What occurred

For the week, shares of Prospects Bancorp (NYSE: CUBI) traded 10.5% increased after market shut Thursday for no apparent motive aside from the broader rally amongst crypto, financial institution, and tech shares this week.

So what

Prospects Bancorp is a roughly $19 billion asset financial institution headquartered in Pennsylvania that makes a speciality of numerous area of interest lending verticals and banking companies.

Prospects runs numerous specialty banking strains, together with healthcare financing and enterprise capital banking. The financial institution additionally presents numerous digital client and industrial lending companies. It has additionally lately launched a real-time funds system primarily to raised facilitate crypto buying and selling between institutional traders and crypto exchanges.

Regardless of good efficiency, Prospects Bancorp has bought off intensely this yr together with different tech, banking, and crypto shares.

However in June, the financial institution supplied a mid-quarter replace during which it reaffirmed its full-year steerage of $4.75 to $5 in core earnings. Administration additionally mentioned it had grown deposits by greater than $1 billion within the second quarter, which is probably going as a result of its real-time funds system, which attracts purchasers with massive sums of low-cost deposits.

Prospects additionally mentioned it expects to develop its tangible ebook worth, or web value, to $40 by the tip of the yr. Banks commerce relative to their tangible ebook worth.

Now what

The rise this week is probably going linked to the favorable tendencies within the broader market. However this can be a inventory that I personal and that I like.

Contemplating the enticing enterprise strains they’re operating and the returns they’re producing, the inventory is way too low cost, for my part, to be buying and selling proper round tangible ebook worth. The corporate studies earnings subsequent week. I might price the inventory as a purchase.

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Bram Berkowitz has positions in Prospects Bancorp. The Motley Idiot has no place in any of the shares talked about. The Motley Idiot has a disclosure coverage.

The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.