|SECURITIES AND EXCHANGE COMMISSON                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
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|WASHINGTON, D.C. 20549                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
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|FORM 10-K/A                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
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|[X]  Annual Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

For the fiscal year ended December  31, 2002                                                                                                                                                                                                                                                                                                                                                           
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|[  ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange act of 1934                                                                                                                                                                                                                                                                                                                                                                                                      
|Commission File No. 005-57091                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|FIRST MUTUAL BANCSHARES, INC.
(Exact name of registrant as specified in its charter)                                                                                                                                                                                                                                                                                                                                                                                                               
|State of Washington
(State or other jurisdiction of incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|400 108th Avenue N.E., Bellevue, Washington
(Address of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|(425) 455-7300
(Registrant's telephone number, including area code)                                                                                                                                                                                                                                                                                                                                                                                                                                
|Securities registered pursuant to Section 12(b) of the Act:
None                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Securities registered pursuant to Section 12(g) of the Act:

Common Stock, par value $1.00 per share
(Title of Class)                                                                                                                                                                                                                                                                                                                                                                              
|Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.                                                                                                                                           
|Yes   [ X ]  No  [  ]                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|Indicate by a check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this form 10-K or any amendment to this Form 10-K.   [X]                                                                                                                                                      
|Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2 of the Act)                                                                                                                                                                                                                                                                                                                                                                           
|Yes   [  ]  No  [ X ]                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|As of June 30, 2002, there were issued and outstanding 5,210,144 shares of the registrant's common stock.  The aggregate market value of the voting stock held by non-affiliates 3,300,744 shares of the registrant was $53,802,127 based on the closing sales price of the registrant's common stock as quoted on the Nasdaq National Market System which on June 30, 2002, was $16.30

As of April 22, 2003, there were issued and outstanding 4,281,140 shares of the registrant's common stock.
|DOCUMENTS INCORPORATED BY REFERENCE                                                                                                                                                                                                                                                                                                                                                                                                                                                                
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|EXPLANATORY NOTE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 
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|This Form 10-K/A is being filed as Amendment No. 1 to the Form 10-K of First Mutual Bancshares, Inc., filed with the Securities and Exchange Commission on March 31, 2003, for the purpose of amending the Independent Auditors' Report to correct a typographical error whereby the reference to the consolidated statements of income, stockholders equity and cash flows and results of operations for the year ended December 31, 2000, had been inadvertently omitted and are now included, and to provide a consent for the amended filing.

Item 15.	EXHIBITS, FINANCIAL STATEMENT, SCHEDULES AND REPORTS

ON FORM 8-K

|(a)   (1) Consolidated Financial Statements
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|(2)                                        
|(c)    Exhibits                            
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|(3)                                        
|(11)                                       
|(13)                                       
|(21)                                       
|(23.1)                                     
|(99.1)                                     
|(99.2)                                     
|(*)                                        
|(**)                                       
|(***)                                      



|INDEPENDENT AUDITOR'S REPORT



Board of Directors
First Mutual Bancshares, Inc. and Subsidiaries


We have audited the accompanying consolidated statement of financial condition of First Mutual Bancshares, Inc. and Subsidiaries (the Company) as of December 31, 2002 and 2001, and the related consolidated statements of income, stockholders' equity and cash flows for each of the three years in the period ended December 31, 2002. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial condition of the Company as of December 31, 2002 and 2001, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2002, in conformity with accounting principles generally accepted in the United States of America.


/s/ Moss Adams LLP

Everett, Washington
January 21, 2003
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|SIGNATURES                                                                                                                                                                                                    
|Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized
|Date:  April 23, 2003                                                                                                                                                                                          | FIRST MUTUAL BANCSHARES, INC.



/s/ John R. Valaas
President and
Chief Executive Officer
|Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. 
|SIGNATURE                                                                                                                                                                                                      | TITLE                                                                                    
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|/s/ John R. Valaas
John R. Valaas                                                                                                                                                                              | President and Chief Executive Officer                                                    
|/s/ Roger A. Mandery
Roger A. Mandery                                                                                                                                                                          | Executive Vice President and Principal Financial Officer                                 

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|FIRST MUTUAL BANCSHARES, INC.
CERTIFICATIONS PURSUANT TO
SECTION 302 OF
THE SARBANES-OXLEY ACT OF 2002
CERTIFICATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|I, John R. Valaas certify that:
1. I have reviewed this amendment to the annual report on Form 10-K/A of First Mutual Bancshares, Inc.;
2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;
4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this annual report (the "Evaluation Date"); and                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | c) presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;                                                                                                                          
|5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and                                                                                                                                        
|6. The registrant's other certifying officers and I have indicated in this annual report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Date:  April 23, 2003                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | /s/ John R. Valaas
President and
Chief Executive Officer                                                                                                                                                                                                                                         

|FIRST MUTUAL BANCSHARES, INC.
CERTIFICATIONS PURSUANT TO
SECTION 302 OF
THE SARBANES-OXLEY ACT OF 2002
CERTIFICATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
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|I, Roger A. Mandery certify that:
1. I have reviewed this amendment to the annual report on Form 10-K/A of First Mutual Bancshares, Inc.;
2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;
4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
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|5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
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|6. The registrant's other certifying officers and I have indicated in this annual report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|Date:  April 23, 2003