WaFd (NASDAQ:WAFD) Stock

WaFd

Washington Federal

WaFd Inc is engaged in providing lending, depository, insurance, and other banking services to consumers, mid-sized to large businesses, and owners and developers of commercial real estate. Through the WaFd Bank, it is involved in accepting deposits from the general public and investing these funds in loans of various types, including first-lien mortgages on single-family dwellings, construction loans, land acquisition and development loans among others. The Bank also invests in certain United States government and agency obligations along with other investments and also performs insurance brokerage activities. Geographically, it operates in Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico, California and Texas.

Earnings

Earnings Beats

News

Markets

Analyst Ratings

Trading Ideas

CBSH

WAFD

Shares of Commerce Bancshares Inc. (NASDAQ: CBSH) gained 3% following the release of its second-quarter 2024 results. Quarterly earnings per share of $1.07 surpassed the Zacks Consensus Estimate of 90 cents. Also, the bottom line increased 10.3% from the prior-year quarter.

Commerce Bancshares Up on Q2 Earnings Beat, Revenue Growth

WaFd, Inc.&#39;s (NASDAQ: WAFD) third-quarter fiscal 2024 (ended Jun 30) adjusted earnings of 76 cents per share handily surpassed the Zacks Consensus Estimate of 59 cents. Also, the bottom line rose 4.1% sequentially.

WAFD&#39;s Q3 Earnings Beat Estimates, Revenues Rise on LBC Deal

Small Cap

Federal Reserve

Real Estate

FRME

FULT

Commercial real estate (&#34;CRE&#34;) continues to be an area of concern amid the high-interest-rate environment.

6 Regional Banks&#39; Ratings on Review for Downgrade by Moody&#39;s

WaFd Inc

The dividend will be paid March 7, 2025, to common shareholders of record as of February 21, 2025.

Dividends

WaFd Boosts Cash Dividend From $0.26 To $0.27 Per Share

Ratings for WaFd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WAFD#NASDAQ">WAFD</a>) were provided by 4 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">4</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
In the assessment of 12-month price targets, analysts unveil insights for WaFd, presenting an average target of $33.75, a high estimate of $38.00, and a low estimate of $31.00. Experiencing a 11.18% decline, the current average is now lower than the previous average price target of $38.00. 
<img src="https://www.benzinga.com/files/images/story/2025/1738843233_0.png" alt="price target chart" />
<h2>Deciphering Analyst Ratings: An In-Depth Analysis</h2>
The perception of WaFd by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Jeff Rulis</td>
<td>DA Davidson</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$32.00</td>
<td>$35.00</td>
</tr>
<tr>
<td>Matthew Clark</td>
<td>Piper Sandler</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$31.00</td>
<td>$37.00</td>
</tr>
<tr>
<td>Kelly Motta</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Lowers</td>
<td>Market Perform</td>
<td>$34.00</td>
<td>$42.00</td>
</tr>
<tr>
<td>Andrew Terrell</td>
<td>Stephens &amp; Co.</td>
<td>Maintains</td>
<td>Equal-Weight</td>
<td>$38.00</td>
<td>$38.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to WaFd. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of WaFd compared to the broader market.</li>
<li>Price Targets: Analysts provide insights into price targets, offering estimates for the future value of WaFd's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of WaFd's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/WAFD/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on WaFd analyst ratings.</a>
<h2>All You Need to Know About WaFd</h2>
WaFd Inc is engaged in providing lending, depository, insurance, and other banking services to consumers, mid-sized to large businesses, and owners and developers of commercial real estate. Through the WaFd Bank, it is involved in accepting deposits from the general public and investing these funds in loans of various types, including first-lien mortgages on single-family dwellings, construction loans, land acquisition and development loans among others. The Bank also invests in certain United States government and agency obligations along with other investments and also performs insurance brokerage activities. Geographically, it operates in Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico, California and Texas.
<h3>Understanding the Numbers: WaFd's Finances</h3>
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Revenue Growth: WaFd's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -9.04%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.
Net Margin: WaFd's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 25.42%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): WaFd's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.61%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): WaFd's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.16%, the company may face hurdles in achieving optimal financial returns.
Debt Management: WaFd's debt-to-equity ratio surpasses industry norms, standing at 1.07. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
<h2>The Basics of Analyst Ratings</h2>
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
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Forecasting The Future: 4 Analyst Projections For WaFd

DA Davidson analyst Jeff Rulis downgrades WaFd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WAFD#NASDAQ">WAFD</a>) from Buy to Neutral and lowers the price target from $35 to $32.

