8-K: Safe Harbor Reports Strong Q3 Deposit Growth, Interest Income Boost

SHF Holdings, d/b/a Safe Harbor, announced preliminary Q3 2026 deposit results showing a 7.4% year-over-year increase and an estimated $150,000 annual boost in investment income from recent rate hikes.

Summary

• SHF Holdings, operating as Safe Harbor, released preliminary deposit information for the third quarter ended September 30, 2026.
• The trailing 14-day average deposit balance reached approximately $119.3 million as of September 30, 2026.
• This represents a 7.4% increase compared to $111.1 million in the prior year's third quarter.
• Deposit growth has accelerated for the second consecutive quarter, with the Q3 sequential increase more than double that of Q2.
• The company estimates that a recent 25-basis-point Federal Reserve rate increase will add approximately $150,000 in annualized investment income.
• These figures are preliminary, unaudited, and subject to final review procedures.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive development, indicating accelerating deposit growth and a beneficial impact from rising interest rates, though preliminary and unaudited.

Positives

• Trailing 14-day average deposits reached approximately $119.3 million as of September 30, 2026, up 7.4% year-over-year.
• Deposit growth accelerated for the second consecutive quarter, with a 9.6% sequential increase in Q3.
• The Q3 sequential increase in deposits was more than double the increase recorded in Q2.
• The trailing 14-day average deposit balance is the highest since April 2024.
• The company estimates an additional $150,000 in annualized investment income due to a recent Federal Reserve rate increase.
• Management views the deposit growth as a reflection of the strength of their strategy and deepening client relationships.

Negatives

• The reported deposit information is preliminary and unaudited.
• Final results may differ materially from these preliminary estimates.
• Deposit metrics are not recorded on the Company's balance sheet and are not a measure of revenue or financial performance.

Risks

• Actual results may differ materially from forward-looking statements due to risks and uncertainties.
• Future results depend on future balances, partner institution arrangements, and subsequent changes in interest rates.
• Volatility in capital markets may adversely affect the price of Safe Harbor's securities.
• The outcome of any legal proceedings could impact the company.

Future Outlook

The company expects continued deposit growth and benefits from a higher interest rate environment, estimating approximately $150,000 in incremental annualized investment income from a recent Federal Reserve rate hike. Actual results will depend on future balances, partner arrangements, and interest rate changes.

Management Comments

• "The continued growth in deposits reflects the strength of the strategy we have put in place."
• "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."
• "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."

Industry Context

StockSavvy.ai notes that Safe Harbor's focus on the regulated cannabis and hemp industries positions it uniquely to benefit from both industry growth and the current interest rate environment. The acceleration in deposit growth suggests increasing financial activity within this niche sector.

Stakeholder Impact

• Shareholders may see positive sentiment due to accelerating deposit growth and increased investment income potential.
• Clients in the cannabis industry benefit from a stable and growing financial platform.
• Partner financial institutions may see increased balances and potential for higher returns through arrangements with Safe Harbor.

Next Steps

• Safe Harbor plans to report full third quarter 2026 financial results at a later date.
• The company will continue to monitor deposit trends and interest rate changes.

Key Dates

Recommendation

The preliminary results show positive trends in deposit growth and interest income, which are encouraging. However, the data is unaudited and preliminary, and the company operates in a niche and evolving industry. A 'hold' recommendation is appropriate pending the release of audited full financial results and further assessment of the company's long-term growth prospects and risk factors.

Keywords

cannabis banking, fintech platform, deposit growth, investment income, financial services, regulatory compliance, interest rates, preliminary results