GOLDEN, Colo. – Safe Harbor Financial (NASDAQ: SHFS), a leading facilitator of financial services to the regulated cannabis industry, has announced the extension and modification of its commercial alliance agreement with Partner Colorado Credit Union (PCCU). This four-year extension, effective January 1, 2025, marks a significant milestone in the partnership between Safe Harbor and Partners Colorado Credit Union, promising enhanced operational efficiencies and financial stability.
The updated agreement brings immediate financial benefits, most notably the elimination of a $1.2 million indemnity liability previously reported on Safe Harbor’s balance sheet as of September 30, 2024. This removal significantly strengthens Safe Harbor’s financial position. Furthermore, the modified terms mean that Safe Harbor will no longer be required to record a loan loss reserve on its income statement as it continues to facilitate loans for its clients through Partners Colorado Credit Union. This change simplifies financial reporting and is expected to positively impact the company’s bottom line.
Sundie Seefried, Chief Executive Officer of Safe Harbor Financial, highlighted the strategic importance of this renewed partnership. “The modified agreement with PCCU represents a positive and pivotal development for Safe Harbor,” she stated. “This updated agreement not only streamlines our business processes and aligns our expenses more effectively with income, but it also mitigates our exposure to contingent liability within our loan portfolio. Crucially, it reaffirms the robust and enduring nature of our collaboration with Partners Colorado Credit Union.” Seefried further emphasized the forward-looking benefits, noting, “By refining our fee structures and eliminating loan indemnification, Safe Harbor is ideally positioned to achieve improved financial performance and generate increased value for our shareholders.”
This extended alliance underscores the commitment of Partners Colorado Credit Union to providing crucial financial services within the evolving landscape of the regulated cannabis industry. By working with Safe Harbor Financial, Partners Colorado Credit Union plays a vital role in supporting businesses within this sector, ensuring they have access to essential banking services and credit facilities.
Safe Harbor’s Role in Facilitating Financial Services
Safe Harbor Financial has established itself as a pioneer in bridging the gap between financial institutions and the cannabis, hemp, and CBD industries. The company provides compliance, monitoring, and validation services that enable traditional financial institutions to confidently serve businesses in these sectors. This crucial role helps to make communities safer, stimulate local economic growth, and cultivate sustainable, long-term partnerships within the financial ecosystem.
Through its partnerships, including the significant alliance with Partners Colorado Credit Union, Safe Harbor ensures that high standards of accountability, transparency, and risk mitigation are implemented. These measures align with Bank Secrecy Act obligations and FinCEN guidance for cannabis-related businesses, fostering a compliant and secure financial environment. To date, Safe Harbor has facilitated over $23 billion in deposit transactions for businesses operating across more than 41 states and US territories with regulated cannabis markets, demonstrating the scale and impact of its operations.
Looking Ahead
The strengthened agreement between Safe Harbor Financial and Partners Colorado Credit Union signals a continued commitment to supporting the regulated cannabis industry with robust and reliable financial solutions. For stakeholders in both the financial and cannabis sectors, this alliance represents a positive step towards greater stability and growth within a rapidly evolving market. The elimination of indemnity liability and the adjustment of fee structures are expected to contribute to Safe Harbor’s improved financial trajectory and reinforce the value of its partnership with Partners Colorado Credit Union.
About Safe Harbor Financial
Safe Harbor Financial is at the forefront of providing compliance and financial services to financial institutions catering to the cannabis, hemp, CBD, and ancillary industries. By offering monitoring, validation, and traditional banking service solutions, Safe Harbor fosters safer communities, economic development, and enduring partnerships. The company’s commitment to high standards in accountability, transparency, and risk management, coupled with its adherence to Bank Secrecy Act obligations, positions it as a trusted and vital link between financial institutions and the cannabis industry. For further details, please visit www.shfinancial.org.
Contact Information:
Safe Harbor Investor Relations
[email protected]
KCSA Strategic Communications
Ellen Mellody
[email protected]
