Exhibit 99.1

(VALLEYBANCORP LOGO)

FOR IMMEDIATE RELEASE
July 20, 2005
Contacts:
Barry Hulin, President and CEO — 702.221.8600
Dick Holtzclaw, EVP and CFO — 702.436.1515

VALLEY BANCORP REPORTS STRONG EARNINGS FOR SECOND QUARTER 2005

HIGHLIGHTS

•

Second quarter earnings of $1,404,000, up 103% from $691,000 in 2nd quarter 2004.

•

Second quarter earnings per diluted share of $0.48 up 23% from $0.39 in 2nd quarter 2004.

•

ROE and ROA of 14.77% and 1.75% respectively in 2nd quarter 2005.

•

Total net loans increased $72 million, up 42% from 2nd quarter 2004.

Las Vegas, Nevada — Valley Bancorp (NASDAQ: VLLY), the holding company for Valley Bank, today announced net income of $1,404,000 or $0.48 per diluted share for the quarter ended June 30, 2005, a 103% increase from net income of $691,000 for the second quarter of 2004. Valley also announced earnings for the six months ended June 30, 2005 of $2.5 million or $0.85 per diluted share, a 90% increase over the $1.3 million earned during the same period in 2004.

Return on average assets and return on average equity for the quarter ended June 30, 2005 were 1.75% and 14.77% as compared to 1.23% and 16.24% for the same period in 2004, respectively. For the six months ended June 30, 2005, return on average assets and return on average equity were 1.64% and 13.34%, respectively. The return on average equity for the second quarter 2005 was lower than the second quarter 2004 due to a higher average equity balance during the quarter resulting from the successful completion of the Initial Public Offering that closed on September 28, 2004.

Valley’s total assets grew $108 million or 47%, to $335 million at June 30, 2005 as compared to $227 million at June 30, 2004. At June 30, 2005, Valley’s total net loans were $246 million, total deposits were $279 million, and stockholders’ equity was $39 million.

Barry L. Hulin, President and Chief Executive Officer, stated, “We are pleased with our results for the first half of 2005, and look forward to the opening of two new branches in the second half. The economy in Southern Nevada remains amongst the strongest in the Nation and we expect to continue to actively participate in this growth.”

Financial Performance Indicators for the Three and Six Months Ended June 30, 2005 and 2004
(Dollars in thousands, except per share data)
(Unaudited)


	At June 30,						Change
	2005			2004			$ or #			%
Balance Sheet:
Loans net of Unearned Fees	$	248,154		$	175,467		$	72,687			41.42	%
Allowance for Loan Losses		(2,497	)		(1,888	)		(609	)		32.26	%

Loans, net	$	245,657		$	173,579		$	72,078			41.52	%

Total Assets	$	334,784		$	227,067		$	107,717			47.44	%
Total Earning Assets		320,586			214,776			105,810			49.27	%
Total Investments		74,929			41,197			33,732			81.88	%
Total Deposits		278,860			208,632			70,228			33.66	%
Total Borrowed Funds		15,446			486			14,960			3078.19	%
Total Liabilities		295,903			209,902			86,001			40.97	%
Total Stockholders’ Equity	$	38,881		$	17,165		$	21,716			126.51	%

Common Shares Outstanding		2,808,173			1,725,478			1,082,695			62.75	%
Book Value per Share	$	13.85		$	9.95		$	3.90			39.17	%

Allowance for Loan Losses to Total Loans		1.01	%		1.08	%					-0.07	%
Total Stockholders’ Equity to Total Assets		11.61	%		7.56	%					4.05	%
Total Loans to Total Deposits & Borrowed Funds		83.47	%		83.01	%					0.46	%


	Three Months Ended June 30,				Change
	2005		2004		$ or #			%
Income Statement:
Interest Income	$	5,282	$	3,239	$	2,043			63.08	%
Interest Expense		1,430		669		761			113.75	%

Net Interest Income		3,852		2,570		1,282			49.88	%
Provision for Loan Losses		229		281		(52	)		-18.51	%
Non-interest Income		62		61		1			1.64	%
Non-interest Expense		1,554		1,301		253			19.45	%

