FORM 10-Q
                                     
                    SECURITIES AND EXCHANGE COMMISSION
                                     
                           WASHINGTON, DC. 20549
                                     

(Mark One)
( X )     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF SECURITIES
          EXCHANGE ACT OF 1934

For the quarterly period ended   June 30, 1997
                                    OR
(   )     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
          SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________________ to _____________________.


Commission File Number   0-13528

                                   Pacific Capital Bancorp
                    (Exact name of registrant as specified in its charter)

                       California                             77-0003875
               (State or other jurisdiction of              (I.R.S.
          Employer
                incorporation or organization)           Identification
          Number)

                       1001 S. Main Street, Salinas, California   93901
                         (Address of principal executive offices)
                                        (Zip Code)

                                     (408)  757-4900
                    (Registrant's telephone number, including area code)

                                          N/A
                    (Former name, former address and former fiscal year, if
                                   changed since last report)

     Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.

Yes   X        No

                   APPLICABLE ONLY TO CORPORATE ISSUERS:

     Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.

                                            Outstanding at
     Class                                 August 12, 1997

     Common stock, no par value            4,092,986 Shares

This report contains a total of 22 pages.


                      PART I - FINANCIAL INFORMATION
                                     
ITEM 1                                                  PAGE

PACIFIC CAPITAL BANCORP AND
SUBSIDIARIES UNAUDITED FINANCIAL STATEMENTS

     CONSOLIDATED BALANCE SHEETS                           3
     
     CONSOLIDATED STATEMENTS OF INCOME                     4
     
     CONSOLIDATED STATEMENTS OF CASH FLOWS                 6
     
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS          7-8
     
     
ITEM 2

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS                   9 - 15



                        PART II - OTHER INFORMATION

ITEM 4

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS       16

ITEM 6

OTHER EXHIBITS AND REPORTS ON FORM 8-K                    17

SIGNATURES                                                22

                                     
                                  PART 1
                      ITEM 1 - FINANCIAL INFORMATION
                 PACIFIC CAPITAL BANCORP AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS
                                (UNAUDITED)
                   (IN THOUSANDS, EXCEPT SHARE AMOUNTS)
                                                      June 30,     December
                                                                        31,
Assets                                                    1997         1996
                                                                           
Cash and due from banks                                $43,375      $48,126
Federal funds sold and other short term                 64,643       28,119
investments
      Total cash and equivalents                       108,018       76,245
Investment securities:                                                     
   Available-for-sale securities, at fair value        117,681      116,528
   Held-to-maturity securities, at amortized                               
cost
     (fair value of $9,041 and $9,739,                   9,040        9,680
respectively)
                                                                           
Loans available for sale                                 8,557        5,821
                                                                           
Total loans                                            414,018      388,728
   Less allowance for possible loan losses             (4,074)      (3,672)
      Net loans                                        409,944      385,056
                                                                           
Premises and equipment, net                             15,199       15,300
Accrued interest receivable and other, net              11,572       10,809
                                                                           
Total assets                                          $680,011     $619,439
                                                                           
Liabilities and shareholders' equity                                       
                                                                           
Deposits:                                                                  
   Demand, non-interest bearing                       $133,782     $131,332
   Demand, interest bearing                             85,226       84,770
   Savings and money market                            174,035      164,890
   Time certificates                                   214,551      166,190
      Total deposits                                   607,594      547,182
                                                                           
Accrued interest payable and other liabilities           5,005        8,611
                                                                           
Total liabilities                                      612,599      555,793
                                                                           
Shareholders' equity:                                                      
Preferred stock; 20,000,000 shares authorized                -            -
and unissued
Common stock, no par value; 20,000,000 shares                              
authorized;
   4,092,436 and 4,083,363 shares issued and                               
outstanding at
   June 30, 1997 and at December 31, 1996,              49,775       49,388
respectively
Retained earnings                                       18,031       14,423
Net unrealized losses on available-for-sale              (394)        (165)
securities
                                                                           
Total shareholders' equity                              67,412       63,646
                                                                           
Total liabilities and shareholders' equity            $680,011     $619,439

See accompanying notes to unaudited consolidated financial statements.





                 PACIFIC CAPITAL BANCORP AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF INCOME
                                (UNAUDITED)
            (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
                                     
                                                  Six months     Six months
                                                       ended          ended
                                                    June 30,       June 30,
                                                        1997           1996
Interest income:                                                           
   Interest and fees on loans                        $19,996        $15,959
   Interest on fed funds sold                            732          1,144
   Interest on investment securities                   4,307          3,811
     Total interest income                            25,035         20,914
Interest expense:                                                          
   Interest on deposits                                7,984          6,242
   Other                                                  21             17
     Total interest expense                            8,005          6,259
     Net interest income                              17,030         14,655
 Provision for possible loan losses                      570            179
Net interest income after provision for               16,460         14,476
possible loan losses
                                                                           
Other income:                                                              
   Service charges                                     1,240          1,199
   Gain on sale of loans                                  11             15
   Net gain  on securities transactions                   11             15
   Other                                                 342            370
     Total other income                                1,604          1,599
                                                                           
Other expenses:                                                            
   Salaries and benefits                               5,443          5,490
   Occupancy                                           1,124          1,031
   Equipment                                             828          1,041
   Advertising and promotion                             343            283
   Stationary and supplies                               426            238
   Legal and professional fees                           421            442
   Regulatory assessments                                107             72
   Other operating                                     1,232          1,276
     Total other expenses                              9,924          9,873
                                                                           
Earnings before income taxes                           8,140          6,202
                                                                           
Income taxes                                           3,217          2,408
                                                                           
Net income                                            $4,923         $3,794
                                                                           
Net income per share                                   $1.16          $0.89
                                                                           
                                                                           
Weighted average shares outstanding                4,238,308      4,247,087

See accompanying notes to unaudited consolidated financial statements.
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                 PACIFIC CAPITAL BANCORP AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF INCOME
                                (UNAUDITED)
            (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
                                     
