SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

[x]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES      EXCHANGE ACT OF 1934

For the Quarterly Period Ended     March 31, 1999    .

[  ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES      EXCHANGE ACT OF 1934

                   Commission File No. 0-25418 . 
                                       ---------  
                        CENTRAL COAST BANCORP
------------------------------------------------------------------------
        (Exact name of registrant as specified in its charter) 


           California                                 77-0367061         
-------------------------------                  ----------------------- 
(State or other jurisdiction of                  (IRS Employer ID Number)
incorporation or organization)


  301 Main Street, Salinas, California.                      93901  .
----------------------------------------                   ----------   
 (Address of principal executive offices)                  (Zip code)


                                (831) 422-6642 .
                         -------------------------------  
                         (Registrant's telephone number,
                              including area code)

                                 not applicable
                    ---------------------------------------
              (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
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 
                                           ----   ----

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


No par value Common Stock - 6,504,812 shares outstanding at April 29,1999.


                                   Page 1 of 22
                 The Index to the Exhibits is located at Page 20
<PAGE>
<TABLE>
<CAPTION>



                         PART I - FINANCIAL INFORMATION
                          Item 1. FINANCIAL STATEMENTS:
                     CENTRAL COAST BANCORP AND SUBSIDIARIES
                CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)

(In thousands)                                 March 31, 1999  December 31,1998
                                               --------------  ----------------   


<S>                                                <C>          <C>
Assets
  Cash and due from banks                           $ 36,938     $ 44,684
  Federal funds sold                                       -        4,202
                                                    ---------    ---------
    Total cash and equivalents                        36,938       48,886

  Available-for-sale securities                      165,961      170,387
  Loans held for sale                                  5,291        6,168

  Loans:
    Commercial                                       129,350      136,685
    Real estate-construction                          21,854       19,929
    Real estate-other                                157,984      144,685
    Installment                                       11,659       11,545
    Deferred loan fees, net                             (728)        (674)
                                                    ---------    ---------
       Total loans                                   320,119      312,170
    Allowance for loan losses                         (4,398)      (4,352)
                                                    ---------    ---------
  Net Loans                                          315,721      307,818
                                                    ---------    ---------

  Premises and equipment, net                          3,239        3,069
  Accrued interest receivable and other assets         8,854        7,605
                                                    ---------    --------
Total assets                                        $536,004     $543,933
                                                    =========    ========
Liabilities and Shareholders' Equity
  Deposits:
    Demand, noninterest bearing                     $122,272     $149,757
    Demand, interest bearing                          93,176       98,226
    Savings                                          101,558      104,447
    Time                                             158,462      136,762
                                                    ---------    --------
       Total Deposits                                475,468      489,192
  Accrued interest payable and other liabilities       8,389        3,542
                                                    ---------    --------
Total liabilities                                    483,857      492,734
                                                    ---------    --------
  Commitments and contingencies (Note 2)
  Shareholders' Equity:
    Preferred stock - no par value; authorized
     1,000,000 shares; no shares issued
    Common stock - no par value; authorized
     25,000,000 shares;
     issued and outstanding: 6,490,327 shares at
     March 31, 1999
     and 6,112,045 shares at December 31, 1998        41,106       41,103
    Shares held in deferred compensation trust
     (247,148 at March 31, 1999 and 71,949 at 
     December 31, 1998), net of deferred obligation        -            -
    Retained earnings                                 11,457        9,733
    Accumulated other comprehensive income - net of
     deferred obligation
     taxes of $289,000 at March 31, 1999 and    
     $254,000 at December 31,1998                       (416)         363
                                                     --------    ---------
Shareholders' equity                                  52,147       51,199
                                                     --------    ---------
Total liabilities and shareholders' equity          $536,004     $543,933
                                                     ========    =========

See notes to Consolidated Condensed Financial Statements
</TABLE>

<PAGE>
<TABLE>
<CAPTION>

  
                     CENTRAL COAST BANCORP AND SUBSIDIARIES
             CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(In thousands)
Three Months Ended March 31,                  1999           1998
                                              ----           ---- 

<S>                                         <C>           <C>
Interest Income
   Loans (including fees)                    $7,140          $6,267
   Investment securities                      2,249           1,780             
   Other                                         73             945
                                           -----------    ------------
       Total interest income                  9,462           8,992
                                           -----------    ------------
Interest Expense
   Interest on deposits                       3,086           3,334
   Other                                         27               1
                                           -----------    ------------
       Total interest expense                 3,113           3,335
                                           -----------    ------------
Net Interest Income                           6,349           5,657
Provision for Loan Losses                       127              17
                                           -----------    ------------
Net Interest Income after
   Provision for Loan Losses                  6,222           5,640
                                           -----------    ------------

Noninterest Income                              542             394
                                           -----------    ------------
Noninterest Expenses
   Salaries and benefits                      2,331           2,155
   Occupancy                                    280             219
   Furniture and equipment                      291             195
   Other                                        921             883
                                           -----------    ------------
       Total other expenses                   3,823           3,452
                                           -----------    ------------
Income Before Income Taxes                    2,941           2,582
Provision for Income Taxes                    1,216           1,068
                                           -----------    ------------
       Net Income                            $1,725          $1,514
                                           ===========    ============

Basic Earnings per Share                      $0.27           $0.25
Diluted Earnings per Share                    $0.26           $0.23

See Notes to Consolidated Condensed Financial Statements
</TABLE>
<PAGE>

<TABLE>
<CAPTION>


                     CENTRAL COAST BANCORP AND SUBSIDIARIES  
           CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
Three Months Ended March 31,                    1999            1998
                                                ----            ----

