Safe Harbor Financial (NASDAQ:SHFS) reported a significant turnaround in the third quarter of 2024, achieving a net income of $354,000 – a stark improvement from the $748,000 loss in the same quarter of 2023. However, total revenue declined by 20%, dropping from $4.3 million to $3.5 million. The company attributed this decline to lower deposit and onboarding income following the Abaca acquisition.

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Operating Expenses Drop Amid Cost-Cutting Efforts

Operating expenses decreased by 13%, down to $3.3 million from $3.8 million in Q3 2023. The company made cuts across several areas, including employee compensation, rent and general administrative costs. These reductions contributed to improved profitability, bolstered by a 48% increase in loan interest income, which reached $1.3 million.

"Our strategic priorities focused on innovation, operational excellence, and client service," said CEO Sundie Seefried. "We delivered strong loan interest income growth and significantly improved net income while maintaining disciplined expense management."

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Nine-Month Results Reflect Strong Recovery

For the first nine months of 2024, Safe Harbor posted a net income of $3.3 million, a reversal from the $19.8 million net loss reported during the same period in 2023.

Revenue for the nine months totaled $11.6 million, down from $13.1 million last year, but operating expenses were slashed by 66%, falling to $10.8 million.

Despite ongoing regulatory challenges in the cannabis sector, Seefried expressed confidence in the company's position, highlighting Safe Harbor's commitment to long-term growth and shareholder value.