United States
                Securities and Exchange Commission
                      Washington, D.C. 20549

                           FORM 10-Q

                           (Mark One)

[x]  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
     Act  of 1934 
     For the Period Ended    September 30, 1997     .

[  ]    Transition Report Pursuant to Section 13 or 15(d) of the Securities 
        Exchange Act of 1934 
        For the Period From            to            
                                 
               Commission file number    0-10652  

                      NORTH VALLEY BANCORP               
      (Exact name of registrant as specified in its charter)

   California                                      94-2751350  
(State or other jurisdiction                    (I.R.S. Employer   
of incorporation or organization)              Identification No.)

880 E. Cypress Ave.
Redding, CA                                         96002      
(Address of principal executive offices)          (Zip code)

Registrant's telephone number, including area code     (916) 221-8400   

                            Not applicable         
(Former name, former address and former fiscal year, if changed since last
 report)


Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Exchange Act of 1934
during the preceding 12 months (or for such shorter periods that the 
registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.
Yes   X    No      


Common Stock - -     1,828,948   shares as of September 30, 1997.




                            INDEX

             NORTH VALLEY BANCORP AND SUBSIDIARIES

PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements (Unaudited)

     Condensed consolidated balance sheets-- September 30, 1997
     and December 31, 1996

     Condensed consolidated statements of income-- Nine months
     ended September 30, 1997 and 1996; three months ended
     September 30, 1997 and 1996

     Condensed consolidated statement of cash flows-- Nine months
     ended September 30, 1997 and 1996

     Notes to condensed consolidated financial statements--
     September 30, 1997

Item 2.  Management's Discussion and Analysis of Financial 
Condition and Results of Operations


PART II.  OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8K     


SIGNATURES PART I.  FINANCIAL INFORMATION

  NORTH VALLEY BANCORP AND SUBSIDIARIES
  CONDENSED CONSOLIDATED BALANCE SHEETS     September 30   December 31
                                                 1997        1996   
                                              (unaudited)   (Note)
ASSETS                                           (000's omitted)

  Cash and due from banks                       $10,798    $ 10,407
  Federal funds sold                             12,000      18,100
  Interest-bearing deposits in other
    financial institutions                        1,771           0
  Securities:
    Available for sale, at fair value            20,460       9,223
    Held to maturity, at amortized cost          39,592      39,997
   (fair value of $41,527 and $41,871
    at September 30, 1997 and December 31,
    1996, respectively)
  Loans receivable, net of deferred loan fees   170,375     168,237
    Less:  Allowance for loan losses              1,509       1,254
    Net loans receivable                        168,866     166,983
  Premises and equipment, net                     4,250       3,768
  Other real estate owned                           610          69
  FHLB stock                                        777         734
  Accrued interest receivable                     1,903       1,765
  Other assets                                    5,379       5,831

  TOTAL ASSETS                                 $266,406    $256,877

LIABILITIES AND STOCKHOLDERS' EQUITY
  LIABILITIES:
  Deposits:
    Noninterest-bearing demand deposits        $ 30,470    $ 28,314
    Interest-bearing deposits                   204,740     200,914   
      Total deposits                            235,210     229,228
  Accrued interest and other liabilities          3,542       3,749

  TOTAL LIABILITIES                             238,752     232,977

STOCKHOLDERS' EQUITY:

  Preferred stock, no par value: 
    authorized, 20,000,000 shares; none outstanding
  Common stock, no par value: authorized 20,000,000
    shares; outstanding 1,828,948 for September 30,
    1997 and 1,823,688 for December 31, 1996      9,956       9,896
  Retained earnings                              17,229      13,703
  Unrealized gain on securities available
    for sale (net of tax effect)                    469         301 

  Total stockholders' equity                     27,654      23,900

  TOTAL LIABILITIES & STOCKHOLDERS' EQUITY     $266,406    $256,877
=======================================================================    
Note:  The balance sheet at December 31, 1996 has been derived from the
audited financial statements at that date.
=======================================================================
See notes to condensed consolidated financial statements (unaudited).

