Provident Bancorp in Amesbury, Mass., said its CEO has stepped down just weeks after it projected a large quarterly loss tied to its dealings with crypto mining companies.
The $1.8 billion-asset company said in a press release that Dave Mansfield also relinquished his title as president as part of a “mutual decision” with the board, effective last Tuesday.
Provident said that Carol Houle, its chief financial officer, and Joe Reilly, its chairman, will serve as co-CEOs and co-presidents, effective Jan. 1. Reilly was CEO of Centrix Bank & Trust from 1999 to 2014, when the bank was sold to Eastern Bankshares.
Laurie Knapp, the board’s audit committee chair, will become chairman.
“BankProv remains well-capitalized and on sound financial footing,” Reilly said in the release. “Carol and I are confident in the bank’s future and are ready to provide continuity as we chart our course forward.”
Provident, the parent of BankProv disclosed in a recent regulatory filing that it expects to report a loss of about $27.5 million in the quarter.
Provident disclosed in October that it had repossessed crypto mining rigs in exchange for forgiving a $27.4 million loan relationship. The company disclosed in a subsequent filing that the arrangement will lead to a partial writedown and triggered a detailed review of similarly collateralized loans.
Following the review, Provident determined that “a majority” of its remaining $76.5 million of loan exposure to digital asset mining borrowers is likely “impaired” and will be “placed on nonaccrual status with significant related specific reserves.”
The company recently withdrew a shelf registration that would have allowed it to sell up to $100 million of securities over time.