Annual Report

Santa Barbara
Bank & Trust

Letter to Shareholders

Year in Review

Consumer Lending

Trust and Investment
Management Services

Commercial Lending
and Business Services

Real Estate Lending
and Escrow Services

Trust and Investment Management Services

Santa Barbara Bank & Trust established the Trust Division in 1962 to provide investment and trust services to our diversified community. At the end of 1990, the Division held over $722 million in securities and real estate.

In the avalanche of information in today's investment community, individual investors are sometimes unable to distinguish the opportunities in the market from the challenges. Santa Barbara Bank & Trust removes the mystery and confusion from investment management and offers clients individualized solutions to personal financial needs.

1990 brought a 7% increase to $5.3 million in total Trust fee income. And once again the Division's investment management outperformed the leading investment indices.

PHOTO CAPTION:

It's a great help ... it would be hard to deal with ourfinances without them.

My sister and I appreciate the Bank's open lines of communication. We find that with a managed trust we are kept informed as to what the Investment Officer and Administrative Officer believe to be best toward meeting our objectives. We also appreciate the continuity exhibited by the Trust Division. Times may have changed over the years but the same quality of service has existed since the very beginning.

Did you know, our mother opened one of the first savings accounts to be established at the Bank's founding? You know - our San Julian Ranch goes back five generations to the original land grant given to Jose de la Guerra. That ownership remains in the family to this day.

We are delighted to have the Bank administer the ranch accounts and provide quality investment services.

Frederica Dibblee Poett
Dibblee Poett