                                                Three months   Three months
                                                       ended          ended
                                                    June 30,       June 30,
                                                        1997           1996
Interest income:                                                           
   Interest and fees on loans                        $10,465         $8,178
   Interest on fed funds sold                            423            473
   Interest on investment securities                   2,161          1,975
     Total interest income                            13,049         10,626
Interest expense:                                                          
   Interest on deposits                                4,129          3,154
   Other                                                  14              4
     Total interest expense                            4,143          3,158
     Net interest income                               8,906          7,468
 Provision for possible loan losses                      285             74
Net interest income after provision for                8,621          7,394
possible loan losses
                                                                           
Other income:                                                              
   Service charges                                       620            634
   Gain on sale of loans                                   5              6
   Net gain  on securities transactions                   11              3
   Other                                                 163            174
     Total other income                                  799            817
                                                                           
Other expenses:                                                            
   Salaries and benefits                               2,696          2,740
   Occupancy                                             560            522
   Equipment                                             437            534
   Advertising and promotion                             191            142
   Stationary and supplies                               194            125
   Legal and professional fees                           217            223
   Regulatory assessments                                 53             36
   Other operating                                       616            640
     Total other expenses                              4,964          4,962
                                                                           
Earnings before income taxes                           4,456          3,249
                                                                           
Income taxes                                           1,775          1,256
                                                                           
Net income                                            $2,681         $1,993
                                                                           
Net income per share                                   $0.63          $0.47
                                                                           
                                                                           
Weighted average shares outstanding                4,239,356      4,251,526

See accompanying notes to unaudited consolidated financial statements.
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                 PACIFIC CAPITAL BANCORP AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (UNAUDITED)
                              (IN THOUSANDS)
                                     
                                                  Six Months     Six Months
                                                       Ended          Ended
                                                    June 30,       June 30,
                                                        1997           1996
                                                                           
Cash flows from operating activities:                                      
Net income                                            $4,923         $3,794
Adjustments to reconcile net income to net                                 
cash used in
     operating activities:                                                 
   Depreciation and amortization                         725            676
   Provision for possible loan losses                    570            179
   Gain on sale of investment securities, net           (11)           (15)
   Net originations of loans available for           (2,736)        (1,165)
sale
   Gain on sale of loans                                (11)           (15)
   Deferral of loan origination costs                   (90)           (16)
   Change in accrued interest receivable and           (992)        (2,836)
other assets
   Change in accrued interest payable and            (3,584)          (608)
other liabilities
Net cash  used in operating activities               (1,206)            (6)
                                                                           
Investing activities:                                                      
   Net increase in loans                            (25,368)       (28,713)
   Maturities of investment securities                 8,516          6,064
   Purchases of investment securities                (9,029)       (36,858)
   Proceeds from sale of available-for-sale                -         25,695
securities
   Capital expenditures, net                           (624)        (1,920)
Net cash used in investing activities               (26,505)       (35,732)
                                                                           
Financing activities:                                                      
   Net increase in deposits                           60,412         35,952
   Cash paid for retirement of stock                       -           (60)
   Proceeds from exercise of options                     387              4
   Cash paid for dividends                           (1,315)        (1,010)
Net cash provided by financing activities             59,484         34,886
                                                                           
Net increase (decrease) in cash and                   31,773          (852)
equivalents
Cash and equivalents at beginning of period           76,245         79,234
Cash and equivalents at end of period               $108,018        $78,382
                                                                           
Supplemental disclosures of cash flow                                      
information:
    Cash paid during the period                                            
     Interest                                         $8,137         $6,837
     Income taxes                                      2,450          2,359
                                                                           
See accompanying notes to unaudited consolidated financial statements.

                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                 PACIFIC CAPITAL BANCORP AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                (UNAUDITED)

Note 1 -  Basis of Presentation

In the opinion   of  the  Company,  the  unaudited  consolidated  financial
statements, prepared on the accrual basis of accounting,  contain
          all adjustments (consisting of only normal recurring adjustments)
          which  are necessary to present fairly the financial position  of
          the  Company  and subsidiaries at June 30, 1997 and December  31,
          1996,  the results of its operations and the statements  of  cash
          flows for the periods ended June 30, 1997 and 1996.

Certain information  and note disclosures normally presented  in  financial
          statements   prepared  in  accordance  with  generally   accepted
          accounting   principles  have  been  omitted.   The  results   of
          operations for the period ended June 30, 1997 are not necessarily
          indicative  of  the operating results for the  full  year  ending
          December 31, 1997.

In June 1997, the Financial Accounting Standards Board (the "FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 130, Reporting of
Comprehensive Income. This statement establishes standards for reporting and
displaying comprehensive income and its components in the consolidated
financial statements. It does not, however, require a specific format for
the statement, but requires the Company to display an amount representing
total comprehensive income for the period in that financial statement.
The Company is in the process of determining its preferred format.
This statement is effective for fiscal years beginning after December 15,
1997.

In June 1997, the FASB issued SFAS
No. 131, Disclosures about Segments of an Enterprise and Related Information.
The Statement establishes standards for the way the public business enterprises
are to report information about operating segments in annual financial
statements and requires those enterprises to report selected information about
operating segments in interim financial reports issued to shareholders. This
statement is effective for fiscal years beginning after December 15, 1997.
The Company does not believe it has any separately reportable business
segments.

In February 1997, the FASB issued SFAS No. 128, Earnings Per Share and SFAS
No. 129, Disclosure of Information about Capital Structure. SFAS No. 128
supersedes APB Opinion No. 15 Earnings Per Share, and specifies the
computation, presentation, and disclosure requirements for earnings per share
("EPS") for entities with publicly held common stock or potential common
stock.

SFAS No. 128 replaces Primary EPS and Fully Diluted EPS with Basic EPS and
Diluted EPS, respectively. Upon adoption, it also requires dual presentation of
Basic EPS and Diluted EPS on the face of the Statement of Income for all
entities with complex capital structures and requires a reconciliation of
the numerator and denominator of the Basic EPS computation to the numerator
of the Diluted EPS computation.

