Provident Bancorp Inc (PVBC)

[56Chevy]

BankProv CEO resigns after $27.5 million crypto currency hit

Thu, January 5, 2023, 4:52 PM

Jan. 5—Provident Bancorp begins 2023 with new leadership after the December exit of CEO Dave Mansfield, following the bank's report that it expected a third quarter loss of $27.5 million related to loans to a cryptocurrency miner.

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In a Nov. 15 filing to the Securities and Exchange Commission, Provident estimated it would report a net loss of approximately $27.5 million for the quarter ended Sept. 30, 2022, compared to net income of $5.1 million for the quarter ended Sept. 30, 2021.

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"The Company is still evaluating the actual level of losses due to the recent decline in the cryptocurrency mining industry, and such losses may exceed this estimate," the company wrote.

"During the third quarter of 2022, the volatility in Bitcoin and rising energy costs called into question the financial stability of the Company's borrowers who hold digital asset mining loans, the collectability of all principal and interest related to these loans, as well as the value of the cryptocurrency mining rigs that serve as the underlying collateral."

The bank said its remaining digital asset mining loan portfolio as of Sept. 30 totaled $76.5 million, "of which, upon review, the Company estimates a majority to be impaired and placed on non-accrual status."

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Source:
https://news.yahoo.com/bankprov-ceo-resigns-27-5-235200484.html

Marker: current pps $7.39

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