Dave Mansfield has resigned from his role as president and CEO of BankProv, a move that comes as the bank expects to see steep financial losses tied to one of its cryptocurrency loan portfolios.
The Amesbury, Massachusetts-based bank operates several New Hampshire branches and was formerly known as The Provident Bank.
In what the bank said was a mutual decision between Mansfield and the board of directors for parent company Provident Bancorp Inc., Mansfield stepped down from his leadership role and his position on the board effective Dec. 20. The bank announced the news in a statement on Friday, Dec. 23, following market close.
BankProv will have interim co-CEOs and co-presidents effective Jan. 1: Carol Houle, the bank’s chief financial officer, and Joe Reilly, the bank’s board chair.
A former bank CEO in New Hampshire, Reilly will step down as board chair but remain a board member, the bank said in a securities filing. Laurie Knapp, owner of an accounting firm in Amesbury, will take over as board chair.
Houle will continue in her role as CFO.
The leadership change follows financial troubles tied to BankProv’s digital asset mining loan portfolio. The bank began providing financing to the cryptocurrency industry in 2020, when it rebranded as BankProv.
After forgiving a $27.4 million digital asset loan in September, BankProv discovered that a majority of that $76.5 million loan portfolio could be impaired, according to securities filings.
The bank, which has not yet filed its third quarter financial results, estimated in November that it could have a third quarter net loss of $27.5 million.
In Friday’s statement, Reilly said BankProv remained “well-capitalized and on sound financial footing.”
“Carol and I are confident in the Bank’s future and are ready to provide continuity as we chart our course forward,” Reilly said.
Reilly, who became the bank’s board chair in 2019, was the co-founder, president and CEO of Centrix Bank, which was acquired by Eastern Bank in 2014. Reilly has also worked at Bank of New Hampshire, TD Bank, Centerpoint Bank and Fleet Bank.
Houle joined the bank in 2013 after 17 years at the accounting firm Shatswell, MacLeod & Company P.C.
“We thank Dave for his years of service to the Bank,” Houle said in the statement. “We remain committed to continuing BankProv’s storied history of serving the community and providing innovative banking solutions to our customers.”
Mansfield, who had previously worked at the FDIC and Office of the Comptroller of the Currency, joined what was then called The Provident Bank in 2001.
“Over the past 21 years, I have been fortunate to work with an amazing team at BankProv and I look forward to watching the Bank continue to grow,” Mansfield said in the statement. “I leave knowing the Bank is in capable hands.”
As part of his separation agreement with the bank, Mansfield will receive a lump sum payment of more than $1.48 million. The payment will be made following a seven-day period when the signed agreement can be revoked, but not before Jan. 1, according to the securities filing.