Federal Reserve Board Announces Termination of Enforcement Actions with Gardner Bancshares, Inc. and Small Business Bank

WASHINGTON — In an official regulatory announcement released on Friday morning, the Federal Reserve Board formally declared the complete termination of all active enforcement actions concerning Gardner Bancshares, Inc. and its subsidiary, Small Business Bank, both based in Lenexa, Kansas. The decision marks a significant milestone for the Kansas-based financial institutions, clearing away multiple layers of regulatory oversight that had been put in place over the course of the past several years to address various compliance and operational directives.

The regulatory relief, which took effect officially on October 13, 2026, lifts a series of restrictive supervisory measures that included multiple historical cease and desist orders as well as a more recent prompt corrective action directive. According to the Board’s public notice, the conclusion of these proceedings means that the Federal Reserve has determined that the bank and its holding company have successfully satisfied the stringent conditions and corrective measures mandated under the prior enforcement documents.

The sequence of actions being terminated highlights a multi-year period of intensive regulatory engagement between federal banking authorities and the Lenexa-based institutions. The earliest of the lifted measures is a Cease and Desist Order dated September 1, 2023, which had been issued jointly to both Gardner Bancshares, Inc. and Small Business Bank. Such orders typically require financial institutions to submit comprehensive plans for strengthening board oversight, enhancing risk management practices, maintaining adequate capital levels, and improving overall operational compliance. For over three years, this foundational order served as the primary supervisory framework governing the holding company and its subsidiary bank.

In addition to the 2023 joint order, the Federal Reserve Board has lifted a subsequent Cease and Desist Order directed specifically at Small Business Bank, which was originally issued on November 13, 2024. This secondary order added further regulatory mandates tailored to the bank’s individual operations and risk profile. Furthermore, the termination encompasses a Prompt Corrective Action directive dated June 29, 2026. Prompt corrective action measures are statutory tools triggered when a depository institution falls below certain specified capital categories, requiring mandatory and discretionary supervisory actions designed to restore the institution to a well-capitalized status.

The simultaneous termination of all three regulatory instruments on October 13, 2026, signals that federal regulators are now satisfied with the remedial steps, financial strengthening, and governance reforms undertaken by the leadership and management of Gardner Bancshares, Inc. and Small Business Bank. By officially closing these dockets, the Federal Reserve removes the formal constraints and reporting requirements associated with the corrective orders, allowing the institutions to transition back to standard, routine supervisory oversight.

The Federal Reserve Board maintains a comprehensive public database of historical and active regulatory enforcement actions, allowing industry analysts, researchers, and members of the public to track supervisory measures taken against state member banks, bank holding companies, and foreign banking organizations. Additional details regarding past and present enforcement actions can be accessed through the official enforcement action search portal hosted on the Federal Reserve’s website.

For further information regarding Friday’s announcement or related inquiries, media representatives are encouraged to contact the Federal Reserve Board’s media relations office via electronic mail at [email protected] or by telephone at 202-452-2955.