SFAS No. 129 establishes standards for disclosing information about an entity's
capital structure for those entities deemed to have complex capital
structures.

Statements No. 128 and 129 are effective for financial statements for periods
beginning after December 15, 1997. The adoption of these statements is not
anticipated to have a material impact on the financial condition or results
of operations of the Company. The following table represents pro forma
Earnings per Share as it would appear after adoption of these statements.


                                                    Three Months Ended
                                             June 30, 1997    June 30, 1996
Basic Earnings per Share                             $0.66            $0.48
Diluted Earnings per Share                           $0.63            $0.47
                                                                           


                                                     Six Months Ended
                                             June 30, 1997    June 30, 1996
Basic Earnings per Share                             $1.17            $0.92
Diluted Earnings per Share                           $1.16            $0.89



Note 2 -  Consolidation
          
          The consolidated financial statements include the accounts of the
          Company and its wholly-owned subsidiaries, First National Bank of
          Central California, ("First National"), and South Valley National
          Bank  ("South  Valley").  For  purposes  used  herein,  the  term
          "Subsidiary  Banks" shall mean First National and  South  Valley,
          collectively. All material intercompany accounts and transactions
          have been eliminated in consolidation.

Note 3 -  Loans to Directors

In the ordinary course of business, the Company has made loans to directors
          of  the  Company  and their affiliates which  at  June  30,  1997
          amounted to approximately $10,648,000.

Note 4 -  Commitments
          
          The  Company  had  outstanding  standby  letters  of  credit   of
          approximately $1,915,000 at June 30, 1997.

Note 5 - Net Income Per Share and Dividends

Net income  per   share  is computed using the weighted average  number  of
          shares  of  common and common equivalent shares outstanding.   On
          January 28, 1997 and April 22, 1997,  the Company declared $0.165
          per  share cash dividends to shareholders of record on March  14,
          1997  and June 16, 1997,  payable on March 31, 1997 and June  30,
          1997, respectively.

Note 6 -  Taxes

As of June  30, 1997, the Company has a deferred tax asset of approximately
          $3,187,000.  The asset results primarily from the provisions  for
          possible  loan losses and depreciation of premises and equipment,
          which are recognized in the financial statements but are not  yet
          deductible for income tax reporting purposes. Management  of  the
          Company  believes  that  the  net deferred  tax  asset  is  fully
          realizable  through  sufficient taxable income  within  carryback
          periods and current year taxable income.


          




                                  PART 1
            ITEM II - PACIFIC CAPITAL BANCORP AND SUBSIDIARIES
                   MANAGEMENT'S DISCUSSION AND ANALYSIS
                                    OF
               FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Overview of Changes in the Financial Statements

      Net  income for the six months ended June 30, 1997 was $4,923,000  or
$1.16  per  share  compared to $3,794,000 or $0.89  per  share  during  the
comparable period in 1996. This 29.8% increase in net income is due  mainly
to  a  $2,375,000  increase in net interest income.  The  increase  in  net
interest  income  is  due to growth in average total loans  of  $89,562,000
partially  offset  by an increase in average interest bearing  deposits  of
$67,963,000 as compared to the same 1996 period.

      Outstanding  loans  were $414,018,000 at June 30,  1997  compared  to
$388,728,000  at  December 31, 1996, a $25,290,000 or 6.5%  increase.   The
increase  in  outstanding loans from December 31, 1996  to  June  30,  1997
resulted  primarily  from  an increase in real  estate  mortgage  loans  of
$17,332,000,  an increase in real estate construction loans of  $14,447,000
partially offset by a decrease in other loans of $5,789,000.

      Federal  Funds Sold and Investment Securities at June 30,  1997  were
$191,364,000, a $37,037,000 or  24.0% increase from December 31, 1996. This
was  primarily due to the increase in total deposits which resulted  in  an
increase in cash invested in Federal Funds.

      The  Company's  total  deposits at June 30,  1997  were  $607,594,000
compared  to  $547,182,000 at December 31, 1996,  a  $60,412,000  or  11.0%
increase.   Non-interest  bearing  demand  deposits  increased  $2,450,000,
interest  bearing demand deposits increased $456,000 and savings and  money
market  deposit accounts increased $9,145,000 in the first  six  months  of
1997. Certificates of deposit increased by $48,361,000 or 29.1% during  the
first  six months of 1997.  Management believes that the growth in deposits
is  a  result  of  the overall strength in the local tourism, agribusiness,
and  high-tech industries within the local economies in which  the  Company
operates. The loan to deposit ratio at June 30, 1997 was 68.1% as  compared
to 71.0% at December 31, 1996.


Loans

     Outstanding total loans averaged $404,858,000 for the six months ended
June  30, 1997 compared to $315,296,000 for the comparable period in  1996,
an  increase  of $89,562,000, or 28.4%. This increase in loans  is  due  to
increased  loan demand from qualified borrowers and reflects stability  and
economic  growth  in most of the primary markets which the Company  serves.
The  Company  lends  primarily  to small and medium  sized  businesses  and
consumers  within its markets, which are comprised principally of Monterey,
Santa  Cruz, San Benito, and southern Santa Clara counties.  A majority  of
the  Company's  loan  portfolio consists of loans  secured  by  commercial,
industrial and residential real estate.


Quality of Loans

           The  composition of non-performing loans as of  June  30,  1997,
December 31, 1996, and June 30, 1996 is summarized in the following table.

                            Nonperforming Loans
                          (Dollars in Thousands)
                                     
                         June  30,      December 31,     June  30,
                            1997            1996            1996
Accruing loans
past due 90 days
or more:
   Commercial           $     17         $    15           $  46
   Consumer                   32               2               2
   Real Estate                 -               -               -
Total                       $ 49          $   17            $ 48

Nonaccrual loans:
   Commercial                821             507           1,056
   Consumer                  130             142             143
   Real Estate               831             915             363
Total                     $1,782          $1,564          $1,562

Total Nonperforming
Loans                     $1,831          $1,581          $1,610

Nonperforming Loans
To Total Loans              0.44%           0.41%         0.49%

Allowance For Possible
Loan Losses To Total
Non Performing Loans      222.62%         232.26%         235.71%

      The  Company does not expect to sustain losses from any of  the  non-
performing  loans  in  excess  of that specifically  provided  for  in  the
allowance for possible loan losses. Currently, the Company's level of  non-
performing loans to total loans is below that of peer banks.

