Following steep losses tied to a cryptocurrency-related lending product and the departure of its CEO, BankProv has made its interim leaders permanent co-presidents and co-CEOs.

The Amesbury-based bank’s parent company, Provident Bancorp Inc., appointed Carol Houle and Joe Reilly as co-CEOs and co-presidents effective immediately, the bank said in a statement yesterday. The pair had held the roles on an interim basis since Dec. 23.

The bank’s former president and CEO, Dave Mansfield, had resigned on Dec. 20 after BankProv experienced what ended up being $35.3 million in third quarter losses. The losses were tied to loans in its cryptocurrency mining portfolio.

Houle, the bank’s chief financial officer since 2013, will maintain her role as BankProv’s CFO.

“The board is very pleased with the work that Joe and Carol have done in a very short time to help the Bank through the past few months, and we are confident that they are the right team to continue to lead the Bank going forward,” Laurie Knapp, chairman of the board, said in the statement. “The Co-CEO positions will provide the institution with an unmatched leadership team and the ability for Carol to continue in her capacity as the CFO.”

Houle previously had executive positions at Shatswell, Macleod & Co. P.C. and T.C. Edwards & Co. P.C.

“I am excited to lead the Bank through its next chapter with Joe,” Houle said in the statement. “We recognize this is a tremendous opportunity and together we look forward to serving our clients, creating significant value for our shareholders and fostering an inclusive environment for our team members to thrive.”

Reilly co-founded Centrix Bank in 1999 and was CEO there until the bank was acquired in 2014 by Eastern Bank, where he remained through 2017. Before co-founding Centrix Bank, Reilly was chief operating officer and senior lending officer at the former Centerpoint Bank.

Reilly joined the boards of BankProv, known as The Provident Bank until 2020, and Provident Bancorp Inc. in 2018. He was elected chairman soon after joining the board.

“I am grateful to be able to support the organization in this new capacity,” Reilly said in the statement. “BankProv has a long history of being a trusted partner for businesses. We will continue to build upon our past successes of providing best-in-class banking products and being a premier Banking-as-a-Service (BaaS) provider.”

BankProv Makes Interim Leadership Team Permanent

by Banker & Tradesman time to read: 2 min