North Valley Bancorp Reports Results for the Fourth Quarter and Year Ended December 31, 2010

REDDING, CA--(Marketwire - February 8, 2011) - North Valley Bancorp (NASDAQ: NOVB), a bank holding company with $885 million in assets, today reported results for the fourth quarter and year ended December 31, 2010. North Valley Bancorp (the "Company") is the parent company for North Valley Bank (the "Bank").

The Company reported net operating income of $2,269,000 for the fourth quarter ended December 31, 2010 compared to a net operating loss of $19,340,000 for the fourth quarter ended December 31, 2009. The Company reported a net operating loss for the year ended December 31, 2010 of $6,248,000 compared to a net operating loss of $25,852,000 for 2009.

As previously reported for the third quarter ended September 30, 2010, the Company obtained shareholder approval to convert its Series A Preferred Stock into shares of its common stock, and the mandatory conversion occurred on July 21, 2010. Under generally accepted accounting principles ("GAAP"), the conversion feature of the preferred stock had an intrinsic value of $0.70 per share, or $18,667,000, based on the difference between the conversion price of $1.50 per share and the market value of $2.20 for the Company's common stock at the commitment date, April 22, 2010. As required by GAAP, the Company recognized this difference of $18,667,000 as a beneficial conversion discount on the preferred stock as of the July 21, 2010 conversion date. After combining this implied dividend on the preferred stock with operating results for the year ended December 31, 2010, the Company reported a loss available to common shareholders of $24,915,000, or $6.42 per diluted share. The accounting entries required to reflect an implied dividend on preferred stock during the third quarter did not change the amount of total shareholders' equity of the Company nor change the Company's capital ratios. The Company completed its 1-for-5 reverse stock split on December 28, 2010, and the Company had 6,832,492 common shares outstanding at December 31, 2010.

Michael J. Cushman, President and Chief Executive Officer, stated, "We are proud of the significant achievements that management and the Company had during 2010. Most notably, we completed a $40 million capital raise in the second quarter, reduced the exposure to construction and development loans, reduced nonperforming assets and returned to profitability in the fourth quarter. Our credit administration team continues to work diligently to further reduce the level of nonperforming assets. In 2011, our loan production teams are committed to rebuilding loan totals that drive interest income while adhering strictly to concentration limits and credit quality standards."

The Company did not record a provision for loan and lease losses in the fourth quarter ended December 31, 2010 and recorded a provision for loan and lease losses of $8,200,000 for the year ended December 31, 2010. This compared to provisions for loan and lease losses of $9,000,000 and $26,500,000 for the fourth quarter and year ended December 31, 2009, respectively. The allowance for loan and lease losses at December 31, 2010 was $14,993,000, or 2.92% of total loans, compared to $18,539,000, or 3.08% of total loans at December 31, 2009.

At December 31, 2010, the Company's Total Risk-based Capital was $113,279,000, and its capital ratios were: Total Risk-based Capital ratio - 17.63%; Tier 1 risk-based Capital ratio - 15.94%; and Tier 1 Leverage ratio - 11.48%. At December 31, 2010, the Bank's Total Risk-based Capital was $116,217,000, and its capital ratios were: Total Risk-based Capital ratio - 18.08%; Tier 1 risk-based Capital ratio - 16.82%; and Tier 1 Leverage ratio - 12.11%.

At December 31, 2010, total assets were $884,941,000, an increase of $579,000 from $884,362,000 at December 31, 2009. The loan portfolio totaled $513,466,000 at December 31, 2010, a decrease of $88,951,000, or 14.8%, compared to $602,417,000 at December 31, 2009. The loan to deposit ratio at December 31, 2010 was 68.1% as compared to 76.5% at December 31, 2009. Total deposits decreased $34,019,000, or 4.3%, to $753,790,000 at December 31, 2010 compared to $787,809,000 at December 31, 2009. Available-for-sale investment securities increased $119,309,000 to $265,644,000 at December 31, 2010 from $146,335,000 at December 31, 2009, as proceeds and paydowns on loans were reinvested into mortgage-backed securities in order to maintain liquidity and contribute to the level of earning assets which help to support the Company's net interest margin.