NORTH VALLEY BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

                                                 Nine Months Ended    
                                                    September 30            
                                                  1997       1996     
                                                 (000's omitted,
                                              except per share data)
INTEREST INCOME:
  Loans including fees                         $ 11,454   $ 10,702          
  Securities:
    Taxable                                         674        574 
    Exempt from federal taxes                     1,797      1,782 
  Interest on federal funds sold                    828        705
Total interest income                            14,753     13,763

INTEREST EXPENSE - DEPOSITS                       6,428      5,984         

NET INTEREST INCOME                               8,325      7,779 

PROVISION FOR LOAN LOSSES                           500        465 

NET INTEREST INCOME AFTER PROVISION
 FOR LOAN LOSSES                                  7,825      7,314  

NONINTEREST INCOME:    
  Service charges on deposit accounts             1,047      1,004 
  Other fees and charges                            591        568 
  Gain on sale of loans                             118        152 
  Gain on sale of available 
    for sale securities                             211          2 
  Proceeds from Life Insurance                    1,148          0
  Other                                             242        154         
Total noninterest income                          3,357      1,880    

NONINTEREST EXPENSES:    
  Salaries & employee benefits                    3,262      2,944 
  Occupancy expense                                 365        336 
  Furniture & equipment expense                     404        358 
  Other                                           1,786      1,372 
Total noninterest expenses                        5,817      5,010 

INCOME BEFORE PROVISION FOR INCOME TAXES          5,365      4,184

PROVISION FOR INCOME TAXES                        1,199      1,160 

NET INCOME                                     $  4,166   $  3,024

INCOME PER COMMON AND EQUIVALENT SHARE         $   2.25   $   1.62

WEIGHTED AVERAGE SHARES USED TO COMPUTE
 INCOME PER COMMON AND EQUIVALENT SHARE       1,850,919  1,868,097


====================================================================
See notes to condensed consolidated financial statements (unaudited).


NORTH VALLEY BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

                                                Three Months Ended    
                                                   September 30        
                                                  1997       1996     
                                                  (000's omitted,
                                             except per share data)
INTEREST INCOME:
  Loans including fees                         $  3,851   $  3,674    
  Securities:
    Taxable                                         299        207 
    Exempt from federal taxes                       584        606 
  Interest on federal funds sold                    276        223
Total interest income                             5,010      4,710

INTEREST EXPENSE - DEPOSITS                       2,172      2,040         

NET INTEREST INCOME                               2,838      2,670 

PROVISION FOR LOAN LOSSES                           140        255 

NET INTEREST INCOME AFTER PROVISION
 FOR LOAN LOSSES                                  2,698      2,415  

NONINTEREST INCOME:    
  Service charges on deposit accounts               350        336 
  Other fees and charges                            206        184 
  Gain on sale of loans                              15         72 
  Gain on sale of 
    available for sale securities                    71         19 
  Proceeds from Life Insurance                    1,148          0
  Other                                              97         47         
Total noninterest income                          1,887        658    

NONINTEREST EXPENSES:    
  Salaries & employee benefits                    1,264        978 
  Occupancy expense                                 133        120 
  Furniture & equipment expense                     133        115 
  Other                                             672        463 
Total noninterest expenses                        2,202      1,676 

INCOME BEFORE PROVISION FOR INCOME TAXES          2,383      1,397

PROVISION FOR INCOME TAXES                          400        393 

NET INCOME                                     $  1,983   $  1,004

INCOME PER COMMON AND EQUIVALENT SHARE         $   1.07   $    .54

WEIGHTED AVERAGE SHARES USED TO COMPUTE
 INCOME PER COMMON AND EQUIVALENT SHARE       1,852,914  1,868,097


====================================================================
See notes to condensed consolidated financial statements (unaudited).



