UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                _________________
                                    FORM 10-Q
                               __________________



[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
      EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED, September 30, 2003

                                       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)

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

                                      None
________________________________________________________________________________
(Former  name,  former  address and former  fiscal year,  if changed  since last
report)

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  report)  and (2) has been  subject  to such  filing
requirements for the past 90 days. Yes X   No ___

     The number of outstanding  shares of the Registrant's  common stock, no par
value per share, as of October 31, 2003, was 12,800,393 shares.

<PAGE>


                   INTERCHANGE FINANCIAL SERVICES CORPORATION


                                      INDEX


PART I            FINANCIAL INFORMATION
                                                                     Page No.
     Item 1   Financial Statements

                  Consolidated Balance Sheets as of
                  September 30, 2003 and December 31, 2002..............       1

                  Consolidated Statements of Income for the three
                  and nine-month periods ended September 30, 2003
                  and 2002..............................................       2

                  Consolidated Statements of Changes in
                  Stockholders' Equity for the nine months ended
                  September 30, 2003 and 2002...........................       3

                  Consolidated Statements of Cash Flows for the
                  nine months ended September 30, 2003 and 2002 ........       4

                  Notes to Consolidated Financial Statements............       5

         Item 2   Management's Discussion and Analysis of Financial
                  Condition and Results of Operations...................      13

         Item 3   Quantitative and Qualitative Disclosures About Market
                  Risk(Disclosures about quantitative and qualitative
                  market risk are located in Management's Discussion
                  and Analysis of Financial Condition and Results of
                  Operation in the section on Market Risk)...............     25


         Item 4   Controls and Procedures................................     28

PART II        OTHER INFORMATION

         Item 1   Legal Proceedings......................................     29

         Item 2   Changes in Securities and Use of Proceeds..............     29

         Item 3   Defaults upon Senior Securities........................     29

         Item 4   Submission of Matters to a Vote of Security Holders....     29

         Item 5   Other Information......................................     29

         Item 6   Exhibits and Reports on Form 8-K.......................     29

                  Signatures.............................................     30
<PAGE>
<TABLE>

Item 1: Financial Statements

Interchange Financial Services Corporation
________________________________________________________________________________________________________________
CONSOLIDATED BALANCE SHEETS
________________________________________________________________________________________________________________
(dollars in thousands)
<CAPTION>

                                                                                  September 30,    December 31,
                                                                                       2003          2002
                                                                                  _____________    _____________
                                                                                    unaudited
<S>                                                                               <C>              <C>

                                                                                  _____________    _____________
Assets
Cash and due from banks                                                                $ 35,368         $ 23,266
Interest earning deposits                                                                15,020                -
Federal funds sold                                                                            -           10,650
                                                                                  _____________    _____________

Total cash and cash equivalents                                                          50,388           33,916
                                                                                  _____________    _____________
Securities held to maturity at amortized cost (estimated fair value
  of $21,836 and $29,590 for September 30, 2003 and December 31, 2002,
  respectively)                                                                          20,534           28,192
                                                                                  _____________    _____________
Securities available for sale at estimated fair value (amortized cost
  of $383,658 and $217,924 for September 30, 2003 and December 31, 2002,
  respectively)                                                                         389,683          224,320
                                                                                  _____________    _____________

Loans and leases (net of unearned income and deferred fees of $7,575 and
  $8,657 for September 30, 2003 and December 31, 2002, respectively)                    783,686          615,641
  Less:  Allowance for loan and lease losses                                              9,355            7,207
                                                                                  _____________    _____________
Net loans and leases                                                                    774,331          608,434
                                                                                  _____________    _____________

Bank owned life insurance                                                                21,589           21,274
Premises and equipment, net                                                              20,428           10,512
Foreclosed real estate and other repossesed assets                                          251              176
Goodwill                                                                                 55,613            1,447
Intangible assets                                                                         4,291              231
Accrued interest receivable and other assets                                             12,036            7,830
                                                                                  _____________    _____________
Total assets                                                                         $1,349,144         $936,332
                                                                                  =============    =============


