EXHIBIT 99.1

UNITED STATES OF AMERICA
BEFORE THE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.

Written Agreement by and between

VENTURE FINANCIAL GROUP, INC.
Dupont, Washington

and

FEDERAL RESERVE BANK OF
SAN FRANCISCO
San Francisco, California

Docket No. 09-026-WA/RB-HC

     WHEREAS, Venture Financial Group, Inc., Dupont, Washington (“VFGI”), a registered bank holding company, owns and controls, Venture Bank, Lacy, Washington (the “Bank”), a state chartered nonmember bank, and various nonbank subsidiaries;
     WHEREAS, it is the common goal of VFGI and the Federal Reserve Bank of San Francisco (the “Reserve Bank”) to maintain the financial soundness of VFGI so that VFGI may serve as a source of strength to the Bank;
     WHEREAS, VFGI and the Reserve Bank have mutually agreed to enter into this Written Agreement (the “Agreement”); and
     WHEREAS, on April 3, 2009, the board of directors of VFGI, at a duly constituted meeting, adopted a resolution authorizing and directing Ken F. Parsons to enter into this Agreement on behalf of VFGI, and consenting to compliance with each and every provision of this Agreement by VFGI and its institution-affiliated parties, as defined in sections 3(u) and

8(b)(3) of the Federal Deposit Insurance Act, as amended (the “FDI Act”)(12 U.S.C. §§ 1813(u) and 1818(b)(3)).
NOW, THEREFORE, VFGI and the Reserve Bank agree as follows:

Dividends and Distributions

     1.      (a)      VFGI shall not declare or pay any dividends without the prior written approval of the Reserve Bank and the Director of the Division of Banking Supervision and Regulation (the “Director”) of the Board of Governors of the Federal Reserve System (the “Board of Governors”)
              (b)      VFGI shall not directly or indirectly take dividends or any other form of payment representing a reduction in capital from the Bank without the prior written approval of the Reserve Bank.
              (c)      VFGI and its nonbank subsidiaries shall not make any distributions of interest, principal, or other sums on subordinated debentures or trust preferred securities without the prior written approval of the Reserve Bank and the Director.
              (d)      All requests for prior approval shall be received by the Reserve Bank at least 30 days prior to the proposed dividend declaration date, proposed distribution on subordinated debentures, and required notice of deferral on trust preferred securities. All requests shall contain, at minimum, current and projected information on VFGI’s capital, earnings, and cash flow; the Bank’s capital, asset quality, earnings, and allowance for loan and lease losses (“ALLL”); and identification of the sources of funds for the proposed payment, or distribution. For requests to declare or pay dividends, VFGI must also demonstrate that the requested declaration or payment of dividends is consistent with the Board of Governors’ Policy Statement on the Payment of Cash Dividends by State Member Banks and Bank Holding

Companies, dated November 14, 1985 (Federal Reserve Regulatory Service, 4-877 at page 4-323).

Debt and Stock Redemption

2. (a) VFGI and any nonbank subsidiary shall not, directly or indirectly, incur, increase, or guarantee any debt without the prior written approval of the Reserve Bank. All requests for prior written approval shall contain, but not be limited to, a statement regarding the purpose of the debt, the terms of the debt, and the planned source(s) for debt repayment, and an analysis of the cash flow resources available to meet such debt repayment.
(b) VFGI shall not, directly or indirectly, purchase or redeem any shares of its stock without the prior written approval of the Reserve Bank.

Capital Plan

     3.      Within 10 days of this Agreement, VFGI shall submit to the Reserve Bank an acceptable written plan to maintain sufficient capital at VFGI, on a consolidated basis, and the Bank, as a separate legal entity on a stand-alone basis. The plan shall, at a minimum, address, consider, and include:
              (a)      The consolidated organization’s and the Bank’s current and future capital requirements, including compliance with the Capital Adequacy Guidelines for Bank Holding Companies: Risk-Based Measure and Tier 1 Leverage Measure, Appendices A and D of Regulation Y of the Board of Governors (12 C.F.R. Part 225, App. A and D) and the applicable capital adequacy guidelines for the Bank issued by the Bank’s federal regulator;
              (b)      the adequacy of the Bank’s capital, taking into account the volume of classified credits, concentrations of credit, ALLL, current and projected asset growth, and projected retained earnings;

