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: December 21, 1995


                           SIERRA TAHOE BANCORP


          (Exact Name of Registrant as Specified in its Charter)



      California           File No. 0-15450              68-0091859           
(State of Incorporation) (Commission File No.) (IRS Employer Identification No.)


     10181 Truckee-Tahoe Airport Road, Truckee, California  96160-9010


                 (Address of Principal Executive Offices)


               Registrant's Telephone Number (916) 582-3000















Item 5.   Other Events

On December 27, 1995 the Company issued a press release announcing the adoption
of a Shareholder Protection Rights Plan (the "Plan").  Upon execution of the
Rights Agreement (the "Agreement") an additional Form 8-K will be filed,
providing a description of the Plan and will attach a copy of the executed
Agreement.


Item 7.   Financial Statements and Exhibits

(c)  Exhibits

     28.  Press release dated December 27, 1995



                                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.





                                                  Sierra Tahoe Bancorp     
                                                       (Registrant)
     




Dated:   December 27, 1995              By   /s/  David C. Broadley            
Truckee, California                          David C. Broadley 
                                             Executive Vice President/
                                             Chief Financial Officer






 

EX-28

EXHIBIT 28



               FOR:         SIERRA TAHOE BANCORP
     
               APPROVED BY: William T. Fike
                            President and Chief Executive Officer
                            (916) 582-3000

               CONTACT:     Morgen-Walke Associates
                            Doug Sherk, Jenifer Kirtland, David  Gennarelli
                            (415) 296-7383
                            Elissa Grabowski, Jill Ruja
                            (212) 850-5600

For Immediate Release

   SIERRA TAHOE BANCORP ADOPTS SHAREHOLDER PROTECTION RIGHTS PLAN

TRUCKEE, CA (December 27, 1995) - Sierra Tahoe Bancorp (Nasdaq: STBS) today
announced the adoption of a Shareholder Protection Rights Plan and declared a 
dividend of one right for each outstanding share of the Company's common stock.
     The Shareholder Protection Rights Plan is a dividend of rights to existing
stockholders to acquire stock of the Company and is designed to protect the 
Company and its stockholders against abusive takeover attempts and tactics.  In
essence, the rights plan would dilute the interests of an entity attempting to 
take control of the Company if the attempt is not deemed by the Board of 
Directors to be in the best interests of all stockholders.  If the Board of 
Directors determines that an offer is in the best interests of the stockholders,
the stock rights may be redeemed for nominal value, allowing the entity to 
acquire control of the Company.
     Until it is announced that a person or group has acquired 10% or more of 
Sierra Tahoe Bancorp's common stock or commences a tender offer that will result
in such person or group owning 10% or more of Sierra Tahoe Bancorp's common 
stock, the rights will be evidenced by the common stock certificates, and will
automatically trade with the common stock but will not be exercisable.
     If any person or group acquires 10% or more of Sierra Tahoe Bancorp's 
common stock, then each right will entitle its holder (other than the 10% 
shareholder) to purchase Sierra Tahoe Bancorp common stock at half-price.  The
rights plan was not adopted in response to any specific takeover proposal.
     "The Company is successfully executing a business strategy of building 
on our expertise in SBA lending and expanding our presence in our markets in 
Northern California and Nevada," said William T. Fike, President and Chief 
Executive Officer. "We believe these activities are positioning the Company for 
growth and improved profitability that will result in enhanced value for our 
shareholders.  The purpose of the Shareholder Protection Rights Plan is to 
enable the Company to move forward with its plans without the distraction of 
tactics which may not maximize value forall Sierra Tahoe Bancorp shareholders."
     Jerrold T. Henley, Chairman, said, "The Board is committed to enhancing
shareholder value.  This decision was reached after consultation with investment
bankers and after considering the rights plan at several committee and Board
meetings."
     Additional details of the Shareholder Rights Plan will be outlined in a 
letter that will be mailed to all stockholders.
     Sierra Tahoe Bancorp is a bank holding company, operating in Northern
California and Nevada through its subsidiary banks, Truckee River Bank in 
Truckee, California and Sierra Bank of Nevada in Reno, Nevada.