NORTH VALLEY BANCORP AND SUBSIDIARIES CONDENSED         Nine Months Ended
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)           September 30
                                                        1997         1996 
CASH FLOWS FROM OPERATING ACTIVITIES:                     (000's omitted)  
Net income                                           $ 4,166      $ 3,024   
Adjustments to reconcile net income to net cash
  provided by operating activities:
  Depreciation and amortization                          324          300
  (Accretion) amortization of premium on securities   (    1)           9
  Provision for loan losses                              500          465
  Gain on sale of available for sale securities       (  211)     (     8)
  Loss on sale of trading securities                       0            6
  Gain on sale of loans                               (  118)     (   152)
  Provision for deferred taxes                        (   73)           0
  Proceeds from sales of trading securities                0        1,972
  Purchase of trading securities                           0      ( 1,980)
  Effect of changes in:
   Accrued interest receivable                        (  138)     (    35)  
   Other assets                                       (1,860)     (   428)
   Accrued interest and other liabilities                434          278 
Net cash provided by operating activities              3,023        3,451 

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of FHLB stock                               (    43)     (    60)
Purchase of available for sale securities            (15,419)     ( 2,594)
Proceeds from sales of available for sale securities   4,387            0
Proceeds from maturities of available for sale
  securities                                             260        3,763
Purchase of held to maturity securities              ( 2,082)     ( 8,358)
Proceeds from maturities or calls of held to        
  maturity securities                                  2,475        3,249
Proceeds from sale of loans                            7,085        7,791
Net increase in loans                                ( 9,350)     (24,359)
Purchases of premises and equipment                  (   806)     (   254)
Net cash used in investing activities                (13,493)     (20,822)

CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in demand deposits, NOW accounts, and
  savings accounts                                     6,229       12,558 
Net increase in time certificates                    (   248)       3,633 
Cash dividends paid                                  ( 1,280)     ( 1,143) 
Cash received for stock options exercised                 60           48
Net cash provided by financing activities              4,761       15,096 

NET DECREASE IN CASH AND CASH EQUIVALENTS            ( 5,709)     ( 2,275)

CASH AND CASH EQUIVALENTS:                  
 Beginning of period                                  28,507       28,468
 End of period                                       $22,798      $26,193

ADDITIONAL INFORMATION:
Cash Payments:
 Income tax payments                                 $ 1,224      $ 1,356
 Interest payments                                   $ 6,789      $ 6,317
 
===========================================================================
See notes to condensed consolidated financial statements (unaudited).

NORTH VALLEY BANCORP AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

September 30, 1997


NOTE A - BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial
statements of North Valley Bancorp and subsidiaries (the "Company")
have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X.  In the
opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation of
the results for the interim periods presented have been included.
They do not, however, include all the information and footnotes
required by generally accepted accounting principles for complete
financial statements.  For further information, refer to the
consolidated financial statements and notes thereto included in the
Company's annual report on Form 10-K for the fiscal year ended
December 31, 1996.  Operating results for the nine months ended
September 30, 1997 are not necessarily indicative of the results that
may be expected for the year ended December 31, 1997.

The condensed consolidated financial statements include the accounts
of the Company.  Significant intercompany items and transactions have
been eliminated.



NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Accounting Pronouncements

On January 1, 1997, the Company adopted Statement of Financial
Accounting Standard No. 125, Accounting for Transfers and Servicing
of Financial Assets and Extinguishments of Liabilities.  This
Statement provides accounting and reporting standards for transfers
and servicing of financial assets and extinguishments of liabilities. 
This standard is based on consistent application of a financial-components 
approach that focuses on control.  Under this approach,
after a transfer of financial assets, an entity recognizes the
financial and servicing assets it controls and the liabilities it has
incurred, derecognizes financial assets when control has been
surrendered, and derecognizes liabilities when extinguished.  The
Company has determined that the adoption of this standard does not
have a material effect on the Company's financial position or results
of operations as of and for the period ended September 30, 1997.

