BankProv CEO resigns months after bank’s crypto-loan loss

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<h3>Dive Temporary:</h3> <ul> <li>Dave Mansfield <a target="_blank" href="http://www.prnewswire.com/news-releases/bankprov-announces-executive-transitions-301709747.html" rel="noopener">stepped down</a> as CEO of Amesbury, Massachusetts-based BankProv on Dec. 20, a transfer the financial institution’s board and the previous chief government referred to as a “mutual resolution.”</li> <li>BankProv named CFO Carol Houle and Joe Reilly, the financial institution’s chair, as interim co-CEOs and co-presidents. Laurie Knapp, chair of the financial institution’s audit committee, will function board chair, the financial institution introduced. </li> <li>BankProv’s management transition follows the financial institution’s forecast final November that it expects to <a target="_blank" href="https://www.bankingdive.com/news/bankprov-braces-275m-bad-crypto-mining-loans-bitcoin/636838/" rel="noopener">lose $27.5 million</a> for the quarter ending Sept. 30, as a result of its lending publicity to the crypto mining business.</li> </ul>

<h3>Dive Perception:</h3> Mansfield was named CEO of the $1.7 billion-asset financial institution in 2013, and had beforehand served because the agency’s CFO. "Over the previous 21 years, I've been lucky to work with an incredible workforce at BankProv and I look ahead to watching the Financial institution proceed to develop," Mansfield stated in a press release final month. "I go away figuring out the Financial institution is in succesful palms." A financial institution spokesperson didn't share the rationale for Mansfield’s departure, however stated Mansfield and the financial institution’s board believed it was time for brand new management. “We can be forming a search committee and can spend the time essential to determine the perfect candidates and select a frontrunner who's able to persevering with BankProv’s custom of serving the group and offering progressive banking options,” the spokesperson stated. “We’re assured that Carol and Joe will present glorious management and an vital sense of continuity within the interim.” As BankProv searches for a brand new chief, the agency is going through a reckoning over its resolution to lend to the crypto mining business, a sector going through vital misery amid rising vitality costs and a steep drop in Bitcoin worth. BankProv launched a deposit operation for crypto firms and expanded into enterprise loans to crypto companies a number of years in the past in an effort to interrupt into an underserved market, <a target="_blank" href="https://thefinancialbrand.com/news/cryptocurrency-banking/cryptocurrency-banking-bitcoin-ethereum-bankprov-customers-bank-unify-financial-trend-125458/" rel="noopener">according to the Financial Brand</a>. The financial institution issued its first Bitcoin-secured crypto enterprise credit score line in late 2020, and rolled out an Ethereum-secured credit score line the next 12 months, the publication reported. In January 2022, <a target="_blank" href="https://www.prnewswire.com/news-releases/bankprov-to-scale-its-specialty-banking-team-to-serve-underserved-markets-301463081.html" rel="noopener">the bank announced</a> it had expanded its digital asset workforce, a part of the financial institution’s push to supply a full-service providing for the cryptocurrency group. However by the autumn of final 12 months, BankProv stated it started to query the monetary stability of its debtors who maintain digital-asset mining loans. In a November submitting with the Securities and Alternate Fee (SEC), the financial institution stated the latest decline within the cryptocurrency mining business might lead to losses exceeding $27.5 million. BankProv’s digital-asset mining mortgage portfolio totaled $76.5 million on the finish of September, in keeping with the submitting. "BankProv stays well-capitalized and on sound monetary footing," Reilly stated in a press release final month. "Carol and I are assured within the Financial institution's future and are prepared to supply continuity as we chart our course ahead.”

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