Safe Harbor Financial (NASDAQ:SHFS), a leader in facilitating financial services to the regulated cannabis industry, announced its financial results late Monday for the third quarter that ended September 30, 2022.
Third Quarter Financial and Operational Highlights
- Safe Harbor completed its business combination transaction with Northern Lights Acquisition Corp and began trading on the NASDAQ on September 29, 2022.
- Revenue increased 38.6% to $2.38 million for the three months that ended September 30, 2022, compared to $1.72 million for the third quarter of 2021. The increase was primarily attributable to the Company's increase in investment income as a result of recent Federal Reserves interest rate increases and an increase in loan interest income.
- Adjusted EBITDA was $1.28 million, compared to $947,000 in the same period of 2021.
- As of September 30, 2022, Safe Harbor had cash and marketable securities of $7.27 million.
"2022 has been a transformative year for Safe Harbor, highlighted by our successful public listing on the Nasdaq in September," said founder and CEO Sundie Seefried.
"I am pleased to report, we have totaled nearly 700 accounts placed with us and increased our loan interest revenue by 1,400% in the third quarter of 2022 due to our ability to place a greater volume of high-quality credit. We remain focused on increasing our deposit base and expanding our loan services platform going forward.”
Originations and Loan Activity: For the nine-month period ended September 30, 2022, Safe Harbor originated loans totaling $18,886,500, compared to $3,600,000 for the full year in 2021 and $1,267,753 in 2020.
Financial Results
For the quarter that ended September 30, 2022, total revenue increased 38.6% to $2.37 million, compared to $1.72 million in the same period last year, according to the report. “For the nine months ended September 30, 2022, total revenue increased 11.4% to $5.90 million, compared to $5.30 million in the same period in 2021,” it says.
For the quarter that ended September 30, 2022, net income was $1.06 million, compared to $946 thousand in the same three-month period that ended September 30, 2021. Moreover, for the nine months that ended, September 30, 2022: Net income was $1.89 million as compared to $2.57 million for the same period in 2021.
Balance Sheet: As of September 30, 2022, the Company had cash and cash equivalents of $7,273,012 as compared to $4,354,827 in the same period ended September 30, 2021.
“As of November 2, 2022, we have approximately $24.4 million of Safe Harbor-originated loans in underwriting, which will continue to drive Safe Harbor's financial growth. We remain steadfast in our mission to serve the growing banking needs of the cannabis industry with our platform as we execute our strategy,” concluded Seefried.
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