<S>                                          <C>             <C>
  Cash Flows from Operations: 
   Net income                                $1,725           $1,514
   Reconciliation of net income to net
   cash provided  by operating activities:
    
     Provision for credit losses                127               17
     Net gain on sale of fixed assets             -               (1)
     Depreciation                               212              139
     Amortization and accretion                  77             (100)
     (Increase) decrease in accrued interest      
      receivable and other assets              (919)              53
     Increase in accrued interest                             
      payable and other liabilities           1,107              367
     (Increase) decrease in deferred                          
      loan fees                                  54              (50)
                                             ----------      ----------
       Net cash provided by operations        2,383            1,939
                                             ----------      ----------
  Cash Flows from Investing Activities:
   Purchases of investment securities       (87,498)         (62,166)
   Proceeds from maturities
    of investment securities                 90,738           61,780
   Net change in loans held for sale            877             (877)
   Net (increase) decrease in loans          (8,084)           5,056
   Proceeds from sale of fixed assets             -                1
   Capital expenditures                        (382)            (267)
                                             ----------      ----------
       Net cash provided (used) in                            
       investing activities                  (4,349)           3,527
                                             ----------      ----------
  Cash Flows from Financing Activities:
   Net decrease in deposit accounts         (13,724)         (13,984)
   Net increase (decrease) in short-term                      
    borrowings                                3,740             (288)
   Proceeds from sale of stock                  810               39
   Shares repurchased                          (808)             (13)
                                             ----------      ----------
       Net cash used by financing activities (9,982)         (14,246)
                                             ----------      ----------
                                            
   Net decrease in cash and equivalents     (11,948)          (8,780)
  Cash and equivalents, beginning of period  48,886          104,597
                                             ----------      ----------
  Cash and equivalents, end of period       $36,938          $95,817
                                             ==========      ==========

  Other Cash Flow Information:
   Interest paid                            $ 3,092          $ 2,612
   Income taxes paid                            224                -

</TABLE>

See Notes to Consolidated Condensed Financial Statements

<PAGE>

                     CENTRAL COAST BANCORP AND SUBSIDIARIES
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                           March 31, 1999 (Unaudited)

1. CONSOLIDATED FINANCIAL STATEMENTS

In the opinion of Management, the unaudited consolidated condensed
financial statements contain all adjustments (consisting of only
normal recurring adjustments) necessary to present fairly the
Company's consolidated financial position at March 31, 1999 and
December 31, 1998, the results of operations for the three month
periods ended March 31, 1999 and 1998, and cash flows for the three
month periods ended March 31, 1999 and 1998.

Certain disclosures normally presented in the notes to the annual
financial statements prepared in accordance with generally accepted
accounting principles have been omitted.  These interim
consolidated condensed financial statements should be read in
conjunction with the consolidated financial statements and notes
thereto included in the Company's 1998 Annual Report to
Shareholders.  The results of operations for the three month
periods ended March 31, 1999 and 1998 may not necessarily be
indicative of the operating results for the full year.

In preparing such financial statements, management is required to
make estimates and assumptions that affect the reported amounts of
assets and liabilities as of the date of the balance sheet and
revenues and expenses for the period.  Actual results could differ
significantly from those estimates.  Material estimates that are
particularly susceptible to significant changes in the near term
relate to the determination of the allowance for loan losses and
the carrying value of other real estate owned.  Management uses
information provided by an independent loan review service in
connection with the determination of the allowance for loan losses.


2. COMMITMENTS AND CONTINGENCIES

In the normal course of business there are outstanding various
commitments to extend credit which are not reflected in the
financial statements, including loan commitments of approximately
$125,601,000 and standby letters of credit of $1,135,000 at March
31, 1999.  However, all such commitments will not necessarily
culminate in actual extensions of credit by the Company during 1999.

Approximately $18,783,000 of loan commitments outstanding at March
31, 1999 relate to real estate construction loans and are expected
to fund within the next twelve months.  The remainder relate
primarily to revolving lines of credit or other commercial loans,
and many of these commitments are expected to expire without being
drawn upon.  Therefore, the total commitments do not necessarily
represent future cash requirements.  Each potential borrower and
the necessary collateral are evaluated on an individual basis.
Collateral varies, but may include real property, bank deposits,
debt or equity securities or business assets.

Stand-by letters of credit are commitments written to guarantee the
performance of a customer to a third party.  These guarantees are
issued primarily relating to purchases of inventory by commercial
customers and are typically short-term in nature.  Credit risk is
similar to that involved in extending loan commitments to customers
and accordingly, evaluation and collateral requirements similar to
those for loan commitments are used.  Virtually all such
commitments are collateralized.


3. EARNINGS PER SHARE COMPUTATION

Basic earnings per share is computed by dividing net income by the
weighted average common shares outstanding for the period
(6,360,000 for the three month period ended March 31, 1999, and
6,008,000 for the three month period ended March 31, 1998).
Diluted earnings per share reflects the potential dilution that
could occur if outstanding stock options and stock purchase
warrants were exercised.  Diluted earnings per share is computed by
dividing net income by the weighted average common shares
outstanding for the period plus the dilutive effect of options and
warrants (329,000 for the three month period ended March 31, 1999
and 534,000 for the three month period ended March 31, 1998).


