UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13D

Under the Securities Exchange Act of 1934
(Amendment No. 1 )*

Cascade Financial Corporation
(Name of Issuer)
Common Stock
(Title of Class of Securities)
147272108
(CUSIP Number)
Mr. Craig G. Skotdal
2707 Colby Avenue, Suite 1200
Everett, WA 98201
(425) 252-5400
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
April 27, 2010
(Date of Event Which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. o

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.

* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 
 


 

                     
CUSIP No.
 
147272108 
 

 

           
1   NAMES OF REPORTING PERSONS

Craig G. Skotdal
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)    þ  
  (b)    o  
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  PF, OO
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  United States
       
  7   SOLE VOTING POWER
     
NUMBER OF   1,144,535 (9.4%)
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   0 (0%)
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   384,507 (3.2%)
       
WITH 10   SHARED DISPOSITIVE POWER
     
    0 (0%)
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  1,144,535
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  9.4%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  IN


 

                     
CUSIP No.
 
147272108 
 

 

           
1   NAMES OF REPORTING PERSONS

Andrew P. Skotdal
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)    þ  
  (b)    o  
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  PF
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  United States
       
  7   SOLE VOTING POWER
     
NUMBER OF   0 (0%)
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   0 (0%)
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   357,571 (2.9%)
       
WITH 10   SHARED DISPOSITIVE POWER
     
    0 (0%)
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  357,571
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  2.9%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  IN


 

                     
CUSIP No.
 
147272108 
 

 

           
1   NAMES OF REPORTING PERSONS

Skotdal Quality Investments, L.L.C.
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)    þ  
  (b)    o  
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  WC
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  Washington (See Item 2 for More Information)
       
  7   SOLE VOTING POWER
     
NUMBER OF   0 (0%)
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   0 (0%)
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   291,365 (2.4%)
       
WITH 10   SHARED DISPOSITIVE POWER
     
    0 (0%)
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  291,365
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  2.4%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  OO


 

                     
CUSIP No.
 
147272108 
 

 

           
1   NAMES OF REPORTING PERSONS

Skotdal Enterprises, Inc.
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)    þ  
  (b)    o  
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  WC
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  Washington (See Item 2 for More Information)
       
  7   SOLE VOTING POWER
     
NUMBER OF   0 (0%)
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   0 (0%)
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   60,000 (0.5%)
       
WITH 10   SHARED DISPOSITIVE POWER
     
    0 (0%)
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  60,000
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  0.5%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  CO


 

                     
CUSIP No.
 
147272108 
 

 

           
1   NAMES OF REPORTING PERSONS

Arthur & Marianne Skotdal Revocable Trust
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)    þ  
  (b)    o  
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  OO
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  N/A (See Item 2 for More Information)
       
  7   SOLE VOTING POWER
     
NUMBER OF   0 (0%)
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   0 (0%)
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   51,091 (0.4%)
       
WITH 10   SHARED DISPOSITIVE POWER
     
    0 (0%)
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  51,091
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  0.4%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  OO


 

                     
CUSIP No.
 
147272108 
 

 

           
1   NAMES OF REPORTING PERSONS

Arthur W. Skotdal
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)    þ  
  (b)    o  
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  PF
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  United States
       
  7   SOLE VOTING POWER
     
NUMBER OF   0 (0%)
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   0 (0%)
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   0 (0%)
       
WITH 10   SHARED DISPOSITIVE POWER
     
    51,091 (0.4%)
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  51,091
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  0.4%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  IN


 

                     
CUSIP No.
 
147272108 
 

 

           
1   NAMES OF REPORTING PERSONS

Dwayne R. Lane
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)    þ  
  (b)    o  
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  PF, OO
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  United States
       
  7   SOLE VOTING POWER
     
NUMBER OF   0 (0%)
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   95,848 (0.8%)
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   0 (0%)
       
WITH 10   SHARED DISPOSITIVE POWER
     
    95,848 (0.8%)
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  95,848
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  0.8%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  IN


 

                     
CUSIP No.
 
147272108 
 

 

           
1   NAMES OF REPORTING PERSONS

Thomas H. Rainville
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)    þ  
  (b)    o  
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  PF
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  United States
       
  7   SOLE VOTING POWER
     
NUMBER OF   115,303 (1.0%)
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   5,721 (0.1%)
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   0 (0%)
       
WITH 10   SHARED DISPOSITIVE POWER
     
    141,211 (1.2%)
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  141,211
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  1.2%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  IN


 

                     
CUSIP No.
 
