What occurred

For the week, shares of Prospects Bancorp (CUBI -0.69%) traded 10.5% increased after market shut Thursday for no apparent purpose apart 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 plenty of area of interest lending verticals and banking companies.

Prospects runs plenty of specialty banking traces, together with healthcare financing and enterprise capital banking. The financial institution additionally presents plenty of digital shopper and industrial lending companies. It has additionally just lately launched a real-time funds system primarily to higher facilitate crypto buying and selling between institutional buyers and crypto exchanges.

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

However in June, the financial institution offered a mid-quarter replace by which it reaffirmed its full-year steering 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 attributable to its real-time funds system, which attracts purchasers with giant sums of low-cost deposits.

Prospects additionally mentioned it expects to develop its tangible ebook worth, or web price, 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 it is a inventory that I personal and that I like.

Contemplating the engaging enterprise traces they’re operating and the returns they’re producing, the inventory is much too low cost, for my part, to be buying and selling proper round tangible ebook worth. The corporate experiences earnings subsequent week. I might fee the inventory as a purchase.