4.  COMPREHENSIVE EARNINGS

In 1998, Central Coast Bancorp adopted Statement of Financial
Accounting Standards No. 130,"Reporting Comprehensive Income",
which requires that an enterprise report, by major components and
as a single total, the change in net assets during the period from
nonowner sources.  Such amounts are as follows:

<TABLE>
<CAPTION>
  
                                                Three Months Ended
                                                      March 31,
(In thousands)                                   1999          1998
                                                 ----          ----
<S>                                          <C>           <C>

Net Earnings                                   $ 1,725        $ 1,514
Other comprehensive loss - net unrealized                                 
    loss on available-for-sale securities.        (779)          (115)                      
                                              ---------    ----------
Total comprehensive earnings                   $   946        $ 1,399
                                              =========    ==========
</TABLE>


5.     STOCK DIVIDEND

On January 25, 1999 the Board of Directors declared a five-for-four
stock split, which was distributed on February 26, 1999, to
shareholders of record as of February 8, 1999.  All share and per
share data have been retroactively adjusted to reflect the stock
dividend.
<PAGE>


                 Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


In addition to the historical information contained herein, this
report on Form 10-Q contains certain forward-looking statements.
The reader of this report should understand that all such
forward-looking statements are subject to various uncertainties and
risks that could affect their outcome.  The Company's actual
results could differ materially from those suggested by such
forward-looking statements. Changes to such risks and
uncertainties, which could impact future financial performance,
include, among others:(1) competitive pressures in the banking
industry; (2) changes in the interest rate environment; (3) general
economic conditions, nationally, regionally and in the operating
market areas of the Company and the Banks; (4) changes in the
regulatory environment; (5) changes in business conditions and
inflation; (6) changes in securities markets; and (7) effects of
possible Year 2000 problems.  This entire report should be read to
put such forward-looking statements in context.  To gain a more
complete understanding of the uncertainties and risks involved in
the Company's business this report should be read in conjunction
with Central Coast Bancorp's annual report on Form 10-K for the
year ended December 31, 1998.

Interest income and net interest income are presented on a fully
taxable equivalent basis (FTE) within the Management's Discussion
and Analysis.

Business Organization

Central Coast Bancorp (the "Company") is a California corporation
organized in 1994, and is the parent company for Bank of Salinas
and Cypress Bank, state-chartered banks, headquartered in Salinas
and Seaside, California, respectively (the "Banks").  Other than
its investment in the Banks, the Company currently conducts no
other significant business activities, although it is authorized to
engage in a variety of activities which are deemed closely related
to the business of banking upon prior approval of the Board of
Governors of the Federal Reserve System (the "FRB"), the Company's
principal regulator.

The Banks offer a full range of commercial banking services,
including a diverse range of traditional banking products and
services to individuals, merchants, small and medium-sized
businesses, professionals and agribusiness enterprises located in
the Salinas Valley and Monterey Peninsula.

Overview

Central  Coast  Bancorp,  holding  company  for Bank of  Salinas  and
Cypress Bank,  reported  record first quarter  earnings of $1,725,000
for the three months  ended March  31,1999.  The  earnings  reflect a
13.9%  increase  over the  $1,514,000  reported for the first quarter
of 1998.  Diluted  earnings per share for the first  quarters of 1999
and 1998 were $0.26 and $0.23, respectively.

Assets of the Company  totaled  $536,004,000 at March 31, 1999 for an
increase of $50,810,000  (10.5%) from March 31, 1998 ending  balances
and  a  decrease  of   $7,929,000   (1.5%)  from  December  31,  1998
balances.  Due to seasonal  variations of the Company's  agribusiness
customers,  it is normal for the Company to  experience  a decline in
assets in the first  quarter  of each  year from  year-end  balances.
March 31,  1998 total  assets  reflected  a decrease  of  $12,480,000
(2.5%) from the December 31, 1997 ending assets of $497,674,000.

For the first quarter of 1999, the Company had  annualized  return on
assets of 1.32% and  return  on  equity  of 13.57%  versus  1.27% and
13.70%,  respectively,  for the first quarter of 1998.  Central Coast
Bancorp  ended the first  quarter of 1999 with a Tier 1 capital ratio
of 14.4% and a total risk-based capital ratio of 15.7%.
<PAGE>



The following table provides a summary of the major elements of
income and expense for the periods indicated.
<TABLE>
<CAPTION>
                                                             Percentage
                                                             Change
                                     Three months ended      Increase
                                          March 31,         (Decrease)
(In thousands)                         1999         1998      
                                       ----         ----      --------
<S>                               <C>             <C>           <C>
Interest income (1)                $   9,638      $ 9,007         7%
Interest expense                       3,113        3,335        (7%)
                                    ---------     --------   --------
  Net interest income                  6,525        5,672        15%
Provision for loan losses                127           17       647%
                                    ---------     --------   --------
  Net interest income after
    provision for loan losses          6,398        5,655        13%
Noninterest income                       542          394        38%
Noninterest expense                    3,823        3,452        11%
                                    ---------     --------   --------
  Net income before income taxes       3,117        2,597        20%
Tax equivalent adjustment                176           15      1073%
Income taxes                           1,216        1,068        14%
                                    ---------     --------   --------

  Net income                         $ 1,725       $1,514        14%
                                    =========     ========   ========
 
1) Interest on tax-free securities is
reported on tax equivalent basis.
</TABLE>

<PAGE>


Net interest income

Net interest income, the difference between interest earned on
loans and investments and interest paid on deposits and other
borrowings, is the principal component of the Banks' earnings.  The
following table provides a summary of the components of net
interest income and the changes within the components for the
periods indicated.  The second table sets forth a summary of the
changes in interest income and interest expense from changes in
average asset and liability balances (volume) and changes in
average interest rates.

