[PRESS RELEASE] – DENVER, Feb. 9, 2026 – SHF Holdings Inc., d/b/a Safe Harbor Financial, a leading fintech platform serving the banking, lending, and financial services requirements of the regulated cannabis and hemp industries, announced a transformational amendment to its Commercial Alliance Agreement with Partner Colorado Credit Union (PCCU) that fundamentally improves the company’s economics and positions it for accelerated, profitable growth.
The amended agreement extends Safe Harbor’s customer relationship through December 2031 from its original 2029 expiration date with automatic two-year renewal provisions, fundamentally enhancing the company's revenue model, reducing costs, and positioning the business for accelerated growth. The extension demonstrates PCCU's confidence in Safe Harbor's platform and management team.
Agreement Highlights
The amended Commercial Alliance Agreement delivers multiple immediate and long-term benefits to Safe Harbor:
- Revenue Enhancement of $9 million over term ($1.5 million annually): Safe Harbor will receive up to 65% of loan interest income (up from ~37%, a ~75% increase), generating an expected $9-plus million over the agreement term with no incremental cash costs. In exchange, Safe Harbor will indemnify up to 65% of the potential net losses on defaulted loans, converting non-cash risk exposure into substantial cash revenue. To date, no loans issued by PCCU have defaulted, evidencing the effectiveness of Safe Harbor’s underwriting capabilities.
- Immediate Cost Reduction: Safe Harbor’s asset hosting fee decreases by approximately 23% or $250,000 annually and $1.5 million over the term of the agreement, based on the company’s Q3 2025 reported numbers. The new terms replace a fixed fee structure with a graduated fee structure. The cost savings scale up to approximately $600,000 annually as PCCU’s deposit base grows.
- Safe Harbor will receive approximately $400,000 as a retroactive payment from PCCU: The amended agreement is retroactive to Oct. 1, 2025.
"Safe Harbor's amended agreement with PCCU is a fundamental transformation of our business model that removes growth barriers and positions us for profitable expansion," Safe Harbor Financial CEO Terry Mendez said. "PCCU's decision to extend and enhance this partnership validates both the strength of our platform and the capability of our management team. The new economics significantly benefit Safe Harbor; we are converting non-cash risk exposure into substantial cash revenue and cost savings."
Douglas Fagan, president and CEO of PCCU, said, "Safe Harbor has proven itself as an exceptional partner with unmatched expertise in providing compliant cannabis banking services. Their proprietary technology platform, risk management capabilities, and deep understanding of this complex regulatory environment make them uniquely qualified to help financial institutions like ours serve this industry. We're excited to deepen our partnership through 2031 and beyond, and we're confident that this enhanced agreement will drive growth and success for both organizations and the clients we serve together."
