FORM 10-QSB

              U.S. SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C. 20549

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

    For the quarterly period ended    September 30, 1996     
                                 
               Commission file number    0-10652  


                      NORTH VALLEY BANCORP               
       (Exact name of small business issuer in its charter)
   California                                         94-2751350  
(State or other jurisdiction                    (I.R.S. Employer  
of incorporation or organization              Identification No.)


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


          Issuer's telephone number    (916) 221-8400   


Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past
12 months (or for such shorter period 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      



The number of shares outstanding of common stock as of October 1,
1996, was  1,846,158 .


                            INDEX

             NORTH VALLEY BANCORP AND SUBSIDIARIES

PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements (Unaudited)

     Condensed consolidated balance sheets-- September 30, 1996
     and December 31, 1995

     Condensed consolidated statements of income-- Nine months
     ended September 30, 1996 and 1995; three months ended
     September 30, 1996 and 1995

     Consolidated statement of cash flows-- Nine months ended     
     September 30, 1996 and 1995

     Notes to condensed consolidated financial statements--
     September 30, 1996

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 
                                                 1996         1995 
                                              (Unaudited)    (Note)
                                                 (000's omitted)
ASSETS:

  Cash and due from banks                       $ 13,193    $ 11,868
  Federal funds sold                              13,000      16,600
  
  Investment securities:
    Available for sale, at market                 11,553      12,684
    Held to maturity, at amortized cost           40,315      35,217
     (market value of $41,567 and $37,057
      at September 30, 1996 and December
      31, 1995, respectively)

  Loans receivable                               165,721     149,133
    Less:  Allowance for possible loan losses      1,658       1,325
           Net Loans Receivable                  164,063     147,808
  Premises and equipment owned, net                3,759       3,805
  FHLB stock                                         722         662
  Accrued interest receivable                      1,750       1,715
  Other assets                                     5,185       4,713

  TOTAL ASSETS                                  $253,540    $235,072

LIABILITIES AND SHAREHOLDERS' EQUITY:

  Deposits:
    Non interest bearing                        $ 29,631    $ 25,006
    Interest bearing                             197,635     186,069  
      Total deposits                             227,266     211,075
  Accrued interest and other liabilities           2,857       3,024

  TOTAL LIABILITIES                             $230,123    $214,099

SHAREHOLDERS' EQUITY:

  Common stock, no par value--
    Authorized 20,000,000 shares,
    issued and outstanding 1,846,158 for 
    September 30, 1996 and 1,841,078 for 
    December 31, 1995                              9,814       9,766
  Retained Earnings                               13,464      11,086
  Unrealized gain on investment
    securities, available for sale                   139         121 

  TOTAL STOCKHOLDERS' EQUITY                      23,417      20,973

  TOTAL LIABILITIES & STOCKHOLDERS' EQUITY      $253,540    $235,072
=======================================================================
Note:  The balance sheet at December 31, 1995 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             
                                                 1996         1995    
                                                  (000's omitted,
                                               except per share data)
Interest Income:
  Loans including fees                         $ 10,702    $  9,687     
Investment securities:
  Taxable                                           574         806 
  Exempt from federal taxes                       1,782       1,617 
  Federal funds sold                                705         797

      TOTAL INTEREST INCOME                      13,763      12,907
Interest Expense on Deposits                      5,984       5,567        

      NET INTEREST INCOME                         7,779       7,340 
Provision for loan losses                           465         350

      NET INTEREST INCOME AFTER PROVISION
      FOR LOAN LOSSES                             7,314       6,990  

Other Operating Income:
  Service charges on deposit accounts             1,004       1,008 
  Other customer fees and charges                   568         563 
  Gain on sale of loans                             152         145 
  Gain on sale of securities                          2          40 
  Other                                             154         315        
      TOTAL OTHER OPERATING INCOME                1,880       2,071   

Other Operating Expenses:
  Salaries & employee benefits                    2,944       2,748 
  Occupancy                                         336         318 
  Furniture & equipment                             358         332 
  Other                                           1,372       1,419
                    
      TOTAL OTHER OPERATING EXPENSES              5,010       4,817


Income before provision for income taxes          4,184       4,244
Provision for income taxes                        1,160       1,222

      NET INCOME                               $  3,024    $  3,022

                                                  
Net income per common share                    $   1.62    $   1.63

Weighted average shares outstanding
  used to compute net income per share        1,868,097   1,856,005
====================================================================
See notes to condensed consolidated financial statements (unaudited).