In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128, "Earnings per
Share" (SFAS 128).  The Company is required to adopt SFAS 128 in the
fourth quarter of fiscal 1997 and will restate at that time earnings
per share (EPS) data for prior periods to conform with SFAS 128. 
Earlier application is not permitted.

SFAS 128 replaces current EPS reporting requirements and requires a
dual presentation of basic and diluted EPS.  Basic EPS excludes
dilution and is computed by dividing net income by the weighted
average of common shares outstanding for the period.  Diluted EPS
reflects the potential dilution that could occur if securities or
other contracts to issue common stock were exercised or converted
into common stock.

If SFAS 128 had been in effect during the current and prior year
periods, basic EPS would have been $1.08 and $.54 for the quarters
ended September 30, 1997 and 1996, respectively.  Diluted EPS under
SFAS 128 would not have been significantly different than primary EPS
currently reported for the periods.

In June 1997, the Financial Accounting Standards Board adopted
Statements of Financial Accounting Standards No. 130 (Reporting
Comprehensive Income), which requires that an enterprise report, by
major components and as a single total, the change in its net assets
during the period from nonowner sources; and No. 131 (Disclosures
about Segments of an Enterprise and Related Information), which
establishes annual and interim reporting standards for an
enterprise's business segments and related disclosures about its
products, services, geographic areas, and major customers.  Adoption
of these statements will not impact the Company's consolidated
financial position, results of operations or cash flows.  Both
statements are effective for fiscal years beginning after December
15, 1997, with earlier application permitted.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997.

The following discussion should be read in conjunction with the
Consolidated Financial Statements and notes thereto included
elsewhere herein which are incorporated by reference herein.  Since
the Company is a holding company whose principal asset is the Bank,
the following discussion relates principally to the financial
condition and results of operations of the Bank.

Net Income

The Company's net income was $4,166,000, a 37.76% increase from
$3,024,000 for the period ending September 30, 1996.  On a per share
basis, net income for the nine months ended September 30, 1997 and
1996 were $2.25 and $1.62, respectively.

Net Interest Income

Net interest income is the principal source of the Company's
earnings, which represents the difference between interest earned on
loans (including yield-related loan fees) and investments and
interest paid on deposits.  Tax exempt interest income from
investment securities is adjusted to an amount which would have been
earned if such income were subject to federal income tax.  Net
interest income on a fully taxable equivalent basis (FTE) was
$9,140,000 for the period ending September 30, 1997, an increase of
6.42% over $8,589,000 for the period ending September 30, 1996.

The increase in average loan balances were offset by an increase in
average time deposits and decreasing yields on average interest
earning assets.

Net interest income (FTE) expressed as a percentage of average
earning assets, is referred to as net interest margin.  The net
interest margin for September 30, 1997, decreased to 5.04% from 5.15%
for the same period ending September 30, 1996. 

Non-Interest Income

Non-interest income is primarily derived from fees earned by the
Company for deposit-related customer services.  Total non-interest
income increased $1,477,000 to $3,357,000 for the period ending
September 30, 1997, compared to $1,880,000 for the period ending 
September 30, 1996.  The increase in non-interest income was 
primarily a result of the payment of death benefits from insurance
policies on the former president of the company in the amount of 
$1,148,000.


Non-Interest Expense

Non-interest expense increased $807,000 for the period ended
September 30, 1997, compared to the period ended September 30, 1996.

The Company's efficiency ratio (derived by dividing total non-interest 
expenses by net interest income exclusive of provision for
loan losses and non-interest income) was 49.79% for the nine months
ended September 30, 1997, compared to 51.87% for the nine months
ended September 30, 1996.  The efficiency ratio is a measurement as
to how efficiently the Company allocates its resources.

