Washington Mutual, Indymac Bank, and Fremont Investment & Loan
Upgraded by Weiss Ratings

PALM BEACH GARDENS, Fla., August 13, 2003 - Washington Mutual Savings Bank, Indymac Bank FSB, and Fremont Investment & Loan were among the 1,004 banks and thrifts upgraded by Weiss Ratings during its latest review of 9,414 financial institutions. In contrast, 922 banks and thrifts, including PNB Financial Bank, Far East National Bank, and The Bank (Warrior, Ala.), were downgraded by Weiss, the nation's leading independent provider of ratings and analyses of financial services companies, mutual funds, and stocks.

Washington Mutual Savings Bank (Seattle, Wash.; Total assets $28.3 billion) was upgraded to B- (Good) from C+ (Fair) due to improved earnings in the first quarter of 2003. Net gains on the sale of loans and leases increased 144.4 percent to $66 million in the first quarter compared to $27 million during the same period in 2002. Meanwhile, operating expenses declined $96 million, from $259 million to $163 million, which helped first-quarter return on assets (ROA) climb to 2.16 percent from 1.28 percent the previous year. Washington Mutual's capital position also improved, with the bank's risk-adjusted capital ratio rising to 14.42 percent at March 31, 2003 compared to 11.52 percent at year-end 2002.

Indymac Bank FSB (Pasadena, Calif.; Total assets $9.4 billion) was upgraded to B- (Good) from C+ (Fair) based upon improved loan quality during the first quarter of 2003. Total nonperforming loans declined $28.4 million from $91.7 million one year ago to $63.3 million at March 31, 2003. As a percentage of core capital, nonperforming loans decreased to 7.07 percent at the end of the first quarter from 12.17 percent in the year-earlier period. Indymac's solid performance, as represented by a return on assets (ROA) of 1.60 percent, also helped strengthen the bank's capital position. Retained earnings increased $144.2 million, or 73.6 percent, to $340.2 million at March 31, 2003 compared to $196.0 million at March 31, 2002.

Fremont Investment & Loan (Anaheim, Calif.; Total assets $6.4 billion) was upgraded to C- (Fair) from D (Weak) due to improved asset quality and income growth. Net gains on the sale of loans and leases climbed to $56 million in first quarter 2003, representing a $32.8 million, or 141 percent, increase over the $23.2 million earned during the first quarter 2002. First-quarter earnings remained strong despite a $5.9 million jump in loan loss provisions, which was offset by a $22.1 million increase in net interest income compared to the first quarter 2002. In addition, nonperforming loans declined $77.8 million from one year ago, which caused nonperforming loans as a percentage of capital to fall from 30.03 percent to 11.21 percent during this period.

922 Banks and Thrifts Downgraded by Weiss

PNB Financial Bank (Lubbock, Texas; Total assets $1.9 billion) was downgraded to C+ (Fair) from B- (Good) due to a decline in its capital position in the first quarter of 2003. The bank's risk-adjusted capital ratio of 10.01 percent is just above the required level of 10 percent that regulators consider to be well capitalized. Total nonperforming loans increased $2.5 million, or 47.4 percent, to $7.8 million from first quarter 2002. Specifically, nonperforming commercial and industrial loans increased $569,000 and now represent 44.6 percent of all nonperforming loans.

Far East National Bank (Los Angeles, Calif.; Total assets $1.6 billion) was downgraded to C (Fair) from B- (Good) due to a deterioration in its loan portfolio. Nonperforming loans jumped to $21.2 million as of March 31, 2003 compared to $10.7 million as of December 31, 2002. Total nonperforming loans as a percentage of capital almost doubled, from 8.42 percent at year-end 2002 to 15.93 percent at March 31, 2003. This increase in troubled loans caused the bank's risk-adjusted capital ratio to drop to 10.15 in the first quarter from 10.52 at year-end 2002.

The Bank (Warrior, Ala.; Total assets $1.4 billion) was downgraded to D+ (Weak) from C (Good) due to an ongoing decline in its loan portfolio. Nonperforming loans doubled in the first quarter of 2003 to $33.2 million compared to $15.9 million at year-end 2002, and have tripled from the first quarter 2002 when nonperforming loans were $11 million. Continuing loan problems have weakened capital reserves such that the bank's risk-adjusted capital ratio has fallen to 8.69, significantly below the 10 percent level considered by regulators to be well-capitalized. The Bank's nonperforming commercial real estate loans climbed to $10.1 million from $2.4 million since first quarter 2002 and make up 32.5 percent of total nonperforming loans as of March 31, 2003.

Weiss issues safety ratings on more than 15,000 financial institutions, including banks and thrifts, HMOs, life and health insurers, Blue Cross Blue Shield plans, property and casualty insurers, and securities brokers. Weiss also rates the risk-adjusted performance of more than 12,000 mutual funds and 8,000 stocks. Weiss Ratings is the only major rating agency that receives no compensation from the companies it rates. Revenues are derived strictly from sales of its products to consumers, businesses, and libraries.

Consumers needing more information on the financial safety of a specific company can purchase a rating and summary analysis for as little as $7.95 through www.WeissRatings.com, or starting at $15 by calling 800-289-9222.

Note to editors: National and state-specific tables of banks and thrifts receiving the highest and lowest Weiss Safety Ratings are available. The companion release, "Banks Set Record Quarterly Profit of $29.4 Billion in First Quarter 2003," is also available upon request.