North Valley Bancorp Reports Results for the Quarter and Nine Months Ended September 30, 2009

REDDING, CA--(Marketwire - November 3, 2009) - North Valley Bancorp (NASDAQ: NOVB), a bank holding company with approximately $914 million in assets, today reported results for the third quarter and nine months ended September 30, 2009. North Valley Bancorp ("the Company") is the parent company for North Valley Bank ("NVB").

The Company reported net income for the third quarter ended September 30, 2009 of $684,000, or $0.09 per diluted share, compared to a net loss of $1,419,000, or $0.19 per diluted share, for the same period in 2008. The Company reported a net loss for the nine months ended September 30, 2009 of $6,512,000, or $0.87 per diluted share, compared to a net loss of $2,648,000, or $0.36 per diluted share, for the same period in 2008.

The Company recorded provisions for loan and lease losses of $1,500,000 and $17,500,000 for the third quarter and nine months ended September 30, 2009, respectively, compared to provisions for loan and lease losses of $1,500,000 and $9,100,000 for the third quarter and nine months ended September 30, 2008. The allowance for loan and lease losses at September 30, 2009 was $19,423,000, or 3.09% of total loans, compared to $11,327,000, or 1.63% of total loans at December 31, 2008 and $9,958,000, or 1.43% of total loans at September 30, 2008.

"We are obviously pleased to announce a profitable third quarter despite significant headwinds from a severe and prolonged recession. Our team continues to work through the challenges presented in our construction and development loan portfolio -- this loan type represents a significant percentage of all loan losses this year. Additionally, we have reduced expenses significantly in all areas which positions North Valley Bank well for future success," stated Michael J. Cushman, President and CEO.

At September 30, 2009, total assets were $913,903,000, an increase of $29,727,000, or 3.4%, from $884,176,000 at September 30, 2008. The loan portfolio totaled $629,076,000 at September 30, 2009, a decrease of $67,232,000, or 9.7%, compared to September 30, 2008. The loan to deposit ratio at September 30, 2009 was 78.7% as compared to 92.2% at September 30, 2008, and 91.9% at December 31, 2008. Total deposits grew $43,864,000, or 5.8%, to $798,955,000 at September 30, 2009 compared to $755,131,000 at September 30, 2008. When compared to December 31, 2008, total assets increased $34,352,000 from $879,551,000, driven by an increase in deposits of $44,051,000 from $754,944,000, while loans decreased by $64,346,000 from $693,422,000. Available-for-sale investment securities and Federal funds sold increased $81,855,000 and $30,355,000, respectively, from December 31, 2008 to September 30, 2009 as a result of the increase in deposits and decrease in loans.

At September 30, 2009, the Company's Total Risk-based Capital was $91,073,000, and its risk-based capital ratios were: Total Risk-based Capital ratio - 12.36%; Tier 1 Risk-based Capital ratio - 10.18%; and Tier 1 Leverage ratio - 8.29%. The Bank's Total Risk-based Capital was $92,357,000, and its risk-based capital ratios were: Total Risk-based Capital ratio - 12.53%; Tier 1 Risk-based Capital ratio - 11.26%; and Tier 1 Leverage ratio - 9.18%.

Credit Quality

Nonperforming loans (defined as nonaccrual loans and loans 90 days or more past due and still accruing interest) totaled $54,462,000 at September 30, 2009, an increase of $34,272,000 from the September 30, 2008 balance of $20,190,000, and an increase of $35,526,000 from the December 31, 2008 balance of $18,936,000. Nonperforming loans as a percentage of total loans were 8.66% at September 30, 2009, compared to 2.90% at September 30, 2008, and 2.73% at December 31, 2008.

Nonperforming assets (nonperforming loans and OREO) totaled $62,387,000 at September 30, 2009, an increase of $36,345,000 from the September 30, 2008 balance of $26,042,000, and an increase of $33,043,000 from the December 31, 2008 balance of $29,344,000. Nonperforming assets as a percentage of total assets were 6.83% at September 30, 2009 compared to 2.95% at September 30, 2008 and 3.34% at December 31, 2008.

