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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 CsRdb00dWb/qALbqN+rRzqIKJyPIQARGSENOHo1MEalBGHlk56uye9hqHpoNZmLE
 VW6j9FP8Ik9W8e9nrGHVvA==

<SEC-DOCUMENT>0001140361-10-030789.txt : 20100729
<SEC-HEADER>0001140361-10-030789.hdr.sgml : 20100729
<ACCEPTANCE-DATETIME>20100729181518
ACCESSION NUMBER:		0001140361-10-030789
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20100729
FILED AS OF DATE:		20100729
DATE AS OF CHANGE:		20100729

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			ERICKSON STEVEN R
		CENTRAL INDEX KEY:			0001226394

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25286
		FILM NUMBER:		10979038

	MAIL ADDRESS:	
		STREET 1:		C/O CASCADE BANK
		STREET 2:		2828 COLBY AVE
		CITY:			EVERETT
		STATE:			WA
		ZIP:			98201

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CASCADE FINANCIAL CORP
		CENTRAL INDEX KEY:			0000928911
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				911661954
		STATE OF INCORPORATION:			WA
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		2828 COLBY AVE
		CITY:			EVERETT
		STATE:			WA
		ZIP:			98201
		BUSINESS PHONE:		4252598551

	MAIL ADDRESS:	
		STREET 1:		2828 COLBY AVE
		CITY:			EVERETT
		STATE:			WA
		ZIP:			98201
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>doc1.xml
<DESCRIPTION>FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2010-07-29</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000928911</issuerCik>
        <issuerName>CASCADE FINANCIAL CORP</issuerName>
        <issuerTradingSymbol>CASB</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001226394</rptOwnerCik>
            <rptOwnerName>ERICKSON STEVEN R</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O CASCADE BANK</rptOwnerStreet1>
            <rptOwnerStreet2>2828 COLBY AVE</rptOwnerStreet2>
            <rptOwnerCity>EVERETT</rptOwnerCity>
            <rptOwnerState>WA</rptOwnerState>
            <rptOwnerZipCode>98201</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Real Estate Business Executive</officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>COMMON STOCK</value>
            </securityTitle>
            <transactionDate>
                <value>2010-07-29</value>
            </transactionDate>
            <deemedExecutionDate></deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>13159</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>.38</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>44789.004</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>BY 401(K)</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeHolding>
            <securityTitle>
                <value>COMMON STOCK</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>700</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes></footnotes>

    <remarks></remarks>

    <ownerSignature>
        <signatureName>BY: /s/ STEVEN R ERICKSON</signatureName>
        <signatureDate>2010-07-29</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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