Liabilities
Deposits
  Non-interest bearing                                                                 $214,969         $118,578
  Interest bearing                                                                      949,814          697,094
                                                                                  _____________    _____________
Total deposits                                                                        1,164,783          815,672
                                                                                  _____________    _____________

Securities sold under agreements to repurchase                                           16,469           17,390
Short-term borrowings                                                                     2,150                -
Long-term borrowings                                                                     10,000           10,000
Accrued interest payable and other liabilities                                           14,713           12,590
                                                                                  _____________    _____________
Total liabilities                                                                     1,208,115          855,652
                                                                                  _____________    _____________

Commitments and contingent liabilities

Stockholders' equity:
Common stock, without par value; 22,500,000 shares authorized;
  12,793,445 and 9,815,207 shares issued and outstanding at
  September 30, 2003 and December 31, 2002, respectively)                                 5,397            5,397
Capital surplus                                                                          73,200           21,097
Retained earnings                                                                        71,801           63,314
Accumulated other comprehensive income                                                    3,358            3,596
                                                                                  _____________    _____________
                                                                                        153,756           93,404
   Less:  Treasury stock                                                                 12,727           12,724
                                                                                  _____________    _____________
   Total stockholders' equity                                                           141,029           80,680
                                                                                  _____________    _____________
   Total liabilities and stockholders' equity                                        $1,349,144         $936,332
                                                                                  =============    =============
________________________________________________________________________________________________________________
   See notes to consolidated financial statements.
</TABLE>

<TABLE>
Interchange Financial Services Corporation
________________________________________________________________________________________________________________
CONSOLIDATED STATEMENTS OF INCOME
________________________________________________________________________________________________________________
(dollars in thousands, except per share data) (unaudited)

                                                               Three Months Ended             Nine Months Ended
                                                                  September 30,                 September 30,
                                                             _______________________       _________________________

                                                                2003          2002             2003          2002
                                                             __________     ________       __________      ________
<S>                                                          <C>            <C>            <C>             <C>

Interest income
Interest and fees on loans                                      $13,044      $11,561          $36,370       $33,915
Interest on federal funds sold                                       68           45              252           165
Interest on interest bearing deposits                                36            -               57             -
Interest and dividends on securities
    Taxable interest income                                       2,507        2,563            7,119         7,665
    Interest income exempt from federal income taxes                254          161              654           436
    Dividends                                                        56           40              165           134
                                                             ___________   __________       __________   __________

Total interest income                                            15,965       14,370           44,617        42,315
                                                             ___________   __________       __________   __________

Interest expense
Interest on deposits                                              3,204        3,991           10,027        12,688
Interest on securities sold under agreements to repurchase           58           91              223           183
Interest on short-term borrowings                                     1          120                1           370
Interest on long-term borrowings                                    108          108              320           319

                                                             __________   __________      ____________   __________
Total interest expense                                            3,371        4,310           10,571        13,560
                                                             __________   __________      ____________   __________


Net interest income                                              12,594       10,060           34,046        28,755
Provision for loan and lease losses                                 485          405            1,280           885
                                                             __________   __________      _____________  __________

Net interest income after provision
 for loan losses                                                 12,109        9,655           32,766        27,870
                                                             __________   __________      _____________  __________

Non-interest income
Service fees on deposit accounts                                    998          659            2,559         1,922
Net gain on sale of securities                                      501          214              520           495
Net gain on sale of loans and leases                                222          185              567           223
Bank owned life insurance                                           692          220            1,754           665
Commissions on sale of annuities and mutual funds                   270          181              658           388
Other                                                               652          316            1,765         1,120
                                                             __________   __________       __________   ___________

Total non-interest income                                         3,335        1,775            7,823         4,813
                                                             __________   __________       __________   ___________

Non-interest expense
Salaries and benefits                                             4,707        3,505           12,528        10,067
Net occupancy                                                     1,282          843            3,305         2,576
Furniture and equipment                                             373          267              979           857
Advertising and promotion                                           400          258            1,137         1,047
Federal Deposit Insurance Corporation assessment                     45           32              116            97
Foreclosed real estate and other repossessed assets                   1            5                1            16
Amortization of intangible assets                                   125           19              234            50
Other                                                             1,825        1,397            4,681         4,040
                                                              _________   __________       __________   ___________