<TABLE>
<CAPTION>

                                                   (Unaudited)
                                          Three months ended March 31,
(Taxable Equivalent Basis)                              1999                                      1998
                                             Avg.                    Avg.             Avg.                   Avg.
(In thousands, except percentages)         Balance      Interest    Yield           Balance        Interest Yield

<S>                                       <C>            <C>        <C>            <C>           <C>       <C>
Assets:
Earning Assets
  Loans (1) (2)                           $ 309,892      $ 7,140     9.3%          $ 245,425      $ 6,267   10.4%
  Taxable investments                       127,466        1,894     6.0%            119,377        1,750    6.0%
  Tax-exempt securities (tax equiv.basis)     32,314          531     6.7%              2,127           45    8.6%
  Federal funds sold                          6,230           73     4.8%             70,211          945    5.5%
                                            -------      -------                     -------        -----
Total Earning Assets                        475,902      $ 9,638     8.2%            437,140      $ 9,007    8.4%
Cash & due from banks                        42,400      -------                      37,718        -----
Other assets                                 10,578                                   10,100
                                            -------                                  -------       
                                          $ 528,880                                $ 484,958
                                            =======                                  ======= 
Liabilites & Shareholders'
  Equity:
Interest bearing liabilities:
  Demand deposits                         $  93,030        $ 354     1.5%          $  86,596      $   422    2.0%
  Savings                                   108,843          891     3.3%             99,572          942    3.8%
  Time deposits                             147,048        1,841     5.1%            142,025        1,970    5.6%
  Other borrowings                            2,252           27     4.9%                 61            1    6.6%
                                            -------      -------                     -------        -----
Total interest bearing liabilities          351,173        3,113     3.6%            328,254        3,335    4.1%
Demand deposits                             122,259      -------                     108,580        -----
Other Liabilities                             3,882                                    3,308
                                             -------                                 -------      
Total Liabilities                           477,314                                  440,142
Shareholders' Equity                         51,566                                   44,816
                                            -------                                  -------  
                                          $ 528,880                                $ 484,958
Net interest income & margin (3)            =======      $ 6,525     5.6%            =======      $ 5,672    5.3%
                                                         =======     ====                           =====    ====

</TABLE>                                                 
1  Loan interest income includes fee income of $241,000 and $244,000
   for the three month periods ended March 31, 1999
   and 1998, respectively.
2  Includes the average allowance for loan losses of $4,364,000 and
   $4,207,000 and average deferred loan fees of
   $719,000 and $548,000 for the three months ended March 31,
   1999 and 1998, respectively.
3  Net interest margin is computed by dividing net interest income
   by the total average earning assets.

<PAGE>
<TABLE>
<CAPTION>


Volume/Rate Analysis
(in thousands) Three Months Ended March 31, 1999 over 1998
Increase (decrease) due to change
in:
                                                       
Interest-earning assets:                      Rate       Net
                                   Volume     (4)      Change
                                   ------    -----      -----  
<S>                              <C>      <C>          <C>   

                   
   Net Loans (1)(2)                $1,653   $(780)     $ 873
   Taxable investment securities      118      26        144                  
   Tax exempt investment 
    securities(3)                     640    (154)       486                                 
   Federal funds sold                (868)     (4)      (872)
                                   ------    -----      -----                   
     Total                          1,543    (912)       631
                                   ------    -----      -----
Interest-bearing liabilities:
                                         
   Demand deposits                     32    (100)       (68)                                         
   Savings deposits                    87    (138)       (51)
   Time deposits                       69    (198)      (129)
   Other borrowings                    36     (10)        26
                                   ------     ----      -----
     Total                            224    (446)      (222)
                                   ------    -----      -----
Interest differential              $1,319  $ (466)     $ 853                    
                                   ======    =====      =====  
</TABLE>

                                    

1. The average balance of non-accruing loans is immaterial as a percentage of
total loans and, as such, has been included in net loans.
2. Loan fees of $241,000 and $244,000 for the quarters ended March 31, 1999 and
1998, respectively have been included in the interest income computation.
3. Includes taxable-equivalent adjustments that relate to income on certain
securities that is exempt from
federal income taxes. The effective federal statutory tax rate was 34%
for 1999 and 1998.
4. The rate / volume variance has been included in the rate
variance.


First quarter 1999 net interest income of $6,525,000 was a 15.0%
increase of $853,000 over the same period in 1998.  Interest income
increased $631,000 (7.0%) as a result of an 8.9% increase in
average earning assets.  The growth in earning assets was due to
increases of $64,467,000 (26.3%) in average loans outstanding and
$38,276,000 (31.5%) in average investment securities offset in part
by a decrease of $63,981,000 (91.1%) in average balances of Federal
Funds sold.  The average rate received on Federal Funds sold
decreased from 5.5% in the first quarter of 1998 to 4.8% for the
same period in 1999.The change in mix from Federal Funds sold in
1998 to longer term securities including tax-exempt municipal bonds
in the later part of 1998 and the first quarter of 1999 helped to
stabilize interest income. The increase in tax exempt municipal investments
results in an increased tax benfit, as reflected in the increase in the tax
equivalent adjustment of 1073% from $15,000 in 1998 to 176,000 in 1999. 
 The positive effect on earnings of the higher balances in earning assets was 
also offset in part by a 110 basis point decrease in the average yield received 
on loans from 10.4% in the first quarter of 1998 to 9.3% in the first quarter 
of 1999. The 75 basis point decrease in the prime interest rate in the
last half of 1998 as well as competitive pricing pressures caused this change.  
Due to a 50 basis point decrease in average rates paid offset in part by a 
$22,919,000 (7.0%) increase in balances of interest bearing liabilities, 
interest expense was down $222,000 (6.7%) in the first quarter of 1999 versus 
the same period in 1998. The net interest margin increased to 5.6% for the first
quarter of 1999 from 5.3% in the year earlier period.

