WASHINGTON — In an official regulatory update released on Friday, October 16, 2026, the Federal Reserve Board announced the complete termination of all active enforcement actions previously imposed upon Gardner Bancshares, Inc. and Small Business Bank, both headquartered in Lenexa, Kansas. The decision, which took effect on October 13, 2026, marks a significant milestone for the holding company and its subsidiary institution as they successfully resolve longstanding regulatory concerns that have spanned multiple years.

The termination encompasses a series of corrective measures and formal directives that the central bank had previously enacted to address operational, financial, or compliance matters at the Kansas-based institutions. By lifting these orders, the Federal Reserve has signaled that the bank and its parent holding company have met the necessary benchmarks and remedial milestones outlined in the respective enforcement documents.

The regulatory relief spans three distinct historical actions that had governed the operations of Gardner Bancshares and Small Business Bank over the past several years. The first of these was a Cease and Desist Order dated September 1, 2023, which had been jointly issued to both Gardner Bancshares, Inc. and Small Business Bank. This order served as an initial supervisory intervention requiring both entities to institute comprehensive improvements in their governance, risk management, and operational frameworks.

Following the initial 2023 directive, the regulatory oversight tightened further as supervisory evaluations progressed. On November 13, 2024, the Federal Reserve Board issued a subsequent Cease and Desist Order directed specifically at Small Business Bank. This second order addressed additional institution-specific findings that required targeted remediation, capital planning, or compliance enhancements within the banking subsidiary itself.

The supervisory process culminated in mid-2026 with a Prompt Corrective Action notice. On June 29, 2026, the Federal Reserve imposed this formal measure exclusively on Small Business Bank. Prompt Corrective Action frameworks are statutory mechanisms triggered when a depository institution falls below certain specified capital categories, requiring mandatory and discretionary supervisory actions to restore the institution’s financial health and capital adequacy.

With the announcement issued at 11:00 a.m. EDT on Friday, the Federal Reserve confirmed that all three of these governing documents—the September 2023 joint order, the November 2024 bank-level order, and the June 2026 Prompt Corrective Action directive—were formally terminated as of October 13, 2026. The lifting of these restrictions relieves the Lenexa institutions of the heightened supervisory burdens and mandatory compliance milestones that accompanied the enforcement measures.

The Federal Reserve Board maintains a comprehensive public archive of regulatory enforcement actions taken against financial institutions under its supervision. Interested parties seeking to review additional historical orders, supervisory agreements, or other enforcement measures can access the central bank’s searchable database through its official online portal.

For members of the media seeking further information, official statements, or clarification regarding the termination of these specific enforcement actions, the Federal Reserve Board’s press office remains available for inquiries. Inquiries can be directed via electronic mail to [email protected] or by contacting the media relations office directly by telephone at 202-452-2955.