Gardner Bancshares in Lenexa, Kan., is working through a cease-and-desist order from the Federal Reserve.
The order, which followed an October 2022 examination, requires the company and its $100 million-asset Small Business Bank to address issues that include staffing, internal controls, credit risk management, and information security. The bank must also improve controls tied to anti-money laundering regulations and the Bank Secrecy Act.
Gardner and its bank agreed to seek regulatory approval before declaring or paying dividends. The board must also provide written plans for improving a plethora of issues such as IT security, liquidity management and BSA compliance.
A third-party must be hired to assist in the process.