UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                -----------------
                                    FORM 10-K

|X|   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
      ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2002

                                       or

|_|   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM____ TO ____

                         Commission File number 1-10518

                   INTERCHANGE FINANCIAL SERVICES CORPORATION
             (Exact name of registrant as specified in its charter)

               New Jersey                                      22-2553159
     (State or other jurisdiction of                        (I.R.S. Employer
     incorporation  or organization)                       Identification No.)

 Park 80 West/Plaza Two, Saddle Brook, NJ                         07663
 (Address of principal executive offices)                       (Zip Code)

       Registrant's telephone number, including area code: (201) 703-2265

        Securities registered pursuant to Section 12(b) of the Act: None

           Securities registered pursuant to Section 12(g) of the Act:

                                 Title of Class
                           Common Stock (no par value)

      Indicate by checkmark whether the registrant (1) has filed all reports
required to be filed by Sections 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 requirements for the past 90 days. Yes |X| No |_|

      Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. |_|

      Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Act). Yes |X| No |_|

      The aggregate market value of registrant's voting stock held by
non-affiliates of the registrant computed June 28, 2002 based on the average bid
and asked price for such stock on that date was approximately $154,312,000.

      The number of outstanding shares of the Registrant's common stock, no par
value per share, as of March 18, 2003, was as follows:

      Class                                      Number of Outstanding Shares
      -----                                      ----------------------------
  Common Stock
 (No par value)                                           9,839,831

Documents incorporated by reference:

Portions of registrant's definitive Proxy Statement for the 2003 Annual Meeting
of Shareholders forming a part of registrant's registration statement on Form
S-4 (Registration No. 333-103256) (the "2003 annual Meeting Proxy Statement")
are incorporated by reference to Part III of this Annual Report on Form 10-K.

Portions of registrant's Annual Report to Shareholders for the fiscal year ended
December 31, 2002 (the "2002 Annual Report to Shareholders") are incorporated by
reference to Parts II and IV of this Annual Report on Form 10-K.

With the exception of information specifically incorporated by reference, the
2003 Annual Meeting Proxy Statement and the 2002 Annual Report to Shareholders
are not deemed to be part of the report.


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<PAGE>

                   INTERCHANGE FINANCIAL SERVICES CORPORATION
                             INDEX TO ANNUAL REPORT
                                  ON FORM 10-K

<TABLE>
<CAPTION>
PART I                                                                                         PAGE
<S>             <C>                                                                            <C>
Item 1.         Business..............................................................            1
Item 2.         Properties............................................................           10
Item 3.         Legal Proceedings.....................................................           10
Item 4.         Submission of Matters to a Vote of Security Holders...................           11

PART II
Item 5.         Market for Registrant's Common Equity and Related Stockholder
                    Matters...........................................................           12
Item 6.         Selected Financial Data...............................................           12
Item 7.         Management's Discussion and Analysis of Financial
                    Condition and Results of Operations...............................           15
Item 7A.        Quantitative and Qualitative Disclosures About Market Risk............           15
Item 8.         Financial Statements and Supplementary Data...........................           15
Item 9.         Changes in and Disagreements with Accountants
                    on Accounting and Financial Disclosure............................           15

PART III
Item 10.        Directors and Executive Officers of the Registrant....................           16
Item 11.        Executive Compensation................................................           17
Item 12.        Security Ownership of Certain Beneficial Owners
                    and Management and Related Stockholder Matters....................           17
Item 13.        Certain Relationships and Related Transactions........................           18
Item 14.        Controls and Procedures...............................................           18

PART IV
Item 15.        Exhibits, Financial Statement Schedules
                    and Reports on Form 8-K...........................................           20

Signatures      ......................................................................           22
Certifications  ......................................................................
Exhibit Index   ......................................................................
</TABLE>

<PAGE>

                                     PART I

Item 1. Business

General

      Interchange Financial Services Corporation (the "Company"), a New Jersey
business corporation, is a bank holding company registered with the Board of
Governors of the Federal Reserve System under the Bank Holding Company Act of
1956, as amended. The Company was incorporated in the State of New Jersey on
October 15, 1984. It acquired all of the outstanding stock of Interchange Bank
(formerly known as Interchange State Bank), a New Jersey state chartered bank
(the "Bank" or "Interchange"), in 1986. The Bank is the Company's principal
operating subsidiary. In addition to the Bank, the Company owns all of the
outstanding capital stock of Clover Leaf Mortgage Company, a New Jersey
Corporation established in 1988, which is not currently engaged in any business
activity.

      The Company's principal executive office is located at Park 80 West/ Plaza
Two, Saddle Brook, New Jersey 07663, and the telephone number is (201) 703-2265.

      As of December 31, 2002, the Company had consolidated assets of
approximately $936,332,000, deposits of approximately $815,672,000 and
shareholders' equity of approximately $80,680,000.

      As a holding company, the Company provides support services to its direct
and indirect subsidiaries. These include executive management, personnel and
benefits, risk management, data processing, strategic planning, legal, and
accounting and treasury.

Banking Subsidiary

      The Bank, established in 1969, is a full-service New Jersey-chartered
commercial bank headquartered in Saddle Brook, New Jersey. The Bank is a member
of the Federal Reserve System and its deposits are insured by the Federal
Deposit Insurance Corporation (the "FDIC"). It offers banking services for
individuals and businesses through eighteen (18) banking offices and one (1)
supermarket mini-branch in Bergen County, New Jersey. The Bank maintains
twenty-two (22) automated teller machines (operating within the Star(TM),
Plus(TM), HONOR(TM), CIRRUS(TM), VISA(TM), NYCE(TM), and MasterCard(TM)
networks), which are located at seventeen of the banking offices, a supermarket,
a college and the Bank's operations center.

      Subsidiaries of the Bank include: Clover Leaf Investment Corporation,
established in 1988 to engage in the business of an investment company pursuant
to New Jersey law; Clover Leaf Insurance Agency, Inc., established in 1990 to
engage in sales of tax-deferred annuities; Clover Leaf Management Realty
Corporation, established in 1998 as a Real Estate Investment Trust ("REIT")
which manages certain real estate assets of the Company; and Interchange Capital
Company, L.L.C., established in 1999 to engage in equipment lease financing. All
of the Bank's subsidiaries are organized under New Jersey law and are 100% owned
by the Bank,


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<PAGE>

except for the REIT which is 99% owned by the Bank.

Growth of the Company and the Bank

      On November 18, 2002, the Company and Bridge View Bancorp ("Bridge View")
signed a definitive agreement under which the Company will acquire Bridge View
in a merger transaction for cash and stock. Pursuant to the terms of the
definitive agreement, the Company will pay to Bridge View shareholders and stock
option holders approximately $33,528,472 in cash and issue 2,949,719 shares of
its common stock. The proposed acquisition, which will be accounted for as a
purchase, is subject to certain closing conditions including shareholder and
regulatory approval, and is expected to be completed in the second quarter of
2003. Bridge View, with approximately $281 million in total assets at December
31, 2002, is a bank holding company headquartered in Englewood Cliffs, New
Jersey and operates eleven branches in Bergen County, New Jersey. The primary
banking subsidiary of Bridge View is Bridge View Bank.

      On January 16, 2002, the Company acquired certain assets and assumed
certain liabilities of Monarch Capital Corporation ("Monarch"). In this asset
purchase transaction, the Company acquired certain loans and leases valued at
approximately $13.7 million. In addition, the Company assumed certain
liabilities (borrowings) of Monarch, valued at approximately $13.2 million,
which had been used to fund the loans and leases. The purchase price of
$2,252,000 was paid in cash and shares of Company common stock, subject to
certain adjustments.

