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Crossroads Impact Corp 2022 Fiscal Fourth Quarter Report

December 15, 2022

Investor Relations & Media Contact:
dovetail solutions
Andy Boian
aboian@dovetailsolutions.com
(415) 404-2539

DALLAS, Dec. 15, 2022 / — Crossroads Impact Corp (OTCQX: CRSS) (“Crossroads” or the “Company”), a holding company focused on investing in businesses that promote economic vitality and community development, reported financial results for its fiscal fourth quarter ended Oct. 31, 2022.

The close of Crossroads Impact Corp’s fourth quarter reflects consistent, sustained execution on its strategy and steady revenues. During the fourth quarter, the company closed on $100 million of new impact-based loans. The company’s equity has made a staggering year-over-year jump from $6.7 million in the fiscal fourth quarter of 2021 to $198.1 million in its fiscal fourth quarter of 2022.

As the economy feels the strains of inflation and uncertainty, Crossroads remains confident in its borrowers and underwriting and has not experienced nor does it anticipate a meaningful uptick in delinquencies. The company is fortunate to have a seasoned executive team that has been through many economic cycles and is well versed in credit risk management alongside Enhanced Capital’s team, which has 20-plus years of stellar asset performance. For the quarter, Crossroads had two foreclosures and a total of eight for the year compared to 14 during fiscal 2021. Crossroads also saw a year-over-year decrease in liabilities, with a total of $278.3 million on Oct. 31, 2022, compared with $368 million for the same period that ended Oct. 31, 2021.

Management Commentary
As Crossroads marks the end of fiscal fourth quarter in 2022, we reflect on the enormous year we’ve had in expanding our footprint in environmental, social and governance loans. We have expanded our participation in more ESG programs and fostered more relationships based on a shared goal of boosting ESG initiatives. During fiscal 2022, Crossroads was able to deploy over $200 million in ESG loans, which equate to real, measurable change for those making the greatest difference in our communities. Of note is Crossroads’ investment in a solar tax credit fund, which increased to $13.7 million from $9.4 million year over year.

As we continue our mission of impact, we are notably excited about the $125 million bond guarantee from the U.S. Treasury Department’s CDFI Bond Guarantee Program to Crossroads Impact subsidiary Capital Plus Financial. The prestige of this bond for CPF, a first for the company, is a huge win for the institution and will enable further investment into minority-owned small businesses and underrepresented populations. The bond closed on December 14.

The quarter also saw Rise Line Business Credit, a portfolio company of Crossroads, receive $30 million in financing from Texas Capital Bank, increasing financing access to those businesses for which it was otherwise unavailable.

2022 Fiscal Fourth Quarter Key Performance Indicators (KPIs)
Highlights for the quarter

  • $223 million year-over-year increase in ESG loans
  • $125 million CDFI bond for Capital Plus Financial
  • $30 million financing to Rise Line Business Credit
  • Year-over-year interest income continued to grow from the impact loan portfolio
  • All but $42 million of $180 million equity has been funded and is being deployed
  • Fully diluted book value per share as reported was $10.69 and adjusted is $11.54

About Crossroads Impact Corp.
Crossroads Impact Corp (OTCQX: CRSS) Crossroads Impact Corp’s mission is to promote economic vitality through community development and equitable access to capital; harnessing the power for good to tackle systemic issues within underserved communities. Building on our history of serving minority individuals and small businesses through environmental and responsible social lending, we look to be the leader in providing innovative and sustainable lending solutions.

Important Cautions Regarding Forward-Looking Statements
This press release includes forward-looking statements that relate to the business and expected future events or future performance of Crossroads Impact Corp and Capital Plus Financial involves known and unknown risks, uncertainties, and other factors that may cause its actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Words such as but not limited to, “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “targets,” “likely,” “will,” “would,” “could,” and similar expressions or phrases identify forward-looking statements. Forward-looking statements include, but are not limited to, statements about Crossroads Impact’s and Capital Plus Financial’s ability to implement their business strategy, and their ability to achieve or maintain profitability. The future performance of Crossroads Impact and Capital Plus Financial may be adversely affected by the following risks and uncertainties: economic changes affecting homeownership in the geographies where Capital Plus Financial conducts business, developments in lending markets that may not align with Capital Plus Financial’s expectations and that may affect Capital Plus Financial’s plans to grow its portfolio, variations in quarterly results, developments in litigation to which we may be a party, technological change in the industry, future capital requirements, regulatory actions or delays and other factors that may cause actual results to be materially different from those described or anticipated by these forward-looking statements. For a more detailed discussion of these factors and risks, investors should review Crossroads Impact’s annual and quarterly reports. Forward-looking statements in this press release are based on management’s beliefs and opinions at the time the statements are made. All forward-looking statements are qualified in their entirety by this cautionary statement and Crossroads Impact undertakes no duty to update this information to reflect future events, information, or circumstances.

©2022 Crossroads Impact Corp.

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