NORTH VALLEY BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                                                 Three Months Ended   
                                                    September 30            
                                                  1996         1995   
                                               (000's omitted,
                                             except per share data)
Interest Income:
  Loans including fees                         $  3,674    $  3,441     
Investment securities:
  Taxable                                           207         257 
  Exempt from federal taxes                         606         555 
  Federal funds sold                                223         215

      TOTAL INTEREST INCOME                       4,710       4,468
Interest Expense on Deposits                      2,040       1,973        

      NET INTEREST INCOME                         2,670       2,495 
Provision for loan losses                           255         200

      NET INTEREST INCOME AFTER PROVISION
       FOR LOAN LOSSES                            2,415       2,295
  
Other Operating Income:
  Service charges on deposit accounts               336         343 
  Other customer fees and charges                   184         192 
  Gain on sale of loans                              72          66 
  Gain on sale of securities                         19          16 
  Other                                              47         118        
      TOTAL OTHER OPERATING INCOME                  658         735   

Other Operating Expenses:
  Salaries & employee benefits                      978         903 
  Occupancy                                         120         105 
  Furniture & equipment                             115         105 
  Other                                             463         386
                    
      TOTAL OTHER OPERATING EXPENSES              1,676       1,499


Income before provision for income taxes          1,397       1,531
Provision for income taxes                          393         457

      NET INCOME                               $  1,004    $  1,074
                                                  

Net income per common share                    $    .54    $    .58


Weighted average shares outstanding
  used to compute net income per share        1,868,097   1,856,005
====================================================================
See notes to condensed consolidated financial statements (unaudited).



NORTH VALLEY BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)        Nine Months Ended
                                                          September 30
                                                        1996         1995  
CASH FLOWS FROM OPERATING ACTIVITIES:                    (000's omitted)   
Net income                                         $   3,024     $ 3,022   
Adjustments to reconcile net income
    to net cash provided by operating activities: 
    Depreciation and amortization                        300         277
    Amortization of premium on investment securities       9          14
    Provision for loan losses                            465         350
    Loss (gain) on sale of available 
      for sale securities                            (     8)    (    28)
    Realized loss (gain) on trading securities             6     (    12)
    Gain on sale of loans                            (   152)    (   145)   
    Provision for deferred taxes                           0     (    15)
    Effect of changes in:
      Accrued interest receivable                    (    35)    (   173)
      Other assets                                   (   428)    (   329) 
      Accrued interest and other liabilities             278         224
Total adjustments                                        435         163 
NET CASH PROVIDED BY OPERATING ACTIVITIES              3,459       3,185 

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of FHLB stock                               (    60)    (    45) 
Purchase of trading securities                       ( 1,980)    ( 2,996)
Proceeds from sales of trading securities              1,972       3,008
Purchase of available for sale securities            ( 2,594)    ( 2,216) 
Proceeds from sales of available for sale securities       0         102  
Proceeds from maturities of available
  for sale securities                                  3,763       7,000 
Purchase of held to maturity securities              ( 8,358)    ( 5,182) 
Proceeds from maturities or calls of held
  to maturity securities                               3,249       5,140 
Proceeds from sale of loans                            7,791       2,828  
Net increase in loans                                (24,359)    (22,124)
Purchases of premises and equipment                  (   254)    (   455)
Net cash used in investing activities                (20,830)    (14,940)

CASH FLOWS FROM FINANCING ACTIVITIES:
Net (decrease) increase in demand deposits, NOW          
  accounts and savings accounts                       12,558         106 
Net increase in time certificates                      3,633      16,532 
Cash dividends paid                                  ( 1,143)    (   880) 
Cash received for stock options exercised                 48          65
Net cash provided by financing activities             15,096      15,823 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ( 2,275)      4,068 

CASH AND CASH EQUIVALENTS, beginning of period        28,468      19,997

CASH AND CASH EQUIVALENTS, end of period             $26,193     $24,065

=========================================================================

See notes to condensed consolidated financial statements (unaudited).