Personnel expense increased $250,000 due to a contractual benefit
paid to the former president's spouse.  The addition of NVB Online, 
which provides customers affordable home banking and bill payment
capabilities using screenphone and PC technology, increased ATM
activity, the issuance of the Visa ATM/debit card, and increases in
ACH activity all contributed to the increase in data processing and
ATM expenses.  Increases in loan collection expense and FDIC assess-
ments contributed to the increase in other non-interest expense.

A summary of non-interest expense for the period ending September 30,
1997 and 1996, is presented below:

                                       Nine Months Ended
Non-Interest Expense                      September 30 
   (in thousands)                        1997     1996

Salaries & employee benefits           $ 3,262  $ 2,944
Occupancy                                  365      336
Furniture & equipment                      404      358
Professional services                      140      106
Data processing                            267      186
Printing & supplies                        172      167
Postage                                    136      131
Messenger                                  103      102
ATM                                        176       92 
Other                                      792      588   
     Total Non-interest expense        $ 5,817  $ 5,010   


Income Taxes

The provision for income taxes for the period ended September 30,
1997, was $1,199,000 as compared to $1,160,000 for the same period in
1996. 


Impaired, Nonaccrual, Past Due and Restructured Loans and Other Real
Estate Owned

At September 30, 1997 the recorded investment in loans for which
impairment has been recognized in accordance with SFAS No. 114,
Accounting by Creditors for Impairment of a Loan, was approximately
$4,131,000. Of that balance approximately $132,000 has a related
valuation allowance of $33,000.  The remaining $3,999,000 did not
require a valuation allowance.  For the period ended September 30,
1997, the average recorded investment in loans for which impairment
has been recognized was approximately $3,229,000.  During the portion
of the year that the loans were impaired the Company recognized
approximately $297,000 of interest income for cash payments received. 

At December 31, 1996, the recorded investment in loans for which
impairment has been recognized in accordance with SFAS No. 114,
Accounting by Creditors for Impairment of a Loan, was approximately
$2,612,000.  Of that balance approximately $320,000 has a related
valuation allowance of $33,000.  The remaining $2,292,000 did not
require a valuation allowance.  For the year ended December 31, 1996,
the average recorded investment in loans for which impairment has
been recognized was approximately $2,244,000.  During the portion of
the year that the loans were impaired the Company recognized
approximately $203,000 of interest income for cash payments received.

Nonaccrual loans are loans on which the accrual of interest has been
discontinued.  Accrual of interest is discontinued on a loan when
management believes that borrowers' financial condition is such that
the collection of interest is doubtful, or when a loan becomes
contractually past due by 90 days or more with respect to interest or
principal.  When a loan is placed on nonaccrual status, all interest
previously accrued but not collected is reversed against current
period interest income.  Income on such loans is then recognized only
to the extent that cash is received and where the future collection
of principal is probable.  Interest accruals are resumed on such
loans when in the judgement of management, the loans are estimated to
be fully collectible as to both principal and interest.

The Company's allowance for loan losses is maintained at a level
deemed by management to be adequate to provide for possible losses in
the loan portfolio based on the Bank's current loan portfolio
performance, anticipated growth in the portfolio, prevailing economic
conditions, historical credit loss experience, and other factors
deemed appropriate by management. 


A summary of non-performing assets at September 30, 1997 and December
31, 1996, is as follows:

Non-Performing Assets              September 30   December 31
   (in thousands)                       1997        1996  

Nonaccrual loans                      $   439     $ 1,190   
Accruing loans past due 90 days                              
  or more                                  17          14
Restructured loans                        -0-         -0-
Other real estate owned                   610          69 
     Total                            $ 1,066     $ 1,273 



Allowance for Loan Losses

Management assesses the adequacy of the allowance for loan loss based
on loan loss experience, specific identification of potential losses
in the portfolio and economic conditions.  Additions to the Allowance
are made by charges to operating expenses in the form of a provision
for possible loan losses.  The Allowance for loan losses totaled
$1,509,000 or .89% of total loans at September 30, 1997, compared to
$1,254,000 or .75% at December 31, 1996.  Net charge-offs were
$245,000 or .15% of average loans for the nine months ended September
30, 1997.  A provision for loan losses of $500,000 and $465,000 was
charged to income as of September 30, 1997 and 1996, respectively. 
Management's continuing evaluation of the loan portfolio and
assessment of current economic conditions will dictate future funding
levels.
 

