The Fortune His Sleep era gave way to a busy new chapter for Faith & Disease: three albums in three years before a move to a new label. First came Livesongs: Third Body, a live album that kept the band's story unfolding on Ivy Records. Seven of its 11 tracks were previously unreleased originals later recorded in the studio for Insularia; only "Ashes Are Burning," "Fortune His Sleep II," and "Healing Anne" had already appeared as studio recordings. Livesongs was generally well received, though its cover — a grainy sepia-toned photograph taken by Eric and Dara of a South Seattle horse barn with weathervane — departed from the esoteric artwork fans expected. "The strange thing about that barn is, there were these sad, genteel horses put out to pasture inside the stable, and not long after we took that photo, we drove by and it had burned to the ground," Eric recalls. The site is now a strip mall.
When Livesongs: Third Body arrived in the summer of 1996, it shared the spotlight with a release from Ivy's newest signing, Ninth Circle. The connection between the two bands would prove lasting: five years later, Ninth Circle guitarist Greg Forschler would join F&D. Reviews of Livesongs were favorable, with a January issue of Discorder Magazine capturing its atmosphere perfectly: "Listening to Livesongs: Third Body is akin to being immersed in a dark, warm sea — slightly scary, but still comforting."
That summer, the two bands carried their shared momentum south to Portland, Oregon, where both had been invited to perform at the prestigious North by Northwest Music Festival. "We loved Ninth Circle and were paired with them often because we shared a label, but by then we were beginning to move away from that icy, darkwave goth sound." Their paths soon diverged: Ninth Circle never released a follow-up, and singer Kelly Williams eventually moved to Japan.
Around the same time, vocalist and flautist Charlotte Sather, a music major at Western Washington University, joined the band. Her voice blended seamlessly with Dara's, and she performed with F&D on select dates scheduled around her classes.
The months that followed brought a burst of activity, with both full-band shows and intimate duo performances by Eric and Dara. Faith & Disease even found a way onto the bill at Seattle's popular annual Folklife Festival: they entered under the name "Memorium" and submitted a demo made up entirely of the band's acoustic recordings. "Kinda sneaky," Eric laughs, "but it worked." Soon they were traveling up and down the West Coast for a string of dates with Trance to the Sun, the Santa Barbara band led by Ashkelon Sain. "Ash and I were like brothers for a while, two kindred spirits obsessively guiding our indie bands," Eric recalled. Another memorable invitation followed when F&D opened for Low on the band's first U.S. tour, with Jesse Sykes of Jesse Sykes and the Sweet Hereafter sitting in on guitar. "Alan Sparhawk gave us his blessing after the show; that made our year." Even amid their busy schedule, the band began shaping its next studio album, conceived as a follow-up to Fortune His Sleep. Eric and Dara chose John & Stu's, located in Seattle's Fremont neighborhood at 4230 Leary Way NW, operated by John Goodmanson and Stuart Hallerman. John & Stu's (AKA Triangle Recording, Reciprocal Recording, Word of Mouth Studios, and currently the Hall of Justice) was a major hub for Seattle's alternative music scene, producing recordings for the Jack Endino and Nirvana Love Buzz and Bleach sessions, Harvey Danger, Modest Mouse, Sleater‑Kinney, and Blonde Redhead. After seeing the Walkabouts perform, Dara and Eric invited Chris Eckman and Carla Torgerson into the studio; Torgerson contributed to "Violet," while Eckman appeared on "Perhaps Persephone." In one of the sessions' turns, engineer Kevin Suggs added pedal steel guitar to "Old Dusk Dakota," Dara's song about her rural birthplace of Roseau, Minnesota. Its folkier, Cowboy Junkies–meets–Mojave 3 atmosphere did not win over Ivy label boss David Goebel, who dismissively called it "country."
"Marie Don't Sleep in Your Makeup," a song penned by Dara and Eric, featuring Eric's looping bassline and Steve Knouse's impressive guitar work, is a 7:24 opus broken up into two distinctive parts. The song is currently the most listened to F&D song in their catalog, with over 202,000 monthly plays on Spotify. "Birthday Party" was a late addition in the sessions, a track Eric wrote based on a personal experience; "Yellow Dress" and "Perhaps Persephone" (the first F&D track with a ¾ drum pattern) are classic Dara Rosenwasser lyrics, while "Space Song" explores a psychedelic guitar wash courtesy of Steven Knouse. "Baudelaire" and "Cocoon" round out the minimalist tracks Eric and Dara were so fond of during this era. Insularia also marks the beginning of Eric Cooley moving from bass to more guitar ("Baudelaire," "Cocoon," "Birthday Party") that would later characterize most of Beneath the Trees, Dream the Red Clouds, and Passport to Kunming. "I Come and Stand at Every Door," an acapella number by Rosenwasser, would later become a live staple during their 1998, 1999 and 2001 US tours. Charlotte Sather makes her debut on Insularia, with a stunning flute track on "Cocoon" and backing vocals on "I Come and Stand at Every Door." This is also the first (and only) album solely credited to Joshua Furman on percussion and drums. Cooley plays a vintage Hammond B-3 organ on "Birthday Party." "It was there in the studio, how could I not play it?" Cooley recalls.
