DRAFT
NEWS RELEASE
January 30, 1998

                                                  NORTH CENTRAL BANCSHARES, INC.
                                                           FOR IMMEDIATE RELEASE

                                            Contact: David M. Bradley, Chairman,
                                           President and Chief Executive Officer
                                                                  (515) 576-7531

                    NORTH CENTRAL BANCSHARES, INC. COMPLETES
                      ACQUISITION OF VALLEY FINANCIAL CORP.

Fort Dodge, Iowa, January 30, 1998 . . . North Central Bancshares, Inc.
(NASDAQ/NMS:FFFD) has announced today the successful completion of the
acquisition of Valley Financial Corp. and the merger of Valley Savings Bank,
FSB, Burlington, Iowa Valley Financial's wholly owned subsidiary, with and into
First Federal Savings Bank of Fort Dodge, the wholly owned subsidiary of North
Central, both of which will be effective as of the close of business today. The
shareholders of Valley Financial received $525.00 in cash for each share of
Valley Financial common stock held. The total consideration amounted to
$14,726,250.00. The branch offices of Valley Savings Bank will continue to
operate as Valley Savings Bank, a division of First Federal. The addition of
Valley Savings Bank's three banking offices will increase the number of First
Federal's banking offices to a total of seven in southeastern and north central
Iowa.

Mr. David M. Bradley, Chairman of the Board, President and Chief Executive
Officer of both North Central and First Federal, commented, "In addition to
representing our first acquisition to enhance our franchise, the acquisition of
Valley Financial effectively deploys some of the capital raised in our second
step conversion completed in 1996. We are confident that the transaction will
enhance shareholder value and provide long-term benefits for our customers and
the communities that First Federal and Valley Savings Bank serve."

As a result of the acquisition, North Central will have in excess of $300
million in assets and $240 million in deposits.

North Central Bancshares, Inc., through its wholly-owned subsidiary, First
Federal Savings Bank of Fort Dodge, headquartered in Fort Dodge, Iowa now serves
north central Iowa at four full service locations in Fort Dodge, Nevada and
Ames, Iowa and southeastern Iowa at three full service locations in Burlington
and Mount Pleasant, Iowa, which will operate as Valley Savings Bank branches.
First Federal's deposits are insured by the Federal Deposit Insurance
Corporation. The Company's stock is traded on The Nasdaq National Market under
the symbol "FFFD."