Total non-interest expense                                        8,758        6,326           22,981        18,750
                                                              _________   __________       __________   ___________


Income before  income taxes                                       6,686        5,104           17,608        13,933

Income taxes                                                      2,175        1,647            5,554         4,471
                                                             __________   __________       __________   ___________


Net income                                                      $ 4,511      $ 3,457         $ 12,054       $ 9,462
                                                             ==========   ==========       ==========   ===========


Basic earnings per common share                                   $0.35        $0.35            $1.05         $0.96
                                                             ==========  ===========       ==========   ===========


Diluted earnings per common share                                 $0.35        $0.35            $1.04         $0.95
                                                             ==========   ==========       ==========   ===========
___________________________________________________________________________________________________________________
See notes to consolidated financial statements
</TABLE>


<TABLE>

Interchange Financial Services Corporation
____________________________________________________________________________________________________________________________________
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
For the Nine Months Ended Ended September 30,
____________________________________________________________________________________________________________________________________
(dollars in thousand, except per share data) (unaudited)


                                                                                  Accumulated
                                                                                    Other
                                                          Comprehensive Retained Comprehensive  Common  Capital Treasury
                                                               Income   Earnings    Income      Stock   Surplus  Stock     Total

                                                          _____________ ________ _____________  ________ _______ ________  ________
<S>                                                       <C>           <C>      <C>            <C>      <C>      <C>      <C>

Balance at January 1, 2002                                              $54,758     $1,156       $5,397  $20,993  $(14,071) $68,233
Comprehensive income
   Net Income                                                  $9,462     9,462                                               9,462
   Other comprehensive income, net of taxes
     Unrealized gains on AFS debt securities                    3,106
     Less: gains on disposition of securities                    (453)
                                                          ____________
   Other comprehensive income, net of taxes                     2,653                2,653                                    2,653
                                                          ____________

Comprehensive income                                          $12,115
                                                          ============

Dividends on common stock                                                (2,947)                                             (2,947)
Issued 21,069 shares of common stock in connection
  with Executive Compensation Plan                                                                             66      244      310
Exercised 23,658 option shares                                                                                (92)     274      182
Issued 107,877 shares of common stock in connection with
  the acquisition of certain assets and assumption of
  certain liabilities of Monarch Capital Corporation                                                           131   1,244    1,375
Purchased 18,150 shares of common stock                                                                               (235)    (235)
                                                                        ________ _____________   _______ _________  _______ _______
Balance at September 30, 2002                                            61,273       3,809       5,397     21,098 (12,544)  79,033

Comprehensive income
  Net Income                                                    $3,415    3,415                                               3,415
  Other comprehensive income, net of taxes
    Unrealized  gains on AFS debt securities                       (69)
    Add: losses on disposition of securities                      (144)
                                                          ____________

  Other comprehensive income                                      (213)                (213)                                   (213)
                                                          ____________
Comprehensive income                                            $3,202
                                                          ============

Dividends on common stock                                                (1,374)                                             (1,374)
Exercised 1,500 option shares                                                                                   (1)     17       16
Purchased 11,400 shares of common stock                                                                               (197)    (197)
                                                                      ___________  ________     _______  _________ ________ ________
Balance at December 31, 2002                                             63,314       3,596       5,397     21,097 (12,724)  80,680

Comprehensive income
   Net Income                                                  $12,054   12,054                                              12,054
   Other comprehensive income, net of taxes
     Unrealized net gains on AFS debt securities                   375
     Less: net gains on disposition of securities                 (594)
     Minimum pension liability                                     (19)
                                                          ____________

   Other comprehensive income                                     (238)                (238)                                   (238)
                                                          ____________

Comprehensive income                                           $11,816
                                                          ============