Downgrades

Price Target

DA Davidson Downgrades WaFd to Neutral, Lowers Price Target to $32

Piper Sandler analyst Matthew Clark maintains WaFd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WAFD#NASDAQ">WAFD</a>) with a Neutral and lowers the price target from $37 to $31.

Piper Sandler Maintains Neutral on WaFd, Lowers Price Target to $31

Keefe, Bruyette &amp; Woods analyst Kelly Motta maintains WaFd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WAFD#NASDAQ">WAFD</a>) with a Market Perform and lowers the price target from $42 to $34.

Keefe, Bruyette & Woods Maintains Market Perform on WaFd, Lowers Price Target to $34

Stephens &amp; Co. analyst Andrew Terrell reiterates WaFd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WAFD#NASDAQ">WAFD</a>) with a Equal-Weight and maintains $38 price target.

Reiteration

Stephens & Co. Reiterates Equal-Weight on WaFd, Maintains $38 Price Target

WaFd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WAFD#NASDAQ">WAFD</a>) reported quarterly earnings of $0.62 per share which missed the analyst consensus estimate of $0.65 by 4.62 percent. The company reported quarterly sales of $171.13 million which missed the analyst consensus estimate of $171.43 million by 0.17 percent. This is a 2.84 percent increase over sales of $166.40 million the same period last year.

Earnings Misses

WaFd Q1 2025 Adj EPS $0.62 Misses $0.65 Estimate, Sales $171.13M Miss $171.43M Estimate

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Shares of banking-related companies are trading higher after Donald Trump won the US presidential election.

WaFd shares are trading lower after Keefe, Bruyette & Woods downgraded the stock from Outperform to Market Perform and maintained its $40 price target. Also, Piper Sandler maintained a Neutral rating on the stock and lowered its price target from $36 to $35

Piper Sandler analyst Matthew Clark maintains WaFd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WAFD#NASDAQ">WAFD</a>) with a Neutral and lowers the price target from $36 to $35.

Piper Sandler Maintains Neutral on WaFd, Lowers Price Target to $35

DA Davidson analyst Jeff Rulis maintains WaFd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WAFD#NASDAQ">WAFD</a>) with a Buy and raises the price target from $39 to $41.

DA Davidson Maintains Buy on WaFd, Raises Price Target to $41

Keefe, Bruyette &amp; Woods analyst Kelly Motta downgrades WaFd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WAFD#NASDAQ">WAFD</a>) from Outperform to Market Perform and maintains the price target from $40 to $40.

Keefe, Bruyette & Woods Downgrades WaFd to Market Perform, Maintains Price Target to $40

WaFd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WAFD#NASDAQ">WAFD</a>) reported quarterly earnings of $0.71 per share which beat the analyst consensus estimate of $0.70 by 1.43 percent. This is a 1.39 percent decrease over earnings of $0.72 per share from the same period last year. The company reported quarterly sales of $188.69 million which beat the analyst consensus estimate of $177.52 million by 6.29 percent. This is a 5.99 percent increase over sales of $178.03 million the same period last year.

WaFd Q4 2024 GAAP EPS $0.71 Beats $0.70 Estimate, Sales $188.69M Beat $177.52M Estimate

