CASB Cascade Financial Corp. (MM)

Cascade Financial Corporation (Nasdaq:CASB), parent company of Cascade Bank, today announced that its Board of Directors has increased its quarterly cash dividend by 13% to $0.09 per share. The dividend will be paid on October 26, to shareholders of record on October 12, 2005. "This marks the fourth time we have increased our quarterly cash payout since initiating dividends just three years ago," stated Carol K. Nelson, President and CEO. "While dividends generate an immediate return on an investment in Cascade Financial, we also work to build shareholder wealth over the long-term by growing earnings per share and expanding our franchise." In July, Cascade reported a 41% increase in second quarter earnings. Net income was $3.2 million, or $0.33 per diluted share, compared to $2.3 million, or $0.26 per share in the second quarter of 2004. For the six-month period ended June 30, 2005, net income was $6.3 million, or $0.64 per diluted share, compared to $4.9 million, or $0.55 per share in the first six months of last year. Cascade expects to release earnings for the third quarter of 2005 after the close of market on Monday, October 17, 2005. The following day, on Tuesday, October 18, Carol K. Nelson, President and CEO, and Lars Johnson, EVP and CFO, will discuss the bank's operating results in a conference call at 10:00 am PDT (1:00 pm EDT). Interested investors may listen to the call live or via replay at www.cascadebank.com. Investment professionals are invited to dial (303) 262-2139 to access the live call. A replay of the call will be available for three weeks at (303) 590-3000, using passcode 11040278#. Investors wishing to reinvest the upcoming dividend must complete the enrollment through the company's transfer agent, Mellon Investor Services. For complete details on this program, please visit the investor relations portion of the company's website at www.cascadebank.com/shareholderinfo or at www.melloninvestor.com. Interested parties may also contact Mellon Investor Services toll-free at 1-800-839-2983. About Cascade Financial Established in 1916, Cascade Bank, the only operating subsidiary of Cascade Financial Corporation, is a state chartered commercial bank headquartered in Snohomish County, Washington. Cascade Bank operates 19 full service offices, located in Everett, Lynnwood, Marysville, Mukilteo, Smokey Point, Issaquah, Clearview, Woodinville, Lake Stevens, Bellevue, Snohomish and North Bend.