Dividends on common stock                                                (3,567)                                             (3,567)
Issued 20,833 shares of common stock in connection
   with Executive Compensation Plan                                                                           109      245      354
Exercised 52,423 option shares                                                                               (186)     445      259
Issued 2,949,719 shares of common stock in connection with
   the acquisition of Bridge View Bancorp                                                                  52,180            52,180
Reacquired 35,959 shares in lieu of non-performing asset                                                              (693)    (693)
                                                                      ___________  ________     _______  _________ ________ ________
Balance at September 30, 2003                                           $71,801      $3,358     $5,397    $73,200 $(12,727)$141,029
                                                                      ===========  ========    ========  ========= ======== ========


___________________________________________________________________________________________________________________________________
See notes to consolidated financial statements.
</TABLE>


<TABLE>
Interchange Financial Services Corporation
___________________________________________________________________________________________________________________________________
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30,
___________________________________________________________________________________________________________________________________
(dollars in thousands) (unaudited)
                                                                          2003           2002
                                                                        _________     __________
<S>                                                                     <C>           <C>

Cash flows from operating activities
Net income                                                               $ 12,054        $ 9,462
Non-cash items included in earnings
    Depreciation and amortization                                           1,260          1,092
    Amortization of securities premiums                                     2,869          1,347
    Accretion of securities discounts                                        (246)          (223)
    Amortization of premiums in connection with acquisition                   617             50
    Provision for loan losses                                               1,280            885
    Increase in cash surrender value of Bank Owned Life Insurance            (315)          (666)
    Net gain on sale of securities                                           (935)          (498)
    Origination of loans held for sale                                    (14,500)             -
    Sale of loans held for sale                                            15,266              -
    Acceleration of premium amortization on certain collateralized
    mortgage obligations                                                      415              -
    Net gain on sale of loans and leases                                     (567)          (223)
    Net loss on sale of fixed assets                                           10              -
    Net gain on sale of foreclosed real estate and repossessed assets          (7)           (40)
Decrease (increase) in operating assets
    Accrued interest receivable                                              (868)           (60)
    Accounts receivable- leases sold                                            -          4,921
    Goodwill                                                                  (90)             -
    Deferred taxes                                                         (1,221)             -
    Other                                                                  (1,345)          (596)
Incease (decrease) in operating liabilities
    Accrued interest payable                                                 (378)          (203)
    Other                                                                     863          1,319
                                                                        __________     _________
Cash provided by operating activities                                      14,162         16,567
                                                                        __________     _________

Cash flows from investing activities
(Payments for) proceeds from
    Net (originations) amortization of loans                               12,182        (32,705)
    Purchase of loans                                                         (53)       (14,945)
    Sale of loans and leases                                                3,102          3,486
    Purchase of securities available for sale                            (283,373)       (90,277)
    Maturities of securities available for sale                           125,644         29,441
    Sale of securities available for sale                                  29,732         19,791
    Maturities of investment securities held to maturity                    7,524          7,066
    Sale of securities held to maturity                                         -          2,023
    Sale of foreclosed real estate and other repossessed assets               100            566
    Purchase of fixed assets                                                 (879)        (1,099)
    Premium in connection with acquisition                                      -         (1,860)
    Net cash proceeds from acquisition of Bridge View Bancorp              19,748              -
                                                                        __________     _________
Cash used in investing activities                                         (86,273)       (78,513)
                                                                        __________     _________

Cash flows from financing activities
Proceeds from (payments for)
    Net increase in deposits                                               90,307         63,799
    Securities sold under agreements to repurchase and other borrowings    33,986         69,353
    Retirement of securities sold under agreements to repurchase and
      other borrowings                                                    (32,756)       (55,104)
    Dividends                                                              (3,567)        (2,947)
    Common stock issued                                                       354          1,685
    Treasury stock                                                              -           (235)
    Exercise of option shares from Treasury                                   259            182
                                                                        _________       ________
Cash provided by financing activities                                      88,583         76,733
                                                                        _________       ________

Increase (decrease) in cash and cash equivalents                           16,472         14,787
Cash and cash equivalents, beginning of year                               33,916         22,211
                                                                        _________       ________
Cash and cash equivalents, end of period                                  $50,388        $36,998
                                                                        ==========     =========

