8-K

                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):February 20, 1998

                         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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 2
                                 Item 5   Other Events

     On February 20, 1998, the Board of Directors of Saratoga Bancorp
decleared a ten cent ($0.10) cash dividend on the outstanding shares of
Common Stock of Saratoga Bancorp, to be payable on April 14, 1998 to
shareholders of record at the close of business on March 31, 1998.

Item 7   Financial Statements and Exhibits

     (a)  Not applicable

     (b)  Not applicable

           (c)      Exhibits

          (21) Press Release issued on 2/25/98 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: ____________________________
                                          Mary Page Rourke
                                          Senior Vice President
                                          Treasurer (Principal
                                          Financial and
                                          Accounting Officer)



Date:      February 27, 1998    



















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EX-99

FOR IMMEDIATE RELEASE




SARATOGA BANCORP ANNOUNCES DIVIDEND PAYMENT


     Saratoga Bancorp, parent company for Saratoga National Bank, is pleased 
to announce that its financial performance in 1997 has provided the Company 
with the ability to return a portion of its profits to its shareholders. 
A $0.10 per share cash dividend, effective for shareholders of record as
of March 31, 1998, will be paid on April 14, 1998.

     An area leader in construction lending, Saratoga National Bank recently 
celebrated 15 years of service to businesses and individuals in Silicon Valley.
With a strong emphasis on relationship banking, Saratoga National has 
established itself as one of the most consistantly prosperous banks
of its size in the U.S.

     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

February 25, 1998                                           Unaudited