HispanicBusiness

On January 30, 2013, the Company filed a Current Report on Form 8-K, reporting that its interim financial statements as of and for the three and nine months ended September 30, 2012 would be restated because there was an error in the calculation of the tax benefits recorded in that quarter. In its previously filed third quarter 2012 Form 10-Q, the Company reported tax benefits of $3,893,000 and $3,251,000 for the three and nine months ended September 30, 2012, respectively. The correct amounts were $2,546,000 and $1,904,000, respectively. The Company intends to amend and correct its third quarter Form 10-Q as soon as practicable. The difference in recorded tax benefits is expected to reduce the Company's net income to $4,004,000 and $5,745,000 for the three and nine months ended September 30, 2012, respectively. For additional information, reference should be made to the Company's Current Report on Form 8-K as filed on January 30, 2013.

North Valley Bancorp is a bank holding company headquartered in Redding, California. Its subsidiary, North Valley Bank (the "Bank"), operates twenty-two 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; and (f) 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 Operations Data       2012       2011      $ Change  % Change                                ---------- ----------  ---------  --------Interest income  Loans (including fees)        $    6,605 $    6,885  $    (280)    (4.07%)  Investment securities              1,660      1,958       (298)   (15.22%)  Federal funds sold and other          11         36        (25)   (69.44%)                                ---------- ----------  ---------  --------    Total interest income            8,276      8,879       (603)    (6.79%)                                ---------- ----------  ---------  --------Interest expense  Interest on deposits                 365        859       (494)   (57.51%)  Subordinated debentures              139        472       (333)   (70.55%)  Other borrowings                       -          -          -         -                                ---------- ----------  ---------  --------    Total interest expense             504      1,331       (827)   (62.13%)                                ---------- ----------  ---------  --------Net interest income                  7,772      7,548        224      2.97%Provision for loan losses                -          -          -         -                                ---------- ----------  ---------  --------Net interest income after provision for loan losses           7,772      7,548        224      2.97%                                ---------- ----------  ---------  --------Noninterest income  Service charges on deposit   accounts                          1,059      1,092        (33)    (3.02%)  Other fees and charges             1,095      1,180        (85)    (7.20%)  Gain on sales of mortgage   loans                               966        215        751    349.30%  Gain on sales of SBA loans           330          -        330         -  Gain on sales of securities,   net                                 221        828       (607)   (73.31%)  Other                                598        402        196     48.76%                                ---------- ----------  ---------  --------    Total noninterest income         4,269      3,717        552     14.85%                                ---------- ----------  ---------  --------Noninterest expenses  Salaries and employee   benefits                          5,164      4,763        401      8.42%  Occupancy                            636        662        (26)    (3.93%)  Furniture and equipment              229        243        (14)    (5.76%)  Other real estate owned   expense                           1,763      2,298       (535)   (23.28%)  FDIC and state assessments           221        315        (94)   (29.84%)  Other                              3,323      2,631        692     26.30%                                ---------- ----------  ---------  --------    Total noninterest expenses      11,336     10,912        424      3.89%                                ---------- ----------  ---------  --------    Income before provision     (benefit) for income taxes        705        353        352     99.72%Provision (benefit) for income taxes                                 160       (456)       616   (135.09%)                                ---------- ----------  ---------  --------    Net income                  $      545 $      809  $    (264)   (32.63%)                                ========== ==========  =========  ========Common Share DataEarnings per share  Basic                         $     0.08 $     0.12  $   (0.04)   (33.33%)  Diluted                       $     0.08 $     0.12  $   (0.04)   (33.33%)Weighted average shares outstanding                     6,835,192  6,833,752Weighted average shares outstanding - diluted           6,836,192  6,833,752Book value per share            $    14.07 $    13.09Tangible book value             $    14.03 $    13.03Shares outstanding               6,835,192  6,833,752                           NORTH VALLEY BANCORP                   CONDENSED CONSOLIDATED FINANCIAL DATA                                (Unaudited)          (Dollars in thousands, except share and per share data)                                  Twelve Months Ended                                     December 31,Statement of Operations Data       2012        2011     $ Change  % Change                                ----------  ---------- ---------  --------Interest income  Loans (including fees)        $   26,062  $   28,863 $  (2,801)    (9.70%)  Investment securities              7,603       8,209      (606)    (7.38%)  Federal funds sold and other          66          73        (7)    (9.59%)                                ----------  ---------- ---------  --------    Total interest income           33,731      37,145    (3,414)    (9.19%)                                ----------  ---------- ---------  --------Interest expense  Interest on deposits               2,165       3,893    (1,728)   (44.39%)  Subordinated debentures            1,352       1,892      (540)   (28.54%)  Other borrowings                       8           1         7    700.00%                                ----------  ---------- ---------  --------    Total interest expense           3,525       5,786    (2,261)   (39.08%)                                ----------  ---------- ---------  --------Net interest income                 30,206      31,359    (1,153)    (3.68%)Provision for loan losses            2,100       2,650      (550)   (20.75%)                                ----------  ---------- ---------  --------Net interest income after provision for loan losses          28,106      28,709      (603)    (2.10%)                                ----------  ---------- ---------  --------Noninterest income  Service charges on deposit   accounts                          4,333       4,635      (302)    (6.52%)  Other fees and charges             4,715       4,663        52      1.12%  Gain on sales of mortgage   loans                             2,682         493     2,189    444.02%  Gain on sales of SBA loans           472         680      (208)   (30.59%)  Gain on sales of securities,   net                               1,877       1,677       200     11.93%  Other                              2,340       2,217       123      5.55%                                ----------  ---------- ---------  --------    Total noninterest income        16,419      14,365     2,054     14.30%                                ----------  ---------- ---------  --------Noninterest expenses  Salaries and employee   benefits                         20,277      18,657     1,620      8.68%  Occupancy                          2,547       2,786      (239)    (8.58%)  Furniture and equipment              938       1,062      (124)   (11.68%)  Other real estate owned   expense                           3,556       4,804    (1,248)   (25.98%)  FDIC and state assessments           922       1,355      (433)   (31.96%)  Other                             11,739      11,051       688      6.23%                                ----------  ---------- ---------  --------    Total noninterest expenses      39,979      39,715       264      0.66%                                ----------  ---------- ---------  --------    Income before (benefit)     provision for income taxes      4,546       3,359     1,187    (35.34%)(Benefit) provision for income taxes                              (1,744)        312    (2,056)   658.97%                                ----------  ---------- ---------  --------    Net income                       6,290       3,047     3,243   (106.43%)                                ----------  ---------- ---------  --------Common Share DataEarnings per share  Basic                         $     0.92  $     0.45 $    0.47   (104.44%)  Diluted                       $     0.92  $     0.45 $    0.47   (104.44%)Weighted average shares outstanding                     6,835,371   6,833,031Weighted average shares outstanding - diluted           6,836,371   6,833,031Book value per share            $    14.07  $    13.09Tangible book value             $    14.03  $    13.03Shares outstanding               6,835,192   6,833,752                            NORTH VALLEY BANCORP                   CONDENSED CONSOLIDATED FINANCIAL DATA                                (Unaudited)                           (Dollars in thousands)                                                December 31,   December 31,Balance Sheet Data                                  2012           2011                                               -------------  -------------Assets  Cash and due from banks                      $      22,654  $      18,758  Federal funds sold                                  15,865         40,210  Time deposits at other financial   institutions                                        2,219          1,959  Available-for-sale securities - at fair   value                                             285,815        312,205  Held-to-maturity securities - at amortized   cost                                                    6              6  Loans net of deferred loan fees                    492,211        456,215  Allowance for loan losses                          (10,458)       (12,656)                                               -------------  -------------    Net loans                                        481,753        443,559  Premises and equipment, net                          9,181          8,661  Other real estate owned                             22,423         20,106  Core deposit intangibles, net                          255            401  Accrued interest receivable and other assets        62,172         59,101                                               -------------  -------------Total assets                                   $     902,343  $     904,966                                               =============  =============Liabilities and Shareholders' Equity  Deposits:    Demand, noninterest bearing                $     177,855  $     167,506    Demand, interest bearing                         185,315        170,124    Savings and money market                         233,034        216,299    Time                                             172,376        212,310                                               -------------  -------------      Total deposits                                 768,580        766,239  Accrued interest payable and other   liabilities                                        