Provident Bancorp, Inc. (the “Company”) (NASDAQ:PVBC), the holding company for BankProv (the “Bank”), provided guidance with respect to earnings for the quarter ended September 30, 2022.
Effective September 30, 2022, the Bank entered into an asset purchase agreement whereby the Bank repossessed collateral, consisting of cryptocurrency mining rigs, in exchange for the forgiveness of a $28 million loan to a borrower. As of today, the Bank has not entered into an agreement for the resale of the collateral. The Company is in the process of completing its evaluation of the write-down of the collateral and the impact on its consolidated financial statements as a whole.
The Company cannot predict with certainty at this time the amount of the write-down in the fair market value of the repossessed collateral and the impact on the consolidated financial statements as a whole. Although the Company expects to recognize only a partial loss with respect to the fair market value of the repossessed collateral, the Company expects that the combination of such a write-down and its impact to the consolidated financial statements as a whole will likely result in the Company recognizing a loss for the quarter ended September 30, 2022. The Company will include final information in its earnings release as well as in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, to be filed with the Securities and Exchange Commission.
