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   September 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                                November 12, 1997

     Common stock, no par value            4,100,537 Shares

This report contains a total of 21 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 6

EXHIBITS AND REPORTS ON FORM 8-K                          16

SIGNATURES                                                21

                                     
                                  PART 1
                      ITEM 1 - FINANCIAL INFORMATION
                 PACIFIC CAPITAL BANCORP AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS
                                (UNAUDITED)
                   (IN THOUSANDS, EXCEPT SHARE AMOUNTS)
                                                     September     December
                                                           30,          31,
Assets                                                    1997         1996
                                                                           
Cash and due from banks                                $48,227      $48,126
Federal funds sold and other short term                 74,659       28,119
investments
      Total cash and equivalents                       122,886       76,245
Investment securities:                                                     
   Available-for-sale securities, at fair value        153,897      116,528
   Held-to-maturity securities, at amortized                               
cost
     (fair value of $7,469 and $9,739,                   7,457        9,680
respectively)
                                                                           
Loans available for sale                                 9,725        5,821
                                                                           
Total loans                                            406,342      388,728
   Less allowance for possible loan losses             (4,168)      (3,672)
      Net loans                                        402,174      385,056
                                                                           
Premises and equipment, net                             14,956       15,300
Accrued interest receivable and other, net              12,236       10,809
                                                                           
Total assets                                          $723,331     $619,439
                                                                           
Liabilities and shareholders' equity                                       
                                                                           
Deposits:                                                                  
   Demand, non-interest bearing                       $157,861     $131,332
   Demand, interest bearing                             86,911       84,770
   Savings and money market                            173,461      164,890
   Time certificates                                   228,563      166,190
      Total deposits                                   646,796      547,182
                                                                           
Accrued interest payable and other liabilities           6,292        8,611
                                                                           
Total liabilities                                      653,088      555,793
                                                                           
Shareholders' equity:                                                      
Preferred stock; 20,000,000 shares authorized                -            -
and unissued
Common stock, no par value; 20,000,000 shares                              
authorized;
   4,100,406 and 4,083,363 shares issued and                               
outstanding at
   September 30, 1997  and at December 31,              49,840       49,388
1996, respectively
Retained earnings                                       20,111       14,423
Net unrealized gains (losses) on available-for-            292        (165)
sale securities
                                                                           
Total shareholders' equity                              70,243       63,646
                                                                           
Total liabilities and shareholders' equity            $723,331     $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)
                                     
                                                 Nine months    Nine months
                                                       ended          ended
                                               September 30,  September 30,
                                                        1997           1996
Interest income:                                                           
   Interest and fees on loans                        $30,452        $24,603
   Interest on fed funds sold                          1,544          1,394
   Interest on investment securities                   6,672          6,118
     Total interest income                            38,668         32,115
Interest expense:                                                          
   Interest on deposits                               12,494          9,644
   Other                                                  24             22
     Total interest expense                           12,518          9,666
     Net interest income                              26,150         22,449
 Provision for possible loan losses                      910            185
Net interest income after provision for               25,240         22,264
possible loan losses
                                                                           
Other income:                                                              
   Service charges                                     1,872          1,732
   Gain on sale of loans                                  17             21
   Net gain  on securities transactions                   11             15
   Other                                                 517            611
     Total other income                                2,417          2,379
                                                                           
Other expenses:                                                            
   Salaries and benefits                               8,211          8,252
   Occupancy                                           1,706          1,460
   Equipment                                           1,271          1,650
   Advertising and promotion                             534            478
   Stationary and supplies                               600            377
   Legal and professional fees                           658            962
   Regulatory assessments                                164            109
   Other operating                                     1,813          2,168
     Total other expenses                             14,957         15,456
                                                                           
