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                       SECURlTIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                 SCHEDULE 13D

                  Under the Securities and Exchange Act of 1934
                               (Amendment No. 2 )*

                              Jade Financial Corp.
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                                  Common Stock
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                                   469882104

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                                 (CUSIP Number)
Lawrence B. Seidman, 100 Misty Lane, Parsippany, NJ 07054,
                            (973) 560-1400, Ext.108

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                 (Name, Address and Telephone Number of Person
              Authorized to Receive Notices and Communications)
                                February 3, 2001
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             (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  which is the subject of this  Schedule 13D, and is filing this
schedule because of Rule 13d-l(b)(3) or (4), check the following box .

Check the  following  box if a fee is being paid with the  statement . (A fee is
not required only if the reporting person:  (I) has a previous statement on file
reporting  beneficial  ownership  of more  than  five  percent  of the  class of
securities described in Item l; and (2) has hled no amendment subsequent thereto
reporting  beneficial ownership of hve percent or less of such class.) (See Rule
13d-7.)

Note: Six copies of this statement,  including all exhibits,  should be filed
with the  Commission.  See Rule 13d-l(a) 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  subjcct  to all other  provisions  of the Act  (however,  see the
Notes).




The statement on Schedule 13D which was filed  February 2, 2000 and Amendment #1
filed on May 30,  2000,  on behalf of Seidman and  Associates,  L.L.C.  ("SAL"),
Seidman and Associates II, L.L.C. ("SALII"),  Seidman Investment Partnership, LP
("SIP"), Seidman Investment Partnership II, LP ("SIPII") Federal Holdings L.L.C.
("Federal"),  Kerrimatt,  LP  ("Kerrimatt"),  Lawrence B. Seidman,  Individually
("Seidman"),  Richard  Whitman,  Individually  ("Whitman"),   Lorraine  DiPaolo,
Individually  ("DiPaolo"),  Benchmark  Partners,  L.P.  ("Partners")  and Dennis
Pollack  (Pollack)  ("Seidman")  (collectively,  the  "Reporting  Persons") with
respect to the Reporting Persons' beneficial ownership of shares of Common Stock
(the  "Shares"),  of Jade Financial  Corp., a Pennsylvania  (the  "Issuer"),  is
hereby amended as set forth below: Such Statement on Schedule 13D is hereinafter
referred to as the  "Schedule  13D".  Terms used herein which are defined in the
Schedule 13D shall have their respective meanings set forth in the Schedule 13D.

4.  Purpose of Transaction

On February 2, 2000,  pursuant to the terms and  conditions  of the Stock Option
Agreement dated May 30, 2000, which was disclosed in Schedule 13D, Amendment #1,
the Reporting  Persons sold all their shares at $13.55 per share.  The Reporting
Persons no longer own any shares of the Issuer.







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.




                  February 13, 2001
                  ------                     ------------------------------
                  Date                       Lawrence B. Seidman, Power of
                                             Attorney Pursuant to Joint
                                             Filing Statement Dated
                                             February 1, 2000