US SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C.   20549
                          -----------------------
                                     10-Q/A

(Mark One)

(X)    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
       SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED
       September 30, 1999
       ------------------
OR

( )    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
       SECURITIES EXCHANGE ACT OF 1934 FOR TRANSITION PERIOD
       FROM              TO
           --------------  -----------------

       Commission file number 0-25286
                              -------

                          CASCADE FINANCIAL CORPORATION
              ------------------------------------------------------
              (Exact name of registrant as specified in its charter)

                        Delaware                      91-1661954
              ------------------------------      ------------------
             (State or other jurisdiction of        (IRS Employer
             incorporation or organization)       Identification No.)

                    2828 Colby Avenue
                   Everett, Washington                  98201
        ----------------------------------------  ------------------
        (Address of principal executive offices)      (Zip Code)

                                 (425) 339-5500
                ----------------------------------------------------
                (Registrant's telephone number, including area code)

Indicate by a 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 twelve months (or for such shorter periods that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past ninety days.  Yes   X   No
                                                        -----    -----

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

         Class                      Outstanding as of September 30, 1999
         -----                      ------------------------------------
  Common Stock ($.01 par value)                    5,469,671

<PAGE>



The Registrant hereby amends Part I, Item 1 of its Quarterly Report on Form
10-Q for the quarter ended September 30, 1999 as follows:

                       PART I    FINANCIAL INFORMATION
                       -------------------------------

                CASCADE FINANCIAL CORPORATION AND SUBSIDIARY
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                           (dollars in thousands)


ASSETS                                             September 30,    June 30,
------                                             -------------    --------
                                                       1999           1999
                                                       ----           ----
                                                    (unaudited)

Cash on hand and in banks                          $  11,406         9,804
Interest-earning deposits in other institutions          114           350
Securities available for sale                         72,522        72,719
Loans available for sale, net                          9,091        22,428
Mortgage-backed securities held to maturity
  (market value of $1,421 and $1,699)                  1,446         1,738
Loans, net                                           491,255       433,308

Premises and equipment, at cost, net                   9,469         9,433
Accrued interest receivable and other assets           6,430         7,306
                                                   -----------------------
  TOTAL ASSETS                                     $ 601,733       557,086
                                                   =======================

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Deposits                                           $ 359,640       361,786
Federal Home Loan Bank advances                      177,236       141,996
Securities sold under agreements to repurchase        21,696         5,951
Advance payments by borrowers for taxes
  and insurance                                        2,391         1,947
Accrued expenses and other liabilities                 5,170        10,743
Deferred income tax                                      397           424
  TOTAL LIABILITIES                                  566,530       522,847

Preferred stock, $.01 par value, 500,000 shares
   authorized; no shares issued or outstanding            --            --
Common stock, $.01 par value, 5,000,000 shares
  authorized; 5,469,671 and 5,454,302 shares
  issued and outstanding                                  55            55
Additional paid-in capital                             4,830         4,790
Retained earnings, substantially restricted           32,126        31,150
Cumulative comprehensive income, net                  (1,808)       (1,756)
                                                   -----------------------
  TOTAL STOCKHOLDERS' EQUITY                          35,203        34,239
                                                   -----------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $ 601,733       557,086
                                                   =======================

               See notes to consolidated financial statements
                                       1

<PAGE>


                 CASCADE FINANCIAL CORPORATION AND SUBSIDIARY
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
              (dollars in thousands, except per share amounts)
                                (unaudited)

                                                     Three months ended
                                                 September 30, September 30,
                                                 ------------- -------------
                                                      1999        1998
                                                      ----        ----
Interest income:
  Loans                                             $ 9,828      8,422
  Mortgage-backed securities held-to-maturity            20         52
  Securities available for sale                         990        372
  FHLB stock dividends                                  144        104
  Interest-earning deposits                              34         70
                                                    ------------------
    Total interest income                            11,016      9,020

Interest expense:
  Deposits                                            4,210      4,023
  Borrowings                                          2,129      1,222
                                                    ------------------
    Total interest expense                            6,339      5,245

