SHFS News & Events

SHF Holdings released a letter to shareholders from Terrance Mendez, Chief Executive Officer of Safe Harbor. "Today, Safe Harbor has a strong financial base and is ready to grow: we are debt-free, hold more than $6 million in cash, and have secured a long-term agreement with a major customer that is expected to generate at least $10.5 million in incremental cash flow. Here is a summary of the past year and why we believe the next chapter is significantly more valuable than the last... Here is where we stand financially: More than $6 million cash on hand with no meaningful debt obligations at the end of 2025, Long-term revenue visibility through 2031 under our amended agreement with Partner Colorado Credit Union that is expected to increase cash flow by over $10 million over the term, 29% deposit growth in Emerging U.S. Markets over the 12 months ended February 4, 2026, driven by more than 100 new accounts... In September we launched our Fully Managed Cannabis Banking Program, offering a compliant turnkey program designed for community banks, credit unions, and financial institutions seeking to serve the legal cannabis market. Safe Harbor manages everything, including compliance, onboarding, account support and loan syndications while deposits remain directly at the financial institution... Today, Safe Harbor has meaningfully expanded its lending capabilities such that we now have the ability to structure financing across the entire operator lifecycle, from startup funding of as little as $5,000 to transactions as large as $25 million or more, funded through our network of credit unions, regional banks, family offices, and private equity relationships... We launched our Managed Services platform that delivers end-to-end back-office solutions to cannabis operators spanning treasury management, HR outsourcing, employee banking, accounts receivable management, and cash flow advisory... We are a leaner, better-capitalized, and more diversified company than we were 12 months ago and we are building new revenue lines. While we've made significant progress, we're continuing to develop additional compliant solutions and look forward to announcing them when appropriate. We see much more opportunity to create value, and intend to capture it through continued execution."

SHF Holdings 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."

SHF Holdings announced am amendment to its Commercial Alliance Agreement with Partner Colorado Credit Union that fundamentally improves the Company's economics and positions it for accelerated, profitable growth. The amended agreement extends the customer relationship through December 2031 from its original 2029 expiration date with automatic two-year renewal provisions, fundamentally enhancing the Company's revenue model, reducing costs, and positioning the business for accelerated growth. The amended Commercial Alliance Agreement delivers multiple immediate and long-term benefits to Safe Harbor: Revenue Enhancement of $9 million over term: Safe Harbor will receive up to 65% of loan interest income, generating an expected $9+ million over the agreement term with no incremental cash costs. In exchange, Safe Harbor will indemnify up to 65% of the potential net losses on defaulted loans, converting non-cash risk exposure into substantial cash revenue. To date, no loans issued by PCCU have defaulted, evidencing the effectiveness of Safe Harbor's underwriting capabilities. Immediate Cost Reduction: Our asset hosting fee decreases by approximately 23% or $250,000 annually and $1.5 million over the term of the agreement, based on our Q3 2025 reported numbers. The new terms replace a fixed fee structure with a graduated fee structure. The cost savings scales up to approximately $600,000 annually as PCCU's deposit base grows. Safe Harbor will receive approximately $400,000 as retroactive payment from PCCU: The amended agreement is retroactive to October 1, 2025.

SHF Holdings announced a strategic expansion of its payments solutions portfolio through partnerships with Lut and GreenCard. "By offering ACH debit, cashless ATM, and closed-loop payment systems, we now support every major way customers pay for cannabis," said Terry Mendez, CEO of Safe Harbor. "Our focus is solving real operational challenges for cannabis businesses. We've built the most complete, compliant payments ecosystem in the industry by asking: what do operators actually need? The answer is flexibility, redundancy, and reliability at every transaction point. Lut and GreenCard help our clients build stability across the supply chain."