Shares of Commerce Bancshares Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cbsh#NASDAQ">CBSH</a>) gained 3% following the release of its second-quarter 2024 results. Quarterly earnings per share of $1.07 surpassed the Zacks Consensus Estimate of 90 cents. Also, the bottom line increased 10.3% from the prior-year quarter.
Results benefited from a rise in net interest income (NII) and non-interest income. Also, lower provisions were a tailwind. The company recorded an increase in the capital ratios in the quarter. However, an increase in expenses hurt the results to some extent.
Net income attributable to common shareholders was $139.6 million, up 9.2% year over year. Our estimate for the metric was $110.2 million.
<h3>Revenues Improve, Expenses Rise</h3>
Total revenues were $414.5 million, up 4.4% year over year. The top line also beat the Zacks Consensus Estimate of $402.4 million.
NII was $262.2 million, up 5.1% year over year. Our estimate for NII was $252 million.
Net yield on interest-earning assets expanded 43 basis points (bps) from the prior-year quarter to 3.55%.
Non-interest income was $152.2 million, up 3.1% year over year. The rise was driven by an increase in almost all fee income components, except for bank card transaction fees, consumer brokerage services fees and other income. Our estimate for non-interest income was $144.7 million.
Non-interest expenses increased 2% year over year to $232.2 million. The rise was due to an increase in all cost components, except for net occupancy costs, deposit insurance costs and marketing expenses. We had projected expenses of $249.2 million.
Net investment securities gain was $3.23 million, down 4.7% from the prior-year quarter.
The efficiency ratio declined to 55.95% from 57.22% in the year-ago quarter. A fall in the efficiency ratio indicates an improvement in profitability.
As of Jun 30, 2024, total loans were $17.2 billion, down marginally from the prior-quarter end. Total deposits as of the same date were $24.3 billion, down marginally from the end of the previous quarter. Our estimates for total loans and deposits were $17.1 billion and $25.1 billion, respectively.
<h3>Asset Quality: Mixed Bag</h3>
Provision for credit losses was $5.5 million, which decreased 15.5% from the prior-year quarter. Our estimate for the metric was $7.2 million. Allowance for credit losses on loans to total loans was 0.92%, decreasing 2 bps year over year.
However, non-accrual loans to total loans were 0.11%, up 7 bps from the prior-year quarter. The ratio of annualized net loan charge-offs to total average loans was 0.23%, up from 0.16% in the year-earlier quarter.
<h3>Capital Ratios Improve, Profitability Ratios Mixed</h3>
As of Jun 30, 2024, the Tier I leverage ratio was 12.13%, up from 10.46% in the year-ago quarter. Tangible common equity to tangible assets ratio increased to 9.82% from the prior-year quarter&#39;s 7.70%.
At the end of the second quarter, the return on total average assets was 1.86%, up from the year-ago period&#39;s 1.56%. Return on average equity was 18.52% compared with 18.81% in the prior-year quarter.
<h3>Share Repurchase Update</h3>
In the reported quarter, the company repurchased 0.69 million shares at an average price of $55.21.
<h3>Our Take</h3>
Commerce Bancshares&#39; revenues are expected to be driven by decent loan demand, high interest rates and its balance sheet repositioning strategy. However, rising expenses remain a near-term headwind.
<div class="chart_embed">
<h3>Commerce Bancshares, Inc. Price, Consensus and EPS Surprise</h3>
<img alt="Commerce Bancshares, Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/30/1721393543.png" style="height:265px; width:577px" title="" />
Commerce Bancshares, Inc. price-consensus-eps-surprise-chart | Commerce Bancshares, Inc. Quote
</div>
Currently, Commerce Bancshares carries a Zacks Rank #2 (Buy).
<h3>Performance of Other Banks</h3>
Bank OZK&#39;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ozk#NASDAQ">OZK</a>) second-quarter 2024 earnings per share of $1.52 surpassed the Zacks Consensus Estimate by a penny. The bottom line increased 3.4% from the prior-year quarter.
OZK&#39;s results benefited from a rise in NII, driven by higher rates, and improvements in loans and deposit balances. However, increases in expenses and provision for credit losses, rising funding costs, and lower non-interest income were the undermining factors.
WaFd, Inc.&#39;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wafd#NASDAQ">WAFD</a>) third-quarter fiscal 2024 (ended Jun 30) adjusted earnings of 76 cents per share handily surpassed the Zacks Consensus Estimate of 59 cents. Also, the bottom line rose 4.1% sequentially.
WAFD&#39;s results reflected a rise in NII and other income, which aided the top line. Also, higher loan balances and lower provisions were other positives. However, a rise in expenses and a slight decline in the deposit balance acted as spoilsports.
<a href="https://www.zacks.com/stock/news/2305531/commerce-bancshares-cbsh-up-on-q2-earnings-beat-revenue-growth?cid=CS-BENZ-FT-analyst_blog|earnings_article-2305531">To read this article on Zacks.com click here.</a>

Stephens &amp; Co. analyst Andrew Terrell maintains WaFd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WAFD#NASDAQ">WAFD</a>) with a Equal-Weight and raises the price target from $32 to $36.

