Item 1.02. Termination of a Material Definitive Agreement

As previously reported, the Board of Directors of North Valley Bank, a subsidiary of the Registrant (North Valley Bancorp), approved the filing of regulatory applications, the sending of customer notices, and all other actions required in order to close and consolidate two offices of North Valley Bank. The Bank will not extend the lease for its branch office located in Ukiah, California, due to expire in April 2013, and the Bank will close its branch office located at 2930 Bechelli Lane, Redding, California. The Bank has now received regulatory approval to proceed and the Bank plans to close both branches prior to the end of 2012. The information set forth under Item 8.01 is incorporated by reference into this Item 1.02.

Item 8.01. Other Events

The Registrant is a bank holding company headquartered in Redding, California, and its subsidiary, North Valley Bank, operates 24 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. In order to reduce expenses and achieve greater operational efficiencies, the Bank has given notice of its intention to close its branch office located in Ukiah, Mendocino County, California. In addition, the Bank will close its branch office located at 2930 Bechelli Lane, Redding, Shasta County, California. The banking operations and most of the affected personnel will be absorbed into other offices.