The U.S. Mint officially ended penny production on November 12, 2025, striking the final one-cent coin in Philadelphia. This marked the conclusion of a 232-year history for the penny. While pennies remain legal tender, no new coins will be minted going forward.
Key updates for community bankers
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Formal announcement issued: Treasury and the U.S. Mint confirmed the permanent end of penny production, eliminating prior uncertainty.
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Final pennies in circulation: The last batch of 2025 pennies will enter circulation in 2026, with some reserved for collectors.
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Legal tender status: Existing pennies remain valid for transactions, but shortages will gradually increase as coins are lost or withdrawn.
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Federal Reserve policy: The Fed continues to accept penny deposits but will limit orders as inventories shrink.
Implications for community banks
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Rounding practices: Retailers and banks must prepare for rounding cash transactions to the nearest five cents.
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Customer education: Banks should proactively explain the change to consumers and small businesses to reduce confusion.
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Inventory management: Expect declining availability of pennies; plan for alternative coin supply and rounding adjustments.
The penny’s end is now a certainty. Community bankers should focus on customer communication, transaction rounding, and inventory planning. ICBA remains engaged with Treasury and the Federal Reserve to ensure a smooth transition for banks and their customers.
This article was prepared with support from artificial intelligence technology. For more information and guidance visit the Federal Reserve at frbservices.org.