Provision for Loan Losses

The Banks provided $127,000 for loan losses in the first quarter of
1999 versus $17,000 in 1998.  Net charge-offs for all loans in the
first quarter of 1999 totaled $81,000 versus $39,000 in the year
earlier period.  The additional provision in 1999 was made as a result of 
increases in loan balances.



Noninterest Income

Noninterest income consists primarily of service charges on deposit
accounts and fees for miscellaneous services.  Noninterest income
totaled $542,000 in the first quarter of 1999, which was up
$148,000 (37.6%) over the same period in 1998.  Service charges on
deposits were up $58,000 (21.5%) due to higher volumes and some
selective fee increases implemented in the second and fourth
quarters in 1998. Also, fees from mortgage originations increased
$55,000 (271%) on quarter over quarter basis as the Company added another 
commissioned mortgage lending officer.

Noninterest Expense
  
First quarter 1999 noninterest expense increased $371,000 to
$3,823,000 from the first quarter 1998 results.  Salary and
employee benefits increased $176,000 (8.2%) due to increased staff
for the Westridge branch which opened in December 1998, additional
staff due to growth, higher commissions on mortgage originations,
higher benefit costs and normal salary increases.  On a quarter
over quarter basis, premise and fixed asset expenses were higher by
$157,000 (37.9%).  Costs associated with the Westridge branch, the
new computer system and network upgrades installed in the second
half of 1998 were the major factors contributing to the increased
premise and fixed asset expenses.  The overhead efficiency ratio
for the first quarter of 1999 was 55.5% as compared to 57.0% in the
same quarter of 1998.

Provision for Income Taxes

The Company recorded income tax expense of  $1,216,000 in the first
quarter of 1999 versus $1,068,000 in the first quarter of 1998.
The effective tax rate for the three months ended March 31, 1999 is
41.3%, which is essentially unchanged from the year earlier
results.

Loans

Ending loan balances at March 31, 1999 were $320,119,000, which was
an increase of  $7,949,000 from year-end 1998 balances.  The March
31, 1999 loan balances were $69,670,000 (28%) higher than the year
earlier totals.  All categories of loans were higher on year over
year basis.  Loan demand remains strong heading into the second
quarter of 1999.

Nonperforming Assets

Nonperforming assets are comprised of loans delinquent 90 days or
more with respect to interest or principal, loans for which the
accrual of interest has been discontinued, and other real estate
which has been acquired through foreclosure and is awaiting
disposition.

Unless well secured and in the process of collection, loans are
placed on nonaccrual status when a loan becomes 90 days past due as
to interest or principal, when the payment of interest or principal
in accordance with the contractual terms of the loan becomes
uncertain or when a portion of the principal balance has been
charged off.  When a loan is placed on nonaccrual status, the
accrued and unpaid interest receivable is reversed and the loan is
accounted for on the cash or cost recovery method thereafter, until
qualifying for return to accrual status.  Generally, a loan may be
returned to accrual status when all delinquent interest and
principal become current in accordance with the terms of the loan
agreement and remaining principal is considered collectible or when
the loan is both well secured and in process of collection.


<PAGE>

Real estate and other assets acquired in satisfaction of
indebtedness are recorded at the lower of estimated fair market
value net of anticipated selling costs or the recorded loan amount,
and any difference between this and the amount is treated as a loan
loss.  Costs of maintaining other real estate owned and gains or
losses on the subsequent sale are reflected in current earnings.

The following is a summary of nonperforming assets:

<TABLE>
<CAPTION>


(In thousands)                                March 31,     December 31,
                                                1999           1998
                                                ----           ---- 
<S>                                          <C>           <C>
Past due 90 days or more and still accruing
   Real estate                                $    71       $  1,174
   Commercial                                   1,104             73
   Installment and other                            -              -
                                                -----        ------- 
                                                1,175          1,247
                                                -----        -------  
Nonaccrual:
   Real estate                                    622            543
   Commercial                                      70            333
   Installment and other                            -              -
                                                -----        -------  
                                                  692            876
                                                -----        -------  
Total nonperforming loans                       1,867          2,123
                                                -----        -------  
Other real estate owned                            61              -
                                                -----        -------
Total nonperforming assets                    $ 1,928       $  2,123
                                                =====        =======

Allowance for loan losses as a percentage of      236%           205%
nonperforming loans
Nonperforming loans to total loans               0.58%          0.68%
</TABLE>


Nonperforming loans decreased $256,000 during the first quarter of
1999.  This decrease coupled with a small increase in the allowance
for loan losses resulted in the improvement in the coverage ratio
of the allowance for loan losses to nonperforming loans from 205%
at year-end to 236%.  Overall loan quality remains high.

Allowance for Loan Losses

The allowance for loan losses reflects management's judgement as to
the level considered adequate to absorb probable losses inherent in
the loan portfolio.  The allowance is increased by provisions
charged to expense and reduced by loan charge-offs net of
recoveries.  Management determines an appropriate provision based
upon information currently available to analyze loan loss
potential, including (1) the loan portfolio balance in the period;
(2) a comprehensive grading and review of new and existing loans
outstanding; (3) actual previous charge-offs; and, (4) changes in
economic conditions.

In determining the provision for estimated losses related to
specific major loans, management evaluates its allowance on an
individual loan basis, including an analysis of the credit
worthiness, cash flows and financial status of the borrower, and
the condition and the estimated value of the collateral. Specific
valuation allowances for secured loans are determined by the excess
of recorded investment in the loan over the fair market value or
net realizable value where appropriate, of the collateral.  In
determining overall general valuation allowances to be maintained
and the loan loss allowance ratio, management evaluates many
factors including prevailing and forecasted economic conditions,
regular reviews of the quality of loans, industry experience,
historical loss experience, composition and geographic
concentrations of the loan portfolio, the borrowers' ability to
repay and repayment performance and estimated collateral values.

