Safe Harbor Revenue, Deposits Up as Company Passes $20B Milestone

Safe Harbor Revenue, Deposits Up as Company Passes $20B Milestone

The company projects full-year revenue of $16 million to $16.5 million in 2023.

SHF Holdings Inc. (Nasdaq: SHFS), which operates as Safe Harbor Financial, had “another successful quarter,” CEO Sundie Seefried crowed in a press release. The marijuana-focused bank announced its numbers were all headed in the right direction, with a milestone of $20 billion in marijuana funds processed as of Q3.

Although Safe Harbor posted a $748,067 loss for the quarter that ended Sept. 30, it’s a huge improvement sequentially from the $17.6 million loss in Q2 – though still stark because Safe Harbor was in the black a year ago, with income of just over $1 million. The company attributed the Q3 loss to “an increase in compensation and employee benefits as well as an increase in general and administrative expenses.”

Every other number the cannabis financial services provider reported increased year-over-year:

Revenues climbed 82.1% year-over-year to $4.3 million from $2.4 million, though down a notch from $4.6 million in Q2 this year.
Total deposits were up almost 29% to $1.08 billion from $836.4 million.
Monthly average number of accounts was up nearly 50% to 986 from 659 a year ago.
Safe Harbor’s loan book value grew 123% to $42.2 million from $18.9 million.
Operating expenses more than doubled to $3.8 million from $1.6 million.

“Our focus has been to grow our overall deposit base and increase the size of our loan book while serving cannabis related businesses,” Seefried said.

The revenue increase was thanks to “higher investment and loan interest income and higher deposit activity and onboarding income,” Safe Harbor reported.

Its increase in operating expenses was due largely to growth in the demand for Safe Harbor’s services, which required “increased compensation and employee benefits on account of stock-based compensation and also the increase in the head count in anticipation of growth.”

Safe Harbor projected that its full-year 2023 revenues will be between $16 million and $16.5 million, up from the $9.5 million it pulled in for all of 2022.

Also during the latest quarter, Safe Harbor debuted interest-bearing commercial bank accounts, signed three new loans with a major “tier-one” multistate cannabis operator, signed a $3 million loan for a THC-infused beverage maker, and surpassed $20 billion in cannabis funds processed in August.

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