NORTH VALLEY BANCORP AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

September 30, 1996


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-QSB 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-KSB for the fiscal year ended
December 31, 1995.  Operating results for the interim periods
presented are not necessarily indicative of the results that may be
expected for the year ended December 31, 1996.

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, 1996, the Company adopted Statement of Financial
Accounting Standards No. 122, Accounting for Mortgage Servicing
Rights (SFAS No. 122).  SFAS No. 122 requires that the Company
recognize as a separate asset rights to service mortgage loans for
others, whether those servicing rights are originated or purchased. 
Previously, only purchased servicing rights were capitalizable as an
asset.  SFAS No. 122 also requires that capitalized servicing rights 
be assessed for impairment based on fair value, rather than an
estimate of undiscounted future cash flows.  The adoption of SFAS No.
122 did not have a material effect on the Company.



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDING SEPTEMBER 30,
1996.

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.

Overview

The Company's net income was $3,024,000, a slight increase from
$3,022,000 for the period ended September 30, 1995.  On a per share
basis, September 30, 1996 and 1995 profits were $1.62 and $1.63. 

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
$8,589,000 for the nine months ending September 30, 1996, an increase
of 4.83% over $8,193,000 for the nine months ending September 30,
1995.

The increase in loan balances helped to offset decreasing yields on
interest earning assets and increases in volumes on time deposits.

Net interest income (FTE) expressed as a percentage of average
earning assets, is referred to as net interest margin.  The net
interest margin for the nine months ending September 30, 1996,
slightly decreased to 5.15% from 5.24% for the same period ending
September 30, 1995.  The increases on interest bearing liabilities
were offset by an increase in earning assets.

Non-Interest Income

Non-interest income is primarily derived from fees earned by the
Company for deposit-related customer services.  Total non-interest
income decreased $191,000 to $1,880,000 for the nine months ended
September 30, 1996, compared to $2,071,000 for the nine months ended
September 30, 1995.


A summary of non-interest income for the nine months ended September
30, 1996 and 1995, is presented below:

Non-Interest Income                        September 30
  (in thousands)                          1996      1995

Service charges on deposit accounts      $1,004    $1,008
Other fees and charges                      568       563
Gain on sale of loans                       152       145
Gain on sale of securities                    2        40
Other                                       154       315
  Total Non-Interest income              $1,880    $2,071


Non-Interest Expense

Non-interest expense increased by $193,000 for the nine month period
in 1996 compared to the nine months ending September 30, 1995.

Salaries and employee benefits expenses were $2,944,000 for September
30, 1996, and $2,748,000 for the period ending September 30, 1995. 
The increase in salary and benefit expense is attributed to normal
salary increases, increased employer taxes and an increase in the net
pension cost for the supplemental retirement plans for directors and
key executives.

FDIC and California State Banking assessments decreased to $18,000
for nine months ended September 30, 1996 compared to $223,000 for the
same period ended September 30, 1995.  The FDIC determined that the
Bank Insurance Fund (BIF) was fully recapitalized at the end of May
1995.  As a result, On August 8, 1995, the FDIC reduced the
assessment rates for well capitalized institutions to $.04 per $100
in domestic deposits from $.23 effective June 1, 1995.  The Company
paid $.23 per $100 in deposits for the first five months of 1995 and
$.04 per $100 for the remaining seven months.  For the six month
assessment period beginning January 1, 1996, the FDIC reduced the
assessment rate to $.00 per $100 in domestic deposits. 

The Company improved its efficiency ratio (derived by dividing total
non-interest expenses by net interest income exclusive of provision
for loan losses and non-interest income) to 51.9% compared to 51.2%
in 1995.  The efficiency ratio is a measurement as to how efficiently
the Company allocates its resources.

A summary of non-interest expense for the nine months ended September
30, 1996 and 1995, is presented below:


Non-Interest Expense                      September 30
   (in thousands)                        1996     1995

Salaries & employee benefits           $ 2,944  $ 2,748
Occupancy expense                          336      318
Furniture & equipment expense              358      332
Professional services                      106      107
Data processing expenses                   186      193
Printing & supplies                        167      151
Postage                                    131      121
FDIC & State banking assessments            18      223
Messenger Expense                          102       93
ATM expense                                 92       98
Other                                      570      433
     Total non-interest expense        $ 5,010  $ 4,817



Income Taxes

The provision for income taxes for the third quarter 1996 was
$1,160,000 compared to $1,222,000 for the same period in 1995. 


