HispanicBusiness

REDDING, CA -- (Marketwired) -- 04/30/13 -- North Valley Bancorp (NASDAQ: NOVB), a bank holding company with $911 million in assets, today reported results for the quarter ended March 31, 2013. North Valley Bancorp ("the Company") is the parent company for North Valley Bank ("NVB").

The Company reported net income for the quarter ended March 31, 2013 of $1,261,000, or $0.18 per diluted share compared to net income for the quarter ended March 31, 2012 of $480,000, or $0.07 per diluted share. "We are pleased with the results from the first quarter as we execute our 2013 Plan. Loan production met our goal; however, loan payoffs exceeded expectations resulting in a net reduction in total loans. We continue to negotiate the sale of OREO and to focus on reducing operating costs as we navigate through an improving economy amidst a challenging interest rate environment," stated Mike Cushman, President and CEO.

The Company did not record a provision for loan losses for the quarter ended March 31, 2013 compared to a provision for loan losses of $400,000 for the quarter ended March 31, 2012. The allowance for loan losses at March 31, 2013 was $9,651,000, or 1.98% of total loans, compared to $10,458,000, or 2.12% of total loans, at December 31, 2012 and $12,274,000, or 2.74% of total loans, at March 31, 2012.

At March 31, 2013, total assets were $910,734,000, a decrease of $2,995,000, or 0.3%, from $913,729,000 at March 31, 2012. The loan portfolio totaled $488,606,000 at March 31, 2013, an increase of $39,957,000, or 8.9%, compared to $448,649,000 at March 31, 2012. The loan to deposit ratio at March 31, 2013 was 63.0% as compared to 58.1% at March 31, 2012, and 64.0% at December 31, 2012. Total deposits increased $3,356,000, or 0.4%, to $775,920,000 at March 31, 2013 compared to $772,564,000 at March 31, 2012. Available-for-sale investment securities totaled $283,721,000 at March 31, 2013, a decrease of $70,433,000 from March 31, 2012. When compared to December 31, 2012, total assets increased $8,391,000 from $902,343,000, driven by an increase in deposits of $7,340,000 from $768,580,000, while loans decreased by $3,605,000 from $492,211,000. Available-for-sale investment securities decreased $2,094,000 from December 31, 2012 to March 31, 2013, while Federal funds sold increased $20,060,000 from December 31, 2012 to March 31, 2013.

At March 31, 2013, the Company's Total Risk-based Capital was $115,023,000, and its capital ratios were: Total Risk-based Capital ratio - 18.6%; Tier 1 risk-based Capital ratio - 17.4%; and Tier 1 Leverage ratio - 12.1%. At March 31, 2013, the Bank's Total Risk-based Capital was $115,381,000, and its capital ratios were: Total Risk-based Capital ratio - 18.7%; Tier 1 risk-based Capital ratio - 17.4%; and Tier 1 Leverage ratio - 12.1%.

Credit Quality

Nonperforming loans (defined as nonaccrual loans and loans 90 days or more past due and still accruing interest) decreased $9,185,000, or 58.8%, to $6,449,000 at March 31, 2013 from $15,634,000 at March 31, 2012, and increased $614,000 from the December 31, 2012 balance of $5,835,000. Nonperforming loans as a percentage of total loans were 1.32% at March 31, 2013, as compared to 1.19% at December 31, 2012 and 3.48% at March 31, 2012.