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

WASHINGTON — In a significant regulatory development for the Kansas banking sector, the Federal Reserve Board announced on Friday the complete termination of all active enforcement actions involving Gardner Bancshares, Inc. and its subsidiary institution, Small Business Bank, both located in Lenexa, Kansas.

The regulatory relief, which took formal effect on October 13, 2026, marks a major milestone for the holding company and the bank after several years of operating under strict federal oversight. The announcement brings an official close to a multi-year regulatory remediation process that included multiple cease and desist orders as well as a prompt corrective action directive.

According to the central bank’s public release issued at 11:00 a.m. Eastern Daylight Time, the Federal Reserve Board has lifted three separate administrative actions that had previously been imposed on the Lenexa-based financial institutions to address supervisory concerns.

The terminated enforcement actions include a joint Cease and Desist Order previously issued to Gardner Bancshares, Inc. and Small Business Bank on September 1, 2023. Additionally, the Federal Reserve terminated a subsequent standalone Cease and Desist Order that had been issued directly to Small Business Bank on November 13, 2024. Finally, the regulatory agency lifted a Prompt Corrective Action directive that was most recently imposed on Small Business Bank on June 29, 2026.

The lifting of these administrative measures indicates that the leadership and management of Gardner Bancshares, Inc. and Small Business Bank have successfully satisfied the stringent conditions, remediation benchmarks, and capital requirements mandated by federal bank regulators over the course of the remediation period.

Regulatory enforcement actions such as cease and desist orders are formal administrative measures taken by the Federal Reserve Board when supervisory examinations reveal unsafe or unsound practices, violations of law, or deficiencies in governance, risk management, or financial condition. In the case of Small Business Bank and its parent holding company, the accumulation of orders since late 2023 reflected a sustained period of regulatory scrutiny. The subsequent issuance of a prompt corrective action directive in mid-2026 typically underscores heightened supervisory intervention aimed at addressing specific capital inadequacies or financial ratios.

The simultaneous termination of all pending enforcement actions signals that the Federal Reserve has determined the institutions have corrected the underlying deficiencies that prompted the original interventions. By resolving these matters, Gardner Bancshares, Inc. and Small Business Bank are cleared of the specific operational and managerial restrictions imposed by the federal directives, allowing the institutions to move forward under standard regulatory oversight.

Federal banking authorities maintain rigorous standards for commercial banks and bank holding companies across the United States to ensure the safety, soundness, and stability of the broader financial system. The Federal Reserve Board regularly utilizes enforcement actions to compel banking organizations to rectify identified weaknesses, improve internal controls, and restore capital positions when necessary. When an institution demonstrates sustained compliance and successful remediation of the cited issues, the Board formally terminates the enforcement documents, returning the bank to regular supervisory standing.

The Federal Reserve Board noted that individuals or entities seeking information regarding other historical or active regulatory actions can access a searchable public database available through the central bank’s official web portal. For media organizations and journalists pursuing further details or official commentary regarding the termination of the actions involving Gardner Bancshares, Inc. and Small Business Bank, the Board directed inquiries to be sent via electronic mail to [email protected] or by contacting the media relations office directly by telephone.