Federal Reserve Terminates Enforcement Actions Against United Texas Bank and Quontic Entities

The Federal Reserve Board has terminated its enforcement actions against United Texas Bank of Dallas and Quontic Bank Acquisition Corp., both entities having made significant progress in addressing concerns over corporate governance, risk management, and compliance with anti-money laundering laws. The termination was announced on September 2, 2026.

United Texas Bank had been under a Cease and Desist Order issued by the Federal Reserve Board together with the Texas Department of Banking since August 29, 2024. This order followed an examination in May 2023 that identified deficiencies in corporate governance, risk management, and compliance with anti-money laundering laws. The bank was required to submit plans to strengthen its board oversight, improve its BSA/AML compliance program, and enhance its customer due diligence program.

Quontic Bank Acquisition Corp., a registered savings and loan holding company, had entered into a Written Agreement with the Federal Reserve Bank of Philadelphia on July 5, 2023. This agreement required Quontic to utilize its financial resources to support Quontic Bank's compliance with regulatory requirements and imposed capital conservation restrictions.

The termination does not specify the reasons for ending the enforcement actions or any civil money penalties associated with them. The move follows a change in United Texas Bank's primary supervisor, as it converted from a state member bank supervised by the Federal Reserve to a national bank supervised by the OCC on May 15, 2026.