Net interest income                                   4,677      3,775
  Provision for loan losses                             210        150
                                                    ------------------
Net interest income after provision for loan losses   4,467      3,625

Other income:
  Gain on sale of loans                                 123        228
  Service charges                                       315        255
  Gain on sale of securities available-for-sale           0          4
  Other                                                  48         49
                                                    ------------------
    Total other income                                  486        536

Other expenses:
  Salaries and employee benefits                      1,909      1,476
  Occupancy                                             696        435
  Federal deposit insurance premiums                     52         46
  Advertising                                           117        107
  Data processing                                        89        143
  Other                                                 613        616
                                                    ------------------
    Total other expenses                              3,476      2,823

    Income before income taxes                        1,477      1,338
  Federal income taxes                                  501        455
                                                    ------------------
    Net income                                      $   976        883
                                                    ==================
Earnings per share, basic                           $  0.18       0.16
Earnings per share, diluted                            0.16       0.15
Weighted average number of shares outstanding:
  Basic                                           5,469,671  5,385,636
  Diluted                                         5,959,798  5,933,545

                See notes to consolidated financial statements

                                      2

<PAGE>




              CASCADE FINANCIAL CORPORATION AND SUBSIDIARY
            CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                       (dollars in thousands)
                             (unaudited)

                                        Three months ended September 30,
                                        --------------------------------
                                                 1999        1998
                                                 ----        ----


Net Income                                    $  883          976
Increase (decrease) in unrealized
        Gains (losses) on securities
        available for sale, net of tax
        of $65 and $(27).                        134          (52)
                                              -------------------
Comprehensive Income                          $1,017          897
                                              ===================

                                    3

<PAGE>



                     CASCADE FINANCIAL CORPORATION
            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                   (dollars in thousands, unaudited)


                                            Three months ended September 30,
                                            --------------------------------
                                                    1999        1998
                                                    ----        ----
Cash flows from operating activities:
  Net income (loss)                               $  976         883
                                               ---------------------
  Adjustments to reconcile net income to
    net cash provided by (used in) operating
    activities:
      Depreciation and amortization of
        premises and equipment                       337         173
      Amortization of retained servicing rights       61         107
      Provision for losses on:
        Loans                                        210         150
        Mortgage servicing rights                     --          94
      Additions to mortgage servicing rights         (56)       (187)
    Deferred loan fees, net of amortization          175        (170)
      Net change in loans available for sale      13,337      (6,032)
      Federal Home Loan Bank stock dividend
        received                                    (144)       (104)
      Net change in accrued interest receivable
        and other assets over principal and
        interest payable on loans serviced for
        others and accrued expenses and other
        liabilities                               (4,703)     (2,688)
                                               ---------------------
          Total adjustments                        9,217      (8,661)
                                               ---------------------
            Net cash provided by (used in)
              operating activities               (10,193)     (7,778)

Cash flows from investing activities:
  Loans originated, net of principal repayments  (58,331)     (2,170)
  Principal repayments on securities held-to
    maturity                                         292       1,051
  Principal repayments on securities available-
    for-sale                                      (1,905)      2,204
  Purchases of securities available for sale       1,642     (14,933)
  Proceeds from sales of securities available
    for sale                                           0       3,003
  Purchases of premises and equipment               (373)       (394)
                                               ---------------------
    Net cash used in investing activities        (58,149)    (11,235)

Subtotal, carried forward                        (47,956)    (19,013)
                                               ---------------------

            See notes to consolidated financial statements

                                    4

<PAGE>



                       CASCADE FINANCIAL CORPORATION
             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                    (dollars in thousands, unaudited)

                                            Three months ended September 30,
                                            --------------------------------
                                                    1999        1998
                                                    ----        ----