Insularia was recorded on 2" Quantegy analog tape, mixed by Eric and Kevin at Avast, and then professionally mastered by Ross Nyberg at Nyberg Mastering. It was released on February 3rd, 1998 with an accompanying CD-release party on Friday, February 6 at Sit & Spin, Seattle (with pals Diamond-Fist Werny), and Saturday Feb 7 at The Paris Theater in neighboring city Portland, OR. Reviews were almost unanimously positive, according to the Lollipop Magazine review by Rowan Morrison — Faith & Disease's fourth full-length album “intertwines delicate female crooning with gloom tipped, tantalizing string arrangements evoking the ethereal heydays of 4AD.” Adding that the album's songwriting is “tighter than ever.” CMJ New Music Weekly #560 from March 1998, Colin Helms praised the album for its “dynamic restraint, sonic ambiance and gentle melodicism as the primary components of its musical blueprint. Led by the strong, unwavering voice of Dara Rosenwasser, the band follows the lead of fellow music-to-nod-off-to notables Spain, Low or Mazzy Star in the design of its minimal, downtempo pieces. Faintly outlined blues and country structures inform most of the songs here, washed over by ghostly reverbed guitar and Rosenwasser's angelic vocals. With the addition of some equally dreamy violin, pedal steel, organ and flute touches, the album takes on an aura of quiet, abstract beauty. ‘Perhaps...Persephone’ showcases Rosenwasser's sensual tone, her haunting delivery lifted by some slowly winding guitar and a billowing dust storm of violin and percussion.” And The Big Takeover #45 wrote: “They're probably one of the best bands out there doing this kind of thing — ethereal, chorale-type music with exquisite female vocals and minimal chamber ensemble instrumental backup.”
Insularia also marked the end of an era for the lineup. Guitarist Steve Knouse and percussionist Joshua Furman both departed after the album, with Furman moving on to the psychobilly band the Spectres and Knouse joining the pop-wave band the Panoramics. In their place, Dara and Eric brought in drummer Barry Semple, with Josh Van Winkle occasionally filling in. The lineup expanded once more when guitarist Greg Forschler joined for the 2001 and 2003 U.S. tours.
During the summer of 1998, Faith & Disease set out on their first US tour lasting more than a month, joining their good friends Trance to the Sun for a coast-to-coast trek in a van during the hottest months of the year. "Baton Rouge was basically a sauna," Eric remembers. "We had some great shows, like Boston, Chicago, New Orleans, Detroit, and Cleveland, and some not so good shows, but overall, it was a great experience."
When I tell people we traveled 10,000 miles in a van in August and September with six people — me, Dara, Charlotte, plus Ingrid Blue, Ashkelon Sain, and Joaquin from Trance to the Sun — and all our equipment, often driving ALL NIGHT after a show to make it to the next city, people are amazed. I'm amazed we pulled it off. Ingrid and I were joking about it recently, and we agreed: How did we do that?"
On the road, this adventurous F&D lineup featured Dara on vocals and guitar, Eric moving among bass, guitar, keyboards, and percussion, and Charlotte shifting between vocals, flute, keyboards, and percussion as each song required.
The following summer, F&D set out once more, launching the full-scale Lamentations Tour on July 27, 1999, in Portland, Oregon, and carrying it through September 12 at The Joint in Los Angeles. This time, the three-piece lineup of Eric, Charlotte, and Dara traveled without a support act, shouldering the entire journey themselves. By the final show, the band had crossed nearly the whole country, played almost every major U.S. city, and played all but three states in the continental United States.
On October 14, 1999, Faith & Disease brought their Ivy Records chapter to a close with Lamentations: A Collection. The 16-track retrospective gathered songs from the band's first four Ivy releases and offered one final piece, "Summer's Fade," recorded especially for the collection.
As Dara put it, in an interview with The Ninth Wave #7: "This [Lamentations] is our closure CD. It archives an important growth period (both musically and emotionally). Eric and I are now, and always have been, the heart of Faith & Disease. We've done well in establishing ourselves in the U.S.A., U.K. and Europe … if it ended tomorrow, I wouldn't regret a single moment."
Before long, another door opened: after sharing a bill with Black Tape for a Blue Girl at the Seattle stop of their U.S. tour, F&D signed a two-record deal with Projekt Records.
The band turned its attention back to the studio. Eric secured an endorsement deal with Quantegy for its GP9 analog tape, and F&D chose Avast Studios in the Seattle neighborhood of Greenwood, once again bringing in Kevin Suggs to engineer the sessions.
As the 1990s faded, Faith & Disease stood at the threshold of a new chapter — armed with a new label, a growing collection of songs, and renewed optimism about what the coming decade might bring.