SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C.  20549

                                 FORM 10-Q/A

                                (Mark One)

[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities and
    Exchange Act of 1934

               For the quarterly period ended September 30, 2003
                                              ------------------

                                   OR

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities and
    Exchange Act of 1934

For the transition period from                to
                               --------------    ------------------

                        Commission file number 0-27062

                             Horizon Financial Corp.
            ------------------------------------------------------
            (Exact name of registrant as specified in its charter)

                     Chartered by the State of Washington
       --------------------------------------------------------------
       (State or other jurisdiction of incorporation or organization)

                                  91-1695422
                       --------------------------------
                       (IRS Employer Identification No.)

                             1500 Cornwall Avenue
                            Bellingham, Washington
                   ----------------------------------------
                   (Address of principal executive offices)

                                    98225
                                 ----------
                                 (Zip Code)

Registrant's telephone number including area code:     (360) 733-3050
                                                       --------------

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 check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).

                               YES   X   NO
                                   -----    -----

As of  September 30, 2003, 10,475,070 common shares, $1.00 par value, were
outstanding.

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     The Registrant's Form 10-Q for the quarter ended September 30, 2003 is
being amended to update the certifications filed as Exhibits 31.1 and 31.2.

<PAGE>



                                    SIGNATURES

Pursuant to the requirements 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.



                          HORIZON FINANCIAL CORP.



                          By: V. Lawrence Evans
                             ------------------------
                              V. Lawrence Evans
                              Chairman, President, and Chief Executive Officer



                           By: Richard P. Jacobson
                              -------------------------
                              Richard P. Jacobson
                              Chief Financial Officer


                            Dated:   November 10, 2003
                                  ----------------------



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                                Exhibit 31.1

                           Certification Required
     by Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934


I, V. Lawrence Evans, certify that:

1.     I have reviewed this September 30, 2003 Form 10-Q of Horizon Financial
       Corp;

2.     Based on my knowledge, this 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 report;

3.     Based on my knowledge, the financial statements, and other financial
       information included in this 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 report;

4.     The registrant's other certifying officer(s) and I are responsible for
       establishing and maintaining disclosure controls and procedures (as
       defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the
       registrant and have:

       (a)   Designed such disclosure controls and procedures, or caused such
             disclosure controls and procedures to be designed under our
             supervision, 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 report is being prepared;

       (b)   Evaluated the effectiveness of the registrant's disclosure
             controls and procedures and presented in this report our
             conclusions about the effectiveness of the disclosure controls
             and procedures, as of the end of the period covered by this
             report based on such evaluation; and

       (c)   Disclosed in this report any change in the registrant's internal
             control over financial reporting that occurred during the
             registrant's most recent fiscal quarter (the registrant's fourth
             fiscal quarter in the case of an annual report) that has
             materially affected, or is reasonably likely to materially
             affect, the registrant's internal control over financial
             reporting; and

5.     The registrant's other certifying officer(s) and I have disclosed,
       based on our most recent evaluation of internal control over financial
       reporting, to the registrant's auditors and the audit committee of the
       registrant's board of directors (or persons performing the equivalent
       functions):

       (a)   All significant deficiencies and material weaknesses in the
             design or operation of internal control over financial reporting
             which are reasonably likely to adversely affect the registrant's
             ability to record, process, summarize and report financial
             information; and

       (b)   Any fraud, whether or not material, that involves management or
             other employees who have a significant role in the registrant's
             internal control over financial reporting.

Date: November 10, 2003
                              /s/ V. Lawrence Evans
                              ------------------------------
                              V. Lawrence Evans
                              Chairman, President, and Chief Executive Officer


<PAGE>



                                 Exhibit 31.2

                           Certification Required
     by Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934


I, Richard P. Jacobson, certify that:

1.     I have reviewed this September 30, 2003 Form 10-Q of Horizon Financial
       Corp;

2.     Based on my knowledge, this 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 report;

3.     Based on my knowledge, the financial statements, and other financial
       information included in this 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 report;

4.     The registrant's other certifying officer(s) and I are responsible for
       establishing and maintaining disclosure controls and procedures (as
       defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the
       registrant and have:

       (a)   Designed such disclosure controls and procedures, or caused such
             disclosure controls and procedures to be designed under our
             supervision, 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 report is being prepared;

       (b)   Evaluated the effectiveness of the registrant's disclosure
             controls and procedures and presented in this report our
             conclusions about the effectiveness of the disclosure controls
             and procedures, as of the end of the period covered by this
             report based on such evaluation; and

       (c)   Disclosed in this report any change in the registrant's internal
             control over financial reporting that occurred during the
             registrant's most recent fiscal quarter (the registrant's fourth
             fiscal quarter in the case of an annual report) that has
             materially affected, or is reasonably likely to materially
             affect, the registrant's internal control over financial
             reporting; and

5.     The registrant's other certifying officer(s) and I have disclosed,
       based on our most recent evaluation of internal control over financial
       reporting, to the registrant's auditors and the audit committee of the
       registrant's board of directors (or persons performing the equivalent
       functions):

       (a)   All significant deficiencies and material weaknesses in the
             design or operation of internal control over financial reporting
             which are reasonably likely to adversely affect the registrant's
             ability to record, process, summarize and report financial
             information; and

       (b)   Any fraud, whether or not material, that involves management or
             other employees who have a significant role in the registrant's
             internal control over financial reporting.

Date: November 10, 2003

                              /s/Richard P. Jacobson
                              ------------------------------
                              Richard P. Jacobson
                              Chief Financial Officer, EVP


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