8-K

 1
                SECURITIES AND EXCHANGE COMMISSION

                     Washington, D.C.  20549

                       -------------------

                             FORM 8-K

                          CURRENT REPORT

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


 Date of report (Date of earliest event reported): September 19,
1997
                         Saratoga Bancorp
      (Exact name of registrant as specified in its charter)

                            California
          (State or other jurisdiction of incorporation)

                2-77519-LA              94-2817587
         (Commission File Number) (IRS Employer Identification No.)


           12000 Saratoga-Sunnyvale Road, Saratoga, CA  95070     
          (Address of principal executive office and ZIP code)

Registrant's telephone number, including area code: (408) 973-1111

                               None                               
  (Former name or former address, if changed since last report)

















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                        Exhibit at Page 4
 2
Item 5.  Other Events

     On September 19, 1997, the Board of Directors of Saratoga
Bancorp declared a ten cent ($0.10) cash dividend on the
outstanding shares of Common Stock of Saratoga Bancorp, to be
payable on November 14, 1997 to shareholders of record at the close
of business on October 31, 1997.

Item 7.  Financial Statements and Exhibits

     (a)  Not applicable

     (b)  Not applicable

     (c)  Exhibits

          (21) Press Release issued on 10/3/97 describing cash
          dividend.






















                                 



                                 








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 3
                            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.



                                     SARATOGA BANCORP          
                                      (Registrant)



                               By: ____________________________
                                          Richard L. Mount
                                          President       
                                          (Principal Executive
                                           Officer)



Date:      October 10, 1997



















                                 










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EX-99

FOR IMMEDIATE RELEASE
     Saratoga Bancorp, parent company for Saratoga National Bank, reports 
increased earnings for the three and nine months ended September 30, 1997.
     Net income for the quarter ending September 30, 1997 was $467,000, 
or $0.44 per share, up 55 percent from $302,000 or $0.26 per share for the 
same period in 1996.  Net income for the nine month period ending September 
30, 1997 was $1,070,000 or $0.91 per share, an increase of 47 percent, as 
compared to $726,000 or $0.63 per share in 1996.  
     Assets at September 30, 1997 were $125,552,000, a 14 percent increase 
compared to $109,706,000 at September 30, 1996.
     Deposits at September 30, 1997 were $88,074,000, up 6 percent compared 
to $83,235,000 in 1996.
     Net loans outstanding at September 30, 1997 were $55,115,000, an 
increase of 25 percent from $43,957,000 for the same period in 1996.

     The Company is pleased to announce that its financial performance 
year-to-date in 1997 had provided the Company with the ability to return 
a portion of the profits to its shareholders.  The $0.10 per share cash 
dividend, the second paid  in the last six months,  is payable to 
shareholders of record as of October 31, 1997, and will be paid on November 
14, 1997.

     Saratoga National Bank operates offices in Saratoga, Los Gatos and San 
Jose.                  
                    
                                        Richard L. Mount
                                        12000 Saratoga-Sunnyvale Rd.
                                        Saratoga, Ca 95070
                                        (408) 973-1111


October 6, 1997                                                    Unaudited