The overall level of nonperforming loans increased $10,158,000 to $54,462,000 at September 30, 2009 from $44,304,000 at June 30, 2009. During the third quarter of 2009, the Company added twenty loans totaling $17,776,000 to nonperforming loans. These additions were offset by reductions in nonperforming loans totaling $7,618,000, due primarily to transfers to OREO of four properties totaling $2,878,000, and secondarily to collections received on certain loans and charge-offs recorded.

The Company's OREO properties increased $1,796,000 to $7,925,000 at September 30, 2009 from $6,129,000 at June 30, 2009. The additions to OREO at September 30, 2009 were partially offset by the disposition of one OREO property during the third quarter of 2009. The Company recorded a loss on the sale of OREO of $23,000.

Gross loan and lease charge-offs for the third quarter of 2009 were $5,290,000 and recoveries totaled $1,094,000 resulting in net charge-offs of $4,196,000 compared to gross loan and lease charge-offs for the third quarter of 2008 of $5,305,000 and recoveries of $86,000 resulting in net charge-offs of $5,219,000. Gross charge-offs for the nine months ended September 30, 2009 were $10,774,000 and recoveries totaled $1,370,000 resulting in net charge-offs of $9,404,000, compared to gross charge-offs for the nine months ended September 30, 2008 of $10,081,000 and recoveries of $184,000 resulting in net charge-offs of $9,897,000.

The increase in nonperforming loans to $54,462,000 at September 30, 2009 was due in large part by the addition of twenty loans in the amount of $17,776,000 as nonaccrual loans during the third quarter of 2009. This addition to nonaccrual loans included one customer relationship with eight loans totaling $9,182,000 located in Sonoma County. All eight loans are secured by real estate and each has a current appraisal and no specific reserve has been established for any of the loans. The second largest customer relationship in this group consists of two loans totaling $2,941,000 and are also located in Sonoma County. These two loans are commercial land loans and have current appraisals and no specific reserve has been established on either of the loans. The third largest customer relationship in this group is a commercial real estate loan in the amount of $1,198,000 for a multi-tenant office building located in Shasta County. This property has a current appraisal and a specific reserve of $703,000 has been established for this loan. The fourth largest customer relationship in this group is a residential acquisition and development loan for $1,160,000 located in Siskiyou County. This property has a current appraisal and a specific reserve of $197,000 has been established for this loan. The fifth largest customer relationship in this group is a commercial land loan for $1,043,000 located in Shasta County. This property has a current appraisal and no specific reserve has been established for this loan. The sixth largest customer relationship in this group is a residential acquisition and development loan for $1,029,000 located in Sonoma County. This property has a current appraisal and no specific reserve has been established for this loan. The remaining six loans in this group that were placed on nonaccrual during the third quarter of 2009 total $1,223,000 and no specific reserves have been established for any of the loans.

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, decreased $1,142,000, or 13.0%, for the three months ended September 30, 2009 compared to the same period in 2008. Interest income decreased by $1,848,000, primarily due to both the lower yield on earning assets and the decrease in the average balances of earning assets and secondarily due to foregone interest income of $557,000 related to loans currently on nonaccrual status. Partially offsetting this was a decrease in interest expense of $706,000, or 18.0%, due to a decrease in the rates paid on deposits and a decrease in the average balance of borrowings for the quarter ended September 30, 2009 compared to the same period in 2008. Average loans decreased $72,942,000 in the third quarter of 2009 compared to the third quarter of 2008, and the yield on the loan portfolio decreased 64 basis points to 5.85% for the third quarter of 2009. Overall, average earning assets increased $25,049,000 in the third quarter of 2009 compared to the third quarter of 2008. Average yields on earning assets decreased 109 basis points from the quarter ended September 30, 2008, to 5.20% for the quarter ended September 30, 2009 while the average rate paid on interest-bearing liabilities decreased by 54 basis points to 1.84%. The decrease in both yields earned and rates paid is reflective of the declining interest rate environment as the Federal Reserve has reduced interest rates by 500 basis points since September 2007. The Company's net interest margin for the quarter ended September 30, 2009 was 3.68%, a decrease of 69 basis points from the margin of 4.37% for the third quarter in 2008 and a decrease of 26 basis points from the 3.94% net interest margin for the quarter ended June 30, 2009. "The $557,000 of foregone interest from the nonperforming loans placed pressure on our net interest margin reducing it by roughly 26 basis points, although we did recognize a decrease of 14 basis points on the average rate paid on interest-bearing liabilities from the second quarter," commented Kevin R. Watson, Chief Financial Officer. Net interest income decreased $3,322,000 for the nine months ended September 30, 2009 compared to the same period in 2008. Interest income decreased by $6,701,000, primarily due to a decrease in income on loans of $6,878,000 as a result of both the lower yield on average loans and the decrease in the average balance of loans and due to foregone interest income of $1,526,000 related to loans on nonaccrual status during the nine months ended September 30, 2009. Interest expense decreased $3,379,000 due to a decrease in average interest bearing liabilities of $4,757,000 for the nine months ended September 30, 2009 compared to the same period in 2008 and a decrease of 64 basis points on rates paid on interest-bearing liabilities comparing the same periods. The net interest margin for the nine months ended September 30, 2009 decreased 41 basis points to 3.94% from the net interest margin of 4.35% for the nine months ended September 30, 2008.

