SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): ~~April~~ June 2428, 2007

First Mutual Bancshares, Inc.

(exact name of registrant as specified it its charter)

Washington	000-28261	91-2005970
(State or other jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification Number)

400 -108^th AVENUE N.E.

BELLEVUE, WASHINGTON 98004

(425) 455-7300

(Address of principal executive offices, including zip code, and telephone number, Including area code)

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o	Written communications pursuant to Rule 425 under the Securities Act (17CFR 230.425)
o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR 240.14a-12)
o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR 240.14d-2(b))
o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 204.13e-4(c))

Item 21.0201 ~~Results~~Entry ofInto ~~Operations~~a ~~and~~Material ~~Financial~~Definitive ~~Condition~~Agreement

On ~~April 24~~ June 28, 2007, First Mutual Bancshares, Inc., ~~issued~~and First aMutual ~~press~~Savings ~~release~~Bank ~~announcing~~ ("the ~~its~~Bank") ~~financial~~entered ~~results~~into ~~for~~a ~~the~~new ~~first~~short ~~quarter ended~~term ~~March~~Employment ~~31,~~Agreement ("Agreement") ~~2007.~~ with Chief Financial Officer, Roger A. ~~copy~~Mandery, ofthat ~~the~~will ~~press~~have ~~release~~him iscontinue to be ~~furnished~~employed by First Mutual Bancshares, Inc. as ~~Exhibit~~their 99Executive Vice President and Chief Financial Officer.1 ~~hereto~~The Agreement commences effective as of June 1, 2007 and iscontinues through August 31, 2007 unless earlier terminated pursuant ~~incorporated~~ to the ~~herein~~terms byof ~~reference~~the Agreement.

~~Item~~The Agreement 9is attached hereto as Exhibit 99.011 and incorporated thereby. ~~Financial~~This description ~~Statements~~of the terms of the Agreement is not meant to be complete and/or comprehensive ~~Exhibits~~and should be limited by the text of the Agreement itself.

Item 9.01

Financial Statements and Exhibits

Exhibit

Description

Exhibit 99.1 ~~Press~~Employment ~~Release, dated April 24, 2007.~~Agreement

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	FIRST MUTUAL BANCSHARES, INC.
Dated: April 24, 2007
Dated: July 2, 2007
	By: /s/ John R. Valaas
	Its: President and CEO

~~Exhibit~~EXHIBIT ~~Index:~~INDEX

Exhibit Number	Description
Exhibit No.	Description
99.1	~~Press~~Employment ~~Release, dated April 24, 2007~~Agreement

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