Impaired, Nonaccrual, Past Due and Restructured Loans and Other
Assets

At September 30, 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
$2,766,000.  Of that balance approximately $1,152,000 has a related
valuation allowance of $404,000.  The remaining $1,614,000 did not
require a valuation allowance.  For the nine months ended September
30, 1996, the average recorded investment in loans for which
impairment has been recognized was approximately $2,156,000.  During
the portion of the period that the loans were impaired the Company
recognized approximately $128,000 of interest income.

At December 31, 1995, 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
$1,715,000.  Of that balance approximately $1,078,000 has a related
valuation allowance of $254,000.  The remaining $637,000 did not
require a valuation allowance.  For the year ended December 31, 1995,
the average recorded investment in loans for which impairment has
been recognized was approximately $1,473,000.  During the portion of
the year that the loans were impaired the Company recognized
approximately $205,000 of interest income.

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, 1996 and December
31, 1995, is as follows:

Non-Performing Assets               September 30   December 31
   (in thousands)                       1996           1995

Nonaccrual loans                      $ 1,384        $   282
Accruing loans past due 90 days                              
  or more                                   6             15
Restructured loans                        -0-            -0-
Other real estate owned                   333             87
     Total                            $ 1,723        $   384


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
$1,658,000 or 1.0% of total loans at September 30, 1996, compared to
$1,325,000 or .89% at December 31, 1995.  Net charge-offs were
$132,000 or .09% of average loans for the nine months ended September
30, 1996.  A provision for loan losses of $465,000 and $350,000 was
charged to income during the nine month period ended September 30,
1996 and 1995, 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 meet 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, 1996, 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 $4,754,750 secured by first deeds of trust on eligible 1-4 unit
residential loans.  The Company had not borrowed from FHLB as of
September 30, 1996.

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
$78,061,000 and $76,369,000 (or 30.79% and 32.49% of total assets) at
September 30, 1996 and December 31, 1995, 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
$40,315,000 and $35,217,000 for September 30, 1996 and December 31,
1995, 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 $208,924,000 and $193,731,000 at
September 30, 1996 and December 31, 1995, 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:


                          Within 3  3 months    1-5    5+
September 30, 1996        months   to 1 Year  Years  Years   TOTAL   
(in thousands)
 EARNING ASSETS:
  Held to maturity       
   securities             $   250 $     440  $12,414 $27,211 $ 40,315
  Available for sale
   securities & FHLB stock  1,399       260    2,544   7,350   11,553
  Trading account
    securities                -0-       -0-      -0-     -0-      -0-
  Fed Funds Sold           13,000       -0-      -0-     -0-   13,000
  Loans                    52,717    19,194   48,102  45,708  165,721
    Total earning assets  $67,366 $  19,894 $ 63,060 $80,269 $230,589

INTEREST BEARING LIABILITIES:
  Interest bearing demand 
    deposits              $   -0- $  40,313 $    -0- $   -0- $ 40,313
  Savings deposits            -0-    46,114      -0-     -0-   46,114
  Time deposits            40,233    63,630    7,345     -0-  111,208
    Total interest bearing 
      liabilities         $40,233 $ 150,057 $  7,345 $   -0- $197,635

INTEREST RATE SENSITIVITY 
  GAP                    $27,133 $(130,163) $ 55,715 $80,269
CUMULATIVE INTEREST RATE 
  SENSITIVITY GAP         $27,133 $(103,030)$(47,315)$32,954



At September 30, 1996, 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.

Even though the Bank had a negative gap in the twelve month period as
of September 30, 1996, the asset liability simulation model showed
the Bank was slightly liability sensitive as of September 30, 1996.

Financial Condition

Total assets at September 30, 1996, were $253,540,000, representing
an increase of 7.86% over December 31, 1995 assets of $235,072,000.

During third quarter 1996, net loans increased to $164,063,000, from
$147,808,000 at December 31, 1995.  Loans are the major component of
earning assets.   The Bank's average loan to deposit ratio was 69.52%
and 66.86% at September 30, 1996 and December 31, 1995, respectively.