Earnings before income taxes                          12,700          9,187
                                                                           
Income taxes                                           5,028          3,615
                                                                           
Net income                                            $7,672         $5,572
                                                                           
Net income per share                                   $1.81          $1.31
                                                                           
                                                                           
Weighted average shares outstanding                4,243,643      4,266,289

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
                                                   September      September
                                                    30, 1997       30, 1996
Interest income:                                                           
   Interest and fees on loans                        $10,456         $8,644
   Interest on fed funds sold                            812            486
   Interest on investment securities                   2,365          2,071
     Total interest income                            13,633         11,201
Interest expense:                                                          
   Interest on deposits                                4,510          3,402
   Other                                                   3              5
     Total interest expense                            4,513          3,407
     Net interest income                               9,120          7,794
 Provision for possible loan losses                      340              6
Net interest income after provision for                8,780          7,788
possible loan losses
                                                                           
Other income:                                                              
   Service charges                                       632            533
   Gain on sale of loans                                   6              6
   Other                                                 175            241
     Total other income                                  813            780
                                                                           
Other expenses:                                                            
   Salaries and benefits                               2,768          2,762
   Occupancy                                             582            429
   Equipment                                             443            609
   Advertising and promotion                             191            195
   Stationary and supplies                               174            139
   Legal and professional fees                           237            520
   Regulatory assessments                                 57             37
   Other operating                                       581            892
     Total other expenses                              5,033          5,583
                                                                           
Earnings before income taxes                           4,560          2,985
                                                                           
Income taxes                                           1,811          1,207
                                                                           
Net income                                            $2,749         $1,778
                                                                           
Net income per share                                   $0.65          $0.41
                                                                           
                                                                           
Weighted average shares outstanding                4,246,811      4,296,973

See accompanying notes to unaudited consolidated financial statements.
                                     
                                     
                                     
                                     
                                     
                                     
                 PACIFIC CAPITAL BANCORP AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (UNAUDITED)
                              (IN THOUSANDS)
                                     
                                                 Nine months    Nine months
                                                       ended          ended
                                                   September      September
                                                    30, 1997       30, 1996
                                                                           
Cash flows from operating activities:                                      
Net income                                            $7,672         $5,572
Adjustments to reconcile net income to net                                 
cash used in
     operating activities:                                                 
   Depreciation and amortization                       1,096          1,206
   Provision for possible loan losses                    910            185
   Gain on sale of investment securities, net           (11)           (15)
   Net originations of loans available for           (3,904)        (1,904)
sale
   Gain on sale of loans                                (17)           (21)
   Deferral of loan origination fees                     121            148
   Change in accrued interest receivable and           (970)        (1,976)
other assets
   Change in accrued interest payable and            (2,291)          (531)
other liabilities
Net cash provided by operating activities              2,606          2,664
                                                                           
Investing activities:                                                      
   Net increase in loans                            (18,149)       (57,079)
   Maturities of investment securities                14,799         11,022
   Purchases of investment securities               (49,945)       (41,833)
   Proceeds from sale of available-for-sale                -         25,695
securities
   Capital expenditures, net                           (752)        (2,484)
Net cash used in investing activities               (54,047)       (64,679)
                                                                           
Financing activities:                                                      
   Net increase in deposits                           99,614         62,719
   Cash paid for retirement of stock                       -          (551)
   Proceeds from exercise of options                     452            292
   Cash paid for dividends                           (1,984)        (1,531)
Net cash provided by financing activities             98,082         60,929
                                                                           
Net increase (decrease) in cash and                   46,641        (1,086)
equivalents
Cash and equivalents at beginning of period           76,245         79,234
Cash and equivalents at end of period               $122,886        $78,148
                                                                           
Supplemental disclosures of cash flow                                      
information:
    Cash paid during the period                                            
     Interest                                        $12,824        $10,427
     Income taxes                                      4,115          3,229
                                                                           
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 September 30, 1997  and December
          31,  1996,  the  results of its operations and the statements  of
          cash flows for the periods ended September 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 September  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
interim and annual periods ending 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 SFAS No. 128.