Management believes that the allowance for loan losses at March
31,1999 is adequate, based on information currently available.
However, no prediction of the ultimate level of loans charged off
in future years can be made with any certainty.
<PAGE>
<TABLE>
<CAPTION>

The following table summarizes activity in the allowance for loan
losses for the periods indicated:

(In thousands)                                 Three months
                                             ended March 31,
                                            1999         1998
                                            ----         ----
<S>                                        <C>           <C>

Beginning balance                       $   4,352     $   4,223
 Provision charged to expense                 127            17
 Loans charged off                            (90)          (69)             
 Recoveries                                     9            30
                                          -------       -------
Ending balance                          $   4,398     $   4,201
                                          =======       =======
Ending loan portfolio                   $ 320,119     $ 250,449
                                          =======       =======

Allowance for loan losses as percentage     1.37%         1.68%
of ending loan portfolio

</TABLE>

Liquidity

Liquidity management refers to the Company's ability to provide
funds on an ongoing basis to meet fluctuations in deposit levels as
well as the credit needs and requirements of its clients.  Both
assets and liabilities contribute to the Company's liquidity
position.  Federal funds lines, short-term investments and
securities, and loan repayments contribute to liquidity, along with
deposit increases, while loan funding and deposit withdrawals
decrease liquidity.  The Banks assess the likelihood of projected
funding requirements by reviewing historical funding patterns,
current and forecasted economic conditions and individual client
funding needs.  Commitments to fund loans and outstanding standby
letters of credit at March 31,1999 were approximately $125,601,000
and $1,135,000, respectively.  Such loans relate primarily to
revolving lines of credit and other commercial loans, and to real
estate construction loans.

The Company's sources of liquidity consist of its deposits with
other banks, overnight funds sold to correspondent banks, unpledged
short-term, marketable investments and loans available for sale.
On March 31, 1999 consolidated liquid assets totaled $163.6 million
or 30.6% of total assets as compared to $153.5 million or 28.2% of
total consolidated assets on December 31, 1998.  In addition to
liquid assets, the Banks maintain lines of credit with
correspondent banks for up to $60,000,000 available on a short-term
basis.  Informal agreements are also in place with various other
banks to purchase participations in loans, if necessary.  The
Company serves primarily a business and professional customer base
and, as such, its deposit base is susceptible to economic
fluctuations.  Accordingly, management strives to maintain a
balanced position of liquid assets to volatile and cyclical
deposits.

Capital Resources

The Company's total shareholders' equity was $52,147,000 at March
31, 1999 compared to $51,199,000 at December 31, 1998.

The Company and the Banks are subject to regulations issued by the
Board of Governors and the FDIC which require maintenance of a
certain level of capital.

A bankinig organization's total qualifying capital includes two components,
core capital(Tier 1 capital) and supplementary capital (Tier 2 capital).
Core capital, which must comprise at least half of total capital, includes 
common shareholders' equity, qualifying perpetual preferred stock,
trust preferred securities and minority interests, less goodwill. Supplementary
capital includes the allowance for loan losses (subject to certain limitations),
other perpetual preferred stock, trust preferred securities, certain other 
capital instruments and term subordinated debt. The Company's major capital
components are shareholders' equity and TPS in core capital, and the allowance 
for loan losses and subordinated debt in supplementary capital.  
<PAGE>

The following table shows the Company's actual capital amounts and ratios 
at March 31, 1999 and December 31, 1998 as well as the minimum capital ratios 
for capital adequacy under the regulatory framework:

<TABLE>
<CAPTION>
                                                                                     For Capital
                                                           Actual                 Adequacy Purposes
                                                     Amount      Ratio          Amount         Ratio
                                                     -----------------          --------------------
<S>                                              <C>            <C>            <C>             <C>   

As of March 31, 1999
Total Capital (to Risk Weighted Assets):           55,414,000    15.7%         28,321,000      8.0%
Tier 1 Capital (to Risk Weighted Assets):          51,118,000    14.4%         14,160,000      4.0%
Tier 1 Capital (to Average Assets):                51,118,000     9.7%         21,155,000      4.0%

As of December 31, 1998:
Total Capital (to Risk Weighted Assets):           53,588,000    14.8%         29,004,000      8.0%
Tier 1 Capital (to Risk Weighted Assets):          49,326,000    13.6%         14,502,000      4.0%
Tier 1 Capital (to Average Assets):                49,326,000     9.9%         19,935,000      4.0%

</TABLE>


Year 2000

As the year 2000 approaches,  a critical issue has emerged  regarding
how existing application software  programs and operating systems
can accommodate this date  value. In brief, many existing
application software products in the marketplace were designed to
only accommodate a two digit date position  which  represents  the
year (e.g.,"95"is stored on the system and represents the year
1995). As a result, the year 1999 (i.e., "99") could  be  the
maximum date value  these   systems  will  be  able  to  accurately
process.  This  is  not  just  a  banking  problem,  as  corporations
around the world and in all industries are similarly impacted.

The  Company is  uncertain  regarding  the  consequences  of the Year
2000 (Y2K) issue on the future results of  operations,  liquidity and
financial  condition;  but  believes  that failure to ensure that its
systems  are  in  compliance  with  Y2K  requirements  could  have  a
material  adverse  effect on its business.  As a result,  the Company
has made  addressing  Y2K issues a  priority  of  management  and the
Board.   Based  upon  actions   implemented   to  date,  the  Company
currently  anticipates  that it will be successful in addressing  Y2K
issues and  anticipates no materially  adverse  processing  problems.
The  Company  is  subject  to  examination  by  the  Federal  Deposit
Insurance  Corporation  and the Federal  Reserve Bank under their Y2K
Phase I and Phase II  programs.  Management  is not  currently  aware
of any  conditions  cited  as  unsatisfactory  by such  federal  bank
regulatory agencies.

