SHF Holdings, Inc. SHFSW

Competitive advantage analysis · financial-services

Bank Specialized
Overall moat score
18/100
Weak

Ranked against 399 peers in Banks - Regional

About SHF Holdings, Inc.

SHF Holdings, Inc., through its subsidiaries, provides access to banking, lending, and other financial services to financial institutions serving the cannabis industry. The company, through its proprietary platform, offers access to business checking and savings accounts, cash management accounts, savings and investment options, commercial lending, courier and vaulting services, remote deposit services, automated clearing house payments and origination, debit, and … Full SHFSW analysis →

Key strengths

  • Disciplined Risk Management Risk management appears disciplined (asset quality score 1.00).

Key risks

  • Weak Deposit Franchise Deposit franchise appears weak (profitability score 0.04).
  • Weak Net Interest Margin Net interest margin proxy is weak (score 0.04).

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Deposit Franchise

Weak
3
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Signals, strengths and risks for Deposit Franchise

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Signals, strengths and risks for Lending Advantage

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Signals, strengths and risks for Capital Strength

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Signals, strengths and risks for Cost Discipline

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Signals, strengths and risks for Revenue Diversification

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Signals, strengths and risks for Risk Management

Where SHFSW ranks in Banks - Regional

SHF Holdings, Inc. ranks #353 of 393 scored companies in Banks - Regional by moat score — the top 90%. The widest moat in the group is 1st Source Corporation (SRCE) at 86/100.

# Company Moat score Rating
349 Banc of California, Inc. BANC 19/100 Weak
350 Northfield Bancorp, Inc. NFBK 19/100 Weak
351 Flushing Financial Corporation FFIC 19/100 Weak
352 SHF Holdings, Inc. SHFS 18/100 Weak
353 SHF Holdings, Inc. SHFSW 18/100 Weak
354 Hanover Bancorp, Inc. HNVR 18/100 Weak
355 Pathfinder Bancorp, Inc. PBHC 17/100 Weak
356 Territorial Bancorp Inc. TBNK 17/100 Weak
357 First Financial Northwest, Inc. FFNW 16/100 Weak

See every Banks & Lenders company ranked by moat score →

How SHFSW scores on the Bank Specialized defenses

Deposit Franchise

Score 2 · 22% of the moat score

A deposit franchise is the cheapest and most valuable thing a bank can own.

Lending Advantage

Score 3 · 18% of the moat score

Lending advantage is the ability to originate loans at attractive spreads without buying that volume with looser credit standards.

Capital Strength

Not measurable · 20% of the moat score

Capital is the buffer between loan losses and insolvency, and it is what regulators judge a bank on first.

Cost Discipline

Score 3 · 16% of the moat score

Banking carries high fixed costs in branches, compliance and technology, so what it costs to run the bank relative to what the bank earns is a genuine competitive variable.

Revenue Diversification

Score 50 · 14% of the moat score

A bank earning everything from net interest income is a leveraged bet on the rate cycle.

Risk Management

Score 61 · 10% of the moat score

Risk management is the defense that only reveals itself late.

How each Bank Specialized defense is measured, in full →

Understanding SHFSW's moat

What is SHF Holdings, Inc.'s moat score?

SHF Holdings, Inc. (SHFSW) scores 18 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as weak. It ranks #353 of 393 scored companies in Banks - Regional, the top 90%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 399 companies in Banks - Regional. Its strongest defense is Risk Management (61/100) and its weakest is Deposit Franchise (2/100).

How does SHF Holdings, Inc. compare with other Banks - Regional companies?

SHF Holdings, Inc. ranks #353 of 393 scored companies in Banks - Regional by moat score. The widest moat in Banks - Regional is 1st Source Corporation (SRCE) at 86/100. The companies ranked closest are SHF Holdings, Inc. (SHFS) at 18 just above it and Hanover Bancorp, Inc. (HNVR) at 18 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Bank Specialized in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 399 companies in Banks - Regional. The defenses are then weighted to produce the overall score out of 100.

Why is SHF Holdings, Inc. scored with the Bank Specialized template?

A bank does not sell a product at a margin. It funds itself, lends at a spread, and books profits that remain an estimate until the loans are actually repaid. That makes the usual margin-and-return questions misleading, so the Bank template scores what really determines a bank's durability: where its funding comes from, what it lends against, how much capital stands behind it, and whether it has been pricing risk honestly.

Which competitive defenses are measured for SHF Holdings, Inc.?

The Bank Specialized template measures 6 defenses, and SHFSW scores: Deposit Franchise (2), Lending Advantage (3), Capital Strength (not measurable), Cost Discipline (3), Revenue Diversification (50), Risk Management (61). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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