Three Months Ended
                                             September 30,    September 30,
                                                      1997             1996
Basic Earnings per Share                             $0.67            $0.44
Diluted Earnings per Share                           $0.65            $0.41
                                                                           

Nine Months Ended
                                             September 30,    September 30,
                                                      1997             1996
Basic Earnings per Share                             $1.87            $1.36
Diluted Earnings per Share                           $1.81            $1.31


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 September 30,  1997
          amounted to approximately $10,733,000.

Note 4 -  Commitments
          
          The  Company  had  outstanding  standby  letters  of  credit   of
          approximately $4,216,000 at September 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,  April 22, and July 22, 1997,  the Company  declared
          $0.165  per  share cash dividends to shareholders  of  record  on
          March  14, June 16, and September 15, 1997, payable on March  31,
          June 30, and September 30, 1997, respectively.

Note 6 -  Taxes

As of September  30,  1997,  the  Company  has  a  deferred  tax  asset  of
          approximately $3,290,000.  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  nine  months ended  September  30,  1997   was
$7,672,000  or  $1.81 per share compared to $5,572,000 or $1.31  per  share
during the comparable period in 1996. This 37.7% increase in net income  is
due mainly to a $3,701,000 increase in net interest income. The increase in
net  interest income is due to growth in average total loans of $83,357,000
partially  offset  by an increase in average interest bearing  deposits  of
$70,250,000 as compared to the same 1996 period.

      Outstanding loans were $406,342,000 at September 30, 1997 compared to
$388,728,000  at  December 31, 1996, a $17,614,000 or  4.5%  increase.  The
increase in outstanding loans from December 31, 1996 to September 30,  1997
resulted  primarily from an increase in real estate loans  of  $38,649,000,
partially  offset by a  decrease in commercial loans of $13,189,000  and  a
decrease in other loans of $3,415,000.

      Federal  Funds Sold and Investment Securities at September  30,  1997
were $236,013,000, a $81,686,000 or  52.9% increase from December 31, 1996.
This was primarily due to the increase in total deposits which resulted  in
an increase in investments  in Federal Funds and investment securities.

      The Company's total deposits at September 30, 1997  were $646,796,000
compared  to  $547,182,000 at December 31, 1996,  a  $99,614,000  or  18.2%
increase.  Non-interest  bearing  demand  deposits  increased  $26,529,000,
interest bearing demand deposits increased $2,141,000 and savings and money
market  deposit accounts increased $8,571,000 in the first nine  months  of
1997. Certificates of deposit increased by $62,373,000 or 37.5% during  the
first nine months of 1997.  Management believes that the growth in deposits
is  a result of  the overall strength in the local tourism and agribusiness
industries.  In  addition, growth in housing demand and a small  influx  of
businesses  moving  into  the  southern  Santa  Clara  County   area   have
contributed to the Company's deposit growth.


Loans

      Outstanding  total loans averaged $410,011,000 for  the  nine  months
ended  September  30,  1997  compared to $326,654,000  for  the  comparable
period  in  1996,  an increase of $83,357,000, or 25.5%. 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 September 30, 1997
, December 31, 1996, and September 30, 1996  is summarized in the following
table.

                            Nonperforming Loans
                          (Dollars in Thousands)
                                     
                       September  30,   December 31,   September  30,
                            1997            1996            1996
Accruing loans
past due 90 days
or more:
   Commercial           $     29         $    15           $  30
   Consumer                   17               2              32
   Real Estate                 -               -             606
Total                       $ 46          $   17           $ 668

Nonaccrual loans:
   Commercial                524             507             958
   Consumer                  111             142             116
   Real Estate             1,445             915           1,720
Total                     $2,080          $1,564          $2,794

Total Nonperforming
Loans                     $2,126          $1,581          $3,462

Nonperforming Loans
To Total Loans              0.52%           0.41%         0.97%

Allowance For Possible
Loan Losses To Total
Non Performing Loans      196.05%         232.26%         101.88%

      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 one Other  Real  Estate
Owned  (OREO)  property,  which  totals  $1,213,000.  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 September 30,
1997 , December 31, 1996, and September 30, 1996 :

