Safe Harbor Financial reports US$119.3M in average cannabis client deposits
The Sept. 30 balance is up 7.4 per cent from a year earlier; the client deposits are held at Safe Harbor's partner financial institutions.
Theo Marchetti
SHF Holdings, Inc. NASDAQSHFS, which operates as Safe Harbor Financial, reported on Oct. 6 that average client deposits rose 7.4 per cent from a year earlier to approximately US$119.3 million. The cannabis banking platform's preliminary figure covers the trailing 14-day average balance at Sept. 30, its highest level since April 2024.
The deposits are held by partner financial institutions and sit outside Safe Harbor's consolidated balance sheet. Safe Harbor earns investment income on a portion of those balances, but its release says deposit growth does not necessarily produce a proportional increase in revenue.
Shares closed at US$0.43 on Nasdaq at 4 p.m. EDT on Oct. 9, according to Google Finance's NASDAQSHFS.
The Federal Reserve raised its target rate by a quarter of a percentage point on Sept. 16. Using deposit and loan balances at Sept. 30, Safe Harbor estimates that increase could add approximately US$150,000 in annual investment income if balances and partner-bank arrangements remain unchanged.
Client Deposits Rose For Two Quarters
The average balance increased to US$108.9 million at June 30 from US$104.6 million at March 31. That represented growth of approximately 4.1 per cent in the second quarter of 2026. The third-quarter increase of approximately 9.6 per cent was more than double the preceding quarter's growth.
The Sept. 30 balance compares with approximately US$111.1 million at the same date in 2025. It was also approximately 25 per cent above the US$95.3 million low recorded in May 2025.
Safe Harbor averages aggregate end-of-day client account balances over consecutive calendar days to smooth fluctuations caused by two-week payroll cycles. It says the calculation is consistent across the periods presented, although similarly named measures at other companies may not be comparable.
The preliminary deposit information has not been audited or reviewed by the company's independent accounting firm. It remains subject to quarter-end closing and review procedures, and final figures could differ materially. The update does not provide comprehensive quarterly revenue or profit results.
Safe Harbor Processes Deposits Through Partner Banks
Safe Harbor supplies banking, lending, payments and business services to the regulated cannabis and hemp industries through financial institution partners. In its Oct. 6 release, the company said it had assisted in processing more than US$36 billion in cannabis-related depository funds since inception. That cumulative activity spans 41 states and territories.
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"As we broaden our platform across banking, lending, business solutions and institutional infrastructure, we are deepening client relationships and expanding the opportunity to capture more of their financial activity," Safe Harbor chief executive Terry Mendez said in the release.
The cannabis finance sector also includes Chicago Atlantic Real Estate Finance, Inc. NASDAQREFI, a commercial mortgage real estate investment trust. It reported US$453.1 million in loan principal outstanding at June 30, 2026, spread across 26 portfolio companies.
Safe Harbor plans to report full financial results for the quarter ended Sept. 30. Its Oct. 6 release says the publication date will be announced later.
