Adam JacksonColorado-based SHF Holdings Inc. (Nasdaq: SHFS), which does business as Safe Harbor Financial, swung to a profit in the third quarter as expenses declined and interest income from its lending business increased.
The Colorado-based company reported net income of $353,817 for the period ending Sept. 30, versus a net loss of $748,067 in the same period a year earlier. Revenue fell 20% to $3.5 million.
Safe Harbor has reported profits for the past three consecutive quarters after posting losses all throughout fiscal 2023. The company said on Tuesday that the turnaround was driven by efforts to streamline operations and grow its cannabis lending platform.
“Throughout the third quarter of 2024, Safe Harbor Financial continued to make meaningful progress on our strategic priorities focused on innovation, operational excellence and client service,” CEO Sundie Seefried said in a statement.
Loan interest income jumped 48% to $1.3 million in the quarter, while operating expenses decreased 13% to $3.3 million. Safe Harbor said it originated a $1.07 million secured credit facility for a Missouri cannabis operator in October, representing the first tranche of a $5 million commitment.
Loan interest income surged 143% to $4.8 million in the first nine months of 2024, helping to offset a dip in revenue from deposits and account fees. The company finished the third quarter with $66.9 million in total assets, including $5.9 million in cash.
“While the current regulatory environment remains highly challenging for cannabis related business, we are confident that Safe Harbor is well-positioned to capitalize on the significant opportunities that lie ahead,” Seefried said.