               (c)      the source and timing of additional funds to fulfill the consolidated organization’s and the Bank’s future capital requirements;
               (d)      supervisory requests for additional capital at the Bank or the requirements of any supervisory action imposed on the Bank by its federal or state regulator;
               (e)      the requirements of section 225.4(a) of Regulation Y of the Board of Governors (12 C.F.R. § 225.4(a)) that VFGI serve as a source of strength to the Bank; and
               (f)       procedures for VFGI to: (i) notify the Reserve Bank, in writing, no more than 30 days after the end of any quarter in which VFGI’s consolidated capital ratios or the Bank’s capital ratios (total risk-based, Tier 1 risk-based, or leverage) fall below the plan’s minimum ratios; and (ii) submit simultaneously to the Reserve Bank an acceptable written plan that details the steps VFGI will take to increase its and the Bank’s capital ratios above the plan’s minimums.

Compliance with Laws and Regulations

4. (a) In appointing any new director or senior executive officer, or changing the responsibilities of any senior executive officer so that the officer would assume a different senior executive officer position, VFGI shall comply with the notice provisions of section 32 of the FDI Act (12 U.S.C. § 1831i) and Subpart H of Regulation Y of the Board of Governors (12 C.F.R. §§ 225.71 et seq.). VFGI shall not appoint any individual to VFGI’s board or employ or change the responsibilities of any individual as a senior executive officer if the Reserve Bank notifies VFGI of disapproval within the time limits prescribed by Subpart H of Regulation Y.

(b) VFGI shall comply with the restrictions on indemnification and severance payments of section 18(k) of the FDI Act (12 U.S.C. § 1828(k)) and Part 359 of the FDIC’s regulations (12 C.F.R. Part 359).

Progress Reports

5. Within 30 days after the end of each calendar quarter following the date of this Agreement, the board of directors shall submit to the Reserve Bank written progress reports detailing the form and manner of all actions taken to secure compliance with the provisions of this Agreement and the results thereof, and a parent company only balance sheet, income statement, and, as applicable, a report of changes in stockholders’ equity.

Approval and Implementation of Plan

     6.       (a)      VFGI shall submit a written capital plan that is acceptable to the Reserve Bank within the applicable time period set forth in paragraph 3 of this Agreement.
               (b)      Within 10 days of approval by the Reserve Bank, VFGI shall adopt the approved capital plan. Upon adoption, VFGI shall promptly implement the approved plan, and thereafter fully comply with it.
               (c)       During the term of this Agreement, the approved capital plan shall not be amended or rescinded without the prior written approval of the Reserve Bank.

Communications

7.	All communications regarding this Agreement shall be sent to:
	(a)	Mr. William E. Andrews Examining Manager Banking Supervision & Regulation Federal Reserve Bank of San Francisco 101 Market Street, Mail Stop 940 San Francisco, California 94105

(b)	Mr. James F. Arneson President Venture Financial Group, Inc. P.O. Box 970 1495 Wilmington Drive Dupont, Washington 98327

Miscellaneous

     8.      Notwithstanding any provision of this Agreement, the Reserve Bank may, in its sole discretion, grant written extensions of time to VFGI to comply with any provision of this Agreement.
     9.      The provisions of this Agreement shall be binding upon VFGI and its institution-affiliated parties, in their capacities as such, and their successors and assigns.
    10.     Each provision of this Agreement shall remain effective and enforceable until stayed, modified, terminated, or suspended in writing by the Reserve Bank.
    11.    The provisions of this Agreement shall not bar, estop, or otherwise prevent the Board of Governors, the Reserve Bank, or any other federal or state agency from taking any other action affecting VFGI, the Bank, any nonbank subsidiary of VFGI, or any of their current or former institution-affiliated parties and their successors and assigns.

12. Pursuant to section 50 of the FDI Act (12 U.S.C. § 1831aa), this Agreement is enforceable by the Board of Governors under section 8 of the FDI Act (12 U.S.C. § 1818).

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the 6th day of April, 2009.


VENTURE FINANCIAL GROUP, INC.	FEDERAL RESERVE BANK
	OF SAN FRANCISCO

By: /s/ Ken F. Parsons	By: /s/ Kevin Zerbe
Ken F. Parsons	Kevin Zerbe
Chairman & Chief Executive Officer	Vice President

VENTURE FINANCIAL GROUP INC 8-K