Noninterest income for the quarter ended September 30, 2009 was $4,142,000 compared to $284,000 for the same period in 2008 representing an increase of $3,858,000. The primary reason for the increase in noninterest income was the Company recognized a gain on sale of investment securities of $655,000 for the quarter ended September 30, 2009 and a loss on impairment of securities of $3,284,000 in 2008. Service charges on deposits decreased $126,000 to $1,724,000 for the third quarter of 2009 compared to $1,850,000 for the third quarter of 2008, while other fees and charges increased by $167,000 to $1,170,000 for the third quarter of 2009 compared to $1,003,000 for the same period in 2008. Noninterest income for the nine months ended September 30, 2009 increased $3,492,000 to $10,744,000 from $7,252,000 for the same period in 2008. Service charges on deposits decreased $568,000 to $4,892,000 for the nine months ended September 30, 2009 compared to $5,460,000 for the same period in 2008, while other fees and charges increased by $266,000 to $3,213,000 for the nine months ended September 30, 2009 compared to $2,947,000 for the same period in 2008.

Noninterest expense decreased $695,000 to $8,999,000 for the third quarter of 2009 from $9,694,000 for the third quarter of 2008. Comparing the third quarter of 2009 to the third quarter of 2008, salaries and employee benefits decreased $788,000 and occupancy and equipment expense decreased $33,000. Other real estate owned expense was $265,000 compared to $24,000 for the same period in 2008. Other expenses decreased $115,000 although FDIC insurance premiums were $479,000, for the third quarter of 2009 compared to $151,000 for the same period in 2008. Noninterest expense for the nine months ended September 30, 2009 was $30,116,000 compared to $29,075,000 for the same period in 2008. For the nine months ended September 30, 2009, salaries and employee benefits decreased $1,460,000 while occupancy and equipment expense increased $30,000. FDIC insurance premiums, including the special assessment, were $1,726,000 for the first nine months of 2009 compared to $263,000 for the first nine months of 2008.

The Company recorded a provision for income taxes for the quarter ended September 30, 2009 of $629,000, resulting in an effective tax rate of 47.9%, compared to a benefit for income taxes of $679,000, or an effective tax benefit rate of 32.4%, for the quarter ended September 30, 2008. The benefit for income taxes for the nine month period ended September 30, 2009 was $6,673,000, resulting in an effective tax benefit rate of 50.6%, compared to $1,266,000, or an effective tax benefit rate of 32.4%, for the same period in 2008.

The Company also announced that the Board of Governors of the Federal Reserve System ("FRB") recently completed the field work portion of its regularly scheduled examination of the Bank. As a result of the Company's losses in 2009, primarily due to higher provisions for loan losses because of credit quality deterioration, the Bank expects to enter into a written agreement with the FRB. At this date, the FRB has not delivered a draft agreement. However, the Company anticipates that the Bank will be required to develop a written plan to improve the quality of assets, maintain adequate capital and enhance capital planning, and ensure sustained earnings. The Company presently expects the FRB agreement to be finalized and signed during the fourth quarter of 2009.

