Safe Harbor Losses Mount Despite Skyrocketing Revenue

Safe Harbor hit $4.6 million in revenue for the quarter, up 36% year-over-year

SHF Holdings Inc. (Nasdaq: SHFS), which operates as Safe Harbor Financial, saw its revenue shoot up 147% year-over-year in the quarter ended June 30, but the cannabis financial services provider still posted a $17.6 million loss, a sizable increase from its $1.4 million loss last quarter.

The company attributed $16.9 million of the net loss to a one-time impairment charges for goodwill and finite-lived tangible assets, with the rest of the loss due to an increase in costs such as professional fees and employee compensation.

Safe Harbor hit $4.6 million in revenue for the quarter, up 36% year-over-year, and surpassed $1 billion in cannabis business deposits, a threshold the business first reached in Q1 this year.

Other highlights from the quarter included:

  • Closing on more than $15 million in commercial real estate loans for marijuana businesses
  • Increasing average monthly number of accounts year-over-year by 65% to 1,002
  • Increasing average monthly balances on deposit by 60% to $230.7 million
  • Increasing its Loan Book value to $35.9 million from $18.5 million a year prior

Safe Harbor finished the quarter with $8.2 million in cash, $72 million in assets, and $44.7 million in total liabilities.

“Our ability to increase both deposits and lending to cannabis-related businesses in the second quarter resulted in record quarterly revenue,” CEO Sundie Seefried said in a statement.

“Our ability to successfully execute against our emerging lending practice, which resulted in $15 million in loans originated during the quarter, has been a key growth driver this quarter and demonstrates a tremendous opportunity to further expand our fintech platform,” she added. “In addition, our relationship with Five Star Bank continues to grow, which has allowed us to increase our deposit capacity by $1 billion, while also providing Safe Harbor the support it requires to expand nationally, further driving shareholder value.”

The company also projected that it will pull in $15.3 million-$16.3 million in revenue for the year, up from $9.4 million last year.

During the quarter, Safe Harbor also deepened its ties to Partner Colorado Credit Union by negotiating $64.7 million in debt repayments to the institution and by appointing PCCU President and CEO Douglas Fagan to SHF Holdings’ board of directors.

In May, Safe Harbor also inked a partnership with New York-based Five Star Bank, which further increased Safe Harbor’s deposit capacity by another $1 billion for cannabis companies. Last month, Safe Harbor was able to begin offering interest-bearing commercial deposit accounts to marijuana businesses through this partnership.

Also in May, Safe Harbor opened 13 new accounts through its new social equity program, the company said.

And in July, the company signed off on three new commercial marijuana loans worth $4.2 million for an unnamed multistate operator.

John Schroyer


  • Austin

    August 17, 2023 at 12:48 pm

    Interesting that they did not reveal that they lost a significant portion of that YoY account growth by end of Q2.
    You should ask them about their Central Bank partnership that they paid $30mil to acquire in Q4 of last year.


  • Megan

    August 17, 2023 at 1:24 pm

    I think it’s interesting that they are attributing part of their debt to increased of professional fees and employee compensation considering they laid off around 15 employees and a large number of employees quit during the acquisition of Abaca. When they acquired Abaca it had 32 employees almost a year later there are only 7 members of the Abaca team remain.

    Furthermore when the sales team was let go they were not provided compensation for their pending commissions with the organization.


  • Gary Shelton

    September 10, 2023 at 11:37 am

    In many cases, the reported has not conducted any levels of reasonable due diligence. The information sited by Kegan and Auston is public !


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