WASHINGTON — In an official regulatory update released on Friday, October 16, 2026, the Federal Reserve Board announced the formal termination of multiple enforcement actions previously imposed on Gardner Bancshares, Inc. and Small Business Bank, both headquartered in Lenexa, Kansas. The regulatory relief, which took effect on October 13, 2026, marks a significant milestone for the financial institutions after years of regulatory oversight and corrective measures.

The announcement, published at 11:00 a.m. Eastern Daylight Time, brings closure to a series of administrative actions that had been put in place by federal regulators to address governance, operational, or financial concerns at the bank holding company and its subsidiary. By lifting these directives, the Federal Reserve has indicated that the institutions have successfully satisfied the requirements and conditions outlined in the prior regulatory orders.

The terminated measures include a pair of longstanding Cease and Desist Orders as well as a more recent Prompt Corrective Action directive. Specifically, the regulatory rollout affects actions that span back to late 2023.

The first of the rescinded orders involves a joint Cease and Desist Order dated September 1, 2023, which was originally issued by the Federal Reserve Board against both Gardner Bancshares, Inc. and Small Business Bank in Lenexa, Kansas. Such orders are typically enacted when regulators identify practices that require mandatory remediation, ranging from risk management improvements to enhanced board oversight and capital restoration.

Following that initial action, Small Business Bank faced an additional layer of oversight. On November 13, 2024, the bank was subjected to a subsequent Cease and Desist Order issued independently to the institution. Throughout this period, both the holding company and the bank worked under the purview of federal examiners to correct the identified deficiencies and align their operations with safety and soundness standards established by the central bank.

More recently, Small Business Bank was subjected to a Prompt Corrective Action (PCA) dated June 29, 2026. Prompt Corrective Actions are statutory mandates triggered when an insured depository institution falls below certain capital categories defined by federal law. These measures are designed to resolve capital deficiencies promptly and protect the Deposit Insurance Fund administered by the Federal Deposit Insurance Corporation.

However, with the Federal Reserve Board’s decision on October 13, 2026, all three of these regulatory hurdles—the September 2023 joint order, the November 2024 bank-level order, and the June 2026 PCA directive—have been officially terminated. The comprehensive lifting of these directives suggests that the institutions have successfully restored their operational stability and capital adequacy to levels acceptable to federal banking authorities.

For financial institutions operating within the United States banking system, the termination of enforcement actions is a vital step toward restoring normal business operations and public confidence. While cease and desist orders and prompt corrective actions place severe operational restrictions and heightened reporting requirements on banks, their removal allows management teams to refocus on strategic growth, customer service, and community lending without the constant weight of active regulatory penalties.

The Federal Reserve maintains an active public repository of regulatory enforcement actions taken against state member banks, bank holding companies, savings and loan holding companies, and other entities under its supervision. Members of the public, researchers, and industry professionals seeking further details regarding past or active regulatory orders can utilize the searchable enforcement actions database provided on the official Federal Reserve website.

Media organizations and journalists seeking further information or official statements regarding the termination of these specific actions have been directed to reach out to the Federal Reserve Board’s media relations department. Inquiries can be submitted via email to [email protected] or by contacting the press office directly by phone at 202-452-2955.