North Valley Bancorp is a bank holding company headquartered in Redding, California. Its subsidiary, North Valley Bank ("NVB"), operates twenty-six commercial banking offices in Shasta, Humboldt, Del Norte, Mendocino, Yolo, Solano, Sonoma, Placer and Trinity Counties in Northern California, including two in-store supermarket branches and seven Business Banking Centers. North Valley Bancorp, through NVB, 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, NVB engages in a full complement of lending activities including consumer, commercial and real estate loans. Additionally, NVB 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
                                    September 30,
Statement of Income Data          2009       2008     $ Change   % Change
                                ---------- ---------  ---------  ---------
Interest income
   Loans and leases (including
    fees)                       $    9,465 $  11,686  $  (2,221)     -19.0%
   Investment securities             1,405     1,055        350       33.2%
   Federal funds sold and other         26         3         23      766.7%
                                ---------- ---------  ---------  ---------
       Total interest income        10,896    12,744     (1,848)     -14.5%
                                ---------- ---------  ---------  ---------
Interest expense
   Interest on deposits              2,712     3,187       (475)     -14.9%
   Subordinated debentures             513       581        (68)     -11.7%
   Other borrowings                      1       164       (163)     -99.4%
                                ---------- ---------  ---------  ---------
       Total interest expense        3,226     3,932       (706)     -18.0%
                                ---------- ---------  ---------  ---------
Net interest income                  7,670     8,812     (1,142)     -13.0%
Provision for loan and lease
 losses                              1,500     1,500          -        0.0%
                                ---------- ---------  ---------  ---------
Net interest income after
 provision for loan and lease
 losses                              6,170     7,312     (1,142)     -15.6%
                                ---------- ---------  ---------  ---------

Noninterest income
   Service charges on deposit
    accounts                         1,724     1,850       (126)      -6.8%
   Other fees and charges            1,170     1,003        167       16.7%
   Gain (loss) on
    sale/impairment of
    investment securities              655    (3,284)     3,939     -119.9%
   Other                               593       715       (122)     -17.1%
                                ---------- ---------  ---------  ---------
       Total noninterest income      4,142       284      3,858     1358.5%
                                ---------- ---------  ---------  ---------

Noninterest expenses
   Salaries and employee
    benefits                         4,425     5,213       (788)     -15.1%
   Occupancy                           768       773         (5)      -0.6%
   Furniture and equipment             457       485        (28)      -5.8%
   Other real estate owned
    expense                            265        24        241     1004.2%
   Other                             3,084     3,199       (115)      -3.6%
                                ---------- ---------  ---------  ---------
       Total noninterest
        expenses                     8,999     9,694       (695)      -7.2%
                                ---------- ---------  ---------  ---------
       Income (loss) before
        provision (benefit) for
        income taxes                 1,313    (2,098)     3,411     -162.6%
Provision (benefit) for income
 taxes                                 629      (679)     1,308     -192.6%
                                ---------- ---------  ---------  ---------
       Net income (loss)        $      684 $  (1,419) $   2,103     -148.2%
                                ========== =========  =========  =========

Common Share Data
  Income (loss) per share
     Basic                      $     0.09 $   (0.19) $    0.28     -147.4%
     Diluted                    $     0.09 $   (0.19) $    0.28     -147.4%

  Weighted average shares
   outstanding                   7,495,817 7,490,878
  Weighted average shares
   outstanding - diluted         7,495,817 7,490,878
  Book value per share          $     9.59 $   10.24
  Tangible book value           $     7.47 $    8.09
  Shares outstanding             7,495,817 7,495,817