      On May 31, 1998, the Company completed its acquisition of Jersey Bank for
Savings. At that date, Jersey Bank had total assets of approximately $78.6
million and total deposits of approximately $69.8 million. The transaction was
accounted for as a pooling of interests. In the transaction, each share of stock
of Jersey Bank for Savings, including shares of common stock that had been
converted from shares of preferred stock, was converted into 1.5 shares of the
Company's common stock. The Company issued 780,198 shares of its common stock in
the transaction.

      In 1994, the Bank assumed $26,468,000 in deposit liabilities of Volunteer
Federal Savings Association of Little Ferry, New Jersey.

Description of Banking and Related Operations

      Through the Bank, the Company offers a wide range of consumer banking
products and services, including checking and savings accounts, money-market
accounts, certificates of deposit, individual retirement accounts, residential
mortgages, home equity lines of credit and other second mortgage loans, home
improvement loans, automobile loans, personal loans and overdraft protection.
The Bank also offers a VISA(TM) credit card and several convenience products,
including the Interchange Check Card, which permits customers to


                                       2
<PAGE>

access their checking accounts by using the card when making purchases. The
Interchange Check Card can also be used as an ATM card to perform basic banking
transactions.

      Another service offered to customers is Interchange Bank-Line Telephone
Banking, which permits customers to perform basic banking transactions,
including, transfer money between accounts and make loan payments from any
phone, at any time of the day or night by calling a toll-free number. The Bank
also offers the Interchange Bank-Line Center, which is an inbound calling
facility providing enhanced customer service via access to a single source for
account and product information, opening accounts or even applying for a
consumer loan. The Interchange Bank-Line Center also serves as an outbound
telemarketing resource, contacting prospective and current customers for new
accounts.

      The Bank also offers online banking through InterBank. InterBank, which is
accessed through the Bank's web site at www.interchangebank.com, allows
customers to access account information, process transfers between accounts,
generate an account statement, pay bills electronically and more. As discussed
herein, additional products and services may be accessed through the Bank's web
site.

      The Bank also is engaged in the financing of local business and industry,
providing credit facilities and related services for smaller businesses,
typically those with $1 million to $5 million in annual sales. Commercial loan
customers of the Bank are businesses ranging from light manufacturing and local
wholesale and distribution companies to medium-sized service firms and local
retail businesses. Most types of commercial loan products are offered, including
working capital lines of credit, small business administration loans, term loans
for fixed asset acquisitions, commercial mortgages, equipment lease financing
and other forms of asset-based financing.

      In addition to its origination activities, the Bank purchases packages of
loans. In 2002 and 2001, the Bank purchased $14.9 million and $18.8 million of
loans, respectively. These loans were subjected to the Bank's independent credit
analysis prior to purchase. The Bank has experienced opportunities to sell its
other products and services to the borrowers whose loans are purchased and
believes that purchasing loans will continue to be a desirable way to augment
its portfolios as opportunities arise.

      The Bank also engages in mutual fund and annuities sales and brokerage
services. An Investment Services Program is offered through an alliance between
the Bank and ICBA Financial Services Corporation ("ICBA"), under which mutual
funds and annuities offered by ICBA are made available to the Bank's customers.
The Bank has also expanded its product offerings by entering into an agreement
with a third party provider to offer discount brokerage services to its
customers. The Bank offers securities trading through its web site, which is
hyperlinked to FISERV Securities, Inc., member NASD/SIFC, so that customers can
access their brokerage accounts via the Internet. There is also a direct link
from the Company's web site to the Nasdaq National Market


                                       3
<PAGE>

to allow investors to keep informed of the daily quotes and market activity for
the Company's common stock.

      Additional information about the Bank and the Company may be found on our
web site at www.interchangebank.com. Information contained on our Internet web
site is not part of this Annual Report on Form 10-K and is not being
incorporated by reference into this report.

Market Areas

      The Company's principal market for its deposit gathering and loan
origination activities covers major portions of Bergen County in the
northeastern corner of New Jersey adjacent to New York City. Bergen County has a
relatively large affluent base for the Company's services. The principal service
areas of the Company represent a diversified mix of stable residential
neighborhoods with a wide range of per household income levels; offices, service
industries and light industrial facilities; and large shopping malls and small
retail outlets.

Competition

      Competition in the banking and financial services industry within the
Company's primary market area is strong. The Bank actively competes with
national and state-chartered commercial banks, operating on a local and national
scale, and other financial institutions, including savings and loan
associations, mutual savings banks, and credit unions. In addition, the Bank
faces competition from less heavily regulated entities such as brokerage
institutions, money management firms, consumer finance and credit card companies
and various other types of financial services companies. Many of these
institutions are larger than the Bank, some are better capitalized, and a number
pursue community banking strategies similar to those of the Bank.

      The Bank believes that opportunities continue to exist to satisfy the
deposit and borrowing needs of small and middle market businesses. Larger banks
continued to show an appetite for only the largest loans, finding themselves
challenged to administer smaller loans profitably. Interchange has the desire
and the ability to give smaller and mid-sized businesses the service they
require. Many small businesses eventually become midsize businesses, with a
corresponding change in their financial requirements. By designing programs to
accommodate the changing needs of growing businesses, Interchange is extending
the longevity of valuable customer relationships. For example, through our
subsidiary, Interchange Capital Company, L.L.C., we are able to extend
cost-effective equipment leasing solutions for a variety of expansion and
upgrading projects. The Bank believes that it is able to maintain its
relationship with these growing businesses because of its ability to be
responsive to both small and midsize business constituencies.

Personnel

      The Company had 226 full-time-equivalent employees at year-end 2002. The
Company believes its relationship with employees to be good.


                                       4
<PAGE>

Regulation and Supervision

      Banking is a complex, highly regulated industry. The primary goals of the
bank regulatory structure are to maintain a safe and sound banking system and to
facilitate the conduct of sound monetary policy. In furtherance of those goals,
Congress has created several largely autonomous regulatory agencies and enacted
myriad legislation that governs banks, bank holding companies and the banking
industry. Descriptions and references to the statutes and regulations below are
brief summaries thereof and do not purport to be complete. The descriptions are
qualified in their entirety by reference to the specific statutes and
regulations discussed.

      The Company

      The Company is a registered bank holding company under the Bank Holding
Company Act of 1956, as amended (the "BHCA"), and as such, is subject to
supervision and regulation by the Board of Governors of the Federal Reserve
System (the "Federal Reserve"). As a bank holding company, the Company is
required to file an annual report with the Federal Reserve and such additional
information as the Federal Reserve may require pursuant to the BHCA and Federal
Regulation Y. The Federal Reserve may conduct examinations of the Company or any
of its subsidiaries.

      The BHCA requires every bank holding company to obtain the prior approval
of the Federal Reserve before it may acquire all or substantially all of the
assets of any bank (although the Federal Reserve may not assert jurisdiction in
certain bank mergers that are regulated under the Bank Merger Act), or ownership
or control of any voting shares of any bank if after such acquisition it would
own or control directly or indirectly more than 5% of the voting shares of such
bank.

      The BHCA also provides that, with certain limited exceptions, a bank
holding company may not (i) engage in any activities other than those of banking
or managing or controlling banks and other authorized subsidiaries or (ii) own
or control more than five percent (5%) of the voting shares of any company that
is not a bank, including any foreign company. A bank holding company is
permitted, however, to acquire shares of any company the activities of which the
Federal Reserve, after due notice and opportunity for hearing, has determined to
be so closely related to banking or managing or controlling banks as to be a
proper incident thereto. The Federal Reserve has issued regulations setting
forth specific activities that are permissible under the exception. A bank
holding company and its subsidiaries are also prohibited from engaging in
certain tie-in arrangements in connection with any extension of credit, lease or
sale of property or furnishing of services.

      Under certain circumstances, prior approval of the Federal Reserve is
required under the BHCA before a bank holding company may purchase or redeem any
of its equity securities.

