SHF Holdings Inc. (Nasdaq: SHFS), which operates as Safe Harbor Financial, announced mixed financials for the fourth quarter and full year ended Dec. 31, 2023, showing record revenue, though it remains in the red.
The company reported an 85.3% increase in annual revenue, reaching $17.6 million in 2023, versus $9.5 million in the previous year. Safe Harbor’s loan book value also rose 194.2% to $55.6 million in 2023 from $18.9 million in 2022.
However, the company reported a net loss of $17.3 million in 2023, which was an improvement from the $35.1 million net loss reported in 2022.
To date, Safe Harbor has facilitated more than $21.5 billion in deposit activity across 41 states. The company’s CEO, Sundie Seefried, attributed the strong financial performance to the introduction of new lending and deposit products in 2023, which diversified the company’s revenue mix and reduced its dependence on deposit fees.
“Due to the success of our lending program, a greater portion of revenue is coming from this high-margin channel,” Seefried said.
However, the company faced challenges in the second half of 2023 when it mutually agreed to terminate its agreement with Central Bank, one of its financial partners, resulting in a material loss of deposit accounts.
Despite the setback, Safe Harbor remains optimistic about its future growth prospects.
“Our recent initiatives to scale our proven fintech platform have resulted in increased interest from national financial institutions and cannabis-related businesses across the country, which we are confident will result in increased deposit activity in 2024 and beyond,” Seefried added.
Operating expenses for the full year 2023 rose 16.2% to $6.2 million, primarily due to impairment charges, restructuring expenses, and stock-based compensation.
As of Dec. 31, 2023, Safe Harbor had cash and cash equivalents of $4.9 million, down 52.6% from the $8.4 million reported at the end of the previous year.