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


                                  Nine Months Ended
                                    September 30,
Statement of Income Data          2009       2008     $ Change   % Change
                                ---------  ---------  ---------  ---------
Interest income
   Loans and leases (including
    fees)                       $  30,030  $  36,908  $  (6,878)     -18.6%
   Investment securities            3,477      3,340        137        4.1%
   Federal funds sold and other        49          9         40      444.4%
                                ---------  ---------  ---------  ---------
       Total interest income       33,556     40,257     (6,701)     -16.6%
                                ---------  ---------  ---------  ---------
Interest expense
   Interest on deposits             8,286     10,406     (2,120)     -20.4%
   Subordinated debentures          1,581      1,754       (173)      -9.9%
   Other borrowings                     2      1,088     (1,086)     -99.8%
                                ---------  ---------  ---------  ---------
       Total interest expense       9,869     13,248     (3,379)     -25.5%
                                ---------  ---------  ---------  ---------
Net interest income                23,687     27,009     (3,322)     -12.3%
Provision for loan and lease
 losses                            17,500      9,100      8,400       92.3%
                                ---------  ---------  ---------  ---------
Net interest income after
 provision for loan and lease
 losses                             6,187     17,909    (11,722)     -65.5%
                                ---------  ---------  ---------  ---------

Noninterest income
   Service charges on deposit
    accounts                        4,892      5,460       (568)     -10.4%
   Other fees and charges           3,213      2,947        266        9.0%
   Gain (loss) on
    sale/impairment of
    investment securities             655     (3,284)     3,939     -119.9%
   Other                            1,984      2,129       (145)      -6.8%
                                ---------  ---------  ---------  ---------
       Total noninterest income    10,744      7,252      3,492       48.2%
                                ---------  ---------  ---------  ---------

Noninterest expenses
   Salaries and employee
    benefits                       14,394     15,854     (1,460)      -9.2%
   Occupancy                        2,330      2,247         83        3.7%
   Furniture and equipment          1,385      1,438        (53)      -3.7%
   Other real estate owned
    expense                         1,835         24      1,811     7545.8%
   Other                           10,172      9,512        660        6.9%
                                ---------  ---------  ---------  ---------
       Total noninterest
        expenses                   30,116     29,075      1,041        3.6%
                                ---------  ---------  ---------  ---------
       Loss before benefit for
        income taxes              (13,185)    (3,914)    (9,271)     236.9%
Benefit for income taxes           (6,673)    (1,266)    (5,407)     427.1%
                                ---------  ---------  ---------  ---------
       Net loss                 $  (6,512) $  (2,648) $  (3,864)     145.9%
                                =========  =========  =========  =========

Common Share Data
  Loss per share
     Basic                      $   (0.87) $   (0.36) $   (0.51)     141.7%
     Diluted                    $   (0.87) $   (0.36) $   (0.51)     141.7%

  Weighted average shares
   outstanding                  7,495,817  7,448,813
  Weighted average shares
   outstanding - diluted        7,495,817  7,448,813
  Book value per share          $    9.59  $   10.24
  Tangible book value           $    7.47  $    8.09
  Shares outstanding            7,495,817  7,495,817








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


                               September 30,  December 31,   September 30,
Balance Sheet Data                 2009           2008           2008
                               -------------  -------------  -------------
Assets
  Cash and due from banks      $      19,506  $      27,153  $      25,961
  Federal funds sold                  30,355              -              -
  Time deposits at other
   financial institutions                425              -              -
  Available-for-sale
   securities - at fair value        158,200         76,345         83,258
  Held-to-maturity securities
   - at amortized cost                     9             21             22

  Loans and leases net of
   deferred loan fees                629,076        693,422        696,308
    Allowance for loan and
     lease losses                    (19,423)       (11,327)        (9,958)
                               -------------  -------------  -------------
    Net loans and leases             609,653        682,095        686,350

  Premises and equipment, net         10,682         11,418         11,568
  Other real estate owned              7,925         10,408          5,852
  Goodwill and core deposit
   intangibles, net                   15,916         16,025         16,062
  Accrued interest receivable
   and other assets                   61,232         56,086         55,103
                               -------------  -------------  -------------
Total assets                   $     913,903  $     879,551  $     884,176
                               =============  =============  =============

Liabilities and Shareholders'
 Equity
  Deposits:
    Demand, noninterest
     bearing                   $     145,475  $     161,748  $     157,069
    Demand, interest bearing         150,136        151,873        163,458
    Savings and money market         184,938        157,089        168,173
    Time                             318,446        284,234        266,431
                               -------------  -------------  -------------
        Total deposits               798,995        754,944        755,131
  Other borrowed funds                     -          3,516          8,255
  Accrued interest payable and
   other liabilities                  11,073         11,872         12,095
  Subordinated debentures             31,961         31,961         31,961
                               -------------  -------------  -------------
Total liabilities                    842,029        802,293        807,442
  Shareholders' equity                71,874         77,258         76,734
                               -------------  -------------  -------------
Total liabilities and
 shareholders' equity          $     913,903  $     879,551  $     884,176
                               =============  =============  =============