Income before Income Taxes		2,131		1,049		1,082			103.15	%
Income Tax Expense		727		358		369			103.07	%

Net Income	$	1,404	$	691	$	713			103.18	%


Basic Earnings Per Share	$	0.50	$	0.40	$	0.10			25.00	%
Diluted Earnings Per Share		0.48		0.39		0.09			23.08	%

Weighted Average Shares — Basic		2,798,203		1,725,478		1,072,725			62.17	%
Weighted Average Shares — Diluted		2,936,942		1,784,979		1,151,963			64.54	%


	Three Months Ended June 30,						Change
	2005			2004			$ or #		%
Average Total Assets	$	320,054		$	225,238		$	94,816		42.10	%
Average Earning Assets		306,613			213,961			92,652		43.30	%
Average Stockholders’ Equity		38,015			17,017			20,998		123.39	%

Net Interest Margin (1)		5.04	%		4.83	%				0.21	%
Return on Assets (1)		1.75	%		1.23	%				0.53	%
Return on Equity (1)		14.77	%		16.24	%				-1.47	%
Non-interest Expense to Average Earning Assets (1)		2.03	%		2.43	%				-0.40	%
Efficiency Ratio		39.70	%		49.24	%				-9.54	%
Full Time Equivalent Employees		53			47			6		12.77	%


	Six Months Ended June 30,						Change
	2005			2004			$ or #			%
Income Statement:
Interest Income	$	9,744		$	6,062		$	3,682			60.74	%
Interest Expense		2,519			1,312			1,207			92.00	%

Net Interest Income		7,225			4,750			2,475			52.11	%
Provision for Loan Losses		280			386			(106	)		-27.46	%
Non-interest Income		137			162			(25	)		-15.43	%
Non-interest Expense		3,295			2,532			763			30.13	%

Income before Income Taxes		3,787			1,994			1,793			89.92	%
Income Tax Expense		1,291			681			610			89.57	%

Net Income	$	2,496		$	1,313		$	1,183			90.10	%


Basic Earnings Per Share	$	0.89		$	0.76		$	0.13			17.11	%
Diluted Earnings Per Share		0.85			0.74			0.11			14.86	%

Weighted Average Shares — Basic		2,794,518			1,725,478			1,069,040			61.96	%
Weighted Average Shares — Diluted		2,945,444			1,785,502			1,159,942			64.96	%

Average Total Assets	$	304,440		$	213,973		$	90,467			42.28	%
Average Earning Assets		291,122			203,329			87,793			43.18	%
Average Stockholders’ Equity		37,431			16,721			20,710			123.86	%

Net Interest Margin (1)		5.00	%		4.70	%					0.30	%
Return on Assets (1)		1.64	%		1.23	%					0.41	%
Return on Equity (1)		13.34	%		15.70	%					-2.37	%
Non-interest Expense to Average Earning Assets (1)		2.26	%		2.49	%					-0.23	%
Efficiency Ratio		44.76	%		51.58	%					-6.82	%

(1)

Annualized

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2005 was $3.9 million. This represents an increase of $1.3 million or 49.9% as compared to $2.6 million for the second quarter of 2004. The increase was primarily a result of higher interest income from loans and other earning assets due to increased outstanding totals, as well as an improved interest margin. Valley average earning assets increased by $93 million or 43% to $307 million for the quarter ended June 30, 2005 as compared to $214 million for the second quarter of 2004. The net interest margin for the quarter ended June 30, 2005 increased to 5.04% as compared to 4.83% for the same period in 2004.

For the six months ended June 30, 2005, net interest income increased by $2.5 million or 52.1% to $7.2 million as compared to $4.7 million for the same period in 2004. Average earning assets for the six-month period in 2005 totaled $291 million as compared to $203 million for the same period in 2004, an increase of $88 million or 43.2%. The net interest margin for the first half of 2005 was 5.00% as compared to 4.70% for the first half of 2004.

Rising interest rates and increasing loans and investment securities outstanding contributed to the improved net interest margin for both the second quarter and the year-to-date of 2005.

