Bank Safety Analysis
Is Montecito Bank & Trust Safe? Santa Barbara, California
Based on its Q2 2026 call report, Montecito Bank & Trust meets the community bank leverage ratio test for well capitalized, its Texas ratio is 1.19%, and its deposits are FDIC insured up to $250,000 per depositor.
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Short answer
On its Q2 2026 call report, Montecito Bank & Trust's Community Bank Leverage Ratio is 11.29%, above the 9% threshold that makes a community bank well capitalized.
- CET1 ratio (Q2 2026): not reported (community bank leverage ratio filer)
- Community Bank Leverage Ratio (Q2 2026): 11.29%
- Texas ratio (Q2 2026): 1.19%
- Noncurrent loans ratio (Q2 2026): 0.17%
Montecito Bank & Trust is an FDIC-insured commercial bank (FDIC Certificate #21956). FDIC insurance covers $250,000 per depositor, per insured bank, per ownership category.
Context: largest US bank failures · what these ratios mean · how we score.
Montecito Bank & Trust meets regulatory minimums but is on the watch band for 1 of 5 safety dimensions. 1 risk screen is flagged: commercial real estate to capital. Analysis based on the Q2 2026 call report.
Net interest margin fell 0.13 percentage points from Q1 2026 to Q2 2026, ending at 3.60% against 3.73%. It was the largest change among the key lines on this page. Montecito Bank & Trust ranks 74th of 113 California banks on leverage ratio, in the lower half at 11.29% (Q2 2026). Montecito Bank & Trust reported 11.29% on leverage ratio for Q2 2026, 0.80 points above the 10.49% median for banks in the $1B-10B asset tier. From Q3 2023 to Q2 2026, Montecito Bank & Trust's Texas ratio ranged between 1.14% (Q1 2026) and 2.54% (Q1 2024). Between Q2 2025 and Q2 2026, Montecito Bank & Trust's nonperforming loan ratio (nonaccrual plus 90+ days past due) fell from 0.19% to 0.17%, Texas ratio fell from 1.44% to 1.19% and return on assets rose from 0.37% to 0.52%.
Data as of · sourced from FFIEC call reports. How we update
An exploratory screening score that ranks relative failure risk across filers. It is not a calibrated probability, not a credit rating, and not a CAMELS rating. Held-out test AUC 0.910 for the 1-year horizon (v20261026_025757). Trained on credit-driven community-bank failures, it carries little signal for interest-rate or deposit-flight risk. The score covers every FDIC-insured bank in the latest run, but the model was trained on community and regional banks and its accuracy above roughly $10 billion in assets is not established, so a low score is not evidence of safety. See the methodology. This is not investment advice or a credit rating.
Scorecard by dimension
Peer cohort: $1B to $10B (941 banks) · Industry averages as of Q2 2026.
Leverage ratio of 11.29% exceeds the 9% Community Bank Leverage Ratio threshold. The bank is deemed well-capitalized under CBLR.
Tier 1 leverage of 11.29% is above the 5% well-capitalized threshold.
Nonperforming loans at 0.17% are within industry-normal range.
Texas Ratio of 1.2% is well below the 100% historical failure threshold.
Efficiency ratio of 82.4% is elevated, suggesting cost-to-revenue pressure.
Note: This bank has elected the Community Bank Leverage Ratio framework, a simplified capital regime for community banks meeting size and complexity criteria. Banks under CBLR don't report CET1 separately; the CBLR leverage threshold serves as the well-capitalized benchmark.