      In  addition  to the above, the Company holds two Other  Real  Estate
Owned  (OREO) properties, which aggregate $1,490,000.  In both  cases,  the
amount  recorded represents the lesser of the loan balance or current  fair
value  obtained  from a current appraisal less anticipated  selling  costs;
therefore, any identified loss has already been recognized.

      Inherent in the lending function is the fact that loan losses will be
experienced  and  that the risk of loss will vary with  the  type  of  loan
extended  and  the  creditworthiness  of  the  borrower.   To  reflect  the
estimated  risks of loss associated with its loan portfolio, additions  are
made  to  the Company's allowance for possible loan losses.  As an integral
part of this process, the allowance for possible loan losses is subject  to
review  and  possible adjustment as a result of management's assessment  of
risk  or  regulatory examinations conducted by governmental agencies.   The
Company's  entire  allowance  is a valuation allowance  created  by  direct
charges against operations through the provision for possible loan losses.

      The provision for possible loan losses charged against operations  is
based  upon  the actual net loan losses incurred plus an amount  for  other
factors  which, in management's judgment, deserve recognition in estimating
possible  loan losses.  The Company evaluates the adequacy of its allowance
for  possible  loan  losses  on a quarterly basis.  The  Company  has  also
contracted  with  an independent loan review consulting  firm  to  evaluate
overall credit quality and the adequacy of the allowance for possible  loan
losses.   Both  internal  and external evaluations take  into  account  the
following:   specific  loan  conditions as determined  by  management;  the
historical relationship between charge-offs and the level of the allowance;
the estimated future loss in all significant loans; known deterioration  in
concentrations  of credit, certain classes of loans or pledged  collateral;
historical loss experience based on volume and types of loans; the  results
of  any  independent  review or evaluation of the  loan  portfolio  quality
conducted  by  or  at  the  direction of  Company  management  or  by  bank
regulatory  agencies; trends in portfolio volume, maturity and composition;
off-balance  sheet  credit  risk; volume and trends  in  delinquencies  and
nonaccruals;  lending policies and procedures including those  for  charge-
off,  collection and recovery; national and local economic  conditions  and
their effects on specific local industries; and the experience, ability and
depth  of  lending  management and staff.  These  factors  are  essentially
judgmental and may not be reduced to a mathematical formula.

      The  Company closely monitors the local markets in which it  conducts
its lending activities.  The overall increase in loan demand from qualified
borrowers  during the past year is indicative of the strength in the  local
economic climate.

      The  table  set  forth below summarizes the actual  loan  losses  and
provision  for  possible losses as of and for the periods  ended  June  30,
1997, December 31, 1996, and June 30, 1996:

                     Loan Charge-Off/Recovery Activity
                          (Dollars in Thousands)
                                     
                         Six months         Year         Six months
                           Ended           Ended           Ended
                       June 30, 1997  December 31,1996 June 30, 1996

Loans Outstanding, at period end         $414,018        $388,728
$330,073

Average Loans            $404,858        $332,421        $315,296

Allowance Balance:
Beginning Of Period        3,672           3,710           3,710

  Charge-Offs By Loan Category:
    Commercial               91             761             135
    Consumer                 20             188              55
    Real Estate             166             121              56
    Other                     4               -               -
    Total                $  281        $  1,070         $   246
  
  Recoveries By Loan Category:
    Commercial               90             239              74
    Consumer                 14              91              63
    Real Estate               6              17              15
    Other                     3               -               -
    Total               $   113          $  347          $  152

Net Charge-Offs          $   168          $  723           $  94

Provision Charged
To Expense                  $570            $685            $179

Allowance Balance
End Of Period            $ 4,074         $ 3,672         $ 3,795

Allowance For Possible
Loan Losses
To Period End Loans         0.98%           0.94%           1.15%

Annualized Net Charge-offs
to Average Loans            0.08%           0.22%           0.06%


      The  provision for possible loan losses charged against  earnings  is
based  upon an analysis of the actual migration of loans to losses plus  an
amount   for  other  factors  which,  in  management's  judgment,   deserve
recognition in estimating possible loan losses. While these factors  cannot
be  reduced  to  a mathematical formula, it is management's view  that  the
allowance for possible loan losses of $4,074,000 or .98% of total loans was
adequate as of June 30, 1997.

Results of Operations
                      Six Months Ended June 30, 1997
                               Compared with
                      Six Months Ended June 30, 1996

     Net  income for the six months ended June 30, 1997 was $4,923,000,  an
increase  of $1,129,000 or 29.8% as compared to the same 1996 period.   The
increase in net income for the period was due primarily to an  increase  in
net  interest income of $2,375,000 partially offset by an increase  in  the
provision for loan losses of $391,000. The increase in net interest  income
is  due to growth in average total loans of $89,562,000 partially offset by
an increase in average interest bearing deposits of $67,971,000 compared to
the same 1996 period.
     
     The  average balance of interest earning assets during the six  months
ended June 30, 1997 was $571,705,000, an $83,981,000 or 17.2% increase over
the  comparable 1996 period.  The Company's average yield on earning assets
for  the six months ended June 30, 1997 increased to 8.8% from 8.6% in  the
comparable 1996 period. Total interest income increased $4,121,000 or 19.7%
for the six months ended June 30, 1997 compared to the same 1996 period due
to an increase in average interest earning assets of $83,981,000.
     
