EXHIBIT 99.1



PRESS RELEASE
September 18, 1997               For further information contact:
                                 David M. Bradley
                                 Chairman, President and Chief Executive Officer
                                 North Central Bancshares, Inc.
                                 825 Central Avenue  PO Box 1237
                                 Fort Dodge, Iowa 50501
                                 515-576-7531

                NORTH CENTRAL BANCSHARES, INC. TO ACQUIRE
                          VALLEY FINANCIAL CORP.

         Fort Dodge, Iowa, September 18, 1997 - David M. Bradley, Chairman,
President and Chief Executive Officer of North Central Bancshares, Inc. ("North
Central") (NASDAQ/NMS:FFFD), the holding company for First Federal Savings Bank
of Fort Dodge ("First Federal"), and Larry L. Wenzl, Chairman of Valley
Financial Corp., ("Valley"), a privately held Iowa corporation and parent
company of Valley Savings Bank, FSB, Burlington, Iowa announced today the
execution of a definitive agreement ("Agreement") for North Central to acquire
Valley.

         Under the terms of the Agreement, North Central will acquire in a cash
transaction valued at $14.7 million, or $525.00 per share, all 28,050 shares
outstanding of Valley's common stock. The pricing reflects 190.6% of Valley's
June 30, 1997 book value and 13.0 times Valley's earnings for the twelve months
ended June 30, 1997, as adjusted for the one-time SAIF charge. Valley's $7.7
million of capital stood at 6.95% of assets as of June 30, 1997 and earnings
were $635,000 for the six months ended June 30, 1997.

         Valley Savings Bank, FSB, a federally chartered savings bank, has two
offices in Burlington, Iowa and one office in Mount Pleasant, Iowa. At June 30,
1997, Valley Savings Bank, FSB had assets of $110.9 million, loans of $60.2
million and deposits of $102.1 million.

         The acquisition of Valley will result in the merger of Valley Savings
Bank with and into First Federal, with the three Valley branches continuing to
operate as Valley Savings Bank, a division of First Federal. Doyle Ruble, the
current President of Valley Savings Bank, will continue as President of the
Valley Savings Bank division. The combined banking operation will have assets in
excess of $300 million. The transaction, which will be accounted for as a
purchase, is expected to close in the first quarter of 1998.

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         Commenting on the proposed transaction, Mr. Bradley stated, "This
significant acquisition presents a terrific opportunity for expansion of our
organization into south eastern Iowa. As a







community oriented banking organization, we believe we can provide the high
level of quality service to the Burlington and Mount Pleasant areas that our
customers in north central Iowa have experienced. We are excited about the
talented staff of Valley joining our organization. The combination of these two
institutions is expected to be slightly accretive to North Central's net income
and earnings per share in 1998."

         Mr. Wenzl, Chairman of Valley, added, "We look forward to the merger of
Valley Savings Bank with First Federal Savings Bank of Fort Dodge. We believe
this transaction is in the best interest of Valley and its stockholders. Our
customers will be well-served by the combined company, which will continue
Valley Savings Bank's tradition of providing quality service and products to our
customers in the Burlington and Mount Pleasant area."

         The transaction has the unanimous approval of the boards of directors
of North Central and Valley. The acquisition is subject to approval by the
shareholders of Valley, approval of the appropriate regulatory authorities and
the satisfaction of certain other customary conditions. Each member of Valley's
Board of Directors, representing in excess of 25% of the voting power of Valley,
has individually agreed to vote such person's shares in favor of the
transaction.

         North Central Bancshares, Inc. serves north central Iowa at 4 full
service locations in Fort Dodge, Nevada and Ames, Iowa through its wholly-owned
subsidiary, First Federal Savings Bank of Fort Dodge, headquartered in Fort
Dodge, Iowa. At June 30, 1997, North Central had assets of $212.9 million,
deposits of $136.3 million and stockholders' equity of $48.3 million, totaling
22.7% of assets. Subsequent to this acquisition, North Central anticipates a
continued strong equity level of approximately 13% tangible net worth to assets.
First Federal's deposits are insured by the Federal Deposit Insurance
Corporation. North Central's stock is traded on the Nasdaq National Market under
the symbol "FFFD."

         This press release may contain certain forward-looking statements
regarding the acquisition of Valley Financial Corp., including earnings
accretion, which are based on management's current expectations regarding
economic, legislative and regulatory issues. The factors which may cause future
results to vary materially include, but are not limited to, general economic
conditions, changes in interest rates, deposit flows, loan demand, real estate
values and competition; changes in accounting principles, policies or
guidelines; changes in legislation or regulation; and other economic,
competitive, regulatory and technological factors affecting each company's
operations, pricing, products and services.