FMSB First Mutual Bancshares (MM)

First Mutual Bancshares, Inc. (Nasdaq:FMSB) announced today the company's inclusion in the KBW Honor Roll for the second consecutive year. Keefe, Bruyette and Woods, a New York investment banking firm specializing in banking and financial services, recognized only 37 companies nationally, including First Mutual, for consistent earnings per share growth over the last decade. "Inclusion in the prestigious KBW Honor Roll reflects the success of our banking strategy," stated John Valaas, President and CEO. "We are committed to providing our customers with superior service while generating consistent earnings growth for our investors. I am looking forward to attending KBW's conference next month to accept this award and share the results of our efforts with professional bank investors." Valaas will be joined by Roger Mandery, EVP and CFO, at the Sixth Annual Community Bank Investor Conference for three days beginning July 25 in New York. Their presentation will begin at 4:30 pm EDT (1:30 pm PDT) on Wednesday, July 27, 2005. The presentation may be viewed at either www.firstmutual.com or www.kbw.com. In April, First Mutual reported its 50th consecutive quarter of year-over-year earnings growth. Net income was up 12% over the first quarter of 2004 to $2.6 million, or $0.47 per diluted share. Over the last ten years, First Mutual has grown earnings at a 12% compounded annual growth rate and more than tripled total assets. Second quarter results will be reported in the morning prior to the KBW presentation. First Mutual's consistent performance has garnered attention from a number of sources. In addition to KBW's Honor Roll, Sandler O'Neill's 2004 Bank and Thrift Sm-All Stars named First Mutual among the 30 top-performing small banks in the country, among the 592 with market capitalizations below $2 billion. The company was also ranked #23 in the Top 200 Publicly Traded Banks with less than $1 billion in assets by U.S. Banker magazine last year, based on its three-year return on equity. First Mutual Bank was also named Eastside Business of the Year in the 2004 Eastside Business Awards, sponsored by the Bellevue Chamber of Commerce. First Mutual Bancshares, Inc. is the holding company for its wholly owned subsidiary, First Mutual Bank, an independent, community-based bank that operates 12 full-service banking centers in the Puget Sound area, and loan production offices in Tacoma and Vancouver, Washington, and a sales finance office in Jacksonville, Florida. www.firstmutual.com