ARVADA, Colo.–The $633.7-million Partner Colorado Credit Union reported a $63.7-million year-end loss as it continues to deal with the ramifications of the sale of a CUSO.
The credit union’s year-end 5300 shows a $47.99 million loss related to “Other Income,” which includes unconsolidated CUSO income.
It retains net worth of 12.81%.
In an interview with CUToday.info in June of 2023, Partner Colorado had said it expected to report the red numbers for several years as a result of the sale of its Safe Harbor Banking CUSO, which provides cannabis-banking services. Safe Harbor was hailed as an industry-leading CUSO, and as cannabis laws were loosened around the country it saw tremendous growth.
Less Cash Than Planned
In 2022, Partner Colorado sold the CUSO for $185 million, taking less cash in the deal than it had originally planned. The CUSO was acquired by New York-based Northern Lights Acquisition Corp., a blank check company, sometimes known as a SPAC, that was formed for the specific purpose of effecting a merger or acquisition.
The company was to pay $70 million in cash and $115 million in Northern Lights stock for Safe Harbor Financial. But that company’s stock plunged from $10 per share in October 2022 to just 39 cents per share by mid-2023.
In September 2022, Northern Lights Acquisition Corp. changed its name to SHF Holdings, Inc. The company trades on the Nasdaq Capital Market(ticker symbol SHFS).
Examiners ‘Comfortable’
At the time of the CUToday.info interview, CEO Doug Fagan said, “It is clear we will have a net loss for 2023. We anticipate having a net loss for two to three years because of the sale, which we told our examiners and they are comfortable with that.”