WASHINGTON, DC – September 5, 2026 (STL.News) The Federal Reserve Board has formally terminated enforcement actions involving United Texas Bank and two companies associated with Quontic Bank, ending regulatory actions that had been in place since 2023 and 2024.
The Federal Reserve announced Friday, Sept. 4, that the actions against United Texas Bank of Dallas, Texas, Quontic Bank Acquisition Corp. of Astoria, New York, and Quontic Bank Holdings Corp. of Astoria had been terminated effective Sept. 2, 2026.
The announcement matters because it ends prior regulatory actions rather than imposing new penalties or restrictions. The Federal Reserve did not announce a new fine, cease-and-desist order, or other enforcement action against the three entities in its Friday release.
United Texas Bank Order Terminated
United Texas Bank had operated under a cease-and-desist order dated Aug. 29, 2024. The Federal Reserve and the Texas Department of Banking issued that order after examining the Dallas bank.
The examination, conducted as of May 22, 2023, identified what regulators described as significant deficiencies involving corporate governance and oversight by the bank’s board of directors and senior management. Regulators also identified deficiencies involving foreign correspondent banking and virtual currency customers, including risk management and compliance with anti-money laundering requirements and the Bank Secrecy Act.
Those findings resulted in a substantial regulatory remediation program.
The 2024 order required United Texas Bank to address areas including board oversight, corporate governance, compliance, and risk management. The order illustrates the heightened regulatory attention financial institutions can face when providing services involving areas regulators consider to present elevated money-laundering or compliance risks.
The Federal Reserve publicly announced the United Texas Bank enforcement action on Sept. 4, 2024. At the time, it announced enforcement actions involving both United Texas Bank and First Interstate Bank of Billings, Montana.
Exactly two years later, the Federal Reserve announced that the United Texas Bank order had been terminated.
United Texas Bank Changed Its Charter
The regulatory history surrounding United Texas Bank became particularly noteworthy earlier in 2026 when the institution sought to convert from a Texas state-chartered bank supervised by the Federal Reserve to a national bank supervised by the Office of the Comptroller of the Currency.
Federal Reserve records show that the Board did not object to United Texas Bank’s conversion from a state member bank to a national bank. The Board approved the action in May 2026.
The conversion nevertheless generated disagreement within the Federal Reserve.
In a May 15 statement, Federal Reserve Governor Michael S. Barr opposed the conversion and pointed to Section 612 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Barr said the provision was intended to limit what is sometimes called “charter shopping,” in which a financial institution changes its regulatory charter while facing supervisory scrutiny. He specifically referenced the seriousness of the issues raised by the public enforcement action against United Texas Bank over its anti-money laundering and terrorist-financing practices.
The Federal Reserve’s Sept. 4 announcement now establishes that the 2024 cease-and-desist order itself was terminated Sept. 2.
Termination of an enforcement action should not be confused with a finding that the original regulatory concerns never existed. The original order documented the regulators’ findings when it was imposed. Termination means the formal regulatory action is no longer in effect.
Quontic Companies’ 2023 Agreement Ends
The Federal Reserve also terminated a separate written agreement involving Quontic Bank Acquisition Corp. and Quontic Bank Holdings Corp., both based in Astoria, New York.
That agreement dated back to July 5, 2023, and involved the Federal Reserve Bank of Philadelphia.
According to the original agreement, Quontic Bank Acquisition Corp. was a registered savings and loan holding company that owned and controlled Quontic Bank Holdings Corp. Quontic Bank Holdings, in turn, owned and controlled Quontic Bank, a federal savings bank based in Astoria.
The agreement stated that the companies and the Federal Reserve Bank of Philadelphia shared a goal of maintaining the financial soundness of the companies so they could serve as a source of strength to the bank.
The Federal Reserve confirmed that the written agreement ended Sept. 2, 2026, concluding a regulatory arrangement that had remained in place for more than three years.
As with United Texas Bank, the Federal Reserve’s latest announcement does not represent a new enforcement action against the Quontic entities.
What an Enforcement Termination Means
Federal banking regulators have several tools available when supervisory examinations identify problems at financial institutions.
Depending on the circumstances, regulators can use written agreements, cease-and-desist orders, civil money penalties, prohibitions against individuals, and other formal actions designed to require corrective measures or address violations and unsafe or unsound banking practices.
The Federal Reserve says its supervisory responsibilities include monitoring, inspecting and examining certain financial institutions to ensure compliance with applicable rules and regulations and to promote safe and sound operations.
The agency also explains that it can take formal enforcement actions involving violations of laws, rules or regulations, unsafe or unsound practices, breaches of fiduciary duties and violations of final orders.
When an enforcement action is terminated, the particular formal action identified by the regulator is no longer in force.
That distinction matters. Friday’s announcement should not be interpreted as a new accusation against United Texas Bank, Quontic Bank Acquisition Corp. or Quontic Bank Holdings Corp.
Instead, the Federal Reserve is closing out previously announced regulatory actions.
Federal Reserve Continues Enforcement Oversight
The Federal Reserve regularly announces both new enforcement actions and terminations of older actions.
Recent Federal Reserve records demonstrate that enforcement terminations are part of the normal supervisory process. During 2026, for example, the Board has announced terminations involving institutions or companies associated with Wells Fargo, UBS, Credit Suisse, BNP Paribas, Deutsche Bank, and others.
Those actions vary significantly in origin and circumstances, so the termination of one enforcement matter should not automatically be compared with another.
The Federal Reserve’s broader supervisory mission is to promote a safe, sound and efficient banking and financial system. Its responsibilities include supervising certain banks and financial institutions, developing regulatory policy and monitoring developments across the banking sector.
Enforcement actions represent one component of that supervisory framework.
Three Entities Included in Latest Announcement
The Sept. 4 Federal Reserve announcement covered three entities:
- United Texas Bank, Dallas, Texas — cease-and-desist order dated Aug. 29, 2024, terminated Sept. 2, 2026.
- Quontic Bank Acquisition Corp., Astoria, New York — written agreement dated July 5, 2023, terminated Sept. 2, 2026.
- Quontic Bank Holdings Corp., Astoria, New York — part of the same written agreement, terminated Sept. 2, 2026.
The Federal Reserve released the announcement at 11 a.m. EDT Friday.
The Sept. 4 termination notice did not announce a civil monetary penalty, and the Board did not announce a new enforcement order against any of the three entities in connection with the release.
For United Texas Bank, the termination closes a formal order stemming from regulatory concerns that included governance, risk management, foreign correspondent banking, virtual currency customers, and anti-money laundering compliance.
For the two Quontic companies, it concludes a written agreement that had been in effect since July 2023.
The Federal Reserve maintains a searchable database of enforcement actions and publishes notices when it issues or terminates formal actions.
Official source: Federal Reserve Board