Credit Quality

Nonperforming loans (defined as nonaccrual loans and loans 90 days or more past due and still accruing interest) decreased $26,533,000, or 56.9%, to $20,065,000 at December 31, 2010 from $46,598,000 at December 31, 2009. Nonperforming loans as a percentage of total loans were 3.91% at December 31, 2010, compared to 7.74% at December 31, 2009. Subsequent to December 31, 2010, the Company successfully collected the entire balance of a nonperforming loan of $4,824,000 which is included in the year-end balance of $20,065,000.

Nonperforming assets (nonperforming loans and other real estate owned ("OREO")) totaled $45,849,000 at December 31, 2010, a decrease of $13,126,000 from the December 31, 2009 balance of $58,975,000. Nonperforming assets as a percentage of total assets were 5.18% at December 31, 2010 compared to 6.67% at December 31, 2009.

Gross loan and lease charge-offs for the fourth quarter of 2010 were $775,000 and recoveries totaled $519,000 resulting in net charge-offs of $256,000 compared to gross loan and lease charge-offs for the fourth quarter of 2009 of $9,970,000 and recoveries of $86,000 resulting in net charge-offs of $9,884,000. Gross charge-offs for the year ended December 31, 2010 were $12,515,000 and recoveries for the same year totaled $999,000 resulting in net charge-offs of $11,516,000, compared to gross charge-offs for the year ended December 31, 2009 of $20,744,000 and recoveries of $1,456,000 resulting in net charge-offs of $19,288,000.

The overall level of nonperforming loans (defined as nonaccrual loans and loans 90 days or more past due and still accruing interest) decreased $9,578,000 to $20,065,000 at December 31, 2010 from $29,643,000 at September 30, 2010. During the fourth quarter of 2010, the Company added sixteen loans totaling $5,277,000 to nonperforming loans. These additions were offset by reductions in nonperforming loans totaling $14,855,000 due primarily to the transfer to OREO of eleven properties totaling $12,857,000, and secondarily due to collections received on certain loans and charge-offs. Of the sixteen loans totaling $5,277,000 identified as nonaccrual loans and added to nonperforming loans, four relationships represent $3,577,000 of that balance. The largest relationship of this group is a $989,000 multi-family real estate loan for seven condominiums located in Shasta County. A specific reserve of $75,000 has been established for this loan. The second largest relationship of this group consists of a $946,000 multi-family real estate loan for seven townhouses and a single-family residence located in Yolo County. A specific reserve of $80,000 has been established for this loan. The third largest relationship in this group totals $857,000 which consists of two loans. The first loan is a commercial real estate loan in the amount of $583,000 for a self-storage facility located in Butte County. A specific reserve of $51,000 has been established for this loan. The second loan of this relationship is a $274,000 loan for a single-family rental property located in Trinity County. A specific reserve of $79,000 has been established for this loan. The fourth relationship of this group is a commercial real estate loan in the amount of $785,000 for a special-purpose facility located in Sacramento County. A specific reserve of $96,000 has been established for this loan. The remaining eleven loans that were placed on nonaccrual during the fourth quarter of 2010 total $1,700,000 and specific reserves totaling $279,000 have been established.

The Company's OREO properties increased $6,934,000 to $25,784,000 at December 31, 2010 from $18,850,000 at September 30, 2010. The increase in OREO was due to the transfer of eleven properties totaling $12,857,000, partially offset by the sale of fifteen properties for a total of $5,067,000. The Company recorded a loss on sale for those fifteen properties totaling $209,000, and recorded a write-down of the estimated fair market values of certain other OREO properties during the quarter ended December 31, 2010 of $647,000. The Company had total OREO related expenses of $1,178,000 and $6,522,000 for the quarter and year-ended December 31, 2010, respectively, which is recorded as noninterest expense.