      Traditionally, the activities of bank holding companies have been limited
to the business of banking and


                                       5
<PAGE>

activities closely related or incidental to banking. The Gramm-Leach-Bliley
Financial Services Modernization Act of 1999 (the "Modernization Act"), enacted
on November 11, 1999, with an effective date of March 11, 2000, expanded the
types of activities in which a bank holding company may engage. Subject to
various limitations, the Modernization Act generally permits a bank holding
company to elect to become a "financial holding company." A financial holding
company may affiliate with securities firms and insurance companies and engage
in other activities that are "financial in nature." Among the activities that
are deemed "financial in nature" are, in addition to traditional lending
activities, securities underwriting, dealing in or making a market in
securities, sponsoring mutual funds and investment companies, insurance
underwriting and agency activities, certain merchant banking activities, and
activities that the Federal Reserve considers to be closely related to banking.

      A bank holding company may become a financial holding company under the
Modernization Act if each of its subsidiary banks is "well capitalized" under
the Federal Reserve guidelines (See "Capital Adequacy Guidelines" below), is
well managed and has at least a satisfactory rating under the Community
Reinvestment Act. In addition, the bank holding company must file a declaration
with the Federal Reserve that the bank holding company wishes to become a
financial holding company. A bank holding company that falls out of compliance
with such requirements may be required to cease engaging in certain activities
permitted only for financial holding companies. Any bank holding company that
does not elect to become a financial holding company remains subject to the
current restrictions of the BHCA.

      Under the Modernization Act, the Federal Reserve serves as the primary
"umbrella" regulator of financial holding companies, with supervisory authority
over each parent company and limited authority over its subsidiaries. Expanded
financial activities of financial holding companies will generally be regulated
according to the type of such financial activity: banking activities by banking
regulators, securities activities by securities regulators, and insurance
activities by insurance regulators. The Modernization Act also imposes
additional restrictions and heightened disclosure requirements regarding private
information collected by financial institutions.

      Presently, the Company has not chosen to become a financial holding
company.

      Monetary Policy

      The banking industry is affected by the monetary and fiscal policies of
the Federal Reserve. An important function of the Federal Reserve is to regulate
the national supply of bank credit to moderate recessions and to curb inflation.
Among the instruments of monetary policy used by the Federal Reserve to
implement its objectives are: open-market operations in U. S. government
securities, changes in the discount


                                       6
<PAGE>

rate and the federal funds rate (which is the rate banks charge each other for
overnight borrowings), and changes in reserve requirements on bank deposits.

      Sarbanes-Oxley Act

      On July 30, 2002, the Sarbanes-Oxley Act of 2002 was signed into law. The
Act addresses many aspects of financial accounting, corporate governance and
public company disclosure. Among other things, it establishes a comprehensive
framework for the oversight of public company auditing and for strengthening the
independence of auditors and audit committees. Under the Act, audit committees
are responsible for the appointment, compensation and oversight of the work of
the auditors. The non-audit services that can be provided to a company by its
auditor are limited. Audit committee members are subject to new rules addressing
their independence. The Act also requires enhanced and accelerated financial
disclosures, and it establishes various responsibility measures (including, for
example, requiring the chief executive officer and chief financial officer to
certify to the quality of a company's financial reporting). The Act imposes new
restrictions on and accelerated reporting requirements for certain insider
trading activities. It imposes a variety of new penalties for fraud and other
violations and creates a new federal felony for securities fraud. Various
sections of the Act are applicable to the Company. Portions of the Act were
effective immediately; others became effective or are in the process of becoming
effective through rulings by the Securities and Exchange Commission, based on
timelines set forth in the law.

      Capital Adequacy Guidelines

      The Federal Reserve issued guidelines establishing risk-based capital
requirements for bank holding companies having more than $150 million in assets
and member banks of the Federal Reserve System. The guidelines established a
risk-based capital framework consisting of (1) a definition of capital and (2) a
system for assigning risk weights. Capital consists of Tier I capital, which
includes common shareholders' equity less certain intangibles and a
supplementary component called Tier II, which includes a portion of the
allowance for loan losses. Effective October 1, 1998, the Federal Reserve
adopted an amendment to its risk-based capital guidelines that permits insured
depository institutions to include in their Tier II capital up to 45% of the
pre-tax net unrealized gains on certain available for sale equity securities.
All assets and off-balance-sheet items are assigned to one of four weighted risk
categories ranging from 0% to 100%. Higher levels of capital are required for
the categories perceived as representing the greater risks. The Federal Reserve
established a minimum risk-based capital ratio of 8% (of which at least 4% must
be Tier I). An institution's risk-based capital ratio is determined by dividing
its qualifying capital by its risk-weighted assets. The guidelines make
regulatory capital requirements more sensitive to differences in risk profiles
among banking institutions, take off-balance sheet items


                                       7
<PAGE>

into account in assessing capital adequacy, and minimize disincentives to
holding liquid, low-risk assets. Banking organizations are generally expected to
operate with capital positions well above the minimum rates. Institutions with
higher levels of risk, or which experience or anticipate significant growth, are
also expected to operate well above minimum capital standards. In addition to
the risk-based guidelines discussed above, the Federal Reserve requires that a
bank holding company and bank which meet the regulator's highest performance and
operational standards and which are not contemplating or experiencing
significant growth maintain a minimum leverage ratio (Tier I capital as a
percent of quarterly average adjusted assets) of 3%. For those financial
institutions with higher levels of risk or that are experiencing or anticipating
significant growth, the minimum leverage ratio will be increased. At December
31, 2002, the Company and the Bank satisfied these ratios and have been
categorized as "well-capitalized" institutions, which in the regulatory
framework for prompt corrective action imposes the lowest level of supervisory
restraints.

      Capital adequacy guidelines focus principally on broad categories of
credit risk although the framework for assigning assets and off-balance sheet
items to risk categories does incorporate elements of transfer risk. The
risk-based capital ratio does not, however, incorporate other factors that may
affect a company's financial condition, such as overall interest rate exposure,
liquidity, funding and market risks, the quality and level of earnings,
investment or loan concentrations, the quality of loans and investments, the
effectiveness of loan and investment policies and management's ability to
monitor and control financial and operating risks.

      The Federal Reserve is vested with broad enforcement powers over bank
holding companies to forestall activities that represent unsafe or unsound
practices or constitute violations of law. These powers may be exercised through
the issuance of cease and desist orders or other actions. The Federal Reserve is
also empowered to assess civil money penalties against companies or individuals
that violate the BHCA, to order termination of non-banking activities of
non-banking subsidiaries of bank holding companies and to order termination of
ownership and control of non-banking subsidiaries by bank holding companies.
Neither the Company nor any of its affiliates has ever been the subject of any
such actions by the Federal Reserve.

      The Bank

      As a New Jersey state-chartered bank, the Bank's operations are subject to
various requirements and restrictions of state law pertaining to, among other
things, lending limits, reserves, interest rates payable on deposits, loans,
investments, mergers and acquisitions, borrowings, dividends, locations of
branch offices and capital adequacy. The Bank is subject to primary supervision,
periodic examination and regulation by the New Jersey Department of Banking and
Insurance ("NJDBI"). If, as a result of an examination of a bank, the NJDBI
determines that the financial condition, capital resources, asset quality,
earnings prospects, management, liquidity,


                                       8
<PAGE>

or other aspects of the bank's operations are unsatisfactory or that the bank or
its management is violating or has violated any law or regulation, various
remedies are available to the NJDBI. Such remedies include the power to enjoin
"unsafe and unsound" practices, to require affirmative action to correct any
conditions resulting from any violation or practice, to issue an administrative
order that can be judicially enforced, to, among other things, direct an
increase in capital, to restrict the growth of the Bank, to assess civil
penalties and to remove officers and directors. The Bank has never been the
subject of any administrative orders, memoranda of understanding or any other
regulatory action by the NJDBI. The Bank also is a member of the Federal Reserve
System and therefore subject to supervisory examination by and regulations of
the Federal Reserve Bank of New York.

