positive
- Safe Harbor Financial successfully exited a $3.1 million loan in default, recovering 100% of the principal.
- The company collected $202,175 in accrued interest from the loan.
- Total funds recovered amount to $3.3 million, which will be reallocated to enhance lending and credit line capacity.
- Safe Harbor's underwriting criteria have resulted in only one non-performing loan in its history, improving the quality of its loan portfolio.
Negative
- None.
News Market Reaction
On the day this news was published, SHFS gained 32.69%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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
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
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
Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking statements'' within the meaning of 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 operational performance, including relative to its competitors and loan performance; new product and service offerings Safe Harbor may introduce in the future; the impact of recent volatility in the capital markets, which may adversely 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," "intends," "outlook," "may," "might," "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 the control of Safe Harbor), and other assumptions, that may cause the actual results or performance to be materially different from those expressed or implied by these 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 those periodic reports and Safe Harbor’s other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov, before making an investment decision. Safe Harbor assumes 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
Safe Harbor Investor Relations
ir@SHFinancial.org
KCSA Strategic Communications
Phil Carlson
safeharbor@kcsa.com
FAQ
What was the outcome of Safe Harbor Financial's $3.1 million loan in default?
How does the recovery of the $3.1 million loan impact Safe Harbor Financial's lending capacity?
What does the successful exit of the $3.1 million loan demonstrate about Safe Harbor Financial's underwriting criteria?
What type of real estate secured the $3.1 million loan originated by Safe Harbor Financial?
What is the stock ticker symbol for Safe Harbor Financial?