All mission  critical  systems have been  identified  by the Company,
and the  Company is  currently  testing,  or  developing  contingency
plans,   for  each.  The  term  "mission   critical"   refers  to  an
application  or system  that is vital to the  successful  continuance
of  core  business  activity.   Significantly  all  mission  critical
hardware and  software  utilized by the Company are provided by third
parties.  This  requires  that the Company is in close  contact  with
relevant   vendors  and  contractors  as  it  conducts   testing  and
contingency  planning.  Testing  on the  Company's  mission  critical
systems  is  substantially complete  and  monitoring  of vendor  and
customer relationships is ongoing.

The Company has made  disclosures  to all existing and new  customers
regarding  the  importance  of the Y2K issue and its relevance to the
Company  and the  customer.  The  Company  is  conducting  an ongoing
effort to identify  customers that  represent  material risk exposure
to the  institution,  to evaluate their Y2K  preparedness and risk to
the Company and to implement appropriate risk controls.

The  Company  also  continues  to  evaluate  the cost to address  Y2K
issues.  Most  costs  incurred  to date are in  conjunction  with the
planned  replacement  of  systems.  The cost of  system  replacements
accelerated to meet Y2K  requirements  and Y2K project specific costs
have not been  significant  to the  operations of Company as a whole.
Management  estimates that the  incremental  cost of mitigating  Year
2000 risk  exclusive of management  time that has been  redirected to
focus on this matter will be approximately $171,000.
 
Despite  efforts  undertaken to date and as  projected,  there can be
no  assurance  that  problems  will not  arise  which  could  have an
adverse  impact upon the Company  due,  among other  matters,  to the
complexities  involved in computer  programming related to resolution
of Year  2000  problems  and the  fact  that  the  systems  of  other
companies on which Central Coast Bancorp and its  subsidiaries,  Bank
of Salinas and Cypress  Bank,  may rely must also be  corrected  on a
timely  basis.  Many phases of the Company's  Y2K  preparedness  plan
have  been  completed:  the  Company  has  identified,  assessed  and
prioritized  mission  critical  systems;  developed Year 2000 testing
strategies and plans;  implemented a customer due diligence  program;
and tested most  mission  critical  systems.  But,  delays,  mistakes
or failures in correcting Y2K system  problems by other  companies on
which  Central  Coast Bancorp and its  subsidiaries  may rely,  could
have a  significant  adverse  impact upon Central  Coast  Bancorp and
its  subsidiaries,  Bank of  Salinas  and  Cypress  Bank,  and  their
ability to mitigate  the risk of adverse  impact of Y2K  problems for
their customers.

The   disclosure    set   forth   above   contains    forward-looking
statements.   Specifically,   such   statements   are   contained  in
sentences  including the words  "expect" or  "anticipate"  or "could"
or  "should".   Such   forward-looking   statements  are  subject  to
inherent  risks and  uncertainties  that may cause actual  results to
differ  materially from those  contemplated  by such  forward-looking
statements.  The  factors  that may cause  actual  results  to differ
materially   from   those   contemplated   by   the   forward-looking
statements  include  the  failure  by third  parties  to  remedy  Y2K
issues or the inability of the Company to complete  testing  software
changes  on the  time  schedules  currently  expected.  Nevertheless,
the Company  currently  expects that its Y2K compliance  efforts will
be successful without material adverse effects on its business.

                   Item 3. MARKET RISK MANAGEMENT

The reader is referred to Item 7A of the Company's 1998 Annual
Report on Form 10-K for information on market risk.  There have
been no significant changes since December 31, 1998.

<PAGE>
                   
                           PART II - OTHER INFORMATION


Item 1.    Legal proceedings.

                None.

Item 2.     Changes in securities.

                None.

Item 3.     Defaults upon senior securities.

                None.

Item 4.     Submission of matters to a vote of security holders.

                None.

Item 5.     Other information.

                None.

Item 6.     Exhibits and reports on Form 8-K.

(a)   Exhibits

           (2.1)     Agreement and Plan of Reorganization  and Merger
                     by  and  between  Central  Coast  Bancorp,   CCB
                     Merger  Company and Cypress  Coast Bank dated as
                     of December 5,1995,  incorporated by reference
                     from  Exhibit  99.1 to Form 8-K  filed  with the
                     Commission on December 7, 1995.

           (3.1)     Articles  of   Incorporation,   incorporated  by
                     reference  from  Exhibit  4.8  to   Registration
                     Statement on Form S-8 No.  33-89948,  filed with
                     the Commission on March 3, 1995.

           (3.2)     Bylaws, as amended, incorporated by reference
                     from the  Company's 1998 Annual Report on Form
                     10K filed with the Commission on March 29,1999.

           (4.1)     Specimen  form of Central  Coast  Bancorp  stock
                     certificate  incorporated  by reference from the
                     Company's  1994 Annual  Report on Form 10K filed
                     with the Commission on March 31, 1995.

           (10.1)    Lease agreement dated December 12, 1994,
                     related to 301 Main Street, Salinas, California
                     incorporated by reference from the Company's
                     1994 Annual Report on Form 10K filed with the
                     Commission on March 31, 1995.

           (10.2)    King City Branch Lease incorporated by
                     reference from Exhibit 10.3 to Registration
                     Statement on Form S-4 No. 33-76972, filed with
                     the Commission on March 28, 1994.