Risk screens
Latest filing (Q2 2026), passing screens included.
| Screen | Value | Trigger | Result |
|---|---|---|---|
| CET1 capital ratio supervisory threshold | — | Flags below 7% | Not reported |
| Texas ratio BankRegReports band | 1.19% | Watch at 50%, concern at 100% | Within range |
| Non-performing loan ratio BankRegReports band | 0.17% | Flags at 3% or above | Within range |
| Uninsured deposit share BankRegReports band | 38.63% | Watch at 50%, concern at 70% | Within range |
| Loan-to-deposit ratio BankRegReports band | 80.22% | Flags at 100% or above | Within range |
| Commercial real estate to capital supervisory threshold | 235.98% | Watch at 200%, concern at 300% | Flagged |
| Held-to-maturity unrealized loss to equity BankRegReports band | 0.00% | Watch at 10%, concern at 25% | Within range |
Texas Ratio: last 12 quarters
| Quarter | Texas Ratio (%) |
|---|---|
| Q2 2026 | 1.19% |
| Q1 2026 | 1.14% |
| Q4 2025 | 1.65% |
| Q3 2025 | 1.72% |
| Q2 2025 | 1.44% |
| Q1 2025 | 1.52% |
| Q4 2024 | 2.03% |
| Q3 2024 | 1.97% |
| Q2 2024 | 2.30% |
| Q1 2024 | 2.54% |
| Q4 2023 | 1.89% |
| Q3 2023 | 2.49% |
Montecito Bank & Trust by quarter
| Quarter end | CET1 | NPL ratio | Texas ratio | ROA |
|---|---|---|---|---|
| Jun 30, 2026 | — | 0.17% | 1.19% | 0.52% |
| Mar 31, 2026 | — | 0.16% | 1.14% | 0.63% |
| Dec 31, 2025 | — | 0.23% | 1.65% | 0.50% |
| Sep 30, 2025 | — | 0.24% | 1.72% | 0.62% |
| Jun 30, 2025 | — | 0.19% | 1.44% | 0.37% |
| Mar 31, 2025 | — | 0.20% | 1.52% | 0.22% |
| Dec 31, 2024 | — | 0.27% | 2.03% | 0.13% |
| Sep 30, 2024 | — | 0.29% | 1.97% | 0.42% |
| Jun 30, 2024 | — | 0.30% | 2.30% | 0.26% |
| Mar 31, 2024 | — | 0.33% | 2.54% | 0.31% |
| Dec 31, 2023 | — | 0.25% | 1.89% | 0.35% |
| Sep 30, 2023 | — | 0.28% | 2.49% | 0.46% |
Banks with a similar risk profile
4 banks in the same asset tier with the same overall verdict.
Frequently asked
Is Montecito Bank & Trust FDIC insured?
Yes. Montecito Bank & Trust is an FDIC-insured commercial bank (FDIC Certificate #21956). FDIC insurance covers $250,000 per depositor, per insured bank, per ownership category.
Is Montecito Bank & Trust well capitalized?
On its Q2 2026 call report, Montecito Bank & Trust's Community Bank Leverage Ratio is 11.29%, above the 9% threshold that makes a community bank well capitalized. The threshold comes from Prompt Corrective Action, which its primary federal regulator, the FDIC, applies.
What are Montecito Bank & Trust's key safety ratios?
For Q2 2026, Montecito Bank & Trust reports leverage 11.29%, Texas ratio 1.19%, noncurrent loans 0.17%. The Texas ratio compares problem assets with tangible equity plus reserves; above 100% has historically signaled elevated failure risk.
What happens to my deposits if Montecito Bank & Trust fails?
Insured deposits are protected up to $250,000 per depositor, per insured bank, per ownership category. If an insured bank fails, the FDIC pays insured depositors as soon as possible, usually the next business day.
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Methodology & disclaimer
Based on the latest FFIEC call report. Model output is an estimate, not a credit rating, and this page is not investment advice. FDIC insurance covers deposits up to $250,000 per depositor per ownership category at any FDIC-insured bank, whatever its safety profile. See the methodology and full profile.
Regulator records: FDIC BankFind (cert 21956) · FFIEC NIC profile (RSSD 514066)
Explore: Full Montecito Bank & Trust profile · Other banks in CA · Metric glossary · How the call report works