Montecito Bank & Trust Reports Continued Profitability and Strong Capitalization in 2010

Janet A. Garufis, president and chief executive officer of Montecito Bank & Trust said: “We are pleased to report that the bank continues to be exceptionally well capitalized with a total risk-based capital ratio at year’s end of 12.57%, well above the 10% regulatory minimum needed to be considered well-capitalized. During the year, Net Interest Income grew by over 12% and Income before taxes and provisions for loan losses grew by 38%. Excluding securities gains, income growth for 2010 was up 48% over 2009. Equally important, the Bank’s deposits grew 2% through ongoing business development efforts, including impressive growth in demand deposits of 18% over the last twelve months.”

“The bank’s strong core earnings positioned us well to proactively address problems in our loan portfolio and to reduce debt by $30 million, a decrease of over 50%. Total capital at year-end was $92.7 million, reflecting a 1.40% increase from the prior year. Year over year, total assets were $940.5 million, down 2% from $955.0 million, and total deposits were $812.9 million, up 2% from $798.8 million. Total gross loans were $523.3 million, down 7%, a reflection of continued sluggish loan demand. Net income for the year was $3.1 million. The bank’s overall performance allowed us to continue our tradition of giving by hosting our eighth annual Community Dividends® event, gifting $1 million to an expanded list of over 150 nonprofits throughout the communities we serve. We are one of the few banks in this area which neither asked for or needed TARP funding.”

“While the aggressive management of the loan portfolio and our disciplined focus on deleveraging the bank’s balance sheet had a near term impact on net earnings year over year, the bank continues to remain profitable, extremely well-capitalized and uniquely poised to serve the financial needs of the community.”

Montecito Bank & Trust has branch offices in Santa Barbara, Goleta, Solvang, Montecito, Carpinteria, Ventura, and Westlake Village. The bank offers a variety of competitive deposit and lending solutions for businesses and consumers including: business loans and lines of credit, commercial real estate finance, SBA loans, consumer loans, credit cards, merchant

services, online services including mobile banking and cash management. Its Wealth Management Division, with locations in Montecito, Solvang and Ventura, provides full investment management as well as Trust services for all branch office markets.


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