8-K

FORM 8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  August 21, 2008

SONOMA VALLEY BANCORP           

(Name of registrant as specified in its charter)

California	000-31929	68-0454068
(State or other jurisdiction of incorporation)	(Commission File No.)	(I.R.S. Employer Identification No.)

202 West Napa Street, Sonoma, California             95476                      

(Address of principal executive office)                                        (Zip Code)

Registrant’s telephone number, including area code:      (707) 935-3200      

 (Former name of former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ]  Written communications pursuant to Rule 425 under the Securities Act

[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act

[ ]  Pre-commencement communications pursuant to Rule 14-2(b) under the Exchange Act
[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

Section 8 - Other Events

Item 8.01  Other Events

Sonoma Valley Bancorp declared a cash dividend of thirty cents ($0.30) per share on August 21, 2008.  The cash dividend is payable to shareholders of record on September 15, 2008 and will be paid on September 30, 2008.  For more information, please see the press release attached as Exhibit 99.

Section 9 - Financial Statements and Exhibits

Item 9.01  Financial Statements and Exhibits

Exhibit No.                                           Exhibit Description

99 Press release dated August 21, 2008 titled "Sonoma Valley Bancorp Declares Cash Dividend"

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 hereunto duly authorized.

Date:  August 21, 2008                                                     

Sonoma Valley Bancorp, a California corporation

 /s/Mary Dieter Smith

Mary Dieter Smith

Chief Financial Officer

(Principal Finance and Accounting Officer)

EX-99

Exhibit 99

PRESS RELEASE

FOR ADDITIONAL INFORMATION:

Contact Christy Coulston,

Vice President and Marketing Director

(707) 935-3200 Ext. 260

SONOMA VALLEY BANCORP DECLARES

CASH DIVIDEND

SONOMA, California, August 21, 2008, –  Sonoma Valley Bancorp Board Chairman Bob Nicholas announced that the company has declared a cash dividend of thirty cents ($0.30) per share at a regularly scheduled Board meeting held August 20, 2008.  The cash dividend is payable to shareholders of record September 15, 2008 and will be paid on September 30, 2008. 

Chairman Nicholas said the company’s continued capital growth and earnings record made the declaration possible.  Sonoma Valley Bancorp, with $303 Million in assets, is headquartered in Sonoma with a branch office in Glen Ellen, and the Banco de Sonoma branch in Boyes Springs.

Shares in the company are traded on the Over the Counter Bulletin Board (OTCBB) and the stock symbol is SBNK.

This press release may contain forward-looking statements, which are not historical facts, but which management believes are a benefit to shareholders.  These forward looking statements may include management's expectations regarding future events and performance of its subsidiary, Sonoma Valley Bank, including such items as operating efficiencies, projected growth in loans and deposits, future operating results and forecasts, net interest margin, strength of the local economy where Sonoma Valley Bank principally operates, and federal fiscal policies.  Future events are difficult to predict and such forward-looking statements contained in this press release which are not historical facts are subject to risks and uncertainties that could cause actual results to differ materially and adversely from those expressed, including, but not limited to, certain changes in the local economy, changes in interest rates and federal fiscal policies, and changes in competition.  In addition, the Company discusses certain other risks and uncertainties related to its operations in its reports filed with the Securities and Exchange Commission, which risks and discussion should be read in conjunction with this press release.  The Company assumes no obligation to publicly revise forward-looking statements to reflect subsequent events or changed circumstances.