Operating Results

Net interest income, which represents the Company's largest component of revenues and is the difference between interest earned on loans and investments and interest paid on deposits and borrowings, increased $72,000, or 1.0%, for the three months ended December 31, 2010 compared to the same period in 2009. Interest income decreased by $962,000, or 9.3%, for the three months ended December 31, 2010, primarily due to both a lower yield on earning assets and a decrease in the average balances of earning assets. The Company had foregone interest income of $396,000 and $617,000 for the loans on nonaccrual status for the three months ended December 31, 2010 and 2009, respectively. Offsetting the decrease in interest income was a decrease in interest expense of $1,034,000, or 36.3%, due to a decrease in the rates paid on deposits and a decrease in the average balance of interest bearing deposits for the quarter ended December 31, 2010 compared to the same period in 2009. Average loans decreased $96,013,000 in the fourth quarter of 2010 compared to the fourth quarter of 2009 while the yield on the loan portfolio increased 10 basis points to 5.99% for the fourth quarter of 2010. Overall, average earning assets decreased $9,500,000 in the fourth quarter of 2010 compared to the fourth quarter of 2009. Average yields on earning assets decreased 41 basis points from the quarter ended December 31, 2009, to 4.65% for the quarter ended December 31, 2010 while the average rate paid on interest-bearing liabilities decreased by 54 basis points to 1.12%. The Company's net interest margin (tax equivalent basis) for the quarter ended December 31, 2010 was 3.76%, an increase of 8 basis points from 3.68% for the fourth quarter in 2009 and increased 3 basis points from the net interest margin (tax equivalent basis) of 3.65% for the linked quarter ended September 30, 2010. Net interest income decreased $1,297,000, or 4.2%, for the year ended December 31, 2010 compared to the same period in 2009. Interest income decreased by $5,033,000, or 11.5%, primarily due to a lower yield on earning assets. The Company had foregone interest income of $2,096,000 and $2,143,000 for the loans on nonaccrual status for the year ended December 31, 2010 and 2009, respectively. Interest expense decreased $3,736,000 due to a decrease in rates paid on average interest bearing liabilities for the year ended December 31, 2010 compared to the same period in 2009. The net interest margin for the year ended December 31, 2010 decreased 19 basis points to 3.69% from the net interest margin of 3.88% for the year ended December 31, 2009.

Noninterest income for the quarter ended December 31, 2010 was $3,192,000 compared to $3,266,000 for the same period in 2009 representing a decrease of $74,000, or 2.3%. Service charges on deposits decreased $243,000 to $1,348,000 for the fourth quarter of 2010 compared to $1,591,000 for the fourth quarter of 2009, while other fees and charges increased by $143,000 to $1,195,000 for the fourth quarter of 2010 compared to $1,052,000 for the same period in 2009. Noninterest income for the year ended December 31, 2010 decreased $1,066,000, or 7.6%, to $12,944,000 from $14,010,000 for the year ended December 31, 2009. The primary reason for the decrease in noninterest income in 2010 compared to 2009 was due to a decrease in service charges on deposit accounts of $619,000 and a gain on sale of investment securities of $655,000 that occurred in 2009. Other fees and charges increased $301,000 to $4,566,000 for the year ended December 31, 2010 compared to $4,265,000 for the year ended December 31, 2009.

Noninterest expenses decreased $13,630,000 to $10,244,000 for the fourth quarter of 2010 from $23,874,000 for the fourth quarter of 2009. The reason for the decrease was due to a goodwill impairment charge of $15,187,000 that occurred during the fourth quarter of 2009. Salaries and employee benefits increased $119,000 in the fourth quarter of 2010 from the same period in 2009, while occupancy expense and furniture and equipment expense decreased $193,000 in the fourth quarter of 2010 compared to the same period in 2009. Other real estate owned expense increased to $1,178,000 compared to $284,000 for the same period in 2009. Other expenses increased $697,000 to $3,295,000 for the fourth quarter of 2010 compared to $2,598,000 for the fourth quarter of 2009. Noninterest expenses for the year ended December 31, 2010 decreased $12,076,000 to $41,914,000 compared to $53,990,000 for the year ended December 31, 2009. The reason for the decrease was due to a goodwill impairment charge of $15,187,000 during the fourth quarter of 2009 as mentioned above. Salaries and employee benefits decreased $1,627,000 for the year ended December 31, 2010 from the year ended December 31, 2009 due to several cost cutting initiatives implemented by the Company during 2009. Occupancy expense and furniture and equipment expense decreased $642,000 for the year ended December 31, 2010 compared to the year ended December 31, 2009, while FDIC deposit insurance assessments increased $61,000 for the year ended December 31, 2010 when compared to 2009. Other real estate owned expense increased $4,403,000 to $6,522,000 for the year ended December 31, 2010 compared to $2,119,000 for 2009.

