Safe Harbor Financial Delivers Strong 29% YoY Growth in Emerging US Cannabis Markets Representing 100+ New Customer Depository Accounts

Rhea-AI Summary

Safe Harbor (NASDAQ: SHFS) reported emerging US market average deposit balances rose 29% year-over-year for the 12 months ended February 4, 2026, lifting total average deposit balances 4.5%. Emerging markets now represent 31% of total deposit balances and added 100+ new customer depository accounts.

The company highlighted strategic early entry across new and expanding state programs (New York, New Jersey, Illinois, Florida, Ohio, Kentucky and others) and said deposit growth reflects client expansion and regulatory market maturation.

Positive

• 29% YoY growth in emerging US market average deposit balances
• Emerging markets now represent 31% of total average deposit balances
• 100+ new customer depository accounts added in the past year
• Total average deposit balances increased 4.5%

Negative

• None.

News Market Reaction – SHFS

+4.94%

7 alerts

+4.94% News Effect

+19.4% Peak in 2 min

+$119K Valuation Impact

$3M Market Cap

0.6x Rel. Volume

On the day this news was published, SHFS gained 4.94%, reflecting a moderate positive market reaction. Argus tracked a peak move of +19.4% during that session. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $119K to the company's valuation, bringing the market cap to $3M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Emerging market deposit growth: 29% YoY Total deposit balance growth: 4.5% Emerging markets share: 31% +1 more

4 metrics

Emerging market deposit growth 29% YoY Average deposit balances, 12 months ended Feb 4, 2026

Total deposit balance growth 4.5% Total average deposit balances over same 12-month period

Emerging markets share 31% Share of company average deposit balances from emerging US markets

New depository accounts More than 100 New customer depository accounts added over the past year

Market Reality Check

Price: $0.8499 Vol: Volume 62,706 is close to...

normal vol

$0.8499 Last Close

Volume Volume 62,706 is close to the 20-day average of 61,288, suggesting typical trading activity pre-announcement. normal

Technical Price at 0.8195 is trading below the 200-day moving average of 2.48, reflecting a longer-term downtrend.

Peers on Argus

Pre-news, SHFS was down 10.51% while regional banking peers were mixed: GLBZ dow...

Pre-news, SHFS was down 10.51% while regional banking peers were mixed: GLBZ down 5.98%, KFFB down 2.44%, CARV up 5.71%, and others flat. Moves do not indicate a uniform sector trend.

Historical Context

5 past events · Latest: Feb 09 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 09	Alliance amendment	Positive	+7.5%	Extended PCCU alliance and improved revenue share terms through 2031.
Jan 27	Product expansion	Positive	+20.2%	Expanded payments solutions via new partners to broaden cannabis payments options.
Jan 14	Insurance partnerships	Positive	-4.6%	Added cannabis-specific insurance solutions through Frontier Risk and AlphaRoot.
Dec 30	Leadership hires	Positive	-8.0%	Hired senior leaders to strengthen lending strategy and client experience.
Dec 23	Services expansion	Positive	+3.1%	Integrated 420 IT Solutions assets with performance-based equity tied to revenue.

Pattern Detected

Strategic and partnership news has often led to positive price reactions, but there are instances where similar positive updates were followed by declines, indicating mixed follow-through.

Recent Company History

Over the past months, SHFS has focused on strengthening partnerships, expanding services, and enhancing its platform for cannabis-related banking. On Dec. 23, 2025, it integrated 420 IT Solutions assets with performance-based share consideration tied to $5–6M revenue milestones. Late December leadership hires aimed to bolster lending and client experience but saw a negative reaction. January 2026 brought insurance and payments partnerships, with reactions ranging from -4.59% to 20.19%. The February PCCU extension, expected to add $9M+ revenue, also drew a positive move, framing today’s growth update within an ongoing expansion strategy.

Market Pulse Summary

This announcement highlights 29% year-over-year growth in emerging market deposits and a 4.5% increa...

Analysis

This announcement highlights 29% year-over-year growth in emerging market deposits and a 4.5% increase in total average deposit balances, with emerging states now contributing 31% of balances and more than 100 new depository accounts. It reinforces Safe Harbor’s strategy of entering high-growth cannabis markets early. Investors may track whether this momentum translates into sustained revenue improvement and how it interacts with prior capital-structure and regulatory disclosures.

