Federal Reserve Terminates Enforcement Actions Against Three Bank Firms

The Federal Reserve Board has terminated enforcement actions against three bank firms: United Texas Bank and two companies associated with Quontic Bank. The termination is effective September 2, 2026.

The regulatory actions were initiated in 2023 and 2024 due to concerns over corporate governance, oversight, foreign correspondent banking, and virtual currency customers at United Texas Bank. A cease-and-desist order was issued on August 29, 2024, requiring the bank to address these issues. However, after a significant remediation program, the Federal Reserve has decided to terminate this action.

The second termination involves Quontic Bank Acquisition Corp. and Quontic Bank Holdings Corp., both based in Astoria, New York. A written agreement was signed on July 5, 2023, with the Federal Reserve Bank of Philadelphia to ensure the financial soundness of these companies. The agreement has now been terminated.

The termination of enforcement actions does not mean that the original regulatory concerns were unfounded. Instead, it indicates that the banks have taken corrective measures and are no longer considered a risk to the financial system.