Provident Bancorp sees collateral write-down leading to Q3 loss

Provident Bancorp (NASDAQ:PVBC) stock has dropped 3.5% in Tuesday after-hours trading after the bank said it's likely to post a loss for the quarter ended Sept. 30 due to the writedown of collateral it repossessed from a crypto mining company.As of Sept. 30, the company entered an agreement under which it repossessed cryptocurrency mining rigs in exchange for the forgiveness of a $28M loan to the borrower.So far, Provident Bancorp (PVBC) hasn't entered into an agreement to resell the collateral and is still evaluating the write-down of the collateral and the impact on its financial statements.It "cannot predict with certainty at this time the amount of the write-down in the fair market value" of the repossessed collateral. And while Provident (PVBC) expects to recognize a partial loss in relation to the fair market value of the equipment, 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 Sept. 30, 2022," it said.Before the news, the sole analyst estimate for PVBC's Q3 EPS was $0.28.In August, Provident Bancorp (PVBC) announced a partnership with Republic, an investment platform and crowdfunding market place.