Supplemental disclosure of cash flow information:
Cash paid for:
     Interest                                                             $10,673        $13,763
     Income taxes                                                           6,840          5,018

Supplemental disclosure of non-cash investing activities:
     Loans transferred to foreclosed real estate and repossessed assets      $168           $392
     Stock issued for net assets purchased                                      -          1,375
     Stock issued related to Bridge View acquisition                       52,180              -
____________________________________________________________________________________________________________________________________
See notes to consolidated financial statements
</TABLE>
<PAGE>


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE-MONTH PERIODS
                      ENDED SEPTEMBER 30, 2003 (Unaudited)

1. Basis of Presentation
     The accompanying  unaudited  consolidated  financial statements include the
accounts of  Interchange  Financial  Services  Corporation  and its wholly owned
subsidiaries (on a consolidated  basis,  the "Company")  including its principal
operating  subsidiary,  Interchange Bank (the "Bank"), and have been prepared in
conformity with accounting principles generally accepted in the United States of
America  ("GAAP")  and in  accordance  with the  rules  and  regulations  of the
Securities  and  Exchange  Commission.  Pursuant to such rules and  regulations,
certain  information  or  footnotes  necessary  for a complete  presentation  of
financial  condition,  results of operations  and cash flows in conformity  with
GAAP have been condensed or omitted.  These  consolidated  financial  statements
should  be read in  conjunction  with the  financial  statements  and  schedules
thereto  included in the annual  report on Form 10-K of the Company for the year
ended December 31, 2002.
     The consolidated  financial data for the three and nine-month periods ended
September  30,  2003  and  2002,  are  unaudited  but  reflect  all  adjustments
consisting  of only normal  recurring  adjustments  which are, in the opinion of
management,  considered  necessary  for a fair  presentation  of  the  financial
condition  and results of  operations  for the interim  periods.  The results of
operations for interim periods are not  necessarily  indicative of results to be
expected for any other period or the full year.

Use of estimates:  The  preparation of financial  statements in conformity  with
GAAP requires  management  to make  estimates  and  assumptions  that affect the
reported amounts of assets and liabilities and disclosures of contingent  assets
and  liabilities at the date of the  consolidated  financial  statements and the
reported  amount of revenues and expenses  during the reporting  period.  Actual
results  could  differ  from those  estimates.  The most  significant  estimates
pertain  to the  allowance  for  loan and  lease  losses  and the fair  value of
financial instruments.

Stock Based Compensation:  The Company accounts for stock option plans under the
recognition and measurement  principles of Accounting  Principles  Board ("APB)
Opinion  No.  25.  "Accounting  for Stock  Issued  to  Employees,"  and  related
interpretations. No stock-based employee compensation costs are reflected in net
income,  as all options granted under those plans had an exercise price equal to
the  market  value of the  underlying  common  stock on the date of  grant.  The
following table  illustrates  the effect on net income and diluted  earnings per
common share if the Company had applied the fair value recognition provisions of
Financial  Accounting  Standards Board ("FASB")  Statement No. 123, " Accounting
for Stock-Based  Compensation,"  to stock-based  compensation  for the three and
nine months ended September 30, 2003 and 2002: (in thousands, except share data)
(unaudited)
<PAGE>
<TABLE>



                                                              __________________________             _________________________
                                                              For the three months ended             For the nine months ended
                                                                  September 30,                              September 30,
                                                                2003                2002                2003              2002
                                                              ___________       _________            ________         _________
<S>                                                           <C>               <C>                  <C>              <C>
Net Income
      As reported                                                  $4,511          $3,457             $12,054            $9,462
      Less: Total stock-based compensation expense
      determined under the fair
      value method for all rewards,
      net of related tax effects                                       93              67                 261               159

                                                              ___________       _________            ________         _________
      Pro-forma                                                    $4,418          $3,390             $11,793            $9,303
                                                              ===========       =========            ========         =========