The Company recorded a benefit for income taxes for the quarter ended December 31, 2010 of $1,702,000, compared to a benefit for income taxes of $2,721,000, for the quarter ended December 31, 2009. The Company recorded a benefit for income taxes for the year ended December 31, 2010 of $985,000, compared to a benefit for income taxes of $9,394,000 for the year ended December 31, 2009. Due to the Company's previous losses, management conducts an analysis to assess the need for a valuation allowance on its deferred tax asset quarterly. During the third quarter ended September 30, 2010, it was determined to be more likely than not that a portion of its deferred tax asset will not be realized, and at September 30, 2010, the Company established a valuation allowance of $4,500,000, approximately 27% of gross deferred tax assets. The valuation allowance was booked as a provision for income tax in the current year. The Company conducted an updated analysis at December 31, 2010 to assess the need for a change in the valuation allowance on the deferred tax asset. Management considered all available evidence, including both positive and negative, as part of this assessment, and concluded that no additional adjustment was needed to the valuation allowance during the fourth quarter.

North Valley Bancorp is a bank holding company headquartered in Redding, California. Its subsidiary, North Valley Bank (the "Bank"), operates twenty-five commercial banking offices in Shasta, Humboldt, Del Norte, Mendocino, Yolo, Sonoma, Placer and Trinity Counties in Northern California, including two in-store supermarket branches and six Business Banking Centers. North Valley Bancorp, through the Bank, offers a wide range of consumer and business banking deposit products and services including internet banking and cash management services. In addition to these depository services, the Bank engages in a full complement of lending activities including consumer, commercial and real estate loans. Additionally, the Bank has SBA Preferred Lender status and provides investment services to its customers. Visit the Company's website address at www.novb.com for more information.

Cautionary Statement: This release contains certain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those stated herein. Management's assumptions and projections are based on their anticipation of future events and actual performance may differ materially from those projected. Risks and uncertainties which could impact future financial performance include, among others, (a) competitive pressures in the banking industry; (b) changes in the interest rate environment; (c) general economic conditions, either nationally, regionally or locally, including fluctuations in real estate values; (d) changes in the regulatory environment; (e) changes in business conditions or the securities markets and inflation; (f) possible shortages of gas and electricity at utility companies operating in the State of California, and (g) the effects of terrorism, including the events of September 11, 2001, and thereafter, and the conduct of the war on terrorism by the United States and its allies. Therefore, the information set forth herein, together with other information contained in the periodic reports filed by the Company with the Securities and Exchange Commission, should be carefully considered when evaluating the business prospects of the Company. North Valley Bancorp undertakes no obligation to update any forward-looking statements contained in this release, except as required by law.

                           NORTH VALLEY BANCORP
                  CONDENSED CONSOLIDATED FINANCIAL DATA
                                (Unaudited)
          (Dollars in thousands, except share and per share data)


                                Three Months Ended
                                   December 31,
Statement of Income Data         2010       2009     $ Change   % Change
                               ---------  ---------  ---------  ---------
Interest income
   Loans and leases (including
    fees)                      $   7,900  $   9,203  $  (1,303)    (14.16%)
   Investment securities           1,523      1,169        354      30.28%
   Federal funds sold and
    other                             14         27        (13)    (48.15%)
                               ---------  ---------  ---------  ---------
       Total interest income       9,437     10,399       (962)     (9.25%)
                               ---------  ---------  ---------  ---------
Interest expense
   Interest on deposits            1,273      2,347     (1,074)    (45.76%)
   Subordinated debentures           545        505         40       7.92%
                               ---------  ---------  ---------  ---------
       Total interest expense      1,818      2,852     (1,034)    (36.26%)
                               ---------  ---------  ---------  ---------
Net interest income                7,619      7,547         72       0.95%
Provision for loan and lease
 losses                                -      9,000     (9,000)   (100.00%)
                               ---------  ---------  ---------  ---------
Net interest income after
 provision for loan and
 lease losses                      7,619     (1,453)     9,072    (624.36%)
                               ---------  ---------  ---------  ---------

