MINNEAPOLIS, June 11 /PRNewswire/ -- Arcadia Financial Ltd. (NYSE: AAC)
announced today the pricing of $775 million of automobile receivables-backed
securities through J.P. Morgan & Co., BancAmerica Securities, Inc., Bear,
Stearns & Co. Inc. and Donaldson, Lufkin & Jenrette Securities Corporation.
    This transaction, when added to the remaining 1997-A prefund, which was
completed this quarter, gives Arcadia the possibility of selling up to
$812 million of automobile loans in the second quarter of 1997.
    The coupon cost to the investor was approximately 6.50% compared to the
APR of loans in the initial delivery of approximately 15.75%, giving Arcadia a
gross interest spread before hedges of approximately 9.25%.
    The securities are issued via an owner trust, Arcadia Automobile
Receivables Trust, 1997-B, in five classes:

                                 Average
    Security        Amount       Life       Coupon      Price     Yield
       A-1       $82,000,000    0.228       5.7425%  100.000000  5.7425%
       A-2      $210,000,000    0.867        6.10%    99.980540   6.202%
       A-3      $170,000,000    1.779        6.30%    99.917346   6.434%
       A-4      $150,000,000    2.679        6.50%    99.887309   6.636%
       A-5      $163,000,000    3.697        6.70%    99.988176   6.798%

    The Class A-1 Notes will be rated A-1+ by Standard & Poor's and P-1 by
Moody's.  The Class A-2, A-3, A-4 and A-5 Notes will be rated AAA by Standard
& Poor's and Aaa by Moody's.  Timely principal and interest on the Notes are
guaranteed by an insurance policy provided by Financial Security Assurance
Inc. ("FSA").  The ratings by Standard & Poor's and Moody's of the Notes will
be based on the issuance of the insurance policy provided by FSA.
    Use of the owner trust in this transaction enables Arcadia to offer
multiple, sequential-pay securities and to prefund a portion of the trust,
thereby issuing a larger amount of securities than the amount of receivables
initially available.  The Company anticipates initial delivery to the trust of
approximately $540 million in automobile loans acquired from Arcadia's network
of automobile dealers.  In addition, approximately $235 million will be
available to purchase receivables to be delivered in the near future.
    Richard A. Greenawalt, Arcadia's President and Chief Executive Officer
commented, "We are extremely pleased with the successful execution of this
securitization.  The Company continues to enjoy access to the asset
securitization marketplace on favorable terms.  This particular securitization
has been completed with the most favorable pricing of any securitization by
the Company to date."
    Arcadia Financial Ltd. is a Minneapolis-based consumer financial services
company specializing in purchasing, selling and servicing retail installment
contracts for new and used automobiles originated by more than 8,300 dealers
in 42 states.  The company, founded in 1990, is the nation's largest
independent provider of automobile financing.  Its 18 Regional Buying Centers
are located in Arizona; northern and southern California; Colorado; Florida;
Georgia; Maryland; Massachusetts; Minnesota; Missouri; New York; North
Carolina; Ohio; Tennessee; north, south and west Texas; and Washington.

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