     Average  deposits for the Company for the six months  ended  June  30,
1997  were $564,508,000, an $88,331,000 or 18.6% increase compared  to  the
same  period ended June 30, 1996.  The Company's average cost of funds  for
the  six  months ended June 30, 1997 was 3.6% which yielded a net  interest
margin  of 6.0%.  This compares to an average cost of funds of 3.4%  and  a
net  interest  margin  of 6.1% for the comparable  1996  period.   Interest
expense of $8,005,000 for the six months ended June 30, 1997 was $1,746,000
or  27.9%  over  the comparable 1996 period due to an increase  in  average
interest  bearing deposits of $67,974,000 and an increase in the  Company's
cost  of funds of 0.2%.  Net interest income for the six months ended  June
30, 1997 increased $2,375,000 or 16.2%.
     
     The  Company made a provision to the allowance for possible loan  loss
of  $570,000  in the six months ended June 30, 1997 primarily  due  to  the
recent  growth  experienced within the loan portfolio. An analysis  of  the
loan  portfolio  completed  by  the  Company  indicates  that  the  current
allowance  for  loan  losses is adequate based on the Company's  calculated
provision requirements.
     
     Total  loans  charged-off net of recoveries for the six  months  ended
June  30, 1997 amounted to $168,000 compared to $94,000 for the same period
in  1996.  Annualized net loan charge-offs as a percentage of average loans
for  the six months ended June 30, 1997 was 0.08% compared to 0.06% for the
six  months  ended June 30, 1996 and 0.22% for the year ended December  31,
1996.
     
     Total  other income was $1,604,000 for the six months ended  June  30,
1997,  a  $5,000  or  0.3% increase compared to the same  period  in  1996.
Service  charges on deposit accounts increased by $41,000 or 3.4% over  the
comparable period in 1996. Other income decreased by $28,000 from  year  to
year.
     
     Salaries  and benefits expense for the six months ended June 30,  1997
was $5,443,000, a $47,000 or 0.9% decrease from the comparable 1996 period.
This variance resulted primarily from the reduction in officers as a result
of the merger between South Valley Bancorporation  and the Company in 1996.
The  Company employed 266 full time equivalent employees at June  30,  1997
compared to 259 full time equivalent employees at December 31, 1996 and 245
full time equivalent employees at June 30, 1996.
     
     Total  other  expenses, excluding salaries and benefits, for  the  six
months ended June 30, 1997, was $4,481,000, a $98,000 or 2.2% increase from
the  comparable  1996  period. This was primarily due  to  an  increase  in
stationery  and  supplies expense of $188,000 due to  increased  orders  of
printed  forms for statements and various mailings. In addition,  occupancy
expense  increased by $93,000, or 9.0% due to normal rental rate  increases
from  year to year. Partially offsetting these increases was a decrease  in
equipment  expense of $213,000 associated with data processing costs  which
were  targeted for significant cost savings from the merger through systems
consolidation.
     
     Applicable  income taxes of $3,217,000 for the six months  ended  June
30, 1997 were $809,000, or 33.6% more than the comparable 1996 period.  The
Company's  effective tax rate for the six months ended June  30,  1997  was
39.5% compared to 38.8% for the same period in 1996.



                     Three Months ended June 30, 1997
                               Compared with
                     Three Months Ended June 30, 1996

     Net income for the three months ended June 30, 1997 was $2,681,000, an
increase  of  $688,000 or 34.5% as compared to the same 1996  period.   The
increase in net income for the period was due primarily to an  increase  in
net  interest income of $1,438,000 partially offset by an increase  in  the
provision for loan losses of $211,000. The increase in net interest  income
is  due to growth in average total loans of $92,532,000 partially offset by
an increase in average interest bearing deposits of $68,156,000 compared to
the same 1996 period.
     
     The average balance of interest earning assets during the three months
ended June 30, 1997 was $587,603,000, an $92,532,000 or 17.2% increase over
the  comparable 1996 period.  The Company's average yield on earning assets
for the three months ended June 30, 1997 increased to 8.9% from 8.6% in the
comparable 1996 period. Total interest income increased $2,423,000 or 22.8%
for  the three months ended June 30, 1997 compared to the same 1996  period
due to an increase in average interest earning assets of $92,532,000.
     
     Average  deposits for the Company for the quarter ended June 30,  1997
were  $579,997,000, a $94,556,000 or 19.5% increase compared  to  the  same
period  in 1996.  The Company's average cost of funds for the three  months
ended  June 30, 1997 was 3.7% which yielded a net interest margin of  6.1%.
This compares to an average cost of funds of 3.3% and a net interest margin
of 6.1% for the comparable 1996 period.  Interest expense of $4,143,000 for
the  quarter ended June 30, 1997 was $985,000 or 31.2% over  the comparable
1996  period  due  to an increase in average interest bearing  deposits  of
$68,156,000 and an increase in the Company's cost of funds of 0.3%.
     
     During  the quarter ended June 30, 1997, the Company made a  provision
to  the  allowance for possible loan loss of $285,000. This compares  to  a
provision  of  $74,000  which  was made in  the  second  quarter  1996  and
represents an increase of $211,000.
     
     Total  other income was $799,000 for the three months ended  June  30,
1997,  an  $18,000 or 2.2% increase compared to the same  period  in  1996.
Service  charges on deposit accounts decreased by $14,000 or 2.2% over  the
comparable period in 1996. Other income decreased by $11,000 from  year  to
year  and net gains on securities transactions was $11,000, an increase  of
$8,000 from the second quarter of 1996.
     
     Salaries and benefits expense for the three months ended June 30, 1997
was $2,696,000, a $44,000 or 1.6% decrease from the comparable 1996 period.
This  variance  resulted  primarily from the  reduction  in  administrative
officers as a result of the merger between South Valley Bancorporation  and
the Company in 1996.
     
     Total  other expenses, excluding salaries and benefits, for the  three
months ended June 30, 1997, was $2,268,000, a $46,000 or 2.1% increase from
the  comparable  1996  period. This was primarily due  to  an  increase  in
stationery and supplies expense of $69,000, an increase in advertising  and
promotion  of $49,000, partially offset by a decrease in equipment  expense
of $97,000 due to cost savings through systems consolidation.
     
