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: January 2, 1996


                           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 January 2, 1996 the Company announced that it will be closing the Truckee
River Bank branch located in the Crescent V Shopping Center in South Lake Tahoe,
California.  As a result of this closure, the Company will incur a one-time 
pre-tax charge in 1995 of $530,000.  A copy of the full text of the press 
release is included in Item 7.


Item 7.   Financial Statements and Exhibits

(c)  Exhibits

     28.  Press release dated January 2, 1996



                                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: January 2, 1996                       By                         
Truckee, California                          David C. Broadley 
                                             Executive Vice President/
                                             Chief Financial Officer







                                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:   January 2, 1996                          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 CONSOLIDATES CALIFORNIA BRANCH OFFICES

TRUCKEE, CA (January 2, 1996) - Sierra Tahoe Bancorp (Nasdaq: STBS) announced
today that it will be closing the Truckee River Bank (TRUCKEE RIVER BANK)
branch located in the Crescent V Shopping Center in South Lake Tahoe,
California and transferring its customer accounts and safe deposit boxes to the
Truckee River Bank Bijou branch, located approximately one mile away, also in
South Lake Tahoe.  As a result, the Company will incur a one-time pre-tax
charge of $530,000 in the fourth quarter ended December 31, 1995.  This
represents $0.12 per share (primary, after-tax).  The transaction is subject
to regulatory approval.
     "The consolidation of the Crescent V branch operation into the Bijou
branch reflects our strategy to operate the branch network as efficiently and
cost-efficiently and cost-effectively as possible," said William T. Fike,
president and chief executive officer.  "The financial performance of the
Crescent V branch operation was below our expectations.  By combining the
businesses, we significantly increase the size of the deposit base at the Bijou
branch and will be able to maintain the high level of quality service to our
customers more cost-effectively. We anticipate savings of approximately $0.07
per share in 1996 as a result of this consolidation.  With the closing, Truckee
River Bank now operates through nine branch offices."
     Sierra Tahoe Bancorp is the holding company for Truckee River Bank in
Truckee, California and Sierra Bank of Nevada in Reno, Nevada.