Noninterest income
   Service charges on deposit
    accounts                       1,348      1,591       (243)    (15.27%)
   Other fees and charges          1,195      1,052        143      13.59%
   Other                             649        623         26       4.17%
                               ---------  ---------  ---------  ---------
       Total noninterest
        income                     3,192      3,266        (74)   (2.27%)
                               ---------  ---------  ---------  ---------

Noninterest expenses
   Salaries and employee
    benefits                       4,225      4,106        119       2.90%
   Occupancy                         695        749        (54)     (7.21%)
   Furniture and equipment           323        462       (139)    (30.09%)
   Other real estate owned
    expense                        1,178        284        894     314.79%
   FDIC and state assessments        528        488         40       8.20%
   Impairment of goodwill              -     15,187    (15,187)   (100.00%)
   Other                           3,295      2,598        697      26.83%
                               ---------  ---------  ---------  ---------
       Total noninterest
        expenses                  10,244     23,874    (13,630)    (57.09%)
                               ---------  ---------  ---------  ---------
       Income (loss) before
        benefit for income
        taxes                        567    (22,061)    22,628    (102.57%)
Benefit for income taxes          (1,702)    (2,721)     1,019     (37.45%)
                               ---------  ---------  ---------  ---------
       Net income (loss)           2,269    (19,340)    21,609    (111.73%)
                               =========  =========  =========  =========


Common Share Data
   Earnings (loss) per share
      Basic                    $    0.33  $  (12.90) $   13.23    (102.56%)
      Diluted                  $    0.33  $  (12.90) $   13.23    (102.56%)

   Weighted average shares
    outstanding                6,832,492  1,499,163
   Weighted average shares
    outstanding - diluted      6,832,492  1,499,163
   Book value per share        $   12.29  $   34.89
   Tangible book value         $   12.21  $   34.43
   Shares outstanding          6,832,492  1,499,163




                           NORTH VALLEY BANCORP
                  CONDENSED CONSOLIDATED FINANCIAL DATA
                                (Unaudited)
          (Dollars in thousands, except share and per share data)

                               Twelve Months Ended
                                   December 31,
Statement of Income Data         2010       2009     $ Change   % Change
                               ---------  ---------  ---------  ---------
Interest income
   Loans and leases (including
    fees)                      $  33,276  $  39,233  $  (5,957)    (15.18%)
   Investment securities           5,508      4,646        862      18.55%
   Federal funds sold and
    other                            138         76         62      81.58%
                               ---------  ---------  ---------  ---------
       Total interest income      38,922     43,955     (5,033)    (11.45%)
                               ---------  ---------  ---------  ---------
Interest expense
   Interest on deposits            6,861     10,633     (3,772)    (35.47%)
   Subordinated debentures         2,124      2,087         37       1.77%
   Other borrowings                    -          1         (1)   (100.00%)
                               ---------  ---------  ---------  ---------
       Total interest expense      8,985     12,721     (3,736)    (29.37%)
                               ---------  ---------  ---------  ---------
Net interest income               29,937     31,234     (1,297)     (4.15%)
Provision for loan and lease
 losses                            8,200     26,500    (18,300)    (69.06%)
                               ---------  ---------  ---------  ---------
Net interest income after
  provision for loan and lease
  losses                          21,737      4,734     17,003     359.17%
                               ---------  ---------  ---------  ---------

Noninterest income
   Service charges on deposit
    accounts                       5,864      6,483       (619)     (9.55%)
   Other fees and charges          4,566      4,265        301       7.06%
   Gain on sale/impairment of
    investment securities              -        655       (655)   (100.00%)
   Other                           2,514      2,607        (93)     (3.57%)
                               ---------  ---------  ---------  ---------
       Total noninterest
        income                    12,944     14,010     (1,066)     (7.61%)
                               ---------  ---------  ---------  ---------