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

Loans Outstanding, at period end         $406,342        $388,728
$358,204

Average Loans            $410,011        $332,421        $326,654

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

  Charge-Offs By Loan Category:
    Commercial              357             761             347
    Consumer                 45             188             158
    Real Estate             174             121              56
    Total                $  576        $  1,070         $   561
  
  Recoveries By Loan Category:
    Commercial              102             239             107
    Consumer                 21              91              69
    Real Estate              39              17              17
    Total               $   162          $  347          $  193

Net Charge-Offs          $   414          $  723          $  368

Provision Charged
To Expense                  $910            $685            $185

Allowance Balance
End Of Period            $ 4,168         $ 3,672         $ 3,527

Allowance For Possible
Loan Losses
To Period End Loans         1.03%           0.94%           0.98%

Annualized Net Charge-offs
to Average Loans            0.13%           0.22%           0.15%


      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 $4,168,000 or 1.03% of  total  loans
was adequate as of September 30, 1997 .





Results of Operations
                   Nine months ended September 30, 1997
                               Compared with
                   Nine months ended September 30, 1996

     Net  income  for  the  nine  months  ended  September  30,  1997   was
$7,672,000, an increase of $2,100,000 or 37.7% 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 $3,701,000  partially  offset  by  an
increase in the provision for loan losses of $725,000. The increase in  net
interest  income  is  due to growth in average total loans  of  $83,357,000
partially  offset  by an increase in average interest bearing  deposits  of
$70,250,000 compared to the same 1996 period.
     
     The  average balance of interest earning assets during the nine months
ended  September  30,  1997   was $591,837,000,  an  $91,468,000  or  18.3%
increase  over the comparable 1996 period.  The Company's average yield  on
earning  assets for the nine months ended September 30, 1997  increased  to
8.7%  from  8.6%  in  the  comparable 1996 period.  Total  interest  income
increased $6,553,000 or 20.4% for the nine months ended September 30,  1997
compared  to  the  same 1996 period due to an increase in average  interest
earning assets of $91,468,000.
     
     Average  deposits for the Company for the nine months ended  September
30,  1997  were $583,973,000, an $94,237,000 or 19.2% increase compared  to
the  same period ended September 30, 1996 .  The Company's average cost  of
funds  for the nine months ended September 30, 1997  was 3.7% which yielded
a  net  interest margin of 5.9%.  This compares to an average cost of funds
of  3.4%  and a net interest margin of 6.0% for the comparable 1996 period.
Interest  expense  of $12,518,000 for the nine months ended  September  30,
1997   was $2,852,000 or 29.5% over  the comparable 1996 period due  to  an
increase  in  average  interest  bearing deposits  of  $70,250,000  and  an
increase  in the Company's cost of funds of 0.3%.  Net interest income  for
the nine months ended September 30, 1997  increased $3,701,000 or 16.5%.
     
     The Company made a provision to the allowance for possible loan losses
of  $910,000 in the nine months ended September 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 nine months  ended
September 30, 1997 amounted to $414,000 compared to $368,000 for  the  same
period in 1996.  Annualized net loan charge-offs as a percentage of average
loans  for the nine months ended September 30, 1997  was 0.13% compared  to
0.15% for the nine months ended September 30, 1996  and 0.22% for the  year
ended December 31, 1996.
     
     Total  other income was $2,417,000 for the nine months ended September
30,  1997, a $38,000 or 1.6% increase compared to the same period in  1996.
Service charges on deposit accounts increased by $140,000 or 8.1% over  the
comparable period in 1996. Other income decreased by $94,000 for  the  nine
months ended September 30, 1997, as compared to the same period in 1996.
     
     Salaries and benefits expense for the nine months ended September  30,
1997   was $8,211,000, a $41,000 or 0.5% 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 271 full  time  equivalent  employees  at
September  30,  1997  compared  to 259 full time  equivalent  employees  at
December  31, 1996 and 248 full time equivalent employees at September  30,
1996 .
     