      The Bank's deposits are insured by the Bank Insurance Fund ("BIF")
administered by the FDIC up to a maximum of $100,000 per depositor. For this
protection, the Bank pays a quarterly statutory deposit insurance assessment to,
and is subject to the rules and regulations of, the FDIC.

      The Bank's ability to pay dividends is subject to certain statutory and
regulatory restrictions. The New Jersey Banking Act of 1948, as amended,
provides that no state-chartered bank may pay a dividend on its capital stock
unless, following the payment of each such dividend, the capital stock of the
bank will be unimpaired, and the bank will have a surplus of not less than 50%
of its capital, or, if not, the payment of such dividend will not reduce the
surplus of the bank. In addition, the payment of dividends is limited by the
requirement to meet the risk-based capital guidelines issued by the Federal
Reserve Board and other regulations.

      To the extent that the foregoing information describes statutory and
regulatory provisions, it is qualified in its entirety by reference to the full
text of those provisions. Also, as such statutes, regulations and policies are
continually under review by Congress and state legislature and federal and state
regulatory agencies. A change in statutes, regulations or regulatory policies
applicable to the Company or the Bank could have a material effect on the
business of the Company.

Available Information

      The Company's annual reports on Form 10-K, quarterly reports on Form 10-Q,
current reports on Form 8-K and all amendments to those reports filed or
furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are available
free of charge through the Company's web site as soon as reasonably practicable
after such material is electronically filed or furnished to the Securities and
Exchange Commission. The Company's web site address is www.interchangebank.com.

Forward Looking Statements

      In addition to discussing historical information, certain statements
included in or incorporated into this report relating to the financial
condition, results of operations and business of the Company which are not


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<PAGE>

historical facts may be deemed "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. When used herein, the
words "anticipate," "believe," "estimate," "expect," "will" and other similar
expressions (including when preceded or followed by the word "not") are
generally intended to identify such forward-looking statements. Such statements
are intended to be covered by the safe harbor provisions for forward-looking
statements contained in such Act, and we are including this statement for
purposes of invoking these safe harbor provisions. Such forward-looking
statements include, but are not limited to, statements about the operations of
the Company, the adequacy of the Company's allowance for losses associated with
the loan portfolio, the prospects of continued loan and deposit growth, and
improved credit quality.

      The forward-looking statements in this report involve certain estimates or
assumptions, known and unknown risks and uncertainties, many of which are beyond
the control of the Company, and reflect what we currently anticipate will happen
in each case. What actually happens could differ materially from what we
currently anticipate will happen due to a variety of factors, including, among
others, (i) increased competitive pressures among financial services companies;
(ii) changes in the interest rate environment, reducing interest margins or
increasing interest rate risk; (iii) deterioration in general economic
conditions, internationally, nationally, or in the State of New Jersey; (iv) the
occurrence of acts of terrorism, such as the events of September 11, 2001, or
acts of war; (v) legislation or regulatory requirements or changes adversely
affecting the business of the Company; (vi) losses in the Company's leasing
subsidiary exceeding management's expectations; and (vii) other risks detailed
in reports filed by the Company with the Securities and Exchange Commission.
Readers should not place undue expectations on any forward-looking statements.
We are not promising to make any public announcement when we consider
forward-looking statements in this document to be no longer accurate, whether as
a result of new information, what actually happens in the future or for any
other reason.

Item 2. Properties

      The Company leases twelve banking offices, one mini-branch within a
supermarket, one operations/support facility and one administrative/executive
facility. It also leases two locations for the sole purpose of operating
Automated Teller Machines. It owns four banking offices and leases land on which
it owns two bank buildings. All of the facilities are located in Bergen County,
New Jersey, which constitutes the Company's primary market area.

      In the opinion of management, the physical properties of the Company and
its subsidiaries are suitable and adequate.

Item 3. Legal Proceedings

      In the ordinary course of business, the Company and its subsidiaries are
involved in routine litigation involving various aspects of its business, none
of which, individually or in the aggregate, in the opinion of management and its
legal counsel, is expected to have a material adverse impact on the consolidated
financial condition, results of operations or liquidity of the Company.


                                       10
<PAGE>

Item 4. Submission of Matters to a Vote of Security Holders

      No matters were submitted to a vote of the Company's security holders
through the solicitation of proxies or otherwise during the three months ended
December 31, 2002.


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<PAGE>

                                     Part II

Item 5. Market for the Registrant's Common Equity and Related Stockholder
Matters

      The Company's common stock is presently listed for quotation on the Nasdaq
National Market System under the symbol "IFCJ". At March 17, 2003, there were
approximately 1,200 shareholders of record. A portion of the Company's common
stock is held in "street name" by nominees for beneficial owners, so the actual
number of shareholders is probably higher. The following table sets forth, for
the periods indicated, the reported high and low sales prices by quarter:

Quarterly Common Stock Price Range
for the years ended December 31,
--------------------------------------------------------------------------------
                                          High           Low          Cash
                                          Sales         Sales       Dividends
                                          Price         Price       Declared
                                        --------      --------      --------
2001
      First quarter .............       $  12.59      $   9.17      $  0.090
      Second quarter ............          12.23          9.96         0.090
      Third quarter .............          12.41         11.57         0.090
      Fourth quarter ............          13.15         11.70         0.090

2002
      First quarter .............       $  16.23      $  12.47      $  0.100
      Second quarter ............          19.27         16.23         0.100
      Third quarter .............          18.67         15.70         0.100
      Fourth quarter ............          19.10         15.95         0.140

--------------------------------------------------------------------------------

All per share data was restated to reflect a 3-for-2 stock split declared on May
23, 2002 and paid on July 12, 2002.

      A cash dividend of $0.090 and $0.100 was declared on each common share
outstanding in each quarter during 2001 and 2002, respectively. The Company
declared a special cash dividend of $0.04 per common share in the fourth quarter
of 2002, which was paid in the first quarter of 2003.

      The Company intends, subject to its financial results, contractual, legal,
and regulatory restrictions, and other factors that its Board of Directors may
deem relevant, to declare and pay a quarterly cash dividend on its common stock
in the future. The principal source of the funds to pay any dividends on the
Company's common stock is dividends received from the Bank. Certain federal and
state regulators impose restrictions on the payment of dividends by banks. See
"Business - Regulation and Supervision" for a discussion of these restrictions.
See Note 17 of Notes to Consolidated Financial Statement for additional
information.

Item 6. Selected Financial Data

      The following selected financial data are derived from the Company's
audited Consolidated Financial Statements. The information set forth below
should be read in conjunction with the Consolidated Financial Statements and the
Notes thereto and "Management's Discussion and Analysis of Financial Condition
and Results of Operations." The Consolidated Statements of Financial Condition
as of December 31, 2002 and 2001,


                                       12
<PAGE>

and the Consolidated Statements of Income, Changes in Stockholders' Equity and
Cash Flows for each of the years in the three-year period ended December 31,
2002 and the report thereon of Deloitte & Touche LLP are included on pages 30
through 51 of the Company's 2002 Annual Report to Shareholders filed as Exhibit
13 hereto, which pages are incorporated herein by reference.