Stephens & Co. Maintains Equal-Weight on WaFd, Raises Price Target to $36

WaFd, Inc.&#39;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wafd#NASDAQ">WAFD</a>) third-quarter fiscal 2024 (ended Jun 30) adjusted earnings of 76 cents per share handily surpassed the Zacks Consensus Estimate of 59 cents. Also, the bottom line rose 4.1% sequentially.
The quarter marked the first full quarter after the completion of the acquisition of Luther Burbank Corporation (LBC).
The results reflected a rise in net interest income (NII) and other income, which aided the top line. Also, higher loan balances and lower provisions were other positives. However, a rise in expenses and a slight decline in the deposit balance acted as spoilsports.
Results in the reported quarter excluded merger-related costs and certain non-operating expenses. After considering those, net income available to common shareholders (GAAP basis) was $60.9 million or 75 cents per share, significantly up from $12.2 million or 17 cents per share in the prior quarter.
<h3>Revenues Rise, Expenses Up</h3>
Adjusted net revenues were $193.4 million, rising 11.2% from the prior quarter. Also, the top line surpassed the Zacks Consensus Estimate of $180.6 million.
NII came in at $177.2 million, growing 11.7% sequentially. The net interest margin was 2.56%, contracting 17 basis points (bps). Our estimates for NII and NIM were $166.8 million and 2.74%, respectively.
The total adjusted other income of $16.2 million rose 5.9%. Our estimate for the metric was $14.5 million.
Total adjusted other expenses were $107.8 million, up 5.9%. The rise was due to an increase in all the components. Our estimate for the metric was $114.8 million. During the reported quarter, WaFd recorded $2.3 million of merger-related expenses for the LBC deal.
The company&#39;s adjusted efficiency ratio was 55.7%, down from 58.5% in the prior quarter. A fall in the efficiency ratio reflects improved profitability.
As of Jun 30, 2024, net loans receivable were $20.9 billion, growing marginally from the prior quarter. During the quarter, the company sold $2.8 billion of acquired multifamily loans.
Total customer deposits were $21.2 billion, recording a slight fall.&nbsp;
At the end of the fiscal third quarter, the adjusted return on average common equity was 9.36%, up from 8.74% at the end of the prior quarter. Adjusted return on average assets was 0.88%, stable on a sequential basis.
<h3>Credit Quality: A Mixed Bag</h3>
As of Jun 30, 2024, allowance for credit losses (including reserve for unfunded commitments) was 1% of gross loans outstanding, stable from the prior quarter end.
In the reported quarter, the provision for credit losses was $1.5 million compared with $16 million provisions in the previous quarter.
The ratio of non-performing assets to total assets was 0.24%, up 1 bp.
<h3>Share Repurchase Update</h3>
During the quarter, WAFD repurchased 0.36 million shares at an average price of $26.63 per share.
In May, the company increased the buyback authorization by 10 million shares. As of Jun 30, 2024, approximately 11.5 million shares remained available under the authorization.
<h3>Our Viewpoint</h3>
Decent loan growth, higher interest rates and a robust balance sheet are likely to continue aiding WAFD&#39;s financials. The LBC acquisition expanded the company&#39;s presence in the lucrative California market and will be accretive to earnings in fiscal 2025. However, elevated expenses and an expected economic slowdown are near-term headwinds.
<div class="chart_embed">
<h3>WaFd, Inc. Price, Consensus and EPS Surprise</h3>
<img alt="WaFd, Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/00/1721219140.png" style="height:265px; width:577px" title="" />
WaFd, Inc. price-consensus-eps-surprise-chart | WaFd, Inc. Quote
</div>
Currently, WAFD carries a Zacks Rank #3 (Hold).
<h3>Earnings Dates &amp; Expectations of Other Banks</h3>
BankUnited (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bku#NYSE">BKU</a>) is scheduled to announce second-quarter 2024 numbers on Jul 18.
Over the past 30 days, the Zacks Consensus Estimate for BKU&#39;s quarterly earnings has been revised 1.5% down to 65 cents, suggesting a 16.7% decline from the prior-year reported number.
Commerce Bancshares (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cbsh#NASDAQ">CBSH</a>) is also set to announce second-quarter 2024 numbers on Jul 18.
Over the past month, the Zacks Consensus Estimate for CBSH&#39;s quarterly earnings has moved 3.4% north to 91 cents. This implies a 6.2% decrease from the prior-year quarter.
<a href="https://www.zacks.com/stock/news/2303592/wafd-s-q3-earnings-beat-estimates-revenues-rise-on-lbc-deal?cid=CS-BENZ-FT-analyst_blog|earnings_article-2303592">To read this article on Zacks.com click here.</a>