Distribution of Assets, Liabilities and Stockholders’ Equity; Interest Rates and Interest Differential


	Three Months Ended June 30,
	2005								2004
				Interest		Average						Interest		Average
	Average			Income/		Yield/			Average			Income/		Yield/
	Balance (1)			Expense		Cost (2)			Balance (1)			Expense		Cost (2)
	(Dollars in thousands)
Assets
Earning assets:
Loans (3) (4) (5)	$	240,560		$	4,722		7.87	%	$	168,299		$	3,045		7.28	%
Federal funds sold (6)		16,270			119		2.93	%		19,015			46		0.97	%
Interest bearing deposits (6)		10,682			84		3.15	%		13,255			74		2.25	%
Investment securities (6)		39,101			357		3.66	%		13,392			74		2.22	%

Total earning assets and interest income		306,613			5,282		6.91	%		213,961			3,239		6.09	%

Non-interest earning assets:
Cash and due from banks		7,141								7,153
Premises and equipment		6,282								4,384
Other assets		2,392								1,678
Allowance for credit losses		(2,374	)							(1,938	)

Total assets	$	320,054							$	225,238


Liabilities and Stockholders’ Equity
Interest bearing liabilities:
Interest bearing demand deposits	$	75,394		$	262		1.39	%	$	68,483		$	140		0.82	%
Savings deposits		11,768			22		0.75	%		11,639			14		0.48	%
Time deposits $100,000 or more		61,741			457		2.97	%		33,406			185		2.23	%
Other time deposits		82,522			664		3.23	%		53,237			321		2.43	%
Short-term borrowings		—			—		—			—			—		—
Long-term borrowings		2,101			25		4.77	%		493			9		7.34	%

Total interest bearing liabilities		233,526			1,430		2.46	%		167,258			669		1.61	%


	Three Months Ended June 30,
	2005							2004
			Interest		Average					Interest		Average
	Average		Income/		Yield/			Average		Income/		Yield/
	Balance (1)		Expense		Cost (2)			Balance (1)		Expense		Cost (2)
	(Dollars in thousands)
Noninterest-bearing liabilities:
Demand deposits		46,959							40,089
Other liabilities		1,554							874
Stockholders’ equity		38,015							17,017

Total liabilities and stockholders’ equity	$	320,054						$	225,238


Net Interest Spread (7)						4.45	%						4.48	%


Net interest income/margin (8)			$	3,852		5.04	%			$	2,570		4.83	%


	Six Months Ended June 30,
	2005								2004
				Interest		Average						Interest		Average
	Average			Income/		Yield/			Average			Income/		Yield/
	Balance (1)			Expense		Cost (2)			Balance (1)			Expense		Cost (2)
	(Dollars in thousands)
Assets
Earning assets:
Loans (3) (4) (5)	$	224,521		$	8,653		7.77	%	$	158,799		$	5,668		7.18	%
Federal funds sold (6)		17,939			240		2.70	%		16,048			78		0.98	%
Interest bearing deposits (6)		9,898			140		2.85	%		13,605			140		2.07	%
Investment securities (6)		38,764			711		3.70	%		14,877			176		2.38	%

Total earning assets and interest income		291,122			9,744		6.75	%		203,329			6,062		6.00	%

Non-interest earning assets:
Cash and due from banks		7,379								6,502
Premises and equipment		6,042								4,409
Other assets		2,207								1,613
Allowance for credit losses		(2,310	)							(1,880	)

Total assets	$	304,440							$	213,973


Liabilities and Stockholders’ Equity
Interest bearing liabilities:
Interest bearing demand deposits	$	74,300		$	475		1.29	%	$	67,410		$	275		0.82	%
Savings deposits		12,192			40		0.66	%		10,656			26		0.49	%
Time deposits $100,000 or more		56,098			781		2.81	%		32,241			364		2.27	%
Other time deposits		77,105			1,190		3.11	%		50,972			628		2.48	%
Short-term borrowings		—			—		—			153			1		1.31	%
Long-term borrowings		1,287			33		5.17	%		497			18		7.28	%

Total interest bearing liabilities		220,982			2,519		2.30	%		161,929			1,312		1.63	%

