PRESS RELEASE
January 31, 2006

Contact
James F. Arneson, President
(360) 459 -1100

Venture Financial Group Announces 2005 Financial Results Highlighting Significant Growth

FOURTH QUARTER & ANNUAL HIGHLIGHTS

Asset Growth of 35.4% or $197 million in 2005

Loan Growth of 39.3% or $166 million in 2005

Deposit Growth of 57.2% or $187 million in 2005

Excellent Loan Portfolio Credit Quality

Record Quarterly Earnings

Olympia, Wash. - January 31, 2006 - Venture Financial Group, Inc. ("Venture" or the "Company"), parent company of Venture Bank, (www.venture-bank.com) today announced for the fourth quarter ended December 31, 2005, net income of $2.7 million. Excluding one time gains in the fourth quarter 2004 and the third quarter 2003, the $2.7 million represents the highest quarterly earnings in the Company’s history.

The return on average equity annualized for the fourth quarter 2005 was 13.77% as compared to 14.87% for the full year of 2005. Net Income for the full year ended December 31, 2005 was $9.0 million as compared to $8.2 million for the full year ended December 31, 2004, which excludes the after tax gain of $3.5 million on the divestiture of certain financial centers.

Total deposits increased by $131 million or 32.9% to $529 million as of September 30, 2005 from September 30, 2004. Excluding the sale of $88 million of deposits from the divesture of seven branches in the fourth quarter 2004, total deposits increased by $219 million from September 30, 2004 to September 30, 2005.

During the third quarter of 2005, the Company completed the acquisition of Redmond National Bank and its parent company, Washington Commercial Bancorp. This acquisition added to the significant growth that Venture experienced in 2005. “We were focused in 2005 on strategic growth along interstate corridors,” said Ken F. Parsons Sr., Venture Financial Group Chairman and CEO. “We will continue to capitalize on opportunities for significantly growing our customer base in new and existing markets.”

As of December 31, 2005, assets totaled $753 million, an increase of 35.4% over the $556 million in total assets at December 31, 2004. $129 million of the asset increase is a result of the acquisition of Redmond National Bank and its parent company, Washington Commercial Bancorp. Total deposits increased by $187 million or 57.2% in 2005 to $514 million from $327 million as of December 31, 2004. Deposits attributed to the acquisition of Redmond National Bank in 2005 were $107 million.

Total loans, net of reserves, increased $166 million or 39.3% in 2005 to $588 million from $422 million at December 31, 2004. Loans attributed to the acquisition of Redmond National Bank were $87 million. The quality of the Company’s assets improved significantly during the year. Nonperforming assets as a percentage of total assets declined to 0.36% in 2005 from 1.05% in 2004.

“Venture’s strong growth in 2005 is the result of a team of experienced bankers that are focused on delivering outstanding service to our customers,” said Jim Arneson, President and CEO of Venture Bank. “We strive every day to be innovative in serving the unique needs of the individuals and businesses of the Pacific Northwest.”

Operating Results

Net Interest Income
Net interest income for the fourth quarter of 2005 increased 27.9% to $8.3 million, from $6.5 million for the fourth quarter of 2004. This increase is due to internal growth and the third quarter of 2005 merger with Redmond National Bank. Net interest income for the year ended December 31, 2005 increased by $3.3 million, or 13.2%, compared to the year ended December 31, 2004. The rates on interest bearing deposits and other borrowings increased at a faster pace in 2005 than the rates on interest bearing assets which put downward pressure on the net interest margin. The net interest margin at December 31, 2005 was 5.21% and at December 31, 2004 was 5.52%.

Non Interest Income
In spite of rising interest rates in the marketplace, residential mortgage volume was strong providing fee income of $1.6 million in 2005 as compared to $1.3 million in 2004. A $234,000 decrease in service charge income was primarily due to the sale of seven financial centers in the fourth quarter of 2004. Other non interest income in 2004 included $5.8 million in one-time income related to the divestiture of seven financial centers.

Non Interest Expense
Total non interest expense increased by $561,000 or 9.9% for the three months ended December 31, 2005 compared to the three months ended December 31, 2004. For the year ended December 31, 2005, total non interest expense increased by $1,722,000 or 8.2% compared to the same time period in 2004. In addition to the costs in 2005 of operating the new financial centers in Redmond, a portion of the increase includes; a $172,000 increase in legal expenses, an increase in audit and consulting fees of $398,000 due primarily to expenses associated with Sarbanes-Oxley, and an increase in salary expense of $404,000 attributable to the increase in mortgage loan production year over year.

Nonperforming Assets
Nonperforming assets (which includes nonperforming loans and other nonperforming assets) as a percentage of total assets were 0.36% and 1.05% as of December 31, 2005 and December 31, 2004 respectively. The Allowance for Loan and Lease Losses to nonperforming loans improved from 141.3% in 2004 to 378.7% in 2005.

Venture Financial Group, through its wholly owned subsidiary Venture Bank, has 17 offices in four western Washington counties and offers a full spectrum of financial services including commercial, construction, residential and consumer lending, deposit products and other banking services. Further information about the Bank may be found on the Internet at www.venture-bank.com.

Note Regarding Forward-Looking Information
This press release includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to certain risk factors, including those set forth from time to time in the Company’s filings with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. Specific risks related to forward-looking statements in this press release include the Company’s ability to expand into new markets, find and realize upon growth opportunities in our current markets, the continued strength of the local economy, continued demand for the Company’s products and services, the Company’s ability to maintain growth in the current interest rate environment, and the Company’s ability to maintain asset quality.

Condensed Statements of Condition
Condensed Statements of Income

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