Washington Federal (WAFD) has disclosed a new risk, in the Regulation category.
Washington Federal faces significant operational and strategic limitations following a ‘Needs to Improve’ rating under the Community Reinvestment Act, as issued by the FDIC on December 27, 2024. This rating, driven by a subpar performance on the Lending Test despite high marks in Investment and Service Tests, may impede the bank’s ability to engage in mergers, acquisitions, and branch expansions. Furthermore, the rating could affect Washington Federal’s relationships with public entities and its overall reputation, persisting until the next CRA evaluation anticipated in 2026. The bank’s planned appeal could alter this trajectory, but failure to overturn the rating could result in missed strategic opportunities crucial to its competitive positioning.
Overall, Wall Street has a Hold consensus rating on WAFD stock based on 1 Buy and 3 Holds.
To learn more about Washington Federal’s risk factors, click here.