PRESS RELEASE
July 18, 2006

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

Venture Financial Group Announces Record 2nd Quarter Earnings And Record Year-to-Date Asset, Loan, & Deposit Growth

SECOND QUARTER HIGHLIGHTS

Record 2nd Quarter Net Income of $2.6 million

Quarterly Earnings Per Share increases 16% over same quarter last year

Record Year-to-Date Asset Growth of $164.5 million

Record Year-to-Date Loan Growth of $63.4 million

Record Year-to-Date Deposit Growth of $197.6 million

Excellent Loan Portfolio Credit Quality

Olympia, Wash. - July 18, 2006 - Venture Financial Group, Inc. (“Venture” or “the Company”), parent company of Venture Bank, (www.venture-bank.com) today announced for the second quarter ended June 30, 2006, net income of $2.6 million, an increase of 30% or $600,000 as compared to $2.0 million for the second quarter of 2005. $2.6 million represents the highest second quarter earnings in Company history.

At June 30, 2006, total assets were $917.3 million which was an increase of 21.9% or $164.5 million for the six months ended June 30, 2006 as compared to $752.8 million in total assets at December 31, 2005.

“The first half of 2006 has been exceptional for us,” said Ken F. Parsons Sr., Venture Financial Group Chairman and CEO. “The shareholders are benefiting from the successful execution of strategies that were put in place this year by our team.”

Total assets at June 30, 2006 were 54.3% or $322.9 million higher than at June 30, 2005 when total assets were $594.4 million. The acquisition of Redmond National Bank and its parent company, Washington Commercial Bancorp during the third quarter of 2005 contributed $131.8 million of the asset growth that has occurred since June 30, 2005.

Total loans at June 30, 2006 were $665.6 million which was an increase of 10.5% or $63.3 million as compared to $602.3 million in total loans at December 31, 2005. Total loans at June 30, 2006 increased 45.3% or $207.4 million from $458.2 million at June 30, 2005. Loans attributed to the acquisition of Redmond National Bank were $107.1 million.

Total deposits at June 30, 2006 were $711.7 million which was an increase of 38.5% or $197.7 million as compared to $514.0 million in total deposits at December 31, 2005. Total deposits at June 30, 2006 increased $323.0 million or 83.1% from $388.7 million at June 30, 2005. Deposits attributed to the purchase of wholesale funding were $86.0 million. Deposits attributed to the acquisition of Redmond National Bank were $86.9 million.

The quality of the Company’s assets remains strong. Nonperforming assets as a percentage of total assets declined to 0.28% at June 30, 2006 from 1.03% at June 30, 2005. Nonperforming assets as a percentage of total assets decreased in the second quarter from the December 31, 2005 level of 0.36%.

“New and significant customer relationships and asset and liability management strategies have added to our growth this year” said Jim Arneson, President and CEO of Venture Bank. “We are remaining diligent in monitoring credit quality during a time when some economic slowing is evident.”

Operating Results

Net Interest Income
Net interest income for the second quarter of 2006 increased 26.87% to $8.5 million, from $6.7 million for the second quarter of 2005. This increase is due to internal growth and the third quarter 2005 merger with Redmond National Bank. The net interest margin at June 30, 2006 was 4.41% and at June 30, 2005 was 5.33%. The narrowing of the net interest margin in the continuing rising rate environment is due to the repricing of liabilities at a faster rate than the repricing of assets during the period and a relatively flat treasury yield curve. The purposeful change to a more liquid mix of assets on the balance sheet also contributes to a reduced margin.

Net interest income for the six months ending June 30, 2006, increased by 24.43% to $16.3 million compared to the same period in 2005.

Non Interest Income
Non-interest income for the second quarter of 2006 was $2.3 million which is an increase of 15.0% or $300,000 compared to $2.0 million in the second quarter of 2005. The major components of non-interest income include salable mortgage loan fee income, service charge income, and other income. In spite of continued rising interest rates in the marketplace, residential mortgage volume remained strong providing fee income of $440,000 for the second quarter of 2006 as compared to $435,000 for the second quarter of 2005. Service charge income of $1,039,000 for the second quarter of 2006 compares to $859,000 for the second quarter 2005. Other non-interest income for the second quarter of 2006 was $804,000 compared to $709,000 for the second quarter of 2005.

Non-interest income for the six months ending June 30, 2006 was $4.3 million, an increase of 4.9% or $200,000 compared to the same period in 2005. Excluding a one time gain on sale of OREO in 2005, the increase from one year to the next would have been 13.6% or $500,000.

Non Interest Expense
Total non-interest expense increased by $1.2 million or 21.7% for the three months ended June 30, 2006 compared to the three months ended June 30, 2005. All of the components of non-interest expense (salaries and benefits, occupancy, and other expenses) increased comparing the three months ended June 30, 2006 to the same period ending June 30, 2005. The increases are primarily attributed to the costs associated with the new financial centers in Redmond and Lakewood.

Non-interest expense for the six months ended June 30, 2006 was $12.6 million, an increase of 17.8% or $1.9 million compared to $10.7 million for the same period in 2005.

Nonperforming Loans
Nonperforming loans as a percentage of total loans was reduced to 0.32% as of June 30, 2006 as compared to 1.27% as of June 30, 2005. The ratio of allowance for credit losses to nonperforming loans was 384.18% at June 30, 2006 and 122.43% at June 30, 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 Venture Bank may be found 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 maintain growth and asset quality in the current interest rate environment.

Condensed Statements of Condition
Condensed Statements of Income

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