Exhibit 99.1  Press Release



PRESS RELEASE
January 5, 1998

                      For more information contact:
                      David M. Bradley
                      Chairman, President & Chief Executive Officer
                      North Central Bancshares, Inc.
                      825 Central Avenue
                      Fort Dodge, Iowa 50501
                      515-576-7531

    NORTH CENTRAL BANCSHARES, INC. ACQUISITION OF VALLEY SAVINGS BANK, FSB
                   APPROVED BY OFFICE OF THRIFT SUPERVISION

Fort Dodge, Iowa, January 5, 1998...North Central Bancshares, Inc.
(NASDAQ/NMS:FFFD) has received approval from the Office of Thrift Supervision
for the acquisition of Valley Financial Corp. and its wholly owned subsidiary
Valley Savings Bank, FSB. In connection with the acquisition, Valley Savings
Bank will be merged into First Federal Savings Bank of Fort Dodge, the wholly
owned subsidiary of North Central. The shareholders of Valley Financial
previously approved the transaction at a meeting held in November, 1997.

Mr. David M. Bradley, Chairman of the Board, President and Chief Executive
Officer of both North Central and First Federal commented, "We are very pleased
to have received both Valley Financial shareholder and bank regulatory approval.
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."

The closing of the transaction is scheduled to occur as of the close of business
on January 30, 1998. Each share of Valley Financial common stock outstanding
will be converted into the right to receive cash consideration equal to $525.00
per share. The transaction will be accounted for by First Federal as a purchase
transaction. The branch offices of Valley Savings Bank will be operated as a
separate division of First Federal.

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. Upon completion of the transaction, North Central will have assets
in excess of $300 million and will operate seven banking offices in southeastern
and north central Iowa. 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."