Partner Colorado Credit Union

“Partner colorado credit union (the credit union) is a member-owned financial cooperative operated for the benefit of the members of eagle legacy credit union, denver water credit union, and healthone federal credit union. The membership of eagle legacy consists of employees and retirees of the united states postal service in the state of colorado, members and employees of members of the colorado restaurant association, various select employee groups, individuals living or working in the cities of arvada and littleton, the county of broomfield and specifically defined communities in englewood, aurora and denver, colorado and their families. The membership of denver water credit union consists of employees, retirees and their families of the denver water department. The membership of healthone federal credit union consists of employees, volunteers, retirees of hca healthone, llc or rose foundation and their spouses.”

“The members of the credit union annually elect the board of directors to serve for multiple-year terms by mailing in ballots or voting at an annual meeting.”

“Various decisions made by the board of directors for a credit union are subject to approval by the members of the credit union as set forth in ncua rules and regulations and applicable state regulations.”

“The completed form 990 is reviewed by the chief financial officer prior to filing. The chief financial officer is authorized to sign and file the return. The board of directors does not review the form 990.”

“A written acknowledgment is filled out each year by the officers, directors, and employees which could give rise to potential conflicts within the organization. Any potential issues are discussed with the key officers and those charged with governance for resolution.”

“The vp of human resources uses two forms of salary research providers to gather the information for every position in the credit union yearly and provides this information to the salary and wage committee, consisting of three board members. The board approves the salary percentage for all the staff after reviewing the information provided. The percentages are broken down in three leveles and the increase is determined on performance and the overall rating on the employees yearly evaluation. The board approves the ceo's slary and it can be something other than the approved percentage for all the staff.”

“The organization's governing documents and conflict of interest policy are available for review upon request at the credit union. Monthly financial statements are available and on display at the credit union. Quarterly financial data is accessible to the public at www.ncua.gov.”

“On september 28, 2022, the holding company sold approximately 39% of safe harbor financial llc to northern lights acquisition corp. ("nlit"), a special purpose acquisition corporation ("spac") for total consideration of $185,000. The consideration consisted of $115,000 in shares of shfs and $70,000 in cash with $56,950 to be paid on a deferred basis. Concurrent with the sale, nlit changed its name to shf holdings, inc. ("shfs"). Subsequent to the sale, safe harbor financial holding company, llc changed its name to partner colorado credit union holding company, llc ("pccu holding co."). Immediately after the sale, the holding company owned approximately 61% of shfs and consolidation of the entity was required in addition to consolidation of the holding company. From september 28, 2022 to december 30, 2022, shfs issued additional common shares in various transactions with unrelated parties, the effect of which was to dilute the remaining ownership interest of the holding company to 48.7% as of december 30, 2022. As a result, the holding company discontinued the consolidation method of accounting as of december 30, 2022 and recognized a gain on deconsolidation of subsidiary of $16,253 in the consolidated statement of income. The deconsolidation gain resulted from the remeasurement of the credit union's remaining investment in shfs to fair value, as determined by the closing price for shfs' class a common shares trading on the nasdaq stock exchange at the date of deconsolidation (a level 1 input). Effective december 31, 2022, the credit union switched to the equity method of accounting since the credit union no longer held a controlling financial interest in shfs.”

“Basis in deferred tax asset of subsidiary 26,410,629. Acquisition of abaca 4,434,000. Stock option conversion 1,366,000.”