Key Terms

fintech, depository accounts, adult-use licensing, working capital reserves, +2 more

6 terms

fintech financial

"a leading fintech platform serving the banking, lending, and financial services needs"

FinTech, short for financial technology, refers to new tools and software that make managing money easier and more convenient, like mobile payment apps or online banking. It matters because it helps people and businesses access financial services faster, often at lower costs, changing how we handle money in everyday life.

depository accounts financial

"represents more than 100 new customer depository accounts established over the past year"

A depository account is an electronic record that holds ownership of stocks, bonds or other securities on behalf of an investor, similar to a digital safe-deposit box that replaces paper certificates. It matters to investors because it makes buying, selling and settling trades faster and more secure, ensures dividends and corporate actions are tracked correctly, and determines how easily ownership can be transferred or used as collateral.

adult-use licensing regulatory

"established states expanding adult-use licensing, or mature markets where operators"

A permit granted by regulators that allows a business to cultivate, manufacture, distribute or retail cannabis products for recreational use by adults. Think of it like a liquor license for recreational marijuana: it opens a legal, often larger customer market but also brings compliance costs, renewal uncertainty and competitive limits, so investors watch these licenses as key drivers of revenue potential, market access and regulatory risk.

working capital reserves financial

"to building working capital reserves as they mature"

Working capital reserves are the cash and short-term assets a company keeps on hand to pay daily bills, buy inventory, and cover short-term obligations without selling long-term assets or borrowing. Investors watch this like an emergency fund for a household: healthy reserves signal a company can keep operating through slow periods or unexpected costs, while thin reserves increase the risk of needing urgent financing or cutting operations.

licensing programs regulatory

"have recently launched or are actively implementing cannabis licensing programs"

Licensing programs are agreements where a company gives another party permission to use its products, technology, or brand in exchange for payments like upfront fees, royalties, or milestone payments. For investors, these deals can turn ideas or patents into predictable income without the licensor bearing all development or sales costs — like renting out a tool instead of running the whole workshop — but they also depend on partners’ performance and regulatory approvals.

compliant banking services financial

"creating demand for compliant banking services"

Banking services that follow the laws, rules and industry standards required by regulators and authorities, such as anti-money-laundering checks, customer identity verification and reporting obligations. They matter to investors because using banks that meet these requirements reduces legal, operational and reputational risk, helps ensure business continuity, and can affect a company’s ability to move money, raise capital or expand into new markets — like driving safely on a road that’s legally open.

AI-generated analysis. Not financial advice.

Cumulatively Emerging US Markets represent 31% of Safe Harbor’s Total Deposit Balances Driven by Strategic Early Entry into High-Growth States Including New York, New Jersey, Illinois, Florida, Ohio, and Kentucky

DENVER, March 03, 2026 (GLOBE NEWSWIRE) -- SHF Holdings, Inc., d/b/a Safe Harbor (the “Company” or “Safe Harbor”) (NASDAQ: SHFS), a leading fintech platform serving the banking, lending, and financial services needs of the regulated cannabis and hemp industries, announced that emerging US market average deposit balances increased 29% over the 12 months ended February 4, 2026, driving total average deposit balances up 4.5%. Emerging US markets now represent 31% of the Company’s average deposit balances, with this growth reflecting Safe Harbor’s strategic focus on high-potential state markets.

"We've built a strong foundation by investing in high-potential markets early, whether that's new states launching their programs, established states expanding adult-use licensing, or mature markets where operators are scaling operations," said Terry Mendez, Chief Executive Officer of Safe Harbor. "The 29% year-over-year emerging market asset growth demonstrates both the strength of our strategy and the trust licensed operators place in Safe Harbor as their partner through every stage of growth."

The growth in emerging US markets represents more than 100 new customer depository accounts established over the past year, combined with increased deposit levels from certain existing clients as their operations expanded. Safe Harbor's established presence in these high-growth territories positions the Company to benefit from ongoing regulatory developments and operator expansion as these markets continue to mature and scale.

Strategic Focus on Three Market Categories:
Safe Harbor’s emerging market portfolio spans distinct opportunity categories based on regulatory maturity:

• New Markets Coming Online: Delaware, Minnesota, Kentucky, Alabama, and Mississippi are states that have recently launched or are actively implementing cannabis licensing programs.
  
• Licensing Expansion in Major Adult-Use States: New York, New Jersey, Maryland, Connecticut, Missouri, and Ohio are experiencing growth as established adult-use programs expand their licensing frameworks, bringing new operators into regulated markets and creating demand for compliant banking services.
• Operator Footprint Expansion: Pennsylvania, Illinois, Virginia, and Florida represent medical or transitioning markets where existing operators are expanding their operations, thereby increasing their need for sophisticated compliant banking services.
  

