SHF Holdings, Inc. (SHFS): Safe Harbor Announces Preliminary Third Quarter 2026 Deposit Results
SHF Holdings, Inc. (SHFS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Safe Harbor Announces Preliminary Third Quarter 2026 Deposit Results Trailing 14-day average deposits reach approximately $119.3 million as of quarter end, up 7.4% year-over-year and approximately 25% above the May 2025 low, as deposit growth accelerates for the seco
How this was made
The 30-second read
Why it matters
The disclosed deposit increase and rate‑related income estimate provide the first quantitative glimpse of Q3 performance, offering a modest bullish signal.
Market read
Pre‑release deposit data gives a small but positive catalyst for SHFS ahead of its full earnings, with limited spillover to the broader fintech or cannabis financing sector.
What to watch
Potential regulatory scrutiny of cannabis banking could offset deposit gains.
Safe Harbor Announces Preliminary Third Quarter 2026 Deposit Results
The preliminary deposit KPI reached its highest level since April 2024, with reported year-over-year and sequential growth, while the company expects a stated incremental annualized investment-income benefit from the September rate increase. The filing does not provide revenue, earnings, margin, cash flow, or balance-sheet results.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Trailing 14-Day Average Client Deposits as of September 30, 2026other | approximately $119.3 million | increased approximately 9.6% sequentially | up 7.4% |
| Trailing 14-Day Average Client Deposits as of June 30, 2026other | approximately $108.9 million | increased approximately 4.1% | – |
| Trailing 14-Day Average Client Deposits low in May 2025other | approximately $95.3 million | – | – |
| Estimated incremental annualized investment income from September 16, 2026 Federal Reserve rate increaseother | approximately $150,000 | – | – |
| Cannabis-related depository funds processed since inceptionother | more than $36 billion | – | – |
| States and territories across which cannabis-related depository funds have been processed since inceptionother | 41 states and territories | – | – |
Annualized impact based on client deposit and loan balances as of September 30, 2026 outlook
- NoteThe Company estimates that the Federal Reserve’s 25-basis-point increase in the federal funds target rate on September 16, 2026 will contribute approximately $150,000 in incremental annualized investment income.
What drove it
- The trailing 14-day average client deposit balance reached approximately $119.3 million as of September 30, 2026, the Company’s highest level since April 2024.
- The Company stated that the sequential increase in the third quarter was more than double the increase recorded in the second quarter.
- Safe Harbor expects revenue to benefit from the higher interest rate environment.
- The stated investment-income estimate assumes client deposit and loan balances as of September 30, 2026 and the Company’s current arrangements with partner financial institutions remain unchanged.
Concerns
- The deposit information is preliminary, unaudited, and has not been reviewed by the Company’s independent registered public accounting firm.
- Final information may differ materially following normal quarter-end closing and review procedures.
- The Company stated that the release is not a comprehensive statement of third-quarter financial results and that investors should not draw conclusions regarding revenue, net income, or other results from it.
- Client deposits are held by and are liabilities of partner financial institutions, are not deposits of Safe Harbor, and are not reflected on Safe Harbor’s consolidated balance sheet.
- Changes in client deposit balances do not necessarily correspond to proportional changes in Safe Harbor’s revenue.
- Actual investment-income results will depend on future balances, partner institution arrangements, and subsequent interest-rate changes, including rate decreases.
What to watch
- The full third quarter 2026 financial results, which Safe Harbor plans to report at a later date to be announced.
- Whether the approximately $119.3 million trailing 14-day average client deposit balance is sustained or continues to grow.
- The actual investment-income effect of the September 16, 2026 Federal Reserve rate increase.
- Any changes in client deposit and loan balances, partner financial institution arrangements, or interest rates.
Analysis
Safe Harbor disclosed preliminary operating information rather than a complete third-quarter earnings release. Its trailing 14-day average client deposits were approximately $119.3 million as of September 30, 2026, compared with approximately $111.1 million a year earlier and approximately $108.9 million as of June 30, 2026. The Company characterized the September balance as its highest since April 2024.
Deposit momentum accelerated sequentially in the reported figures. The trailing 14-day average rose approximately 4.1% from $104.6 million as of March 31, 2026 to approximately $108.9 million as of June 30, 2026, then increased approximately 9.6% sequentially to approximately $119.3 million as of September 30, 2026. Management said the third-quarter sequential increase was more than double the second-quarter increase. The September balance was also approximately 25% above the approximately $95.3 million low recorded in May 2025.
The higher deposit base can support investment income, but the filing explicitly limits the direct read-through to reported revenue. Safe Harbor earns investment income on a portion of client balances under arrangements with partner financial institutions, while the deposits themselves are held by those institutions, are their liabilities, and do not appear on Safe Harbor’s consolidated balance sheet. The Company also stated that deposit-balance changes do not necessarily result in proportional revenue changes.
Management estimates that the Federal Reserve’s 25-basis-point increase in the federal funds target rate on September 16, 2026 will contribute approximately $150,000 in incremental annualized investment income, based on September 30 balances and unchanged partner arrangements. That estimate is contingent on future balances, partner arrangements, and future rate changes. There is no revenue, profitability, margin, cash-flow, balance-sheet, capital-return, or formal full-quarter financial guidance in this preliminary release, and the Company cautioned that final results may differ materially.
Management, verbatim
The continued growth in deposits reflects the strength of the strategy we have put in place.
Terry Mendez, CEO of Safe Harbor
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.
Terry Mendez, CEO of Safe Harbor
We believe the continued momentum in deposits demonstrates the value of building a broader financial platform around the needs of the cannabis clients we service on behalf of financial institutions.
Terry Mendez, CEO of Safe Harbor
Not in the filing
stated, not guessed- Total revenue for the third quarter 2026
- Revenue comparison with prior-year third quarter
- Revenue comparison with prior quarter
- Revenue guidance
- Segment revenue and segment comparisons
- GAAP gross profit and gross margin
- Non-GAAP gross profit and gross margin
- GAAP operating income or loss
- Non-GAAP operating income or loss
- Operating expenses
- GAAP net income or loss
- Non-GAAP net income or loss
- GAAP earnings or loss per share
- Non-GAAP earnings or loss per share
- Operating cash flow
- Free cash flow
- Cash and cash equivalents
- Debt
- Share repurchases
- Dividends
- Tax rate
- Full third quarter 2026 financial results date
- Prior outlook for comparison
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Safe Harbor is a fintech platform that aggregates client deposits held at partner banks; deposits are not on its balance sheet but generate investment income.
Ticker impact
Preliminary third‑quarter 2026 deposit balance rose 7.4% YoY to $119.3 M, the highest since Apr 2024, and the Fed rate hike is expected to add $150 k of investment income.
likely modest upside as investors price in stronger deposit base and added investment income
The 7.4% YoY deposit increase and a quantified $150 k annual income boost are new, material data for a small‑cap fintech, but the amounts are modest relative to the company's size.
Market effects
Shows continued financing demand in the regulated cannabis and hemp space, supporting fintech providers serving that niche.
Limited to U.S. cannabis‑related financial services; no broader market effect.
Minimal global impact; relevance confined to niche sector investors.
Counterpoint
Deposit growth may be temporary; reliance on partner banks' arrangements could limit revenue upside.
Key entities
- companySafe Harbor (SHFS)
Fintech serving cannabis and hemp financial services.