     Total  other expenses, excluding salaries and benefits, for  the  nine
months  ended  September  30, 1997 , was $6,746,000,  a  $458,000  or  6.4%
decrease  from  the  comparable 1996 period. This was primarily  due  to  a
decrease  in  equipment  expense  of $379,000,  a  decrease  in  legal  and
professional  expense  of $304,000, and a decrease  in  other  expenses  of
$355,000. These decreases were partially offset by an increase in occupancy
expense of $246,000 and an increase in stationery expense of $223,000.  The
decrease  in  equipment expense, legal and professional expense  and  other
expense  were a direct result of cost savings  which were targeted  in  the
merger between South Valley Bancorporation and the Company. The increase in
stationery  expense related to one-time ordering of stationery due  to  the
change  in  the  address  of the administrative  offices  of  South  Valley
National Bank.
     
     Applicable  income  taxes  of $5,028,000 for  the  nine  months  ended
September 30, 1997  were $1,413,000, or 39.1% more than the comparable 1996
period.   The  Company's  effective tax rate  for  the  nine  months  ended
September  30,  1997  was 39.6% compared to 39.4% for the  same  period  in
1996.

                   Three months ended September 30, 1997
                               Compared with
                   Three months ended September 30, 1996

     Net  income  for  the  three  months ended  September  30,  1997   was
$2,749,000, an increase of $971,000 or 54.6% 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 $1,326,000  partially  offset  by  an
increase in the provision for loan losses of $334,000. The increase in  net
interest  income  is  due to growth in average total loans  of  $69,120,000
partially  offset  by an increase in average interest bearing  deposits  of
$75,454,000 compared to the same 1996 period.
     
     The average balance of interest earning assets during the three months
ended  September  30,  1997   was $630,282,000,  a  $103,806,000  or  19.7%
increase  over the comparable 1996 period.  The Company's average yield  on
earning  assets for the three months ended September 30, 1997 increased  to
8.6%  from  8.5%  in  the  comparable 1996 period.  Total  interest  income
increased $1,848,000 or 16.5% for the three months ended September 30, 1997
compared  to  the  same 1996 period due to an increase in average  interest
earning assets of $103,806,000.
     
     Average  deposits for the Company for the quarter ended September  30,
1997  were $622,493,000, a $103,304,000 or 19.9% increase compared  to  the
same  period  in 1996.  The Company's average cost of funds for  the  three
months  ended  September  30, 1997 was 3.7% which yielded  a  net  interest
margin  of 5.7%. This compares to an average cost of funds of  3.4%  and  a
net  interest  margin  of 5.9% for the comparable  1996  period.   Interest
expense  of  $4,513,000  for  the quarter  ended  September  30,  1997  was
$1,106,000 or 32.4% over  the comparable 1996 period due to an increase  in
average  interest bearing deposits of $75,454,000 and an  increase  in  the
Company's cost of funds of 0.3%.
     
     During  the  quarter  ended September 30, 1997 , the  Company  made  a
provision  to  the  allowance  for possible loan  loss  of  $340,000.  This
compares to a provision of $6,000 which was made in the third quarter  1996
and represents an increase of $334,000.
     
     Total  other income was $813,000 for the three months ended  September
30,  1997, a $33,000 or 4.2% increase compared to the same period in  1996.
Service  charges  on  deposit accounts increased by $99,000  or  18.6%  and
other  income decreased by $66,000 or 27.4% from the third quarter of  1997
to the same period in 1996.
     
     Salaries and benefits expense for the three months ended September 30,
1997  was  $2,768,000, a $6,000 or 0.2% increase from the  comparable  1996
period.  Although the benefits component increased during this period,  the
overall decrease was due to 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 was $2,265,000,
a  $556,000  or  19.7% increase from the comparable 1996 period.  This  was
primarily due to a decrease in equipment expense of $166,000, a decrease in
legal  and  professional  expense of $283,000,  and  a  decrease  in  other
expenses  of $311,000. These decreases were partially offset by an increase
in  occupancy expense of $153,000. The decrease in equipment expense, legal
and  professional expense and other expense were a direct  result  of  cost
savings    which  were  targeted  in  the  merger  between   South   Valley
Bancorporation and the Company.
     
