Safe Harbor Financial's Impressive Growth Report for 2024

Safe Harbor Financial Reports Strong Q4 and Year-End Results

SHF Holdings, Inc., operating as Safe Harbor Financial (NASDAQ: SHFS), has demonstrated remarkable growth during the fourth quarter and the full year as of 2024. This leader in providing financial services tailored to the regulated cannabis sector reported significant financial achievements, highlighting a positive trajectory that reaffirms its market position.

Noteworthy Financial Highlights for Q4 2024

In the fourth quarter of 2024, Safe Harbor experienced a revenue increase of approximately 5% compared to the previous quarter. The company reported total revenues of around $3.7 million, driven primarily by an impressive 35% increase in loan interest income, which climbed to approximately $1.8 million. This marks an extraordinary year-over-year increase of 82% in loan interest income from approximately $1.0 million in Q4 2023.

Operational Efficiencies and Adjusted EBITDA

Operational efficiency was evident, as Safe Harbor achieved an Adjusted EBITDA of $63,581 in Q4 2024, despite a decrease from $1.3 million in Q4 2023. The company reduced its total operating expenses significantly, including a 36% decrease in general and administrative costs. Compensation and employee benefits expenses fell by 32% to about $1.4 million, demonstrating the company’s commitment to operational efficiency and financial discipline.

Loan Loss Reserve and Strategic Growth Initiatives

A loan loss reserve of approximately $1.4 million was established due to modifications made to a Commercial Alliance Agreement (CAA) with Partner Colorado Credit Union (PCCU). These strategic changes enable the new CEO, Terry Mendez, to implement a robust growth strategy designed to enhance service offerings.

Full-Year 2024 Financial Performance

Over the full year, Safe Harbor reported total revenue of about $15.2 million, down from approximately $17.6 million in 2023. However, the company achieved a remarkable 123% increase in loan interest income, reaching around $6.6 million. The adjusted working capital improved to approximately $2 million by December 31, 2024.

Recent Strategic Developments

Safe Harbor continues its commitment to innovation. In late December, the agreement with PCCU was amended, extending their partnership through 2028, which enhances the company’s financial stability and ability to service its clients effectively. Notably, on January 16, 2025, Safe Harbor announced that it exceeded $25 billion in processed cannabis-related funds, marking a significant milestone in its operational journey.

Future Outlook for Safe Harbor Financial

Under Mendez's leadership, Safe Harbor plans to expand its range of services that include tailored financial solutions for cannabis operators. The strategic restructuring efforts aim to solidify its reputation as a key financial partner within the cannabis sector, enabling consumers and businesses alike to thrive.

Frequently Asked Questions

What is the latest revenue for Safe Harbor Financial?

As of Q4 2024, Safe Harbor Financial reported revenues of approximately $3.7 million.

How much did Safe Harbor increase its loan interest income?

Safe Harbor reported an 82% year-over-year increase in loan interest income, reaching approximately $1.8 million in Q4 2024.

What strategic changes has Safe Harbor made?

The company has amended its agreement with Partner Colorado Credit Union and plans to introduce a broader range of financial solutions.

What is the current status of Safe Harbor’s adjusted EBITDA?

In Q4 2024, Safe Harbor reported an adjusted EBITDA of $63,581, despite a year-over-year decrease.

How has Safe Harbor performed overall in 2024?

Overall, Safe Harbor witnessed a total revenue of approximately $15.2 million in 2024, with significant growth in loan interest income.

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