Safe Harbor Financial Services Reports Strong Growth in Emerging Cannabis Markets
Denver, Colorado — March 3, 2026 — Safe Harbor Financial Services, Inc. (NASDAQ: SHFS), a fintech platform that provides banking, lending, and payment solutions to the regulated cannabis and hemp industries, announced that its emerging U.S. market deposit balances rose 29% year‑over‑year for the 12‑month period ending February 4, 2026. This increase helped lift the company’s total average deposit balances by 4.5%, with emerging markets now accounting for 31% of Safe Harbor’s overall deposit base.
Key Growth Figures
According to the company’s press release, the growth in emerging markets was driven by:
- More than 100 new depository accounts opened by licensed operators over the past year.
- Higher deposit levels from existing clients as their operations expanded.
- A 29% rise in average deposit balances within emerging states, contributing to a 4.5% increase in total average deposits.
Safe Harbor defines “average deposit balances” as the trailing 14‑day average daily deposit balances held at its partner financial institutions. “Emerging U.S. markets” are states with cannabis programs launched or materially expanded within the last five years, where regulatory frameworks and operator participation continue to evolve.
Strategic Market Focus
Safe Harbor’s emerging‑market portfolio is organized around three categories of regulatory maturity:
- New Markets Coming Online: States such as Delaware, Minnesota, Kentucky, Alabama, and Mississippi that have recently launched or are actively implementing cannabis licensing programs.
- Licensing Expansion in Major Adult‑Use States: Established adult‑use markets including New York, New Jersey, Maryland, Connecticut, Missouri, and Ohio where licensing frameworks are broadening, bringing new operators into the regulated space.
- Operator Footprint Expansion: Medical or transitioning markets like Pennsylvania, Illinois, Virginia, and Florida where existing operators are scaling their facilities, increasing demand for compliant banking services.
CEO Terry Mendez highlighted the rationale behind this approach: “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. 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.”
How Safe Harbor Supports Operators
In emerging markets, deposit levels naturally fluctuate as operators move through business cycles — from deploying startup capital for build‑outs, equipment, and inventory to building working‑capital reserves as they mature. By maintaining a presence across these stages, Safe Harbor positions itself to provide:
- Real‑time banking services tailored to cash‑intensive cannabis operations.
- Lending solutions that help operators finance expansion and working‑capital needs.
- Payments and business‑services tools designed for compliance with state and federal regulations.
The company emphasizes that it is a financial technology firm, not a bank; banking services are delivered through its network of regulated financial‑institution partners. Since its inception, Safe Harbor has facilitated more than $26 billion in cannabis‑related transactions across 41 states and territories, underscoring its role as a pioneer in compliant financial‑operations support for the industry.
About Safe Harbor
Safe Harbor delivers smarter banking, lending, payments, and business services specifically designed for how the cannabis industry operates. Through its proprietary Cannabis Banking Solutions™ Platform and partnerships with regulated financial institutions, the company empowers cannabis operators to gain clarity, control, and confidence in their financial operations. For more information, visit shfinancial.org.
Read the full press release Here.
