Janet Garufis, president and chief executive officer of Montecito Bank & Trust, on Monday announced the bank’s first-quarter performance.
The bank grew total assets from $1.03 billion to $1.06 billion year over year. Total deposits grew to $927.6 million from $873.6 million, a reflection of the growing number of new customer relationships welcomed to the bank.
The deposit growth allowed the bank to prepay long-term borrowings from the Federal Home Loan Bank. Although the repayment of such borrowings reduces the bank’s asset size, it has a positive impact on non-interest expense.
Total gross loans grew from $518.5 million to $523.3 million year over year. Non-interest income grew 5 percent year over year during the quarter, but the continuation of the low-interest rate environment put pressure on the net interest margin resulting in lower net interest income for the same period. Net income for the quarter was $2.8 million compared with $3.2 million from a year ago.
Total risk-based capital of 14.15 percent at quarter’s year end is well above the 10 percent regulatory minimum required to be considered well-capitalized. The bank’s strong capital base and liquidity allows it to meet the financing needs of local businesses and investors with loans for expansion, capital improvement, and the purchase or refinance of real estate.
“As the oldest and largest locally owned community bank in Santa Barbara county, I am pleased to report that Montecito Bank & Trust has once again been designated as a 2012 Premier Performing Bank by The Findley Reports, an independent service which rates the annual financial performance of California banks,” Garufis said. “The Findley Reports has designated Montecito Bank & Trust as a Premier Performing or Super Premier Performing bank 27 times in our 38-year history.”
The bank celebrated its 38th anniversary in March by continuing a tradition started more than 20 years ago known as Anniversary GrantsSM, where 10 local nonprofits are selected by the bank’s employees to receive $15,000 in grants. The Anniversary Grants program, combined with the bank’s Community Dividends® and a multitude of sponsorships for local nonprofit events are some of the ways Montecito Bank & Trust works to make the communities we serve better places to live and work.
“Accepting local deposits, funding loans to local businesses and reinvesting in the community is the value of community banking,” Garufis said.
Montecito Bank & Trust, an S Corporation, is a locally owned community bank founded in 1975, with branch offices located in Santa Barbara, Goleta, Solvang, Montecito, Carpinteria, Ventura and Westlake Village. The bank is the oldest locally owned community bank in Santa Barbara offering 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; and 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.
— Carolyn Tulloh is the director of marketing for Montecito Bank & Trust.