CONSOLIDATED FINANCIAL HIGHLIGHTS
Years Ended December 31,
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                              2002        2001        2000        1999       1998(1)
                                                                            --------    --------    --------    --------   --------
<S>                                                                         <C>         <C>         <C>         <C>        <C>
Income Statement Data (in thousands)
    Interest income                                                         $ 56,500    $ 57,402    $ 55,621    $ 49,054   $ 48,766
    Interest expense                                                          17,478      23,444      24,227      18,783     19,864
                                                                            --------    --------    --------    --------   --------
        Net interest income                                                   39,022      33,958      31,394      30,271     28,902
    Provision for loan losses                                                  1,500       1,075         750       1,200        951
                                                                            --------    --------    --------    --------   --------
        Net interest income after provision for loan losses                   37,522      32,883      30,644      29,071     27,951
    Non-interest income                                                        6,514       5,578       4,381       5,586      4,982
    Non-interest expenses                                                     25,063      22,873      21,177      20,063     19,416
                                                                            --------    --------    --------    --------   --------
        Income before income taxes                                            18,973      15,588      13,848      14,594     13,517
    Income Taxes                                                               6,096       5,048       4,592       4,959      4,908
                                                                            --------    --------    --------    --------   --------
    Net income                                                              $ 12,877    $ 10,540    $  9,256    $  9,635   $  8,609
                                                                            ========    ========    ========    ========   ========

Per Share Data (2)
    Basic earnings per common share                                         $   1.31    $   1.08    $   0.94    $   0.91   $   0.80
    Diluted earnings per common share                                           1.30        1.07        0.94        0.91       0.79
    Cash dividends declared                                                     0.40        0.36        0.33        0.32       0.27
    Special Cash Dividend                                                       0.04          --          --          --         --
    Book value                                                                  8.22        7.04        6.33        5.77       5.77
    Tangible book value (3)                                                     8.05        7.04        6.32        5.73       5.71
    Weighted average shares outstanding (in thousands)
        Basic                                                                  9,809       9,779       9,810      10,547     10,784
        Diluted                                                                9,933       9,822       9,838      10,593     10,856

Balance Sheet Data--end of year (in thousands)
    Total assets                                                            $936,332    $830,949    $770,244    $706,125   $685,364
    Securities held-to-maturity and securities available-for-sale            252,512     193,902     161,354     161,889    149,930
    Loans and leases                                                         615,641     581,323     560,879     511,976    478,717
    Allowance for loan and lease losses                                        7,207       6,569       6,154       5,476      5,645
    Total deposits                                                           815,672     726,483     668,860     598,992    598,732
    Securities sold under agreements to repurchase                            17,390       6,700      18,500      16,431      8,780
    Short-term borrowings                                                         --      18,100      13,000      13,975      9,768
    Long-term borrowings                                                      10,000          --          --      13,000         --
    Total stockholders' equity                                              $ 80,680    $ 68,233    $ 61,984    $ 58,276   $ 62,372

Selected Performance Ratios
    Return on average total assets                                              1.43%       1.31%       1.24%       1.39%      1.31%
    Return on average total stockholders' equity                               17.35       16.06       16.18       15.52      14.53
    Dividend Payout                                                            33.56       33.37       35.24       35.04      32.81
    Average total stockholders' equity to average total assets                  8.27        8.13        7.64        8.99       9.00
    Net yield on interest earning assets (taxable equivalent) (4)               4.68        4.49        4.41        4.61       4.61
    Efficiency ratio (5)                                                       55.06       57.46       58.52       56.81      53.59
    Non-interest income to average total assets                                 0.73        0.69        0.59        0.81       0.76
    Non-interest expense to average total assets                                2.79        2.83        2.83        2.90       2.95

Asset Quality--end of year (in thousands)
    Nonaccrual loans and leases to total loans and leases                       0.97%       0.37%       0.25%       0.22%      0.25%
    Nonperforming assets to total assets                                        0.66        0.34        0.21        0.22       0.26
    Allowance for loan and lease losses to nonaccrual loans and leases        120.86      304.12      441.15      491.12     471.20
    Allowance for loan and lease losses to total loans and leases               1.17        1.13        1.10        1.07       1.18
    Net charge-offs to average loans and leases                                 0.14        0.11        0.01        0.28       0.12
</TABLE>


                                       13
<PAGE>

<TABLE>
<S>                                                                            <C>         <C>         <C>         <C>        <C>
Liquidity and Capital
    Average loans and leases to average deposits                               78.21%      81.77%      82.81%      81.79%     81.06%
    Total stockholders' equity to total assets                                  8.62        8.21        8.05        8.25       9.10
    Tier 1 capital to risk weighted assets                                     12.16       11.74       11.75       12.72      13.80
    Total capital to risk weighted assets                                      13.33       12.89       12.92       13.91      15.12
    Tier 1 capital to average assets                                            8.12        8.09        8.02        8.32       9.08
</TABLE>

--------------------------------------------------------------------------------
(1)   Information for this period has been restated to reflect the Company's
      acquisition of The Jersey Bank for Savings, which was completed on May 31,
      1998 and was accounted for as a pooling of interests.

(2)   All per share data and average shares have been restated to reflect a 3
      for 2 stock split declared on May 23, 2002 and paid on July 12, 2002.

(3)   Tangible book value is calculated by tangible capital (total stockholders'
      equity less goodwill and other intangible assets) by total shares issued.

<TABLE>
<CAPTION>
                                                                   2002           2001          2000          1999         1998(1)
                                                                 --------       --------      --------      --------      --------
<S>                                                              <C>            <C>           <C>           <C>           <C>
         Total stockholders' equity                              $ 80,680       $ 68,233      $ 61,984      $ 58,276      $ 62,372
         Less: goodwill and other intangible assets                 1,678             --            81           394           707
                                                                 --------       --------      --------      --------      --------
           Total tangible capital                                $ 79,002       $ 68,233      $ 61,903      $ 57,882      $ 61,665
                                                                 ========       ========      ========      ========      ========

         Total shares issued (2)                                    9,815          9,691         9,796        10,092        10,800

           Tangible book value per share (2)                     $   8.05       $   7.04      $   6.32      $   5.73      $   5.71
</TABLE>

(4)   Net yield on interest earning assets (taxable equivalent) is calculated by
      dividing net interest income (on a fully taxable equivalent basis) by
      average interest earning assets.

<TABLE>
<CAPTION>
                                                                   2002           2001          2000          1999         1998(1)
                                                                 --------       --------      --------      --------      --------
<S>                                                              <C>            <C>           <C>           <C>           <C>
         Net interest income                                     $ 39,022       $ 33,958      $ 31,394      $ 30,271      $ 28,902
         Tax-equivalent basis adjustment                              376            324           158           158            53
                                                                 --------       --------      --------      --------      --------
           Net interest income (on a fully taxable equivalent
                basis)*                                          $ 39,398       $ 34,282      $ 31,552      $ 30,429      $ 28,955
                                                                 ========       ========      ========      ========      ========

         Average interest earning assets                         $842,191       $764,218      $715,113      $660,528      $627,499

           Net yield on interest earning assets (taxable
                equivalent)*                                         4.68%          4.49%         4.41%         4.61%         4.61%
</TABLE>

(5)   The efficiency ratio is calculated by dividing non-interest expenses,
      excluding merger-related charges, amortization of intangibles and net
      expense of foreclosed real estate by net interest income (on a fully
      taxable equivalent basis) and non-interest income, excluding gains on
      sales of loans, securities and loan servicing.

<TABLE>
<CAPTION>
                                                                   2002           2001          2000          1999         1998(1)
                                                                 --------       --------      --------      --------      --------
<S>                                                              <C>            <C>           <C>           <C>           <C>
         Non-interest expense                                    $ 25,063       $ 22,873      $ 21,177      $ 20,063      $ 19,416
         Less:
           Merger related charges                                      --             --            --            --         1,392
           Amortization of intangibles                                 69             81           313           313           383
           Net expense of foreclosed real estate                       24             37            17            13             1
                                                                 --------       --------      --------      --------      --------
             Non-interest expense adjusted                       $ 24,970       $ 22,755      $ 20,847      $ 19,737      $ 17,640
                                                                 ========       ========      ========      ========      ========

         Net interest income (on a fully taxable equivalent
                basis)*                                            39,398       $ 34,282      $ 31,552      $ 30,429      $ 28,955
         Non-interest income                                        6,514          5,578         4,381         5,586         4,982
         Less:
           Security gains                                             564            252           312           859         1,021
           Sale of loans**                                             --              8            --            86            --
           Net gain on sale of merchant credit card portfolio          --             --            --           329            --
                                                                 --------       --------      --------      --------      --------
             Net interest income and non-interest income
                    adjusted                                     $ 45,348       $ 39,600      $ 35,621      $ 34,741      $ 32,916
                                                                 ========       ========      ========      ========      ========

           Efficiency ratio                                         55.06%         57.46%        58.52%        56.81%        53.59%
</TABLE>

            *     Computed on a fully taxable equivalent basis using the
                  corporate federal tax rate of 34%.