Noninterest expenses
   Salaries and employee
    benefits                      16,873     18,500     (1,627)     (8.79%)
   Occupancy                       2,850      3,079       (229)     (7.44%)
   Furniture and equipment         1,434      1,847       (413)    (22.36%)
   Other real estate owned
    expense                        6,522      2,119      4,403     207.79%
   FDIC and state assessments      2,368      2,307         61       2.64%
   Impairment of goodwill              -     15,187    (15,187)   (100.00%)
   Other                          11,867     10,951        916       8.36%
                               ---------  ---------  ---------  ---------
       Total noninterest
        expenses                  41,914     53,990    (12,076)    (22.37%)
                               ---------  ---------  ---------  ---------
       Loss before benefit for
        income taxes              (7,233)   (35,246)    28,013     (79.48%)
Benefit for income taxes            (985)    (9,394)     8,409     (89.51%)
                               ---------  ---------  ---------  ---------
       Net loss                   (6,248)   (25,852)    19,604     (75.83%)
                               ---------  ---------  ---------  ---------
Preferred stock discount       $ (18,667) $       -    (18,667)         -
                               ---------  ---------  ---------  ---------
       Net loss available to
        common shareholders    $ (24,915) $ (25,852) $     937      (3.62%)
                               =========  =========  =========  =========


Common Share Data
   Loss per share
      Basic                    $   (6.42) $  (17.24) $   10.82     (62.76%)
      Diluted                  $   (6.42) $  (17.24) $   10.82     (62.76%)

   Weighted average shares
    outstanding                3,880,897  1,499,163
   Weighted average shares
    outstanding - diluted      3,880,897  1,499,163
   Book value per share        $   12.29  $   34.89
   Tangible book value         $   12.21  $   34.43
   Shares outstanding          6,832,492  1,499,163




                           NORTH VALLEY BANCORP
                  CONDENSED CONSOLIDATED FINANCIAL DATA
                                (Unaudited)
                          (Dollars in thousands)

                                                December 31,  December 31,
Balance Sheet Data                                  2010          2009
                                                ------------  ------------
Assets
  Cash and due from banks                       $     14,629  $     19,378
  Federal funds sold                                   9,005        48,250
  Time deposits at other financial institutions          459           425
  Available-for-sale securities - at fair value      265,644       146,335
  Held-to-maturity securities - at amortized
   cost                                                    6             9

  Loans and leases net of deferred loan fees         513,466       602,417
    Allowance for loan and lease losses              (14,993)      (18,539)
                                                ------------  ------------
    Net loans and leases                             498,473       583,878

  Premises and equipment, net                          8,799        10,319
  Other real estate owned                             25,784        12,377
  Goodwill and core deposit intangibles, net             546           692
  Accrued interest receivable and other assets        61,596        62,699
                                                ------------  ------------
Total assets                                    $    884,941  $    884,362
                                                ============  ============

Liabilities and Shareholders' Equity
  Deposits:
    Demand, noninterest bearing                 $    155,499  $    152,421
    Demand, interest bearing                         161,241       160,216
    Savings and money market                         208,476       189,782
    Time                                             228,574       285,390
                                                ------------  ------------
        Total deposits                               753,790       787,809

  Accrued interest payable and other
   liabilities                                        15,212        12,290
  Subordinated debentures                             31,961        31,961
                                                ------------  ------------
Total liabilities                                    800,963       832,060
  Shareholders' equity                                83,978        52,302
                                                ------------  ------------
Total liabilities and shareholders' equity      $    884,941  $    884,362
                                                ============  ============

Asset Quality
  Nonaccrual loans and leases                   $     20,065  $     46,598
  Loans and leases past due 90 days and
   accruing interest                                       -             -
  Other real estate owned                             25,784        12,377
                                                ------------  ------------
    Total nonperforming assets                  $     45,849  $     58,975
                                                ============  ============

  Allowance for loan and lease losses to total
   loans                                                2.92%         3.08%
  Allowance for loan and lease losses to NPL's         74.72%        39.78%
  Allowance for loan and lease losses to NPA's         32.70%        31.44%




