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

The Federal Reserve Board announced the conclusion of enforcement actions against Gardner Bancshares, Inc. and Small Business Bank, both based in Lenexa, Kansas. The termination applies to a cease and desist order issued on September 1, 2023, which has now been formally lifted. The action reflects the Federal Reserve’s review of the institutions’ compliance with regulatory standards. No further penalties or restrictions will apply to the entities following this decision.

A second enforcement action, also involving Small Business Bank, was terminated simultaneously. This action originated from a cease and desist order dated November 13, 2024, and was also rescinded on October 13, 2026. The Federal Reserve did not specify additional details regarding the reasons for termination in its public notice. The decisions were made by the Federal Reserve Board following its standard supervisory process.

The termination of these enforcement actions signals the resolution of supervisory concerns that prompted the original orders. Both Gardner Bancshares, Inc. and Small Business Bank are now free from the obligations imposed by the cease and desist directives. The Federal Reserve’s action does not imply any admission of wrongdoing by the institutions, as stated in its announcement.

The Federal Reserve Board oversees the nation’s banking system and uses enforcement actions to address compliance issues. These terminations follow the board’s periodic review of supervised institutions and their corrective measures. The decisions were made public through an official press release on Friday, concluding the enforcement proceedings for the specified entities.