Liquidity and Interest Rate Sensitivity

Liquidity represents the Company's ability to satisfy cash flow
requirements created by fluctuations in deposits and to meet
borrowers' credit needs.  Effective liquidity management insures that
sufficient funds are available to comply with demands from
depositors, borrowers and other commitments on a timely basis. 
Collection of principal and interest on loans, the liquidations of
investment securities, deposit inflow and short term borrowing when
needed are primary sources of funds that contribute to liquidity.     
Unused lines of credit from correspondent banks to provide federal
funds in the amount of $6,000,000 as of September 30, 1997, were
available to provide liquidity.  In addition, the Bank is a member of
the Federal Home Loan Bank ("FHLB") system providing an additional
line of credit of $5,032,000 secured by first deeds of trust on
eligible 1-4 unit residential loans.  The Company had no borrowing
from FHLB as of September 30, 1997.

The Company manages both assets and liabilities to preserve liquidity
and earnings stability.  Total liquid assets (cash and due from
banks, federal funds sold, and investment securities) totaled
$84,621,000 and $77,727,000 (or 31.76% and 30.31% of total assets) at
September 30, 1997 and December 31, 1996, respectively.  Total liquid
assets include investment securities classified as held to maturity
based on the Company's intent to hold such securities to maturity of
$39,592,000 and $39,997,000 for September 30, 1997 and December 31,
1996, respectively.

The Company's ability to generate retail core deposits consisting of
demand deposits, NOW, regular savings, money market deposit accounts
and time deposits of less than $100,000 provides a continued source
of liquidity.  Core deposits totaled $217,740,000 and $209,320,000 at
September 30, 1997 and December 31, 1996, respectively.

Management considers the Company's liquidity sufficient to satisfy
its funding demand for normal banking transactions for the next
twelve months.

Interest rate sensitivity management concentrates on reducing the
impact on net interest income due to shifts in interest rates.        
The Company measures its interest rate sensitivity with an asset
liability simulation model.  The model analyzes the mix and repricing
characteristics of interest rate sensitive assets and liabilities
using multipliers (how interest rates change when Fed Funds rate
changes by 1%) and lags (time it takes for rates to change after Fed
Funds rate changes).  The model simulates the effects on net interest
income when the Fed Funds rate experiences a 1% increase or decrease
compared to current levels.  In management's view, the Company has
low interest rate risk in the short term as measured by the model,
specifically the next twelve months.

The following table shows the interest sensitive assets and
liabilities gap, which is the measure of interest sensitive assets
over interest bearing liabilities, for each individual repricing
period on a cumulative basis:


September 30, 1997        Within 3  3 months    1-5    5+
(in thousands)             months   to 1 Year  Years  Years   TOTAL   
 EARNING ASSETS:
  Held to maturity
    securities             $   367  $  1,643 $14,284 $23,298 $ 39,592
  Available for sale
    securities               2,001     3,421  10,201   3,258   18,881
  Fed Funds Sold            12,000       -0-     -0-     -0-   12,000
  Loans                     48,377    10,676  50,145  61,177  170,375
    Total earning assets   $62,745   $15,740 $74,630 $87,733 $240,848


 INTEREST BEARING LIABILITIES:
  Interest bearing demand 
    deposits               $   -0-    42,661 $   -0- $   -0- $ 42,661
  Savings deposits             -0-    48,285     -0-     -0-   48,285
  Time deposits             43,576    64,230   5,988     -0-  113,794
    Total interest bearing 
      liabilities          $43,576  $155,176 $ 5,988 $   -0- $204,740