Noninterest-bearing liabilities:
Demand deposits		44,739								34,534
Other liabilities		1,288								789
Stockholders’ equity		37,431								16,721

Total liabilities and stockholders’ equity	$	304,440							$	213,973

Six Months Ended June 30,

2005

2004

Interest

Average

Interest

Average

Income/

Yield/

Average

Income/

Yield/

Balance (1)

Expense

Cost (2)

Balance (1)

Expense

Cost (2)

(Dollars in thousands)

Net Interest Spread (7)

4.45

4.37

Net interest income/margin (8)

7,225

5.00

4,750

4.70

(1)		Average balances are obtained from the best available daily data.
(2)		Annualized.
(3)		Loans are gross of allowance for credit losses but after unearned fees.
(4)		Non-accruing loans are included in the average balances.
(5)		Interest income includes loan fees of $22,000, $115,000, $82,000 and $237,000 for the three and six months ended June, 2005 and 2004, respectively.
(6)		All investments are taxable.
(7)		Represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities
(8)		Net interest margin represents net interest income as a percentage of average interest-earning assets.

Provision for Loan Losses and Related Allowance for Loan Losses

The provision for loan losses was $229,000 for the three months ended June 30, 2005 as compared to $281,000 for the same period in 2004. For the six months ended June 30, 2005, the provision for loan losses was $280,000 as compared to $386,000 for the same period in 2004. The allowance for loan losses of $2.5 million at June 30, 2005 reflected management’s assessment of the current risk in the loan portfolio and represented 1.01% of total loans. Valley had three non-accrual loans of $1.8 million and one loan of $41,000 that was past due 90 days or more as of June 30, 2005.

Non-interest Income and Non-interest Expense

Non-interest income was $62,000 for the three months ended June 30, 2005 as compared to $61,000 for the same period in 2004. For the six months ended June 30, 2005, non-interest income was $137,000 as compared to $162,000 for the same period in 2004. The decrease of $25,000 was due primarily to lower aggregate service charges on deposit accounts. Higher average balances on deposit accounts maintained by the customers continued to hold down service charge income.

Non-interest expense was $1.6 million for the three months ended June 30, 2005, an increase of $253,000 over the same period in 2004. For the six months ended June 30, 2005, non-interest expense was $3.3 million, an increase of $763,000 over the same period in 2004. The increase was primarily a result of increased compensation and employee benefits costs due to increasing staff levels, higher professional fees associated with being a publicly traded company, higher data processing expenses due to increased number of customers’ accounts and transactions being processed, and higher marketing and advertising costs.

Balance Sheet

Valley’s total assets were $335 million at June 30, 2005, an increase of $108 million or 47% from $227 million at June 30, 2004. The increase was due primarily to a $72 million net increase in the loan portfolio, a $26 million increase in available for sale securities, a $10 million increase in Federal funds sold, and a $3 million decrease in interest-bearing deposits at other financial institutions. Total deposits increased by $70 million or 34% to $279 million at June 30, 2005, as compared to $209 million at June 30, 2004. Valley borrowed $15 million from the Federal Home Loan Bank of San Francisco during the quarter ended June 30, 2005 to fund its earning asset growth. Valley stockholders’ equity increased by $21.7 million or 126.5% to $38.9 million at June 30, 2005 from $17.2 million at June 30, 2004, due primarily to increased retained earnings of approximately $4.4 million and net proceeds of approximately $17.1 million from its Initial Public Offering completed on September 28, 2004.

About Valley Bancorp

Headquartered in Las Vegas, Valley Bancorp is the holding company for Valley Bank, a Nevada state-chartered commercial bank with branches in Las Vegas, Henderson, and Pahrump.


Website:		Valley Bancorp’s website — www.valleybancorp.com
		Valley Bank’s website — www.vbnv.com

This news release contains forward-looking statements. These statements are subject to a number of uncertainties and risks including, but not limited to, the company’s inability to generate increased earning assets, sustain credit losses, maintain adequate net interest margin, control fluctuations in operating results, maintain liquidity to fund assets, retain key personnel, and other risks detailed from time to time in Valley Bancorp’s filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the period ended December 31, 2004. Actual results may differ.

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Valley Bancorp 8-K