Asset Quality
  Nonaccrual loans and leases  $      54,462  $      18,936  $      20,136
  Loans and leases past due 90
   days and accruing interest              -              -             54
  Other real estate owned              7,925         10,408          5,852
                               -------------  -------------  -------------
    Total nonperforming assets $      62,387  $      29,344  $      26,042
                               =============  =============  =============

  Allowance for loan and lease
   losses to total loans                3.09%          1.63%          1.43%
  Allowance for loan and lease
   losses to NPL's                     35.66%         59.82%         49.32%
  Allowance for loan and lease
   losses to NPA's                     31.13%         38.60%         38.24%







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


                                Three Months Ended     Nine Months Ended
                                   September 30,         September 30,
Selected Financial Ratios        2009       2008       2009       2008
                               ---------  ---------  ---------  ---------
  Return on average total
   assets                           0.29%     (0.62%)    (0.96%)    (0.38%)
  Return on average
   shareholders' equity             3.82%     (7.13%)   (11.66%)    (4.33%)
  Net interest margin (tax
   equivalent basis)                3.68%      4.37%      3.94%      4.35%
  Efficiency ratio                 76.19%    106.57%     87.47%     84.86%

Selected Average Balances
  Loans                        $ 641,603  $ 714,545  $ 660,025  $ 734,913
  Taxable investments            140,114     77,075    108,625     83,130
  Tax-exempt investments          15,812     20,019     15,853     20,248
  Federal funds sold and other    39,763        604     29,010        475
                               ---------  ---------  ---------  ---------
    Total earning assets       $ 837,292  $ 812,243  $ 813,513  $ 838,766
                               ---------  ---------  ---------  ---------
    Total assets               $ 925,803  $ 901,395  $ 903,577  $ 926,002
                               ---------  ---------  ---------  ---------

  Demand deposits - interest
   bearing                     $ 153,123  $ 154,408  $ 152,646  $ 155,624
  Savings and money market       182,295    177,654    174,086    181,149
  Time deposits                  327,817    261,105    311,485    252,463
  Other borrowings                31,961     61,363     32,412     86,150
                               ---------  ---------  ---------  ---------
    Total interest bearing
     liabilities               $ 695,196  $ 654,530  $ 670,629  $ 675,386
                               ---------  ---------  ---------  ---------
  Demand deposits - noninterest
   bearing                     $ 145,316  $ 158,562  $ 146,537  $ 157,422
                               ---------  ---------  ---------  ---------
  Shareholders' equity         $  71,102  $  78,950  $  74,655  $  81,473
                               ---------  ---------  ---------  ---------








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


                                            For the Quarter Ended
                                    ---------------------------------------
                                    September   June      March   December
                                      2009      2009      2009      2008
                                    --------- --------  --------  --------
Interest income                     $  10,896 $ 11,241  $ 11,419  $ 11,834
Interest expense                        3,226    3,332     3,311     3,706
                                    --------- --------  --------  --------
  Net interest income                   7,670    7,909     8,108     8,128
Provision for loan and lease losses     1,500    9,000     7,000     3,000
Noninterest income                      4,142    3,438     2,274     2,900
Noninterest expense                     8,999   10,782     9,445     9,583
                                    --------- --------  --------  --------
Income (loss) before provision
 (benefit) for income taxes             1,313   (8,435)   (6,063)   (1,555)
Provision (benefit) for income
 taxes                                    629   (4,346)   (2,956)   (2,409)
                                    --------- --------  --------  --------
  Net income (loss)                 $     684 $ (4,089) $ (3,107) $    854
                                    ========= ========  ========  ========
Earnings (loss) per share:
  Basic                             $    0.09 $  (0.55) $  (0.41) $   0.11
                                    ========= ========  ========  ========
  Diluted                           $    0.09 $  (0.55) $  (0.41) $   0.11
                                    ========= ========  ========  ========

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