Safe Harbor Financial announced on January 7, 2025, a four-year extension and modification of its commercial alliance agreement with Partner Colorado Credit Union (PCCU). This updated agreement eliminated a $1.2 million indemnity liability that was reported on the balance sheet as of September 30, 2024, effective January 1, 2025.
Under the modified terms, Safe Harbor will no longer be required to record a loan loss reserve on its income statement for loans facilitated with PCCU. This change is expected to simplify business processes and better align expenses with income, addressing exposure to contingent liability on the loan portfolio.
CEO Sundie Seefried stated that this modification represents a positive and pivotal development for Safe Harbor, reaffirming the strength of its longstanding partnership with PCCU. The adjustments to fee structures and the elimination of loan indemnification are expected to drive improved financial performance and deliver increased value to shareholders.
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