Financial Data and Key Metrics Changes - Net income increased by 147% year-over-year to 748,000 for the same period last year [7] - Loan interest income rose by 48% year-over-year for the third quarter and by 143.5% for the nine months [7] - Total revenue for the third quarter decreased by 19.6% to 4.3 million in the prior year [20] - Total revenue for the nine months decreased by 11.6% to 13.1 million in the prior year [20] - Operating expenses decreased by 13% year-over-year for the third quarter and by 66% for the nine months [8][22] Business Line Data and Key Metrics Changes - Revenue from deposit activity and onboarding decreased by 26% to 475,000 [21] - Loan interest income for the third quarter grew by 48% to 33.6 billion in 2024 with a CAGR growth rate of 12.1% from 2024 through 2030 [12] - 24 states have legalized adult-use cannabis and 38 states have legalized medicinal use, indicating a growing market [11] Company Strategy and Development Direction - The company is focusing on expanding its customer base and delivering best-in-class service while developing innovative offerings [19] - Safe Harbor is adapting its platform to meet the demands of cannabis-related businesses and is looking to acquire account portfolios from banks exiting the business [19] - The company is making competitive changes to attract incoming cannabis entities, including adjusting fees and offering competitive pricing [13] Management's Comments on Operating Environment and Future Outlook - Management noted headwinds in the cannabis sector, including pricing pressures and increased competition, but still managed to increase net income and cash flow [9] - The company is optimistic about the potential for cannabis industry growth following the recent elections and upcoming regulatory changes [16][18] - Management believes that reclassification of cannabis could strengthen the balance sheets of customers and improve the company's position in the market [18] Other Important Information - The company reported cash and cash equivalents of 4.9 million at the end of 2023 [25] - The company expects full-year revenue for 2024 to be in the range of 15.5 million [25] Q&A Session Summary - The call concluded without a detailed Q&A session, as the operator thanked participants and indicated the next update would be in March [26][27]
SHF (SHFS) - 2024 Q3 - Earnings Call Transcript