     Applicable  income  taxes of $1,811,000 for  the  three  months  ended
September  30,  1997 were $604,000, or 50.0% more than the comparable  1996
period.   The  Company's  effective tax rate for  the  three  months  ended
September 30, 1997 was 39.7% compared to 40.4% 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
September  30,  1997, the total of cash and due from banks,  overnight  fed
funds,   money  market  mutual  funds,  and  available-for-sale  securities
represented   $276,873,000  or  42.8%  of  total   deposits   compared   to
$192,773,000 or 35.2% at year end 1996. This increase in liquid assets  for
the  nine  months  ended  September 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   shareholders'   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  tables  on the following page show the Company's risk-based  and
leverage  capital ratios as of September 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

September 30, 1997                               December 31, 1996
(Dollars in thousands)           Amount       Ratio      Amount      Ratio
                                                                          
Tier 1 Capital                  $69,641      14.28%     $63,469     13.91%
Tier 1 Capital minimum           19,484       4.00%      18,254      4.00%
requirement
      Excess                     50,157      10.28%      45,215      9.91%
                                                                          
Total Capital                    73,809      15.14%      67,141     14.71%
Total Capital minimum            38,969       8.00%      36,508      8.00%
requirement
      Excess                     34,840       7.14%      30,633      6.71%
                                                                          
Risk-adjusted assets           $487,606                $456,356           
                                                                          

Leverage Ratios

September 30, 1997                               December 31, 1996
(Dollars in thousands)           Amount       Ratio      Amount      Ratio
                                                                          
Tier 1 Capital to average                                                 
total assets
(Leverage ratio)                $69,641       9.98%      63,469     10.55%
 Minimum leverage             20,925 to    3.00% to   18,045 to   3.00% to
requirement
                                 34,875       5.00%      30,075      5.00%
                                                                          
Excess                        34,766 to    4.98% to   33,394 to   5.55% to
                                 48,716       6.98%      45,424      7.55%
                                                                          
Average total assets           $697,497                $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 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   1/    (*)

  3.2     Bylaws of Company as amended  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/

10.41     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/

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/


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

10.52     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

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

10.58     Employment Agreement dated August 26, 1997 between Pacific  23
          Capital Bancorp and Clayton C. Larson

10.59     Employment Agreement dated August 26, 1997 between Pacific  32
          Capital Bancorp and D. Vernon Horton

10.60     Employment Agreement dated August 26, 1997 between Pacific  41
          Capital Bancorp and Dennis A. DeCius

10.61     Employment Agreement dated August 26, 1997 between Pacific  50
          Capital Bancorp and Dale R. Diederick

10.62     Amended and Restated Executive Salary Continuation Agreement 59
          dated September 23, 1997 between Pacific Capital Bancorp and
          Clayton C. Larson

10.63     Amended and Restated Executive Salary Continuation Agreement 71
          dated September 23, 1997 between Pacific Capital Bancorp and
          D. Vernon Horton

10.64     Amended and Restated Executive Salary Continuation Agreement 83
          dated September 23, 1997 between Pacific Capital Bancorp and
          Dennis A. DeCius

10.65     Amended and Restated Executive Salary Continuation Agreement 95
          dated September 23, 1997 between Pacific Capital Bancorp and
          Dale R. Diederick

  27.     Financial Data Schedule                    22

          (b)  REPORTS ON FORM 8-K
          No reports were filed on Form 8-K for the quarter ended September
30, 1997


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.

                                        Pacific Capital Bancorp


Date __ November 13, 1997_____          /S/    D. Vernon Horton
                                        D. Vernon Horton
                                        Chairman of the Board
                                        Chief Executive Officer





Date __ November 13, 1997_______        /S/    Dennis A. DeCius
                                        Dennis A. DeCius
                                        Executive Vice President
                                        Chief Financial Officer