Northeast Bank in Portland is putting capital earned from the Paycheck Protection Program to use, purchasing $1.1 billion of loans and launching a small-dollar Small Business Administration lending program.

Lenders are bracing for possible setbacks in small business, office and hospitality lending. Consumer credit challenges may follow.

The New Canaan Bank would have been the state's first de novo in more than a decade.

The Amesbury-based bank reported solid growth and profitability throughout Dave Mansfield's 9-year tenure. The decision followed news of losses tied to the bank's move into digital-asset lending, though the bank has yet to file a 10-Q for the third quarter.

Despite a slow year overall, banks announced several substantial merger and acquisitions in 2022.

The $23 million deal, announced more than a year ago, was terminated following regulatory delays.

The bank hired Thomas Geisel to take over as president and chief executive, effective immediately. He succeeds Harry Madonna, who had been interim leader after the ouster of Vernon Hill.

The state's Department of Financial Services issued proposed guidelines on how banks and mortgage lenders should manage climate-related risks. But the guidance was quickly slammed by a trade group representing community banks.

A handful of banks and credit unions with assets under $3 billion each rolled out or expanded its use of distinctive technologies, including a contactless-payment ring.

Robert Fehlman, who has worked with the bank since 1988, will succeed George Makris Jr. at the start of 2023.