DEA Registration Pulls Lawyers and Payroll Firms Into Cannabis Banking | Trade to Black

Safe Harbor Financial (NASDAQ: SHFS) kicked off cannabis earnings season early, and CEO Terry Mendez joins the Trade to Black podcast to walk through the preliminary Q3 numbers. Host Shadd Dales and co-host Anthony Varrell go through trailing 14-day average deposits of $119.3 million as of September 30, up 7.4% year over year and roughly 25% above the May 2025 low of $95.3 million. Deposits grew 9.6% sequentially, more than double the 4.1% gain in Q2. Mendez explains where the growth is coming from, including new wins with payroll providers and payment processors, and why September came in stronger than the usual seasonal softness. He also breaks down how the Federal Reserve's 25 basis point increase translates into roughly $150,000 in annualized investment income, why those deposits sit at partner financial institutions rather than on the balance sheet, and what falling rates would do to the economics of cannabis banking. The discussion also covers the DEA registration process and why lawyers, accountants and payroll companies serving licensed operators may need cannabis-friendly accounts of their own, how dual-license operators should approach 280E apportionment, and why Mendez sees Vireo Growth's 8.5% loan as an exception rather than a template. Plus, what changes when larger banks start competing for cannabis deposits, and why year-over-year growth matters more than sequential swings heading into the MSO earnings calendar. 00:00:00 – Safe Harbor's Banking Growth Strategy 00:00:22 – Cannabis Earnings Season Approaches 00:02:32 – Safe Harbor Reports Deposit Growth 00:04:38 – What's Driving New Cannabis Deposits? 00:06:55 – Safe Harbor's Q3 Growth Breakdown 00:09:07 – Hemp Ban Threatens Banking Relationships 00:11:34 – DEA Rules Impact Cannabis Banking 00:14:05 – Interest Rates Drive Banking Revenue 00:17:21 – Vireo's $60 Million Loan Examined 00:19:16 – Cannabis Operators Face 280E Challenges 00:22:17 – Rescheduling Could Simplify Business Structures 00:24:36 – Big Banks Eye Cannabis Opportunities 00:26:10 – Cannabis Earnings Take Center Stage #SafeHarborFinancial #SHFS #CannabisBanking #TerryMendez #TradeToBlack #CannabisDeposits #Rescheduling #Section280E #CannabisEarnings #CannabisStocks #Cannabis #Marijuana Want to see more Cannabis Reform? 🎬    • Governor Healey Says She'll Vote No on Can...   🎬    • DEA Again Says No Marijuana Overdose Death...   🎬    • Why Hemp Reform Just Got More Complicated ...   Want to stay updated on Cannabis, Small Cap, AI, and Crypto? Subscribe to our Daily Baked newsletter: https://newsletter.thedalesreport.com... Find us on social media and podcast platforms: ✅ Facebook:   / thedalesreport   ✅ Twitter:   / thedalesreport   ✅ Instagram:   / dalesreport   ✅ LinkedIn:   / the-dales-report   Apple Podcasts: https://tinyurl.com/TDRTradetoBlackon... Spotify: https://tinyurl.com/TDRTradeToBlackon... Website: https://thedalesreport.com/ For copyright matters, contact: sdales@thedalesreport.com Podcast Disclaimer (Financial Interests) The views and opinions expressed in this podcast are those of the hosts and guests and do not necessarily reflect the official policy or position of any company, organization, or employer. The content is provided for informational and entertainment purposes only and should not be taken as financial, investment, or legal advice. The hosts and/or guests may hold positions in the companies, stocks, or financial instruments discussed during the show. These holdings should not be considered endorsements or recommendations to buy or sell any securities. Listeners are encouraged to do their own research or consult with a qualified financial advisor before making any investment decisions. By listening to this podcast, you agree that the hosts, guests, and producers are not liable for any decisions made based on the information discussed. Full Disclosures: https://thedalesreport.com/website-te...