INTEREST RATE SENSITIVITY
  GAP                      $19,170 $(139,436)$68,641  $87,733
CUMULATIVE INTEREST RATE 
  SENSITIVITY GAP          $19,170 $(120,266)$(51,625)$36,108 


At September 30, 1997, the gap table indicates the Company as
liability sensitive in the twelve month period.  Interest rate
sensitivity measured by the gap method does not consider the impact
of different multipliers (how interest rates change when Fed Funds
rate changes by 1%) and lags (time it takes for rates to change after
Fed Funds rate changes).  The Company's model analyzes the impact on
earnings of future rate changes by including factors for lags and
multipliers for key bank rates.  Both methods of measuring interest
rate sensitivity do not take into account actions taken by management
to modify the effect to net interest income if interest rates were to
rise or fall.  The Bank had a negative gap in the twelve month period 
as of September 30, 1997; however, the asset liability simulation
model showed the Bank was slightly asset sensitive in 1997.  


Financial Condition

Total assets at September 30, 1997, were $266,406,000, representing
an increase of 3.71% over December 31, 1996 assets of $256,877,000.

During the nine month period ended September 30, 1997, net loans
increased to $168,866,000, from $166,983,000 at December 31, 1996.
Loans are the major component of earning assets.  The Bank's average
loan to deposit ratio was 70.81% and 71.10% at September 30, 1997 and
December 31, 1996, respectively.

Investment securities and federal funds sold totaled $72,052,000 at
September 30, 1997, compared to $67,320,000 at December 31, 1996.

Funding for increases in the investment activity came from increases
in deposits.  Total deposits increased $5,982,000 as of September 30,
1997, to $235,210,000, as compared to $229,228,000 at December 31,
1996.  The increase was primarily in interest-bearing instruments.

The Company maintains capital levels to support conservative internal
growth and to encourage confidence from depositors and investors. 
Shareholders' equity increased to $27,654,000 as of September 30,
1997, as compared to $23,900,000 for year end 1996.

The Company maintains capital to support capital needs, future growth
and dividend payouts while maintaining the confidence of depositors
and investors by increasing shareholders' value.  The Company has
provided the majority of its capital requirements through the
retention of earnings.

The Company's and the Bank's regulatory capital ratios continue to be
strong and remain above regulatory minimums.  The Company's total
risk based capital ratio at September 30, 1997 was 15.75% and its
Tier 1 Risk Based Capital (RBC) ratio was 14.91%, exceeding the
minimum guidelines of 8% and 4%.  The ratios at December 31, 1996
were 13.29% and 12.58%, respectively.

The Company's leverage ratios were 10.05% and 8.98% at September 30,
1997 and December 31, 1996, significantly in excess of the minimum
guidelines of 4%.

Under current regulations adopted by federal regulatory agencies, a
"well-capitalized" institution must have a Tier 1 RBC ratio of at
least 6%, a total capital ratio of at least 10% and leverage ratio of
at least 5% and not be subject to a capital directive order.  The
Bank had a Tier 1 RBC ratio of 14.18% and total capital ratio of
15.02% and a leverage ratio of 9.50% at September 30, 1997, compared
with 12.04%, 12.72% and 8.56% at December 31, 1996, respectively.

The most recent notification from the Federal Deposit Insurance
Corporation for the Bank as of December 31, 1996 categorized the Bank
as well capitalized under the regulatory framework for prompt
corrective action.  There are no conditions or events since that
notification that management believes have changed the Bank's
category.

Impact of Inflation

Impact of inflation on a financial institution differs significantly
from that exerted on an industrial concern, primarily because its
assets and liabilities consist largely of monetary items.  The
relatively low proportion of the Company's fixed assets (less than
1.6% at September 30, 1997) reduces both the potential of inflated
earnings resulting from understated depreciation and the potential
understatement of absolute asset values.



RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997,
AS COMPARED TO THE THREE MONTHS ENDED SEPTEMBER 30, 1996.