In emerging markets, deposit levels naturally fluctuate as licensed operators progress through business cycles, from deploying startup capital for facility build-outs, equipment, and inventory acquisitions during their launch phases, to building working capital reserves as they mature. Safe Harbor’s growing presence in emerging states reflects its strategy of supporting cannabis operators from their initial licensing through operational maturity, positioning the Company to participate in continued industry expansion as state programs evolve.

About Safe Harbor
Safe Harbor is a financial platform delivering smarter banking, lending, payments and business services tailored to how the cannabis industry actually operates. As one of the original pioneers of compliant financial operations support and cannabis banking consulting in the U.S., Safe Harbor has facilitated more than $26 billion in cannabis-related transactions across 41 states and territories. Through its proprietary Cannabis Banking Solutions™ Platform and network of regulated financial institution partners, Safe Harbor empowers cannabis operators to gain clarity, control and confidence in their financial operations. From daily banking to long-term growth, Safe Harbor provides real solutions and personal support — built exclusively for cannabis. Safe Harbor is a financial technology company, not a bank. Banking services are provided by our partner financial institutions. For more information, visit shfinancial.org.

Safe Harbor defines “average deposit balances” as the trailing 14 day average daily deposit balances at its financial institution partners. “Emerging US markets” are states with cannabis programs launched or materially expanded within the past five years, where regulatory frameworks and operator participation continue to evolve. These markets include states that are in the initial stages of their licensing programs, transitioning from medical to adult-use programs, and states experiencing significant cannabis licensing expansion.

Cautionary Statement Regarding Forward-Looking Statements:

Certain information contained in this press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included herein may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Forward-looking statements may include, but are not limited to, statements with respect to, growth in Safe Harbor’s AUM, Safe Harbor’s ability to satisfy the required conditions to utilize its equity line of credit (the “ELOC”), market conditions that may impact Safe Harbor’s ability to access the ELOC on acceptable terms or at all, the possibility that the ELOC may not be fully utilized, expected use of proceeds from the ELOC, trends in the cannabis industry, including proposed changes in U.S. and state laws, rules, regulations and guidance relating to Safe Harbor’s services; Safe Harbor’s growth prospects and Safe Harbor’s market size; Safe Harbor’s projected financial and operational performance, including relative to its competitors and historical performance; success or viability of new product and service offerings Safe Harbor may introduce in the future; the impact volatility in the capital markets, which may adversely affect the price of Safe Harbor’s securities; the outcome of any legal proceedings that have been or may be brought by or against Safe Harbor; and other statements regarding Safe Harbor’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “outlook,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Safe Harbor’s filings with the U.S. Securities and Exchange Commission. Safe Harbor undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Safe Harbor Investor Relations Contact:
ir@SHFinancial.org

Safe Harbor Media Relations Contact:
safeharbor@kcsa.com

FAQ

What drove Safe Harbor (SHFS) emerging market deposit growth in the 12 months to Feb 4, 2026?

Primary drivers were new state program entries and operator expansions, boosting deposit activity. According to the company, early market entry and increased deposits from expanding clients produced the reported 29% YoY growth in emerging market average deposit balances.

How much of Safe Harbor's (SHFS) deposits come from emerging US cannabis markets in 2026?

Emerging US markets account for 31% of Safe Harbor's average deposit balances. According to the company, this share reflects strategic early entry into high-growth states and added client accounts across new and expanding programs.

How many new customer depositary accounts did Safe Harbor (SHFS) add in emerging markets over the past year?

More than 100 new customer depository accounts were established in emerging US markets. According to the company, new accounts plus higher deposits from expanding clients underlie the emerging market deposit gains.

What is the impact of Safe Harbor's (SHFS) emerging market growth on total average deposit balances?

Total average deposit balances grew 4.5% year-over-year, aided by emerging market gains. According to the company, the 29% rise in emerging market deposits materially contributed to the overall increase in average deposit balances.

Which states are included in Safe Harbor's (SHFS) emerging market categories for 2026?

Emerging markets include new-program states like Delaware, Minnesota, Kentucky, Alabama, Mississippi and expanding adult-use states including New York, New Jersey, Maryland, Connecticut, Missouri, Ohio. According to the company, these categories reflect regulatory maturity and growth opportunity.

Does Safe Harbor (SHFS) describe any risks with emerging market deposits?

The company notes deposit levels can fluctuate as operators move from startup build-outs to working capital accumulation. According to the company, such business-cycle variability is expected while markets mature and operators scale operations.