FORM 10-Q/A
                               (Amendment No. 1)

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington D.C. 20549

                   Quarterly Report Under Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

For The Quarter Ended June 30, 2001                  Commission File No. 1-10176

                           MFN Financial Corporation
            ------------------------------------------------------
            (Exact name of registrant as specified in its charter)

           Delaware                                      36-3627010
-------------------------------             ------------------------------------
(State or other jurisdiction of             (I.R.S. Employer identification no.)
 incorporation or organization)

100 Field Drive, Suite 340, Lake Forest, Illinois              60045
-------------------------------------------------            ----------
   (Address of Principal Executive Offices)                  (Zip Code)

Registrant's telephone number, including area code:  (847) 295-8600

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing for the
past 90 days.

Yes  X    No
    ---      ---

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.

Yes  X    No
    ---      ---

Indicate the number of shares outstanding of each issuer's class of common
stock, as of the latest practicable date.

Common Stock - $.01 par value, 9,991,284 shares as of July 31, 2001.


                              PURPOSE OF AMENDMENT

This amendment is being filed to show Exhibit 11, Computation of Earnings Per
Share, which was inadvertently omitted from MFN Financial Corporation's
(the "Company's") Quarterly Report on Form 10-Q for the quarter ended June 30,
2001.


   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 thereunto duly authorized.



                           MFN FINANCIAL CORPORATION
                                 (Registrant)



Date:  August 7, 2001    /s/ Edward G. Harshfield
                         ------------------------
                         Edward G. Harshfield
                         Executive Chairman


Date:  August 7, 2001    /s/ Jeffrey B. Weeden
                         ---------------------
                         Jeffrey B. Weeden
                         President and Chief Executive Officer


Date:  August 7, 2001    /s/ Mark D. Whitham
                         -------------------
                         Mark D. Whitham
                         Chief Financial Officer (Chief Accounting Officer)


                               INDEX OF EXHIBITS

  Exhibit No.          Description
  -----------          -----------

      11               Computation of Earnings Per Share