Subtotal, brought forward                      $ (48,871)    (19,013)
                                               ---------------------
Cash flows from financing activities:
  Proceeds from issuance of common stock              40         181
  Net increase (decrease) in deposits             (2,146)      6,136
  Net increase in Federal Home Loan Bank
    advances                                      35,240      21,990
  Net increase (decrease) in securities sold
    under agreements to repurchase                15,745     (12,646)
  Net decrease in advance payments by
    borrowers for taxes and insurance                444       1,127
                                               ---------------------
      Net cash provided by financing
        activities                                49,323      16,788
                                               ---------------------
  Net increase (decrease) in cash and cash
    equivalents                                    1,367      (2,225)
Cash and cash equivalents at beginning of
  period                                          10,153      11,967
                                               ---------------------
Cash and cash equivalents at end of period     $  11,520       9,742
                                               =====================

Supplemental disclosures of cash flow infor-
  mation cash paid during the period for:
    Interest                                   $   6,156       5,237
    Federal income taxes                             500         200
                                               ---------------------

Supplemental schedule of noncash investing
  activities:
    Mortgage loans securitized into mortgage
      backed securities and held-for-trading
      and sold                                     1,407       5,035
    Net mortgage loans transferred to real
      estate owned                                    --         363

               See notes to consolidated financial statements.

                                      5

<PAGE>



               CASCADE FINANCIAL CORPORATION AND SUBSIDIARY
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                            September 30, 1999
                               (unaudited)

1.   Presentation of Financial Information

     The accompanying financial information is unaudited and has been prepared
from the books and records of Cascade Financial Corporation, ("Cascade" or the
"Corporation").  The Corporation's sole subsidiary is Cascade Bank, (the
"Bank").  In the opinion of management, the financial information reflects all
adjustments (consisting of normal recurring adjustments) necessary for a fair
presentation of the financial condition, results of operations, and cash flows
of the Corporation pursuant to the requirements of the SEC for interim
reporting.

     Certain information and footnote disclosures included in the
Corporation's financial statements for the year ended June 30, 1999, have been
condensed or omitted from this report.  Accordingly, these statements should
be read with the financial statements and notes thereto included in the
Corporation's 1999 Annual Report on Form 10-K.

2.   Commitments and Contingencies

     In the normal course of business there are various commitments to fund
mortgage loans. Management does not anticipate any material loss as a result
of these commitments.

     Periodically there have been various claims and lawsuits against the
Corporation or the Bank, such as claims to enforce liens, condemnation
proceedings on properties in which the Bank holds security interests, claims
involving the making and servicing of real property loans and other issues
incidental to the Corporation's and the Bank's business.  In the opinion of
management no significant loss is expected from any of such pending lawsuits.

3.   Financial Statement Reclassification

     Certain amounts in the financial statements for fiscal 1999 have been
reclassified to conform with the financial statement classification for fiscal
2000.

4.   New Accounting Pronouncements

     SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities", was issued in June 1998 and establishes accounting and reporting
standards for derivative instruments, including certain derivative instruments
embedded in other contracts (collectively referred to as derivatives) and for
hedging activities.  SFAS No. 133 is effective for all quarters of fiscal
years beginning after June 15, 2000.  Management is reviewing this statement
and does not expect that application of this statement will have a material
effect on the results of operations or the financial position of the
Corporation.

     SFAS No. 134, "Accounting for Mortgage-Backed Securities Retained after
the Securitization of mortgage Loans Held for Sale by a Mortgage Banking
Enterprise", was issued in October 1998.  SFAS No. 134 requires that the
security be classified either trading,
                                   6
<PAGE>



available for sale or held to maturity according to the Corporation's intent,
unless the Corporation has already committed to sell the security before or
during the securitization process.  The Corporation has adopted this statement
and has not had a material effect on the results of operations or financial
condition.

                                    7

<PAGE>



Signatures
----------
     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amended report to be signed on its behalf by
the undersigned thereunto duly authorized.

                              CASCADE FINANCIAL CORPORATION


November 29, 1999             /s/  Russell E. Rosendal
                              --------------------------------
                              By:  Russell E. Rosendal
                                   Executive Vice President
                                   (Chief Financial Officer)

                                   8

<PAGE>