Navigating the end of penny production

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 

• Formal announcement issued: Treasury and the U.S. Mint confirmed the permanent end of penny production, eliminating prior uncertainty. 

• Final pennies in circulation: The last batch of 2025 pennies will enter circulation in 2026, with some reserved for collectors. 

• Legal tender status: Existing pennies remain valid for transactions, but shortages will gradually increase as coins are lost or withdrawn. 

• Federal Reserve policy: The Fed continues to accept penny deposits but will limit orders as inventories shrink. 

Implications for community banks 

• Rounding practices: Retailers and banks must prepare for rounding cash transactions to the nearest five cents. 

• Customer education: Banks should proactively explain the change to consumers and small businesses to reduce confusion. 

• 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.