            **    Does not include leases which were syndicated.


                                       14
<PAGE>

Item 7. Management's Discussion and Analysis of Financial Condition and Results
of Operations

      The information contained in the section entitled "Management's Discussion
and Analysis of Financial Condition and Results of Operations" on pages 13
through 29 of the Company's 2002 Annual Report to Shareholders filed as Exhibit
13 hereto is incorporated herein by reference.

Item 7A. Quantitative and Qualitative Disclosure about Market Risk

      The information regarding the market risk of the Company's financial
instruments, contained in "Management's Discussion and Analysis of Financial
Condition and Results of Operations" on page 23 of the Company's 2002 Annual
Report to Shareholders filed as Exhibit 13 hereto is incorporated herein by
reference.

Item 8. Financial Statements and Supplemental Data

      The financial statements required by this Item are included in the
Company's 2002 Annual Report to Shareholders on pages 30 through 51, filed as
Exhibit 13 hereto and incorporated herein by reference.

<TABLE>
<CAPTION>
                                                                                    Page of Annual
                                                                                      Report to
                                                                                     Shareholders
                                                                                    --------------
<S>                                                                                    <C>
      Report of Independent Public Auditors                                               30
      Interchange Financial Services Corporation and Subsidiaries
           Consolidated Balance Sheets                                                    31
           Consolidated Statements of Income                                              32
           Consolidated Statements of Changes in Stockholders' Equity                     33
           Consolidated Statements of Cash Flows                                          34
           Notes to Consolidated Financial Statements (Notes 1 - 21)                   35 - 51
</TABLE>

      No supplementary data is included in this report as it is inapplicable,
not required, or the information is included elsewhere in the financial
statements or notes thereto.

Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure

      There were no changes in or disagreements with accountants on accounting
and financial disclosure as defined by item 304 of Regulation S-K.


                                       15
<PAGE>

                                    PART III

Item 10. Directors and Executive Officers

      a. Directors

            The information contained in the section entitled "INTERCHANGE
      PROPOSAL NO. 2 - ELECTION OF DIRECTORS - Nominees and Directors" in the
      Company's 2003 Annual Meeting Proxy Statement is incorporated herein by
      reference in response to this item.

      b. Executive Officers

            The following table sets forth the names, ages, and present
      positions of the Company's and the Bank's principal executive officers:

<TABLE>
<CAPTION>
      Name                                     Age    Positions Held with the Company and the Bank
      ----                                     ---    --------------------------------------------
<S>                                            <C>    <C>
      ANTHONY S. ABBATE ...................    63     President and Chief Executive Officer

      ANTHONY J. LABOZZETTA ...............    39     Executive Vice President and Chief Operating Officer

      PATRICIA  D. ARNOLD .................    44     Senior Vice President--Chief Credit Officer

      CHARLES T. FIELD ....................    38     Senior Vice President - Chief Financial Officer

      FRANK R. GIANCOLA ...................    49     Senior Vice President--Operations
</TABLE>

      Business Experience

            ANTHONY S. ABBATE, President and Chief Executive Officer of the Bank
      since 1981; Senior Vice President and Controller from October 1980 to
      1981. Engaged in the banking industry since 1959.

            ANTHONY J. LABOZZETTA, Executive Vice President and Chief Operating
      Officer since February 2003; Executive Vice President and Chief Financial
      Officer from September 1997 to February 2003; Senior Vice President and
      Treasurer from 1995 to 1997. Engaged in the banking industry since 1989.
      Formerly a senior manager with an international accounting firm,
      specializing in the financial services industry.

            PATRICIA D. ARNOLD, Senior Vice President - Commercial Lending since
      August 1997; First Vice President from 1995 to 1997; Department Head Vice
      President from 1986 to 1995; Assistant Vice President from 1985 to 1986;
      Commercial Loan Officer-Assistant Treasurer from 1983 to 1985. Engaged in
      the banking industry since 1981.

            CHARLES T. FIELD, Senior Vice President and Chief Financial Officer
      since February 2003. Formerly Vice President Finance and Treasurer of
      Viatel, Inc. from 1999 to 2002 and Treasurer from 1998 to 1999, Corporate
      Controller of Horsehead Industries, Inc. from 1995 to 1998 and a manager
      specializing in financial institutions at an international accounting firm
      from 1987 to 1995.


                                       16
<PAGE>

            FRANK R. GIANCOLA, Senior Vice President - Operations since
      September 1997; Senior Vice President-Retail Banking from 1993 to 1997;
      Senior Vice President-Operations of the Bank from 1984 to 1993; Senior
      Operations Officer from 1982 to 1984; Vice President/Branch Administrator
      from 1981 to 1982. Engaged in the banking industry since 1971.

            Officers are elected annually by the Board of Directors and serve at
      the discretion of the Board of Directors. Management is not aware of any
      family relationship between any director or executive officer. No
      executive officer was selected to his or her position pursuant to any
      arrangement or understanding with any other person.

      c. Compliance with Section 16(a)

            Information contained in the section entitled "PRINCIPAL
      SHAREHOLDERS AND HOLDINGS OF MANAGEMENT OF INTERCHANGE - Section 16(a)
      Beneficial Ownership Reporting Compliance" in the Company's 2003 Annual
      Meeting Proxy Statement is incorporated herein by reference in response to
      this item.

Item 11. Executive Compensation

      Information contained in the section entitled "INTERCHANGE EXECUTIVE
COMPENSATION AND OTHER INTERCHANGE INFORMATION - Executive Compensation" in the
Company's 2003 Annual Meeting Proxy Statement is incorporated herein by
reference in response to this item.

Item 12. Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters

      The information contained in the section entitled "Principal Shareholders
and Holdings of Management of Interchange" in the Company's 2003 Annual Meeting
Proxy Statement is incorporated herein by reference in response to this item.

Equity Compensation Plan Information

The table below summarizes information about our common stock that may be issued
upon the exercise of options, warrants and rights under all of our existing
equity compensation plans as of December 31, 2002.

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                     Number of securities to be       Weighted-average          Number of securities remaining
                                      issued upon exercise of        exercise price of        available for future issuance under
                                        outstanding options,        outstanding options,     equity compensation plans (excluding
                                        warrants and rights         warrants and rights       securities reflected in column (a))
------------------------------------------------------------------------------------------------------------------------------------
Plan category                                   (a)                         (b)                               (c)
------------------------------------------------------------------------------------------------------------------------------------
<S>                                           <C>                           <C>                             <C>
Equity compensation plans approved
  by security holders                         494,016                       $11.91                          672,268
Equity compensation plans not
  approved by security holders                     --                           --                               --
                                              -------                       ------                          -------
Total                                         494,016                       $11.91                          672,268
                                              =======                       ======                          =======
</TABLE>


                                       17
<PAGE>

The Outside Director Incentive Compensation Plan

      The Outside Director Incentive Compensation Plan is designed to attract
qualified personnel to accept positions of responsibility as outside directors
with Interchange and to provide incentives for persons to remain on the board,
as outside directors. The Compensation/Stock Option Committee administers the
Outside Director Incentive Compensation Plan, reviews the awards and submits
recommendations to the full board of directors for action. Options to acquire
1,000 shares of Interchange common stock are granted to each outside director of
Interchange each year on the anniversary date of the initial grant. Each option
represents the right to purchase, upon exercise, one share of Interchange common
stock at an exercise price equal to the price of a share of stock at the close
of business on the date of the grant as reported by the Nasdaq National Market.
Stock options may be exercisable between one and ten years from the date
granted. All options granted under the Outside Director Incentive Compensation
Plan are non-qualified stock options and are not entitled to special tax
treatment under the Internal Revenue Code of 1986, as amended.

