Fed: Federal Reserve Board announces termination of enforcement actions with Gardner Bancshares, Inc. and Small Business Bank

• Three specific orders, including two Cease and Desist Orders and one Prompt Corrective Action, were terminated on October 13, 2026.
• The affected entities are Gardner Bancshares, Inc. and Small Business Bank, both based in Lenexa, Kansas.

The Federal Reserve Board announced that it has terminated enforcement actions involving Gardner Bancshares, Inc. and Small Business Bank. These actions included a Cease and Desist Order from September 1, 2023, another Cease and Desist Order from November 13, 2024, and a Prompt Corrective Action from June 29, 2026.

All three enforcement actions were officially terminated on October 13, 2026. The entities involved are both located in Lenexa, Kansas, and the termination was made public in a press release issued at 11:00 a.m. EDT.

• Review the terminated Cease and Desist Order dated September 1, 2023, for Gardner Bancshares, Inc. and Small Business Bank.
• Assess the implications of the terminated Cease and Desist Order dated November 13, 2024, for Small Business Bank.
• Update compliance monitoring to reflect the termination of the Prompt Corrective Action dated June 29, 2026, for Small Business Bank.

The termination of these enforcement actions signals that Gardner Bancshares, Inc. and Small Business Bank have addressed the regulatory concerns that led to the original orders. For AML/CFT compliance officers, this development highlights the importance of ongoing remediation and the potential for regulatory relief when corrective measures are successfully implemented. Monitoring such terminations helps compliance teams stay informed about regulatory expectations and the resolution of enforcement actions in the banking sector.