The Federal Reserve Board has terminated enforcement actions against Gardner Bancshares, Inc. and its subsidiary, Small Business Bank, according to an announcement dated October 16, 2026. Both institutions are based in Lenexa, Kansas.
The actions stemmed from a 2022 examination by the Federal Reserve Bank of Kansas City and the Kansas Office of the State Bank Commissioner. The examination identified weaknesses across several areas, including staffing, internal controls, credit risk management, lending, capital, information security, liquidity and regulatory reporting. It also cited deficiencies in the bank’s anti-money laundering program and compliance with Bank Secrecy Act requirements.
The consent order required the bank and its holding company to take corrective steps, including strengthening board oversight, reviewing governance and staffing, improving lending and credit administration, and establishing programs for loan reviews and asset improvement. The order also set requirements for maintaining an adequate allowance for credit losses.
The Federal Reserve’s announcement confirms that the enforcement actions have been terminated. The supplied order describes the original requirements but does not provide further details about the basis for the termination.
Sources: Federal Reserve Press Releases.