                           NORTH VALLEY BANCORP
                  CONDENSED CONSOLIDATED FINANCIAL DATA
                                (Unaudited)
                          (Dollars in thousands)

                           Three Months Ended        Twelve Months Ended
Selected Financial            December 31,              December 31,
 Ratios                    2010         2009         2010         2009
                         ---------    ---------    ---------    ---------
  Return on average
   total assets               1.00%       (8.39%)      (0.69%)      (2.85%)
  Return on average
   shareholders' equity      10.76%     (106.26%)      (8.03%)     (34.92%)
  Net interest margin
   (tax equivalent
   basis)                     3.76%        3.68%        3.69%        3.88%
  Efficiency ratio           94.76%      220.79%       97.74%      119.33%

Selected Average
 Balances
  Loans                  $ 523,472    $ 619,485    $ 559,863    $ 649,806
  Taxable investments      249,603      140,024      186,220      113,711
  Tax-exempt investments    14,870       15,740       15,261       15,825
  Federal funds sold and
   other                    24,973       47,169       59,446       33,587
                         ---------    ---------    ---------    ---------
    Total earning assets $ 812,918    $ 822,418    $ 820,790    $ 812,929
                         ---------    ---------    ---------    ---------
    Total assets         $ 902,493    $ 915,022    $ 904,688    $ 906,462
                         ---------    ---------    ---------    ---------

  Demand deposits -
   interest bearing      $ 159,783    $ 161,046    $ 158,169    $ 154,763
  Savings and money
   market                  209,801      188,581      210,655      177,740
  Time deposits            241,183      299,321      259,568      308,419
  Other borrowings          31,961       31,961       31,961       32,298
                         ---------    ---------    ---------    ---------
    Total interest
     bearing liabilities $ 642,728    $ 680,909    $ 660,353    $ 673,220
                         ---------    ---------    ---------    ---------
  Demand deposits -
   noninterest bearing   $ 158,481    $ 149,428    $ 149,696    $ 147,266
                         ---------    ---------    ---------    ---------
  Shareholders' equity   $  83,654    $  72,211    $  77,850    $  74,039
                         ---------    ---------    ---------    ---------




                           NORTH VALLEY BANCORP
                  CONDENSED CONSOLIDATED FINANCIAL DATA
                                (Unaudited)
              (Dollars in thousands, except per share data)

                                          For the Quarter Ended
                                ------------------------------------------
                                December   September    June       March
                                  2010       2010       2010       2010
                                ---------  ---------  ---------  ---------
Interest income                 $   9,437  $   9,773  $   9,837  $   9,875
Interest expense                    1,818      2,183      2,451      2,533
                                ---------  ---------  ---------  ---------
  Net interest income               7,619      7,590      7,386      7,342

Provision for loan and lease
 losses                                 -      4,600      2,600      1,000
Noninterest income                  3,192      3,363      3,377      3,012
Noninterest expense                10,244     11,779      9,872     10,019
                                ---------  ---------  ---------  ---------

Income (loss) before provision
 (benefit) for income taxes           567     (5,426)    (1,709)      (665)
Provision (benefit) for income
 taxes                             (1,702)     2,207     (1,137)      (353)
                                ---------  ---------  ---------  ---------
  Net income (loss)             $   2,269  $  (7,633) $    (572) $    (312)
                                ---------  ---------  ---------  ---------

Preferred Stock Discount                -    (18,667)         -          -
                                ---------  ---------  ---------  ---------
Net income (loss) available to
 common shareholder             $   2,269  $ (26,300) $    (572) $    (312)
                                =========  =========  =========  =========
Earnings (loss) per common
 share:
  Basic                         $    0.33  $   (4.70) $   (0.40) $   (0.20)
                                =========  =========  =========  =========
  Diluted                       $    0.33  $   (4.70) $   (0.40) $   (0.20)
                                =========  =========  =========  =========

Contact Information: For further information contact: Michael J. Cushman President & Chief Executive Officer (530) 226-2900 Fax: (530) 221-4877 or Kevin R. Watson Executive Vice President & Chief Financial Officer (530) 226-2900 Fax: (530) 221-4877