Western Alliance Bancorp stays a Buy despite Q1 $126M charge-off and new non-performing loan concerns.

Western Alliance Bancorporation reported a $126.4 million charge-off in Q1 related to a Leucadia Asset Management loan, causing a 6% drop in its shares. Despite this, the bank's core lending portfolio grew 8% year-over-year to $59.1 billion, with a net interest margin rising to 3.54%. A new $99 million non-performing loan tied to a life-science property raised some investor concerns, but the overall asset quality and adjusted net charge-off ratio showed no major deterioration. The stock trades at an 8.1X forward P/E, offering an estimated 8% upside, supported by strong loan growth and net interest income, keeping it a Buy recommendation despite short-term pressures.