United States · Official update
Federal Reserve Board announces termination of enforcement actions with Gardner Bancshares, Inc. and Small Business Bank
The Federal Reserve Board on Friday announced the termination of the enforcement actions listed below:
Gardner Bancshares, Inc., Lenexa, Kansas and Small Business Bank, Lenexa, Kansas Cease and Desist Order dated September 1, 2023 (PDF) Terminated October 13, 2026
Small Business Bank, Lenexa, Kansas Cease and Desist Order dated November 13, 2024 (PDF) Terminated October 13, 2026
Small Business Bank, Lenexa, Kansas Prompt Corrective Action dated June 29, 2026 (PDF) Terminated October 13, 2026
Additional enforcement actions can be searched for here.
PDF summaries & supporting documents
Inside the document
What the PDF says
Gardner Bancshares & Small Business Bank: September 1, 2023 order
DailyMIQ summary · 19-page source document
Historical order: terminated October 13, 2026, according to the Fed’s October 16 announcement. The requirements below describe the original order. Read related announcement
The 2023 order required Gardner Bancshares and Small Business Bank to address widespread weaknesses in bank management, financial controls, lending, capital, and compliance.
Key points
Stronger management and oversight
The holding company had to support its bank. The bank had to obtain an independent governance and staffing review and strengthen board oversight.
Source: PDF pages 3–5Lending, capital, and liquidity controls
The order required plans for problem loans, credit-loss reserves, capital, liquidity, and interest-rate risk. Dividends and new debt required regulatory approval.
Source: PDF pages 5–13, 15–16Compliance and follow-through
Requirements covered technology security, outside service providers, anti-money-laundering controls, internal audit, and quarterly progress reports.
Source: PDF pages 13–17
What this means
The attachment explains what regulators originally required. The later termination announcement does not provide a fresh assessment of every risk at the bank.
Key term: Cease-and-desist order
A binding regulatory order requiring an institution to stop specified practices and take corrective action.
Summarized by DailyMIQ from the linked Federal Reserve document. Checked October 18, 2026. Read source PDF
Inside the document
What the PDF says
Small Business Bank: November 13, 2024 anti-money-laundering order
DailyMIQ summary · 11-page source document
Historical order: terminated October 13, 2026, according to the Fed’s October 16 announcement. The requirements below describe the original order. Read related announcement
The 2024 order focused on new and continuing weaknesses in Small Business Bank’s anti-money-laundering controls, including identifying customers and detecting suspicious transactions.
Key points
Know customers and their risks
Within 60 days, the bank had to submit improvements to its compliance program, customer identification, customer due diligence, and suspicious-activity reporting.
Source: PDF pages 2–6Independently check transactions
The bank had to arrange independent reviews of its monitoring system and January–June 2023 transactions. Interim wire and ACH monitoring procedures were due within 30 days.
Source: PDF pages 6–8Report progress
The bank had to provide quarterly progress reports. This order replaced the 2023 order’s anti-money-laundering paragraph; the other 2023 provisions remained in effect at that time.
Source: PDF pages 8–10
What this means
Suspicious-activity controls are designed to flag transactions for investigation and reporting. A suspicious transaction is not, by itself, proof of a crime.
Key term: Customer due diligence
Checking who customers are, understanding their financial activity, and keeping their risk information up to date.
Summarized by DailyMIQ from the linked Federal Reserve document. Checked October 18, 2026. Read source PDF
Inside the document
What the PDF says
Small Business Bank: June 29, 2026 capital directive
DailyMIQ summary · 5-page source document
Historical directive: terminated October 13, 2026, according to the Fed’s October 16 announcement. The requirements below describe the original directive. Read related announcement
In June 2026, the Fed determined Small Business Bank was significantly undercapitalized and directed it to restore adequate capital.
Key points
Restore capital within 30 days
The bank had to raise equity, complete an acquisition or combination with another institution, or take other steps to become adequately capitalized, unless granted more time.
Source: PDF pages 1–2Limit payouts, growth, and deposit pricing
The directive restricted capital distributions, certain deposit pricing, executive bonuses, asset growth, and new business activities. It also addressed transactions with affiliates.
Source: PDF pages 2–3Provide monthly updates
Written progress reports were required after 30 days and monthly thereafter. The directive did not replace the earlier 2023 and 2024 enforcement orders.
Source: PDF pages 3–5
What this means
Prompt corrective action ties supervisory restrictions to a bank’s capital position. The original directive and its later termination are separate events.
Key term: Bank capital
Funding, such as shareholders’ equity, that can absorb losses. It is different from customer deposits or cash held for daily payments.
Summarized by DailyMIQ from the linked Federal Reserve document. Checked October 18, 2026. Read source PDF
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Source & attribution
Source: Federal Reserve. Text reproduced in DailyMIQ’s reading format. Images, charts, navigation, and media contact details are omitted. The source does not endorse DailyMIQ. The original is available free of charge.
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