15,951         17,301  Subordinated debentures                             21,651         31,961                                               -------------  -------------Total liabilities                                    806,182        815,501  Shareholders' equity                                96,161         89,465                                               -------------  -------------Total liabilities and shareholders' equity     $     902,343  $     904,966                                               =============  =============Asset Quality  Nonaccrual loans                             $       5,835  $      18,359  Loans past due 90 days and accruing interest             -             52  Other real estate owned                             22,423         20,106                                               -------------  -------------    Total nonperforming assets                 $      28,258  $      38,517                                               =============  =============  Classified assets                            $      45,297  $      59,742  Bank Tier 1 Capital + ALLL                   $     115,580  $     126,323  Classified assets ratio                              39.19%         47.29%  Allowance for loan losses to total loans              2.12%          2.77%  Allowance for loan losses to NPL's                  179.23%         68.74%  Allowance for loan losses to NPA's                   37.01%         32.86%                            NORTH VALLEY BANCORP                   CONDENSED CONSOLIDATED FINANCIAL DATA                                (Unaudited)                           (Dollars in thousands)                                  Three Months Ended    Twelve Months Ended                                     December 31,          December 31,Selected Financial Ratios           2012       2011       2012       2011                                 ---------  ---------  ---------  ---------  Return on average total assets      0.24%      0.35%      0.69%      0.34%  Return on average   shareholders' equity               2.19%      3.66%      6.70%      3.54%  Net interest margin (tax   equivalent basis)                  3.74%      3.68%      3.75%      3.92%  Efficiency ratio                   94.15%     96.87%     85.75%     86.86%Selected Average Balances  Loans                          $ 481,998  $ 462,527  $ 464,647  $ 482,845  Taxable investments              279,807    286,708    297,451    280,708  Tax-exempt investments            10,749     13,974     11,903     14,205  Federal funds sold and other      17,893     59,915     27,861     31,103                                 ---------  ---------  ---------  ---------    Total earning assets         $ 790,447  $ 823,124  $ 801,862  $ 808,861                                 ---------  ---------  ---------  ---------    Total assets                 $ 904,083  $ 917,642  $ 910,295  $ 901,271                                 ---------  ---------  ---------  ---------  Demand deposits - interest   bearing                       $ 183,948  $ 168,997  $ 180,038  $ 164,616  Savings and money market         235,146    219,283    226,070    220,501  Time deposits                    174,096    215,689    193,476    216,408  Other borrowings                  21,651     31,961     30,205     32,012                                 ---------  ---------  ---------  ---------    Total interest bearing     liabilities                 $ 614,841  $ 635,930  $ 629,789  $ 633,537                                 ---------  ---------  ---------  ---------  Demand deposits - noninterest   bearing                       $ 173,296  $ 163,157  $ 164,437  $ 159,242                                 ---------  ---------  ---------  ---------  Shareholders' equity           $  98,512  $  87,583  $  93,906  $  86,106                                 ---------  ---------  ---------  ---------                            NORTH VALLEY BANCORP                    CONDENSED CONSOLIDATED FINANCIAL DATA                                 (Unaudited)                (Dollars in thousands, except per share data)                                              For the Quarter Ended                                    ----------------------------------------                                     December September     June     March                                       2012      2012       2012      2012                                    --------- ---------  --------- ---------Interest income                     $   8,276 $   8,426  $   8,420 $   8,609Interest expense                          504       713      1,091     1,217                                    --------- ---------  --------- ---------  Net interest income                   7,772     7,713      7,329     7,392Provision for loan losses                   -       700      1,000       400Noninterest income                      4,269     4,204      4,687     3,259Noninterest expense                    11,336     9,759      9,228     9,656                                    --------- ---------  --------- ---------Income before provision (benefit) for income taxes                         705     1,458      1,788       595Provision (benefit) for income taxes                                    160    (2,546)       527       115                                    --------- ---------  --------- ---------  Net income                        $     545 $   4,004  $   1,261 $     480                                    ========= =========  ========= =========Earnings per common share:  Basic                             $    0.08 $    0.59  $    0.18 $    0.07                                    ========= =========  ========= =========  Diluted                           $    0.08 $    0.59  $    0.18 $    0.07                                    ========= =========  ========= =========