PRESS RELEASE
October 12, 2004

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Joseph Beaulieu, Senior Vice President, Marketing
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(360) 459 - 0137 (fax)

VENTURE BANK FINALIZES SALE OF SEVEN BRANCHES

Latest Move in Venture’s Strategic Plan for Focused Growth

Olympia, Wash., October 12, 2004 - Publicly-held Venture Financial Group, Inc., parent company of Venture Bank, (www.venture-bank.com), today completed the sale of seven (7) branches to Timberland Bank (www.timberlandbank.com). This is part of Venture’s on going strategy to focus growth in more populated areas along the interstate corridors.

 

In exchange for $88 million in deposits, Venture received a premium of $7.8 million, resulting in $4 million gain after a reduction of existing goodwill in the amount of $1.9 million and after tax. The $4 million represents an additional $.62 per share to existing Venture shareholders. In addition, Venture will recognize an approximate after tax gain of $200,000 on the sale of real and personal property. Management estimates the reduced expenses should enhance annual earnings per share approximately $0.10 going forward.

 

“From a strategic perspective, this was the right decision for us to make,” said Ken F. Parsons, Sr., Chairman and CEO. “What makes it even more compelling is the benefit to shareholder value.”

 

Earlier this year Venture Bank purchased a site for its first King County branch in Kent. It is scheduled to open in the fourth quarter of this year. The Bank has also announced plans to build a new, 50,000 square foot administrative headquarters at DuPont Station. Both of these are an integral part of Venture Bank’s growth strategy.

 

“This reallocation of administrative and financial resources enhances our ability to roll out the Venture Bank brand in new markets that are more receptive to our style of banking,” commented Jon M. Jones, President of Venture Bank. “We are excited about how this will allow us to move the company forward,” Jones added.

 

Formed in 1979, Venture Bank offers a full spectrum of financial services, including commercial, construction, residential and consumer lending, deposit products, online banking and bill pay, and investment services through its wholly owned subsidiary, Venture Wealth Management, Inc.

 

Further information about the bank may be found on the Internet at  www.venture-bank.com.

 

Forward-Looking Statements: This press release contains forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. Such statements are subject to risks and uncertainties. Actual results could differ materially from those discussed in the press release as a result of risk factors including those identified in the Form 10-K Annual Report for December 31, 2003 filed by Venture Financial Group, Inc. with the SEC. Specific risks in the press release include the estimated expense reduction in future periods, the timing and opening of the bank’s branch in Kent, WA and the construction of its new administrative headquarters.

 

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