Stock Option and Incentive Plan

The Stock Option and Incentive Plan of 1997, as amended, is designed to align
shareholders' and executive officers' interests. The Compensation/Stock Option
Committee administers the plan, reviews the awards and submits recommendations
to the full board of directors for action. Stock options are granted on a
discretionary basis with an exercise price equal to the price of a share of
stock at the close of business on the date of the grant as reported by the
Nasdaq National Market. Stock options may be exercisable between one and ten
years from the date granted. Such stock options provide a retention and
motivational program for executives and an incentive for the creation of
shareholder value over the long-term since their full benefit cannot be realized
unless an appreciation in the price of the common stock occurs over a specified
number of years.

      The Stock Option and Incentive Plan also provides for the issuance of
incentive stock awards as determined by the board of directors of Interchange.
Certain key executives may be awarded incentive compensation in the form of
3-year restricted stock, which is forfeitable upon termination of employment
during that time period. Key employees may also use their cash bonus to purchase
two-year restricted stock at a twenty-five percent discount. All amounts in
excess of the purchase price of this stock are forfeitable should they terminate
their employment during that time period. Incentive stock awards are an
important factor in attracting and motivating key executives who will dedicate
their maximum efforts toward the advancement of the Company.

Item 13. Certain Relationships and Related Transactions

      The information contained in the section entitled "Certain Relationships
and Related Party Transactions of Interchange" in the Company's 2003 Annual
Meeting Proxy Statement is incorporated herein by reference in response to this
item.

Item 14. Controls and Procedures

      Within the 90 days prior to the date of this report, the Company carried
out an evaluation, under the supervision and with the participation of the
Company's management, including the Company's Chief Executive


                                       18
<PAGE>

Officer and current and former Chief Financial Officers, of the effectiveness of
the design and operation of the Company's disclosure controls and procedures
pursuant to Exchange Act Rule 13a-14. Based upon that evaluation, the Chief
Executive Officer and current and former Chief Financial Officers concluded that
the Company's disclosure controls and procedures are effective in timely
alerting them to material information relating to the Company (including its
consolidated subsidiaries) required to be included in the Company's periodic
filings with the Securities and Exchange Commission. There were no significant
changes in our internal controls or in other factors that could significantly
affect these controls subsequent to the date of their evaluation.


                                       19
<PAGE>

                                     PART IV

Item 15. Exhibits, Financial Statement Schedules and Reports on Form 8-K

      (a)   The following documents are filed as part of this Report:

            1.    Financial Statements: The Financial Statements listed under
                  Item 8 to this Report are set forth at pages 31 through 34,
                  and the Notes to Consolidated Financial Statements are set
                  forth at pages 35 through 51, of the 2002 Annual Report to
                  Shareholders (See Exhibit 13 under paragraph (a)3 of this Item
                  14).

            2.    Financial Statement Schedules: All required schedules for the
                  Company and its subsidiaries have been included in the
                  Consolidated Financial Statements or related Notes thereto.

            3.    Exhibits: Exhibits followed by a parenthetical reference are
                  incorporated by reference herein from the document described
                  in such parenthetical reference.

                  Exhibit 2.1     Agreement and Plan of Merger, dated as of
                                  November 18, 2002, by and between Registrant
                                  and Bridge View Bancorp (Incorporated by
                                  reference to Exhibit 2.1 to Registrant's Form
                                  S-4, filed February 14, 2003, Registration
                                  Statement No. 333-103256)

                  Exhibit 3(a)    Restated Certificate of Incorporation of
                                  Registrant (Incorporated by reference to
                                  Exhibit 3.1 to Registrant's Form S-4, filed
                                  February 14, 2003, Registration Statement No.
                                  333-103256)

                  Exhibit 3(b)    Amended and Restated Bylaws of Registrant,
                                  dated October 24, 2002(Incorporated by
                                  reference to Exhibit 4(b) to the Registrant's
                                  Quarterly Report on Form 10-Q for the quarter
                                  ended September 30, 2002)

            *     Exhibit 10(a)   Agreement for legal services between Andora
                                  and Romano and Registrant, dated April 25,
                                  2002.

            (1)   Exhibit 10(b)   Outside Director Incentive Compensation Plan
                                  (Incorporated by reference to Exhibit 4(a) to
                                  Registrant's Form S-8, filed June 26, 2000,
                                  Registration Statement No. 33-40098)

            (1)   Exhibit 10(c)   Stock Option and Incentive Plan of 1997, as
                                  Amended (Incorporated by reference to Exhibit
                                  4(a) to Registrant's Form S-8, filed August
                                  26, 2002, Registration Statement No. 33-98705)

            (1)   Exhibit 10(d)   Directors' Retirement Plan, as Amended 2002
                                  (Incorporated by reference to Exhibit 10(d) to
                                  Annual Report on Form 10-K for fiscal year
                                  ended December 31, 2001)

            (1)   Exhibit 10(e)   Executives' Supplemental Pension Plan
                                  (Incorporated by reference to Exhibit 10(i)(4)
                                  to Annual Report on Form 10-K for fiscal year
                                  ended December 31, 1994)

            (1)   Exhibit 10(f)   Change-in-Control Agreements for the
                                  Registrant's principal executive officers, and
                                  Amendment dated June 14, 2001 (Incorporated by
                                  reference to Exhibit 10(f) to Annual Report on
                                  Form 10-K for fiscal year ended December 31,
                                  2001)

            *     Exhibit 11      Statement regarding computation of per share
                                  earnings

            *     Exhibit 13      Portion of the Annual Report to Shareholders
                                  for the year ended December 31, 2002

            *     Exhibit 21      Subsidiaries of Registrant

            *     Exhibit 23      Independent Auditors' Consent of Deloitte &
                                  Touche LLP


                                       20
<PAGE>

      (b)   Reports on Form 8-K during the quarter ended December 31, 2002:

                                  The Company filed a Current Report on Form 8-K
                                  on November 26, 2002. Item 5 of the referenced
                                  Current Report contained the press release
                                  announcing that it has entered into an
                                  Agreement and Plan of Merger with Bridge View
                                  Bancorp, Englewood Cliffs, New Jersey.

      ----------
      (1)   Pursuant to Item 14(a) - 3 of Form 10-K, this exhibit represents a
            management contract or compensatory plan or arrangement required to
            be filed as an exhibit to this Form 10-K pursuant to Item 14(c) of
            this item.

      *     Filed herewith


                                       21
<PAGE>

                                   SIGNATURES

      Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Company has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.

