Santa Barbara-based Montecito Bank & Trust reported an 8.5 percent drop in net income in 2016 to $14.6 million but saw strong loan and deposit growth.

The decrease in net income was due to loan loss reversals in 2015 that were not repeated in 2016.

The bank reported loan growth of 22 percent year over year, ending 2016 at $868.7 million. Deposits grew 6.8 percent on the year, totaling $1.175 billion. The bank’s risk-based capital was 12.4 percent. Total assets grew $93.9 million in 2016 to $1.3 billion.

“We are extremely pleased with our 2016 financial results and the bank’s strong performance in all segments,” President and CEO Janet Garufis said in a news release. “It reinforces the fact that working with a local community bank and people who are motivated to give back and invest in the Central Coast is important when choosing a financial institution.”

Montecito Bank & Trust, an S Corporation, is the oldest and largest locally owned community bank in Santa Barbara and Ventura counties. Founded in 1975, the bank operates 10 branch offices in Santa Barbara, Goleta, Solvang, Montecito, Carpinteria, Ventura, Camarillo and Westlake Village.

• Contact Alex Kacik at akacik@pacbiztimes.com.