     Applicable income taxes of $1,775,000 for the three months ended  June
30, 1997 were $519,000, or 41.3% more than the comparable 1996 period.  The
Company's effective tax rate for the three months ended June 30,  1997  was
39.8% compared to 38.7% for the same period in 1996.

Liquidity Management

       Liquidity  represents  the  ability  of  the  Company  to  meet  the
requirements of customer borrowing needs as well as fluctuations in deposit
flows.

     The Company manages its liquidity primarily by maintaining investments
in  overnight  fed  funds,  money market mutual  funds,  available-for-sale
securities, and by maintaining lines of credit with correspondent banks. At
June  30,  1997 the total of cash and due from banks, overnight fed  funds,
money  market  mutual funds, and available-for-sale securities  represented
$225,699,000 or 37.1% of total deposits compared to $192,773,000  or  35.2%
at  year end 1996.  This increase in liquid assets for the six months ended
June  30,  1997 resulted primarily from an increase in deposits which  were
invested in fed funds sold and short term investments.

      In  the opinion of management, there are sufficient resources to meet
the liquidity needs of the Company at present and projected future levels.

Capital Resources

      Capital  management  is a continuous process  of  providing  adequate
capital for current needs and anticipated future growth.  Capital serves as
a  source  of  funds  for the acquisition of fixed  and  other  assets  and
protects  depositors  against potential losses.  As  the  Company's  assets
increase, so do its capital requirements.

      The  Company and the Subsidiary Banks are subject to Federal  Reserve
Board  guidelines  and  regulations of  the  Comptroller  of  the  Currency
("Comptroller"),  respectively, governing capital  adequacy.   The  Federal
Reserve  Board  has  established  final  risk-based  and  leverage  capital
guidelines  for  bank  holding  companies  which  are  the  same   as   the
Comptroller's capital regulations for national banks.

      The  Federal  Reserve  Board  capital  guidelines  for  bank  holding
companies  and the Comptroller's regulations for national banks  set  total
capital requirements and define capital in terms of "core capital elements"
(comprising Tier 1 capital) and "supplemental capital elements" (comprising
Tier  2  capital).  Tier 1 capital is generally defined as the sum  of  the
core  capital elements less goodwill.  The following items are  defined  as
core   capital   elements:    common   stockholders'   equity,   qualifying
noncumulative  perpetual  preferred stock, and minority  interests  in  the
equity   accounts  of  consolidated  subsidiaries.   Supplementary  capital
elements include:  allowance for loan and lease losses (which cannot exceed
1.25%  of an institution's risk weighted assets), perpetual preferred stock
not  qualifying as core capital, hybrid capital instruments  and  mandatory
convertible  debt instruments, and term subordinated debt and intermediate-
term  preferred stock.  The maximum amount of supplemental capital elements
which qualifies as Tier 2 capital is limited to 100% of Tier 1 capital, net
of goodwill.

      Risk-based  capital  ratios are calculated with  reference  to  risk-
weighted  assets, including both on and off-balance sheet exposures,  which
are  multiplied  by  certain risk weights assigned by the  Federal  Reserve
Board to those assets.  Both bank holding companies and national banks  are
required  to maintain a minimum ratio of qualifying total capital to  risk-
weighted  assets of 8%, at least one-half of which must be in the  form  of
Tier  1 capital.  There are presently four risk-weight categories:  0%  for
cash   and  unconditionally  guaranteed  government  securities;  20%   for
conditionally   guaranteed  government  securities;  50%   for   performing
residential  real  estate  loans secured  by  first  liens;  and  100%  for
commercial loans.

      The Federal Reserve Board and the Comptroller also have established a
minimum  leverage  ratio  of 3% Tier I capital to  total  assets  for  bank
holding  companies  and  national  banks that  have  received  the  highest
composite  regulatory rating and are not anticipating or  experiencing  any
significant growth.  All other institutions will be required to maintain  a
leverage ratio of at least 100 to 200 basis points above the 3% minimum.

      The  following  tables  show the Company's  risk-based  and  leverage
capital  ratios  as of June 30, 1997 and December 31, 1996.  The  Company's
capital  ratios significantly exceeded the minimum capital levels  required
by  current federal regulations.  Management believes that the Company will
continue  to  meet  the  respective minimum  capital  requirements  in  the
foreseeable future.

Risk-Based Capital Ratios

June 30, 1997                              December 31, 1996
(Dollars in thousands)           Amount       Ratio      Amount      Ratio
                                                                          
Tier 1 Capital                  $67,484      13.89%     $63,469     13.91%
Tier 1 Capital minimum           19,431       4.00%      18,254      4.00%
requirement
      Excess                     48,053       9.89%      45,215      9.91%
                                                                          
Total Capital                    71,558      14.73%      67,141     14.71%
Total Capital minimum            38,861       8.00%      36,508      8.00%
requirement
      Excess                     32,697       6.73%      30,633      6.71%
                                                                          
Risk-adjusted assets           $485,766                $456,356           
                                                                          

Leverage Ratios

June 30, 1997                              December 31, 1996
(Dollars in thousands)           Amount       Ratio      Amount      Ratio
                                                                          
Tier 1 Capital to average                                                 
total assets
(Leverage ratio)                $67,484      10.38%      63,469     10.55%
 Minimum leverage             19,509 to    3.00% to   18,045 to   3.00% to
requirement
                                 32,515       5.00%      30,075      5.00%
                                                                          
Excess                        34,969 to    5.38% to   33,394 to   5.55% to
                                 47,975       7.38%      45,424      7.55%
                                                                          
Average total assets           $650,292                $601,496           
                                                                          


      Federal banking laws impose restrictions upon the amount of dividends
the  Subsidiary Banks may declare to the Company.  Federal laws also impose
restrictions upon the amount of loans or advances that the Subsidiary Banks
may  extend  to the Company.  In management's opinion, these do not  affect
the ability of the Company to meet its cash obligations.
     