                                            Interchange Financial Services
                                            Corporation


By: /s/ Anthony S. Abbate                   By: /s/ Charles T. Field
    -----------------------------               --------------------------------
    Anthony S. Abbate                           Charles T. Field
    President and Chief Executive               Senior Vice President and
    Officer                                     Chief Financial Officer
    (principal executive officer)               (principal financial and
                                                accounting officer)

March 21, 2003

      Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the Company
and in the capacities and on the dates indicated:

<TABLE>
<S>                                                   <C>
/s/ Anthony S. Abbate                                 /s/ Charles T. Field
-----------------------------------------------       ---------------------------------------------------
Anthony S. Abbate              March 21, 2003         Charles T. Field                     March 21, 2003
   Director                                              Senior Vice President and
   President and Chief Executive Officer                 Chief Financial Officer


/s/ Anthony D. Andora                                  /s/ Nicholas R. Marcalus
-----------------------------------------------       ---------------------------------------------------
Anthony D. Andora              March 21, 2003         Nicholas R. Marcalus                 March 21, 2003
   Director                                             Director
   Chairman of the Board


/s/ Donald L. Correll                                  /s/ Eleanore S. Nissley
-----------------------------------------------       ---------------------------------------------------
Donald L. Correll              March 21, 2003         Eleanore S. Nissley                  March 21, 2003
   Director                                             Director


/s/ Anthony R. Coscia                                  /s/ Jeremiah F. O'Connor
-----------------------------------------------       ---------------------------------------------------
Anthony R. Coscia              March 21, 2003         Jeremiah F. O'Connor                 March 21, 2003
   Director                                             Director


/s/ John J. Eccleston                                  /s/ Robert P. Rittereiser
-----------------------------------------------       ---------------------------------------------------
John J. Eccleston              March 21, 2003         Robert P. Rittereiser                March 21, 2003
   Director                                             Director


/s/ David R. Ficca                                     /s/ Benjamin Rosenzweig
-----------------------------------------------       ---------------------------------------------------
David R. Ficca                 March 21, 2003         Benjamin Rosenzweig                  March 21, 2003
   Director                                             Director


/s/ James E. Healey                                    /s/ William Schuber
-----------------------------------------------       ---------------------------------------------------
James E. Healey                March 21, 2003         William Schuber                      March 21, 2003
   Director                                             Director
</TABLE>


                                       22
<PAGE>

                      CERTIFICATION OF DISCLOSURE CONTROLS

I, Anthony S. Abbate, certify that:

1.    I have reviewed this annual report on Form 10-K of Interchange Financial
      Services Corporation;

2.    Based on my knowledge, this annual report does not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements made, in light of the circumstances under which such
      statements were made, not misleading with respect to the period covered by
      this annual report;

3.    Based on my knowledge, the financial statements, and other financial
      information included in this annual report, fairly present in all material
      respects the financial condition, results of operations and cash flows of
      the registrant as of, and for, the periods presented in this annual
      report;

4.    The registrant's other certifying officers and I are responsible for
      establishing and maintaining disclosure controls and procedures (as
      defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we
      have:

      a)    designed such disclosure controls and procedures to ensure that
            material information relating to the registrant, including its
            consolidated subsidiaries, is made known to us by others within
            those entities, particularly during the period in which this annual
            report is being prepared;

      b)    evaluated the effectiveness of the registrant's disclosure controls
            and procedures as of a date within 90 days prior to the filing date
            of this annual report (the "Evaluation Date"); and

      c)    presented in this annual report our conclusions about the
            effectiveness of the disclosure controls and procedures based on our
            evaluation as of the Evaluation Date;

5.    The registrant's other certifying officers and I have disclosed, based on
      our most recent evaluation, to the registrant's auditors and the audit
      committee of registrant's board of directors (or persons performing the
      equivalent function):

      a)    all significant deficiencies in the design or operation of internal
            controls which could adversely affect the registrant's ability to
            record, process, summarize and report financial data and have
            identified for the registrant's auditors any material weaknesses in
            internal controls; and

      b)    any fraud, whether or not material, that involves management or
            other employees who have a significant role in the registrant's
            internal controls; and

6.    The registrant's other certifying officers and I have indicated in this
      annual report whether or not there were significant changes in internal
      controls or in other factors that could significantly affect internal
      controls subsequent to the date of our most recent evaluation, including
      any corrective actions with regard to significant deficiencies and
      material weaknesses.


Date: March 21, 2003                      /s/ Anthony S. Abbate
      --------------                      --------------------------------------
                                          President and Chief Executive Officer

<PAGE>

                      CERTIFICATION OF DISCLOSURE CONTROLS

I, Anthony Labozzetta, certify that:

1.    I have reviewed this annual report on Form 10-K of Interchange Financial
      Services Corporation;

2.    Based on my knowledge, this annual report does not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements made, in light of the circumstances under which such
      statements were made, not misleading with respect to the period covered by
      this annual report;

3.    Based on my knowledge, the financial statements, and other financial
      information included in this annual report, fairly present in all material
      respects the financial condition, results of operations and cash flows of
      the registrant as of, and for, the periods presented in this annual
      report;

4.    The registrant's other certifying officers and I are responsible for
      establishing and maintaining disclosure controls and procedures (as
      defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we
      have:

      a)    designed such disclosure controls and procedures to ensure that
            material information relating to the registrant, including its
            consolidated subsidiaries, is made known to us by others within
            those entities, particularly during the period in which this annual
            report is being prepared;

      b)    evaluated the effectiveness of the registrant's disclosure controls
            and procedures as of a date within 90 days prior to the filing date
            of this annual report (the "Evaluation Date"); and

      c)    presented in this annual report our conclusions about the
            effectiveness of the disclosure controls and procedures based on our
            evaluation as of the Evaluation Date;

5.    The registrant's other certifying officers and I have disclosed, based on
      our most recent evaluation, to the registrant's auditors and the audit
      committee of registrant's board of directors (or persons performing the
      equivalent function):

      a)    all significant deficiencies in the design or operation of internal
            controls which could adversely affect the registrant's ability to
            record, process, summarize and report financial data and have
            identified for the registrant's auditors any material weaknesses in
            internal controls; and

      b)    any fraud, whether or not material, that involves management or
            other employees who have a significant role in the registrant's
            internal controls; and

6.    The registrant's other certifying officers and I have indicated in this
      annual report whether or not there were significant changes in internal
      controls or in other factors that could significantly affect internal
      controls subsequent to the date of our most recent evaluation, including
      any corrective actions with regard to significant deficiencies and
      material weaknesses.


Date: March 21, 2003        /s/ Anthony Labozzetta
      --------------        ----------------------------------------------------
                            Executive Vice President and Chief Operating Officer
                            Formerly Chief Financial Officer thru February 2003

<PAGE>

                      CERTIFICATION OF DISCLOSURE CONTROLS

I, Charles T. Field, certify that:

1.    I have reviewed this annual report on Form 10-K of Interchange Financial
      Services Corporation;

2.    Based on my knowledge, this annual report does not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements made, in light of the circumstances under which such
      statements were made, not misleading with respect to the period covered by
      this annual report;

3.    Based on my knowledge, the financial statements, and other financial
      information included in this annual report, fairly present in all material
      respects the financial condition, results of operations and cash flows of
      the registrant as of, and for, the periods presented in this annual
      report;

4.    The registrant's other certifying officers and I are responsible for
      establishing and maintaining disclosure controls and procedures (as
      defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we
      have:

      a)    designed such disclosure controls and procedures to ensure that
            material information relating to the registrant, including its
            consolidated subsidiaries, is made known to us by others within
            those entities, particularly during the period in which this annual
            report is being prepared;

      b)    evaluated the effectiveness of the registrant's disclosure controls
            and procedures as of a date within 90 days prior to the filing date
            of this annual report (the "Evaluation Date"); and

      c)    presented in this annual report our conclusions about the
            effectiveness of the disclosure controls and procedures based on our
            evaluation as of the Evaluation Date;

5.    The registrant's other certifying officers and I have disclosed, based on
      our most recent evaluation, to the registrant's auditors and the audit
      committee of registrant's board of directors (or persons performing the
      equivalent function):

      a)    all significant deficiencies in the design or operation of internal
            controls which could adversely affect the registrant's ability to
            record, process, summarize and report financial data and have
            identified for the registrant's auditors any material weaknesses in
            internal controls; and

      b)    any fraud, whether or not material, that involves management or
            other employees who have a significant role in the registrant's
            internal controls; and

6.    The registrant's other certifying officers and I have indicated in this
      annual report whether or not there were significant changes in internal
      controls or in other factors that could significantly affect internal
      controls subsequent to the date of our most recent evaluation, including
      any corrective actions with regard to significant deficiencies and
      material weaknesses.


Date: March 21, 2003           /s/ Charles T. Field
      --------------           -------------------------------------------------
                               Senior Vice President and Chief Financial Officer