Cascade Financial Corporation is a bank holding company. As of December 31, 2008, the Company’s wholly owned subsidiaries were Cascade Bank (Cascade or the Bank), Cascade Capital Trust I, II, and III. The Bank, which is the principal subsidiary of the Company, is a full-service commercial bank that offers a range of products and services. It operates 20 full-service offices. The Bank operates through business banking, construction lending, commercial real estate lending and retail banking. The principal activities conducted by business banking are the origination and servicing of commercial business loans and associated merchant services. The construction unit provides financing to builders and developers for residential construction and land acquisition and development. The income property unit originates loans secured by multi-family properties and commercial real estate.