147272108 
 

 

           
1   NAMES OF REPORTING PERSONS

Christian H. Sievers
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)    þ  
  (b)    o  
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  PF
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  United States
       
  7   SOLE VOTING POWER
     
NUMBER OF   0 (0%)
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   6,875 (0.1%)
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   0 (0%)
       
WITH 10   SHARED DISPOSITIVE POWER
     
    6,875 (0.1%)
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  6,875
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  0.1%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  IN


 

                     
CUSIP No.
 
147272108 
 

 

           
1   NAMES OF REPORTING PERSONS

Arnold R. Hofmann
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)    þ  
  (b)    o  
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  PF
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  United States
       
  7   SOLE VOTING POWER
     
NUMBER OF   1,742 (0.0%)
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   10,677 (0.1%)
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   1,742 (0.0%)
       
WITH 10   SHARED DISPOSITIVE POWER
     
    10,677 (0.1%)
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  12,419
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  0.1%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  IN


 

                     
CUSIP No.
 
147272108 
 
The following constitutes Amendment No. 1 to the Schedule 13D filed by the undersigned (“Amendment No. 1”). This Amendment No. 1 amends the Schedule 13D as specifically set forth.
Item 4. Purpose of Transaction .
Item 4 is hereby amended to add the following:
As more fully discussed in the amended Item 6, below, on April 27, 2010 the Reporting Persons entered into a Settlement Agreement with the Issuer, Cascade Financial Corporation (“Cascade”). Under the terms of the Settlement Agreement, the Reporting Persons agreed to withdraw their “Nomination Letter” dated February 23, 2010 which was previously filed as an exhibit to the Reporting Persons’ Schedule 13D, and the Reporting Persons agreed otherwise to terminate any intention of soliciting proxies with respect to the Issuer’s upcoming annual meeting. A copy of the Withdrawal of Nomination Letter is filed as an exhibit hereto and is incorporated herein by reference.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer .
Item 6 is hereby amended to add the following:
Under the terms of the April 27, 2010 Settlement Agreement among the Reporting Persons and the Issuer, Cascade will expand the size of its board of directors and the size of the board of directors of its wholly owned subsidiary, Cascade Bank, from 12 to 15 directors, and the respective boards will appoint the individuals recommended by the Reporting Persons to fill the three new seats on each board subject to obtaining regulatory approval of the proposed new directors. The proposed new directors recommended by the Reporting Persons are Arnold R. Hofmann, Christian H. Sievers and Thomas H. Rainville. The Settlement Agreement further provides, among other things, that the Reporting Persons will support the Issuer’s other nominees for election to the board at Cascade’s upcoming annual meeting, will support a proposal to amend the Issuer’s Articles of Incorporation to increase the number of authorized shares of common stock, will support Cascade’s efforts to raise capital, and will refrain from certain other actions during the “Standstill Period,” all as described in the Settlement Agreement.
The foregoing description of the Settlement Agreement is not complete and is qualified in its entirety by reference to its full text. A copy of the Settlement Agreement is filed as an exhibit hereto and is incorporated herein by reference.
Item 7. Material to be Filed as Exhibits .
Item 7 is hereby amended to add the following:
  99.1   Withdrawal of Nomination Letter to the Board of Directors of Cascade Financial Corporation dated April 29, 2010
 
  99.2   Settlement Agreement dated April 27, 2010 by and among Cascade Financial Corporation and the Shareholder Group

 

 


 

                     
CUSIP No.
 
147272108 
 
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
         
     
April 29, 2010  /s/ Craig G. Skotdal    
  Craig G. Skotdal   
     
 
     
April 29, 2010  /s/ Dwayne R. Lane    
  Dwayne R. Lane   
     
 
     
April 29, 2010  /s/ Thomas H. Rainville    
  Thomas H. Rainville   
     
 
     
April 29, 2010  /s/ Christian H. Sievers    
  Christian H. Sievers   
     
 
     
April 29, 2010  /s/ Arnold R. Hofmann    
  Arnold R. Hofmann   
     
 
     
April 29, 2010  /s/ Arthur W. Skotdal    
  Arthur W. Skotdal   
     
 
     
April 29, 2010  /s/ Andrew P. Skotdal    
  Andrew P. Skotdal   
     
 
April 29, 2010  Skotdal Quality Investments, L.L.C.
 
 
  by   /s/ Craig Skotdal    
    Craig Skotdal, Manager   
       
 
April 29, 2010  Skotdal Enterprises, Inc.
 
 
  by   /s/ Craig G. Skotdal    
    Craig G. Skotdal, President   
       
 
April 29, 2010  Arthur & Marianne Skotdal Revocable Living Trust
 
 
  by   /s/ Craig G. Skotdal    
    Craig G. Skotdal, Trustee   
       
 

 

 

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