WAFD's Q3 Earnings Beat Estimates, Revenues Rise on LBC Deal

WaFd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WAFD#NASDAQ">WAFD</a>) reported quarterly earnings of $0.75 per share which beat the analyst consensus estimate of $0.57 by 31.58 percent. This is a 15.73 percent decrease over earnings of $0.89 per share from the same period last year.

WaFd Q3 EPS $0.75 Beats $0.57 Estimate

Commercial real estate (&quot;CRE&quot;) continues to be an area of concern amid the high-interest-rate environment. Because of their significant exposure to CRE loans, the long-term ratings of at least six regional banks in the United States have been placed under review for downgrade by Moody&#39;s Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mco#NYSE">MCO</a>). 
The banks are Old National Bancorp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/onb#NASDAQ">ONB</a>), Fulton Financial Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fult#NASDAQ">FULT</a>), F.N.B. Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fnb#NYSE">FNB</a>), WaFd, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wafd#NASDAQ">WAFD</a>), First Merchants Corp.&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/frme#NASDAQ">FRME</a>) and Peapack-Gladstone Financial Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pgc#NASDAQ">PGC</a>). 
Notably, at the time when interest rates were low in the United States, various regional banks increased their concentrations in CRE, which, by nature, is a volatile asset class. 
Now, amid the higher interest rate environment (the Federal Reserve increased interest rates last year at the fastest pace in decades to contain the stubborn inflation, which slowed down credit demand), banks with a substantial concentration in CRE loans face ongoing credit quality and profitability issues. This is because higher rates have increased the longstanding risks of CRE for banks&#39; creditworthiness, particularly during cycle downturns. 
Moreover, unlike the largest regional banks, the above-mentioned banks are not subject to heightened prudential regulatory standards. Thus, these banks&#39; credit weaknesses are enlarged by lower regulatory requirements in relation to the larger banks. 
Accordingly, since CRE loans have a lower value now amid higher rates, these banks face heightened risks. 
According to Moody&#39;s, bank funding is under pressure now because depositors continue to switch to accounts with higher interest rates, which has been leading to a compression in banks&#39; net interest margins. 
Moody&#39;s said that its review for downgrade will focus on the extent to which the above-mentioned regional banks can maintain sufficient qualitative and quantitative risk mitigants to offset the dangers associated with their CRE loan exposures, especially with respect to their policy toward the amount of capital and liquidity that they retain. 
Particularly for FULT, Moody&#39;s will also consider the impact that the recent acquisition of Republic Bank will have on the bank&#39;s creditworthiness. 
Likewise, for WAFD, Moody&#39;s will consider the impact that the bank&#39;s loan sale (WAFD recently entered an agreement to sell a large pool of multi-family loans that it acquired as part of its acquisition of Luther Burbank) will have on its capital, liquidity and profitability profiles. 
Currently, WAFD, ONB, and FULT carry a Zacks Rank #3 (Hold). FNB carries a Zacks Rank #4 (Sell). 
<a href="https://www.zacks.com/stock/news/2285392/6-regional-banks-ratings-on-review-for-downgrade-by-moody-s?cid=CS-BENZ-FT-analyst_blog|industry_focus-2285392">To read this article on Zacks.com click here.</a>

6 Regional Banks' Ratings on Review for Downgrade by Moody's

Piper Sandler analyst Kashy Harrison maintains WaFd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WAFD#NASDAQ">WAFD</a>) with a Neutral and raises the price target from $29 to $31.

Piper Sandler Maintains Neutral on WaFd, Raises Price Target to $31

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