Diluted earnings per common share
      As reported
                                                                    $0.35           $0.35               $1.05             $0.96
      Less: Total stock-based compensation expense
      determined under the fair
      value method for all rewards,
      net of related tax effects                                     0.01            0.01                0.04              0.02
                                                              ___________       __________            ________        _________
      Pro-forma                                                     $0.34           $0.34               $1.01             $0.94
                                                              ===========       ==========            ========        =========
</TABLE>





The fair value of each option  grant is estimated on the date of grant using the
Black-Scholes  option-pricing model. The following weighted-average  assumptions
were used for option grants  issued  during the nine months ended  September 30,
2003: dividend yield of 2.14%; expected volatility of 24.69%; risk-free interest
rate of 3.39%;  and  expected  lives of 7 years.  Prior period  assumptions  are
described  in  Note 12  "Stock  Option  and  Incentive  Plan"  in the  Notes  to
Consolidated  Financial  Statements in the Company's  2002 Annual Report on Form
10K. The effects of applying these  assumptions in determining the pro-forma net
income may not be  representative  of the  effects on  pro-forma  net income for
future years.


2. Acquisition and Pro Forma Disclosure
     On April 30,  2003 the Company  completed  its  acquisition  of 100% of the
common stock of Bridge View Bancorp ("Bridge View"), a Bergen  County-based bank
holding  company with eleven  locations,  which expanded the Company's  presence
into eastern Bergen County.  The results of Bridge View's  operations  have been
included in the consolidated  financial  statements since that date. Bridge View
had approximately  $278 million of total assets,  $185 million of loans and $259
million  of  deposits.   The  aggregate  purchase  price  paid  to  Bridge  View
shareholders was approximately  $85.7 million and consisted of approximately 2.9
million shares of the Company's common stock with an approximate market value of
$52.2 million based upon the average closing price three days prior to and after
the  acquisition  date and $33.5 million in cash. The  transaction was accounted
for as a purchase and the cost in excess of net assets acquired of approximately
$58.4 million was allocated to net identified  intangibles of approximately $4.3
million and goodwill of approximately $54.1 million.

     The following pro forma condensed consolidated statements of income for the
three and nine  months  ended  September  30,  2002 and 2003 give  effect to the
merger as if the merger had been consummated on either January 1, 2002 or 2003.

     The pro forma  information is not necessarily  indicative of the results of
operations  in the future or the  results of  operations,  which would have been
realized had the merger been  consummated  during the periods or as of the dates
for which the pro forma information is presented.
<PAGE>
<TABLE>
           Interchange Financial Services Corporation and Subsidiaries
                   PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
                      (in thousands, except per share data)
                                   (unaudited)


                                                                         Three Months Ended           Nine Months Ended
                                                                            September 30,               September 30,
                                                                 __________________________       ___________________________
                                                                    2003            2002             2003            2002
                                                                 __________________________       ___________________________
                                                                 Pro Forma       Pro Forma        Pro Forma       Pro Forma
<S>                                                              <C>             <C>              <C>             <C>
Interest income                                                     $ 15,441        $ 17,564         $ 48,970        $ 51,668
Interest expense                                                       3,700           4,695           11,183          14,582
                                                                 ___________     ___________       __________     ___________
      Net interest income                                             11,741          12,869           37,787          37,086
                                                                 ___________     ___________       __________     ___________
Provision for loan and lease losses                                      530             525            1,295           1,215
                                                                 ___________     ___________       __________     ___________
Net interest income after provision for loan and lease losses         11,211          12,344           36,492          35,871
Non-interest income                                                    2,644           2,302            8,607           6,581
Non-interest expense
   Salaries and benefits                                               4,192           4,550           14,023          13,061
   Occupancy and FF&E                                                  1,448           1,548            4,901           4,707
   Other expenses                                                      1,984           2,387            7,169           7,253
                                                                 ___________     ___________       __________     ___________

                                                                       7,624           8,485           26,093          25,021

     Net income before taxes                                           6,231           6,161           19,006          17,431

