Safe Harbor’s Record Revenue and Loan Book Value Surge in 2023

The TDR Three Takeaways for Safe Harbor

  1. Safe Harbor’s 85% revenue increase and loan book growth highlight its strong 2023 performance despite industry challenges.
  2. The company’s recovery from losing a major partnership and expanding its services shows a resilient business approach.
  3. With new products and significant loan originations, Safe Harbor is set for further success in 2024.

Safe Harbor Financial Services, Inc. (NASDAQ:SHFS) has reported a strong year for 2023, with significant financial growth including an 85% increase in annual revenue and a 194.2% increase in loan book value.  The company’s financial results have total revenue for the year reaching $17.6 million. This growth is attributed to higher investment income and loan interest income

Throughout 2023, Safe Harbor introduced several new lending and deposit products, significantly broadening its financial service offering. This expansion was not just about enlarging the company’s portfolio but also about establishing a more diversified revenue mix. The successful rollout of these services has led to an increase in account fees, investment income, and a steady stream of loan income. Such achievements highlight Safe Harbor’s commitment to innovation and its ability to adapt to the evolving needs of the cannabis industry.

However, the year also presented its challenges. The termination of Safe Harbor’s agreement with Central Bank led to a loss of deposit accounts, a setback that could have significantly impacted the company’s progress. Despite market challenges, including slowed industry growth and increased competition, as well as losing deposit accounts after ending its partnership with Central Bank in July 2023, Safe Harbor Financial managed to achieve strong financial growth in 2023. The termination significantly reduced their client numbers from 1,040 to 721 by the end of December. This loss impacted deposit-related fees in the fourth quarter. Despite this, Safe Harbor’s efforts to scale its proven fintech platform attracted increased interest from national financial institutions and cannabis-related businesses. 

Safe Harbor’s operational highlights for the fourth quarter and the first quarter of this year include the origination of substantial loans for cannabis-related facilities and operations. On November 16, 2023, they provided a $3 million loan for a cannabis industrial building in California and a $1.17 million loan on December 13 for a cannabis retail store in Connecticut. Moving into 2024, Safe Harbor announced a $9 million loan on January 4 for a cultivation facility in Denver, Colorado, and a $4.6 million loan on March 12 for a Michigan cannabis operator, underscoring its role in financing cannabis infrastructure.
Looking ahead, Safe Harbor is poised to continue its trajectory of growth and expansion. With plans to introduce new products and services and a focus on attracting more deposit activity, the company is well-positioned to leverage its expertise and innovation for a strong FY2024.Want to keep up to date with all of TDR’s research and news, subscribe to our daily Baked In newsletter.

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