Investment securities and federal funds sold totaled $64,868,000 at
September 30, 1996, compared to $64,501,000 at December 31, 1995. 

Funding for increased loan and investment activity came from
increases in deposits.  Total deposits increased $16,191,000 as of
September 30, 1996, to $227,266,000, as compared to $211,075,000 at
December 31, 1995.  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 $23,417,000 as of September 30,
1996, as compared to $20,973,000 for year end 1995.

Banking regulators require bank holding companies and banks to
maintain capital equal to at least 8% of their assets, weighted by
risk.  At least 4% of the total 8% ratio must consist of Tier 1
capital (primarily shareholders' equity).

In addition, banking regulators also require bank holding companies
and banks to maintain a certain Tier 1 leverage ratio.  The leverage
ratio is measured by the ratio of Tier 1 capital to adjusted average
assets.

The table below provides a comparison of the Bank's risk based
capital ratio and leverage ratio to the minimum regulatory guidelines
for the periods indicated:
                                                          MINIMUM
                                                         REGULATORY
                           September 30   December 31   REQUIREMENTS
                                1996         1995
RISK-BASED CAPITAL RATIOS:
  Tier 1                        13.04%       12.76%          4.00%
  Total                         13.97%       13.57%          8.00%

LEVERAGE RATIO                   9.25%        8.87%       3.00%-5.00%


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
1.5% at September 30, 1996) 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, 1996,
AS COMPARED TO THE THREE MONTHS ENDED SEPTEMBER 30, 1995.

North Valley Bancorp recorded a net profit for the three months ended
September 30, 1996, of $1,004,000, as compared to a net profit of
$1,074,000 for the same period in 1995.  The net income for the three
month period ended September 30, 1996, resulted in net income per
share of fifty-four cents ($.54).


Net Interest Income

Net interest income on a fully tax-equivalent basis (FTE) increased
$73,000, or 2.6%, to $2,874,000 for the three months ended September
30, 1996, as compared to $2,801,000 for the same period in 1995.

Changes in net interest income are a result of changes in volume
between average earning assets and interest bearing liabilities and
in the difference between interest yields from average earning assets
and the cost of interest bearing liabilities.  Net interest income
increased over 1995 levels primarily due to an increase in volume of
interest 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 4.90% and
5.22% for the three months ending September 30, 1996 and 1995,
respectively.


Other Operating Income

Total other operating income decreased to $658,000, compared to
$735,000 for the three months ended September 30, 1996 and 1995,
respectively.

A summary of other operating income for the three month periods
ending September 30, 1996 and 1995, is presented below:


Other Operating Income                           September           
   (in thousands)                              1996      1995        

Service charges on deposit
   accounts                                   $ 336     $ 343
Other customer fees and charges                 184       192
Gain on sale of loans                            72        66
Loss on sale of securities                       19        16
Other                                            47       118

   TOTAL OTHER OPERATING INCOME               $ 658     $ 735


Other Operating Expense

Other operating expense increased during the third three months of
1996 to $1,676,000 compared to $1,499,000 for the same period in
1995. 

Personnel expense increased to $978,000, or 8.31%, during the third
three months of 1996, compared to $903,000 for the same period in
1995.

A summary of other operating expense for the three month periods
ended September 30, 1996 and 1995, is presented below:


Other Operating Expense                          September            
  (in thousands)                              1996      1995          

Salaries & employee benefits                 $  978    $  903
Occupancy                                       120       105
Furniture & equipment                           115       105
Professional services                            74        35
Data processing                                  71        66
Printing & supplies                              57        50
Postage                                          45        38
FDIC & State Banking Assessments                  4     (   6)
Messenger                                        34        31
ATM expense                                      30        32
Other                                           148       140

         TOTAL OTHER OPERATING EXPENSE       $1,676    $1,499





PART II - OTHER INFORMATION


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


The Company did not file any reports on Form 8-K during the nine
months ended September 30, 1996.



                              SIGNATURES


In accordance with the requirements of the Securities Exchange Act of
1934, the registrant caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.

                                           North Valley Bancorp     
                                              (Registrant)


Date  November 14 1996                                               
                                  J. F. Cowee
                                  Chief Financial Officer