Income Taxes                                                           1,916           2,190            6,113           5,862
                                                                 ___________      __________       __________     ___________
     Net income                                                      $ 4,315         $ 3,971         $ 12,893        $ 11,569
                                                                 ===========      ==========       ==========     ===========
Earnings per common share:
     Basic                                                           $  0.44         $  0.31         $   1.01        $   0.91
     Diluted                                                         $  0.43         $  0.31         $   1.00        $   0.90
</TABLE>


3. Earnings Per Common Share
     Basic  earnings  per common  share  represents  income  available to common
stockholders divided by the weighted-average number of common shares outstanding
during the period.  Diluted earnings per common share reflects additional common
shares that would have been outstanding if dilutive  potential common shares had
been  issued,  as well as any  adjustment  to income that would  result from the
assumed  issuance.  Potential  common  shares  that may be issued by the Company
relate  solely  to  outstanding  stock  options,  and are  determined  using the
treasury stock method.

4. Commitments and Contingent Liabilities
Legal Proceedings
     The Company is a party to routine  litigation  involving various aspects of
its business, none of which, in the opinion of management, is expected to have a
material  adverse impact on the  consolidated  financial  condition,  results of
operations or liquidity of the Company.

Commitments to Extend Credit
     At September 30, 2003, the Company had commitments of approximately  $199.7
million to extend credit, of which approximately $2.1 million represents standby
letters of credit.

<PAGE>
     5.  Goodwill  and Other  Intangibles
     With the adoption of Statements of Financial  Acounting  Standards No. 142,
"Goodwill and Other Intangible Assets" ("SFAS 142") on January 1, 2002, goodwill
is no  longer  amortized  to  expense,  but  rather  is  tested  for  impairment
periodically.   Other   intangible   assets  are   amortized  to  expense  using
straight-line  methods over their  respective  estimated  useful lives. At least
annually,  management reviews goodwill and other intangible assets and evaluates
events or changes in circumstances that may indicate  impairment in the carrying
amount of such  assets.  If the sum of the  expected  undiscounted  future  cash
flows,  excluding  interest  charges,  is less than the  carrying  amount of the
asset,  an impairment loss is recognized.  Impairment,  if any, is measured on a
discounted future cash flow basis.  Goodwill is reviewed for impairment annually
and on an interim  basis when  conditions  require.  If necessary an  impairment
charge is recognized in the period that goodwill has been deemed to be impaired.
At the date of adoption, there was no unamortized goodwill.

     At September 30, 2003, gross intangible assets amounted to $4.6 million and
accumulated  amortization amounted to $304 thousand. At December 31, 2002, gross
intangible  assets  amounted  to  $300  thousand  and  accumulated  amortization
amounted  to $69  thousand.  Amortization  of  intangible  assets as a result of
acquisitions,  which is  included  in  non-interest  expense,  amounted  to $234
thousand,  and $50  thousand for the nine months  ended  September  30, 2003 and
2002,  respectively.  During the second  quarter,  the  Company  recorded a core
deposit  intangible of $4.3 million in  connection  with the Bridge View merger.
The core deposit  intangible  has an estimated  life of 10 years and the Company
amortized  $178 thousand for the nine months ended  September 30, 2003. The core
deposit  intangible will be periodically  reviewed for impairment.  In addition,
the Company  recorded  goodwill of $54.1 million in  connection  with the Bridge
View merger.  The goodwill will be tested for  impairment  at least  annually in
accordance with the provisions of SFAS No. 142.

The estimated  aggregate annual  amortization  expense for intangible  assets is
summarized as follows: (in thousands)
<TABLE>

<S>                                                     <C>
        2003                                                  $361
        2004                                                   505
        2005                                                   505
        2006                                                   436
        2007                                                   429
        2008                                                   429
        thereafter                                           1,861
                                                         _________

        Total estimated amortization of intangibles         $4,526
                                                         =========
</TABLE>

6. Segment Reporting
     SFAS No. 131,  "Disclosures  About  Segments of an  Enterprise  and Related
Information"  ("SFAS  No.  131"),   requires  disclosures  for  each  reportable
operating segment. As a community-oriented financial institution,  substantially
all of the Company's operations entail the delivery of loan and deposit products
and various other  financial  services to customers in its primary  market area,
which is Bergen County,  New Jersey. The Company's  community-banking  operation
constitutes  the  Company's  only  operating  segment  for  financial  reporting
purposes under SFAS No. 131.


