HispanicBusiness

Noninterest income for the quarter ended March 31, 2013 increased $1,070,000, or 32.8%, to $4,329,000 compared to $3,259,000 for the same period in 2012. Service charges on deposits decreased by $100,000 to $952,000 for the first quarter of 2013 compared to $1,052,000 for the same period in 2012. Other fees and charges decreased by $77,000 to $1,120,000 for the first quarter of 2013 compared to $1,197,000 for the first quarter of 2012. The Company recorded gains on the sale of mortgage loans of $757,000, and gains on the sale of SBA loans of $168,000 for the first quarter of 2013 compared to gains of $361,000 and $43,000, respectively, for the same period in 2012. The Company recognized gains on the sale of investment securities of $543,000 for the first quarter of 2013 compared to a loss on sale of investments securities of $9,000 for the same period in 2012. Other noninterest income increased $174,000, to $789,000 for the quarter ended March 31, 2013 compared to $615,000 for the same period in 2012.

Noninterest expense increased $232,000, or 2.4%, to $9,888,000 for the first quarter of 2013 from $9,656,000 for the first quarter in 2012. Salaries and employee benefits increased $105,000, for the first quarter of 2013 compared to the first quarter of 2012 due primarily to incentive compensation for production personnel. Occupancy and furniture and equipment expense decreased $32,000 for the first quarter of 2013 compared to the first quarter of 2012 due to a decrease in depreciation and rent expense as a result of facilities consolidation initiatives completed in 2012. OREO expense decreased $258,000 to $376,000, for the first quarter of 2013 compared to $634,000 for the same period in 2012, and FDIC and state assessments decreased $95,000 to $218,000 for the first quarter of 2013, compared to $313,000 for the same period in 2012. Other expense increased $512,000 to $3,279,000 for the first quarter of 2013 compared to $2,767,000 for the same period in 2012 due primarily to the recording of a $500,000 additional reserve for expenses expected to be incurred during 2013 in connection with the anticipated settlement of a compliance exam conducted by the Federal Reserve Bank of San Francisco in 2010.

The Company recorded a provision for income taxes for the quarter ended March 31, 2013 of $616,000, resulting in an effective tax rate of 32.8%, compared to a provision for income taxes of $115,000, or an effective tax rate of 19.3%, for the quarter ended March 31, 2012.

North Valley Bancorp is a bank holding company headquartered in Redding, California. Its subsidiary, North Valley Bank ("NVB"), 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 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.