Net Income

The Company's net income for the three months ended September 30,
1997, was $1,983,000, as compared to a net income of $1,004,000 for
the same period in 1996.  The net income for the three month period
ended September 30, 1997, resulted in net income per share of one
dollar and seven cents ($1.07).


Net Interest Income

Net interest income on a fully tax-equivalent basis (FTE) increased
$237,000, or 8.25%, to $3,111,000 for the three months ended
September 30, 1997, as compared to $2,874,000 for the same period in
1996.

Changes in net interest income are a result of changes in volume
between average earning assets and average interest bearing
liabilities and in the difference between interest yields from
average earning assets and the cost of average interest bearing
liabilities.  Net interest income increased over 1996 levels
primarily due to an increase in volume and rate on average earning
assets.

Net interest income on a fully taxable equivalent basis expressed as
a percentage of total average earning assets is referred to as the
net interest margin.  The net interest margin (FTE) was 5.02% and
4.90% for the three months ending September 30, 1997 and 1996,
respectively.

Non-Interest Income

Total non-interest income increased to $1,887,000, compared to
$658,000 for the three months ended September 30, 1997 and 1996,
respectively.  The increase in other non-interest income was
primarily a result of the payment of death benefits from insurance
policies on the former president of the company in the amount of
$1,148,000.

Non-Interest Expense

Non-interest expense increased during the three months ended
September 30, 1997 to $2,202,000 compared to $1,676,000 for the same
period in 1996.

Personnel expense increased $250,000 due to a contractual benefit
paid to the former president's spouse.  The addition of NVB Online,
which provides customers affordable home banking and bill payment
capabilities using screenphone and PC technology, increased ATM
activity, the issuance of the Visa ATM/debit card, and increases in
ACH activity all contributed to the increase in data processing and
ATM expenses.  Increases in loan collection expense and FDIC assess-
ments contributed to the increase in other non-interest expense.

A summary of non-interest expense for the three month period ended
September 30, 1997 and 1996, is presented below:

                                             Three Months Ended
Non-Interest Expense                             September            
   (in thousands)                              1997      1996         

Salaries & employee benefits                 $1,264    $ 978
Occupancy                                       133      120 
Furniture & equipment                           133      115
Professional services                            63       74 
Data processing                                  94       71
Printing & supplies                              61       57
Postage                                          44       45
Messenger                                        34       34
ATM                                              64       30
Other                                           312      152

         TOTAL NON-INTEREST EXPENSE          $2,202   $1,676



PART II - OTHER INFORMATION


ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K:


Exhibit 11, Statement re computation of earnings per common share
 



                              SIGNATURES


In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                           North Valley Bancorp     
                                              (Registrant)


Date  November 13, 1997          /s/  Sharon Benson              
                                  Sharon Benson
                                  Senior Vice President &
                                  Chief Financial Officer
                                  
                              
EXHIBIT 11


        Statement re computation of earnings per common share
           (Amounts in thousands except per share amounts)

                                              Three       Three
                                             Months      Months
                                              Ended       Ended
                                            9/30/97     9/30/96

Net income                                $    1,983   $   1,004

Weighted average number of common
  shares outstanding                       1,828,948   1,846,030

Assuming exercise of options reduced by
  the number of shares which could have
  been purchased with the proceeds from
  exercise of such option                     23,966      23,857

Weighted average shares used to compute
  income per common and equivalent share   1,852,914   1,869,887

Income per common and equivalent share     $    1.07   $    0.54 


                                                Nine        Nine
                                              Months      Months
                                               Ended       Ended
                                             9/30/97     9/30/96

Net income                                $    4,166   $   3,024

Weighted average number of common
  shares outstanding                       1,826,953   1,844,240

Assuming exercise of options reduced by
  the number of shares which could have
  been purchased with the proceeds from
  exercise of such option                     23,966      23,857

Weighted average shares used to compute
  income per common and equivalent share   1,850,919   1,868,097

Income per common and equivalent share     $    2.25   $    1.62