Federal Reserve Board Announces Termination of Enforcement Actions With Gardner Bancshares and Small Business Bank
Key Takeaways
- •The Federal Reserve terminated three enforcement actions involving Gardner Bancshares, Inc. and Small Business Bank, both based in Lenexa, Kansas, effective October 13, 2026.
- •The terminated actions consisted of a cease and desist order dated September 1, 2023, a second cease and desist order dated November 13, 2024, and a Prompt Corrective Action dated June 29, 2026.
- •The September 2023 order had been in place for just over three years, the November 2024 order for nearly two years, and the June 2026 Prompt Corrective Action for roughly three and a half months.
- •A termination means an enforcement action is no longer in effect, so the compliance, reporting, and capital-related requirements it imposed no longer apply to the institutions.
- •The announcement did not provide further detail regarding the terminations.
The Federal Reserve Board on Friday announced the termination of three enforcement actions involving Gardner Bancshares, Inc. and Small Business Bank, both based in Lenexa, Kansas. The press release was issued on October 16, 2026, for release at 11:00 a.m. EDT, and each of the actions was terminated on October 13, 2026.
Terminated Actions
According to the announcement, the following enforcement actions were terminated on October 13, 2026:
- Gardner Bancshares, Inc., Lenexa, Kansas, and Small Business Bank, Lenexa, Kansas — Cease and Desist Order dated September 1, 2023 (PDF)
- Small Business Bank, Lenexa, Kansas — Cease and Desist Order dated November 13, 2024 (PDF)
- Small Business Bank, Lenexa, — Prompt Corrective Action dated June 29, 2026 (PDF)
The terminations close out supervisory matters of varying duration: the September 2023 order had been in place for just over three years, the November 2024 order for nearly two years, and the June 2026 Prompt Corrective Action for roughly three and a half months.
Background
Cease and desist orders are among the supervisory tools the Federal Reserve can use against banking organizations for violations of laws and regulations or unsafe or unsound banking practices. Prompt Corrective Action is a statutory framework, established under the Federal Deposit Insurance Corporation Improvement Act of 1991, that requires regulators to apply progressively stricter corrective measures as a depository institution's capital levels decline.
The Board periodically announces the initiation and termination of such enforcement actions as part of its supervisory responsibilities. A termination means the enforcement action is no longer in effect, meaning the measures required under the order no longer apply to the institutions. Enforcement actions of these types can impose ongoing compliance, reporting, and capital-related requirements while in force, which is why their removal can be operationally significant for a community bank. The announcement did not provide further detail regarding the terminations.
Additional Information
The full announcement is available on the Federal Reserve Board's website. Additional enforcement actions can be searched through the Board's enforcement actions database, where any future initiations or terminations involving the institutions would be recorded.
Media inquiries may be directed to the Board by email or by phone at 202-452-2955.