PART II -- OTHER INFORMATION

Item 4.   Submission of matters to a Vote of Security Holders

          (a)  The Company's Annual Meeting of Shareholders was held on May
22, 1997.

          (c)  At the Annual Meeting the shareholders voted to:

               (i)       Elect Directors of the Company;


                                     Votes Cast for          Votes
                                           Election       Withheld
Charles E. Bancroft                       2,711,368         11,309
Gene DiCicco                              2,718,848          3,829
Lewis L. Fenton                           2,718,848          3,829
Gerald T. Fry                             2,717,334          5,343
Eugene R. Guglielmo                       2,718,848          3,829
James L. Gattis                           2,718,439          4,238
Stanley R. Haynes                         2,718,848          3,829
D. Vernon Horton                          2,717,743          4,934
Hubert W. Hudson                          2,718,848          3,829
William J. Keller                         2,718,848          3,829
Roger C. Knopf                            2,695,749         26,928
Clayton C. Larson                         2,718,848          3,829
William S. McAfee                         2,718,848          3,829
William H. Pope                           2,715,717          6,950
Mary Lou Rawitser                         2,711,473         11,204
William K. Sambrailo                      2,718,439          4,192
Robert B. Sheppard                        2,718,848          3,783
Clyn Smith, Jr.                           2,718,848          3,783
                                                                  

                                         In the voting for Directors, there
were no abstentions and 1,368,080 broker nonvotes

               (ii)      Ratify the appointment of KPMG Peat Marwick LLP as
independent public accountants for the 1996 fiscal year;

For                 2,709,994
Against                    3,578
Abstain                    8,683







ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
                                     
     (a) INDEX TO EXHIBITS

Exhibit                                        Sequentially
Number                 Exhibit                Numbered Page

   3.1     Articles of incorporation of the Company as amended to date.  1/
(*)

  3.2     Bylaws of Company as amended to date.  2/ (*)

 10.1     Lease -- 601 Abrego Street, Monterey, Premises.  3/    (*)

 10.2     Lease for 1001 South Main Street, Salinas, Banking office. 2/
(*)

 10.3     Lease dated December 15, 1988 by and between the Bank  (*)
          and James L. Gattis for 307 Main Street, Salinas Old Town Office.
2/

 10.4     Lease dated May 1, 1985 by and between the Bank   (*)
          and Pacific Capital Bancorp. 4/

 10.5     Pacific Capital Bancorp Employee Stock Ownership  (*)
          Plan and Trust Agreement. 5/

 10.6     Master Equipment Lease Agreement between Bank and (*)
          Parker North American Corporation. 5/

 10.7     Lease dated September 22, 1986 between    (*)
          Bank and The Saunders Company.  5/

*/   Not Applicable.





1/   Filed as Exhibits 3.1, 10.21 and 10.32, respectively, to the Company's
Annual Report on Form 10-K (File No. 0-13528) for the fiscal year ended
December 31, 1988, and are incorporated herein by reference.

2/   Filed as Exhibits 3.2 and 10.17, respectively, to the Company's Annual
Report on Form 10-K (File No. 2-87513) for the fiscal year ended December
31, 1984, which are incorporated by reference.

3/   Filed as Exhibit to the Company's Registration Statement on Form S-18
(Registration No. 2-87513), which is incorporated by reference.

4/   Filed as Exhibit 10.20 to the Company's Annual Report on Form 10-K
(File No. 0-13528) for the fiscal year ended December 31, 1985, which is
incorporated by reference.

5/   Filed as Exhibits 10.24 through 10.26, respectively, to Company's
Annual Report on Form 10-K (File No. 0-13528) for the fiscal year ended
December 31, 1986, which are incorporated by reference.




Exhibit                                        Sequentially
Number                 Exhibit                Numbered Page

 10.8     Matrix Funding Corporation Master Lease Agreement. 1/  (*)

 10.9     Lease dated January 24, 1989 by and between First National Bank
(*)
          of Monterey County and Stanley R. Haynes. 6/

10.13     Amendment No. One to Pacific Capital Bancorp(*)
          Employee Stock Ownership Plan. 2/

10.14     Amendment No. Two to Pacific Capital Bancorp(*)
          Employee Stock Ownership Plan. 7/

10.15     Amendment No. Three to Pacific Capital Bancorp    (*)
          Employee Stock Ownership Plan. 7/

10.16     Lease dated August 10, 1990 by and between the    (*)
          Trustees of the Stanley Family Trust and Pacific
          Capital Bancorp for Carmel Office. 7/

10.17     Assignment of Lease dated November 1, 1990 by and (*)
          between Pacific Capital Bancorp and First National
          Bank of Monterey-County for Carmel Office. 7/

10.18     Lease dated November 12, 1990 by and between(*)
          First National Bank of Monterey County and Carmel
          Monterey Travel for Premises located at 601 Abrego
          Street, Monterey, California. 7/

10.19     Prunetree Shopping Center Lease dated June 28, 1988    (*)
          by and between Dennis R. Keith and Pajaro Valley Bancorporation.
7/



6/   Filed as Exhibits 10.20 through 10.24, respectively, to the Company's
Annual Report on Form 10-K (File No. 0-13528) for the fiscal year ended
December 31, 1989, which are incorporated by reference.

7/   Filed as Exhibits 10.25 through 10.32 to the Company's Annual Report
on Form 10-K (File No. 0-13528) for the fiscal year ended December 31,
1990, which are incorporated by reference.