           (10.3)    Amendment  to King City  Branch  Lease
                     incorporated  by reference  from Exhibit 10.4 to
                     Registration   Statement   on   Form   S-4   No.
                     33-76972,  filed  with the  Commission  on March
                     28, 1994.

           *(10.4)   1982 Stock Option Plan, as amended,
                     incorporated by reference from Exhibit 4.2 to
                     Registration Statement on Form S-8 No.
                     33-89948, filed with the Commission on March 3,
                     1995.

           *(10.5)   Form  of  Nonstatutory  Stock  Option  Agreement
                     under the 1982 Stock  Option  Plan  incorporated
                     by reference  from  Exhibit 4.6 to  Registration
                     Statement on Form S-8 No.  33-89948,  filed with
                     the Commission on March 3, 1995.

           *(10.6)   Form of Incentive  Stock Option  Agreement under
                     the  1982  Stock  Option  Plan  incorporated  by
                     reference  from  Exhibit  4.7  to   Registration
                     Statement on Form S-8 No.  33-89948,  filed with
                     the Commission on March 3, 1995.

           *(10.7)   1994   Stock   Option   Plan   incorporated   by
                     reference  from  Exhibit  4.1  to   Registration
                     Statement on Form S-8 No.  33-89948,  filed with
                     the Commission on March 3, 1995.

           *(10.8)   Form  of  Nonstatutory  Stock  Option  Agreement
                     under the 1994 Stock  Option  Plan  incorporated
                     by reference  from  Exhibit 4.3 to  Registration
                     Statement on Form S-8 No.  33-89948,  filed with
                     Commission on March 3, 1995.

           *(10.9)   Form of Incentive  Stock Option  Agreement under
                     the  1994  Stock  Option  Plan  incorporated  by
                     reference  from  Exhibit  4.4  to   Registration
                     Statement on Form S-8 No.  33-89948,  filed with
                     the commission on March 3, 1995.

           *(10.10)  Form  of  Director   Nonstatutory  Stock  Option
                     Agreement  under  the  1994  Stock  Option  Plan
                     incorporated  by  reference  from Exhibit 4.5 to
                     Registration   Statement   on   Form   S-8   No.
                     33-89948,  filed with the commission on March 3,
                     1995.

           *(10.11)  Form   of  Bank   of   Salinas   Indemnification
                     Agreement for  directors and executive  officers
                     incorporated  by reference  from Exhibit 10.9 to
                     Amendment  No. 1 to  Registration  Statement  on
                     Form   S-4  No.   33-76972,   filed   with   the
                     Commission on April 15, 1994.

           *(10.12)  401(k)  Pension and Profit  Sharing Plan Summary
                     Plan Description  incorporated by reference from
                     Exhibit 10.8 to  Registration  Statement on Form
                     S-4 No.  33-76972,  filed with the Commission on
                     March 28, 1994.

           *(10.13)  Specimen    form   of    Employment    Agreement
                     incorporated  by reference from Exhibit 10.13 to
                     the  Company's  1996  Annual  Report on Form 10K
                     filed with the Commission on March 31, 1997.

           *(10.14)  Specimen form of Executive  Salary  Continuation
                     Agreement   incorporated   by   reference   from
                     Exhibit  10.14  to  the  Company's  1996  Annual
                     Report on Form 10K filed with the  Commission on
                     March 31, 1997.

           *(10.15)  1994 Stock Option Plan, as amended,
                     incorporated by reference from Exhibit A to the
                     Proxy Statement filed with the Commission on
                     September 3, 1996 in connection with Central
                     Coast Bancorp's 1996 Annual Shareholders'
                     Meeting held on September 23, 1996.

           (10.16)   Specimen    of    Indemnification     Agreement,
                     incorporated  by reference from Exhibit D to the
                     Proxy  Statement  filed with the  Commission  on
                     September  3, 1996 in  connection  with  Central
                     Coast   Bancorp's   1996  Annual   Shareholders'
                     Meeting held on September 23, 1996.

           (10.17)   Purchase  and   Assumption   Agreement  for  the
                     Acquisition   of  Wells   Fargo  Bank   Branches
                     incorporated  by reference from Exhibit 10.17 to
                     the  Company's  1996  Annual  Report on Form 10K
                     filed with the Commission on March 31, 1997.

           *(10.18)  Employee   Stock   Ownership   Plan  and   Trust
                     Agreement   incorporated   by   reference   from
                     Exhibit  10.18  to  the  Company's  1996  Annual
                     Report on Form 10K filed with the  Commission on
                     March 31, 1997.

            (10.19)  Lease agreement dated March 7, 1997, related to 484
                     Lighthouse Avenue, Monterey, California
                     incorporated by reference from Exhibit 10.19 to
                     the Company's 1997 Annual Report on Form 10K
                     filed with the Commission on march 27, 1998.

           (21.1)    The Registrant's only subsidiaries
                     are its wholly-owned subsidiaries, Bank  of
                     Salinas and Cypress Bank.


           (27.1)    Financial Data Schedule


           *Denotes  management contracts, compensatory  plans  or
                     arrangements.



      (b)  Reports on Form 8-K  None


<PAGE>

SIGNATURES
---------------------------------------------------------------------


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


April 29, 1999                      CENTRAL COAST BANCORP


                                    By:   /S/ ROBERT M. STANBERRY
                                          ----------------------------
                                         (Chief Financial Officer,
                                          Principal Accounting Officer)
                                    
 
 

<PAGE>
                                  EXHIBIT INDEX


Exhibit
Number                     Description                  Page

27.1                       Financial Data Schedule       21