Exhibit                                        Sequentially
Number                 Exhibit                Numbered Page

10.20     Lease dated June 21, 1990 by and between Saucito  (*)
          Land Co. and First National Bank of Monterey County. 7/

10.22     Amendment No. Four to Pacific Capital Bancorp     (*)
          Employee Stock Ownership Plan. 8/

10.23     Amendment dated May 20, 1991 to Lease dated(*)
          December 15, 1988 by and between the Bank and
          James L. Gattis for 307 Main Street, Salinas Old Town Office. 8/

10.24     Pacific Capital Bancorp Directors' Stock Option Plan   (*)
          and Form of Stock Option Agreement. 8/

10.26     Pacific Capital Bancorp 1984 Stock Option Plan    (*)
          and Forms of Agreements as amended to date.  8/

10.30     Business Recovery Services Agreement dated(*)
          September 30, 1991 by and between Bank and J.D.B. & Associates,
Inc. 8/

10.31     Consolidated Agreement dated December 17, 1991    (*)
          by and between Bank and Unisys with Equipment Sale Agreement,
          Software License Agreement and Product License Agreement by
          and between Bank and information Technology, Inc. 8/

10.32     Fidelity and Deposit Company of Maryland Directors and (*)
          Officers Liability Insurance Policy including Bank Reimbursement.
8/

10.33     Fidelity and Deposit Company of Maryland  (*)
          Financial Institution Bond.  8/

10.34     Lease dated January 28, 1993 by and between J.W. and R.W.   (*)
          McClellan, Partners, and First National Bank of Central
California. 9/

10.35     Exercise of Lease Option as of September 19, 1992 by and    (*)
          between First National Bank of Central California and James L.
Gattis. 9/



8/   Filed as Exhibits 10.34 through 10.35 to the Company's Annual Report
on Form 10-K (File No. 0-13528) for the fiscal year ended December 31,
1991, which are incorporated by reference.

9/   Filed as exhibits to the Company's Annual Report on Form 10-K (File
No. 0-13528) for the fiscal year ended December 31, 1993, which are
incorporated by reference.






Exhibit                                        Sequentially
Number                 Exhibit                Numbered Page
   
10.37     Lease dated November 18, 1993 by and between Hazel Graven   (*)
          and Vines Stewart and First National Bank of Central California.
10/

10.38     Software License Agreement for Platform Transfer Module and
Interface (*)
          dated September 15, 1993 by and between First National Bank of
          Central California and Information Technology, Inc. 10/
   
10.39     Equipment Sale Agreement dated December 16, 1993 by and     (*)
          between First National Bank of Central California and
          Information Technology, Inc. 10/

10.40     Asset/Liability Management Software Agreement dated    (*)
          December 31, 1993 by and between First National Bank of
          Central California and Profitstar, Inc. 10/

10.41     Applications dated December 28, 1993 by First National Bank (*)
          of Central California to become a member of the California
Bankers
          Clearing House Association. 10/

10.42     Consolidated Agreement for the purchase of computer hardware
(*)
          dated December 20, 1993 by and between First National Bank of
          Central California and Unisys Corporation. 10/

10.46     Amended Pacific Capital Bancorp 1994 Stock Option Plan and Form
of (*)
          Incentive and Non-Qualified Stock Option Agreements. 9/

10.47     Amendment No. Five to Pacific Capital Bancorp Employee (*)
          Stock Ownership Plan and Trust. 10/

10.48     Pacific Capital Bancorp 401(k) Profit Sharing Plan. 10/     (*)

10.49     Equipment Sale Agreement dated March 22, 1995, by and between
(*)
          First National Bank of Central California and
          Information Technology, Inc. 11/

10.50     Equipment Sale Agreement dated February 2, 1996, by and between
(*)
          First National Bank of Central California and
          Information Technology, Inc. 11/


9/   Filed as Exhibits to the Company's Registration Statement on Form S-8
(File No. 33-83848) as filed on September 8, 1994, and Amendment No. 1 to
Form S-8 as filed on November 15, 1994.

10/  Filed as exhibits to the Company's Annual Report on Form 10-K (File
No. 0-13528) for the fiscal year ended December 31, 1994, which are
incorporated by reference.

11/  Filed as exhibits to the Company's Annual Report on Form 10-K (File
No. 0-13528) for the fiscal year ended December 31, 1995, which are
incorporated by reference.



Exhibit                                        Sequentially
Number                 Exhibit                Numbered Page

10.51     Standard Form of Agreement between Owner (Pacific Capital
Bancorp)  (*)
          and Contractor (Daniels & House Construction Co.) for the
renovation
          of existing building and construction of new addition for
          First National Bank of Central California at 1001 S. Main Street,
          Salinas, CA, 93901, dated June 15, 1995. 11/

10.52     Employee Welfare Benefit Plan Agreement dated January 1, 1995,
(*)
          between Pacific Capital Bancorp and
          Great-West Life & Annuity Insurance Co. 11/

10.53     Lease Agreement dated October 29, 1996 by and between James L.
(*)
          Gattis and Pacific Capital Bancorp for property located at 517 S.
          Main Street, Salinas  /12

10.54     Employment Agreement dated May 22, 1996 between First  (*)
          National Bank of Central California and Clayton C. Larson /12

10.55     Employment Agreement dated May 22, 1996 between First  (*)
          National Bank of Central California and D. Vernon Horton /12

10.56     Employment Agreement dated May 22, 1996 between First  (*)
          National Bank of Central California and Dennis A. DeCius /12

10.57     Employment Agreement dated November 20, 1996 between South  (*)
          Valley National Bank and Brad L. Smith /12

  27.     Financial Data Schedule                    23




11/  Filed as exhibits to the Company's Annual Report on Form 10-K (File
No. 0-13528) for the fiscal year ended December 31, 1995, which are
incorporated by reference.

12/  Filed as exhibits to the Company's Annual Report on Form 10-K (File
No. 0-13528) for the fiscal year ended December 31, 1996, which are
incorporated by reference.

                                     
                                 SIGNATURES
                                     

      Pursuant to the requirements of the Securities Exchange Act of  1934,
the  registrant has duly caused this report to be signed on its  behalf  by
the undersigned thereunto duly authorized.



Date __ August 12, 1997_____            /S/    D. Vernon Horton
                                        D. Vernon Horton
                                        Chairman of the Board
                                        Chief Executive Officer





Date __ August 12, 1997_______          /S/    Dennis A. DeCius
                                        Dennis A. DeCius
                                        Executive Vice President
                                        Chief Financial Officer