7. Recent Accounting Pronouncements
     In April 2003, the FASB issued  Statement No. 149,  "Amendment of Statement
133 on Derivative  Instruments and Hedging  Activities"  ("SFAS 149").  SFAS 149
amends  and  clarifies   financial   accounting  and  reporting  for  derivative
instruments,   including  certain  derivative   instruments  embedded  in  other
contracts  (collectively  referred to as derivatives) and for hedging activities
under FASB Statement No. 133, "Accounting for Derivative Instruments and Hedging
Activities" ("SFAS 133"). This Statement is effective for contracts entered into
or modified  after June 30, 2003,  except for contracts  that relate to SFAS 133
implementation  issues that have been  effective for fiscal  quarters that began
prior to June 15, 2003 and for hedging  relationships  designated after June 30,
2003.  The adoption of SFAS 149 did not have a material  impact on the financial
position or results of  operations  of the Company  because the Company does not
have any derivative activity.
     In May 2003, the FASB issued  Statement of Financial  Accounting  Standards
No. 150 "Accounting for Certain Financial  Instruments with  Characteristics  of
both  Liabilities  and Equity"  ("SFAS 150"),  which  establishes  how an issuer
classifies and measures certain financial  instruments with  characteristics  of
both  liabilities  and equity.  SFAS 150 is effective for financial  instruments
entered into or modified  after May 31, 2003,  and otherwise is effective at the
beginning  of the first  interim  period  beginning  after  June 15,  2003.  The
adoption of SFAS 150 did not have a material impact on the financial position or
results of  operations  of the Company  because  the  Company  does not have any
financial instruments that have characteristics of both liabilities and equity.

8. Cash Dividend
     The Company  paid a cash  dividend of $0.11 per share on August 28, 2003 to
holders of record as of July 28, 2003.

<PAGE>

9. Securities Held-to-Maturity and Securities Available-for-Sale
     Securities  held-to-maturity  ("HTM")  and  securities   available-for-sale
   ("AFS") consist of the following: (in thousands)

<TABLE>
                                                              _______________________________________________________________
                                                                                   September 30, 2003
                                                              _______________________________________________________________
                                                                                      (unaudited)
                                                                                    Gross          Gross            Estimated
                                                                 Amortized        Unrealized      Unrealized          Fair
                                                                   Cost             Gains          Losses             Value
                                                              _____________       __________     ___________        __________
Securities HTM
<S>                                                           <C>                 <C>            <C>                <C>

   Mortgage-backed securities                                       $11,187             $421      $        -          $ 11,608
   Obligations of states & political subdivisions                     9,247              881               -            10,128
   Other debt securities                                                100                -               -               100
                                                              _____________       __________     ___________        __________
                                                                     20,534            1,302               -            21,836
Securities AFS                                                _____________       __________     ___________        __________
   Obligations of U.S. Treasury                                      28,098               12               -          $ 28,110
   Mortgage-backed securities                                        93,952            1,519             213            95,258
   Obligations of U.S. agencies                                     225,034            3,886             256           228,664
   Obligations of states & political subdivisions                    32,619            1,099              98            33,620
   Equity securities                                                  3,955               76               -             4,031
                                                              _____________       __________     ___________        __________
                                                                    383,658            6,592             567           389,683
                                                              _____________       __________     ___________        __________

     Total securities                                              $404,192           $7,894            $567          $411,519
                                                              =============       ==========     ===========        ==========

                                                              ________________________________________________________________
                                                                                  December 31, 2002
                                                              ________________________________________________________________
                                                                                    Gross          Gross            Estimated
                                                                 Amortized        Unrealized      Unrealized           Fair
                                                                   Cost             Gains          Losses              Value
Securities HTM                                                _____________       __________      __________        __________
   Mortgage-backed securities                                       $16,437             $667       $       -          $ 17,104
   Obligations of U.S. agencies                                       1,991               68               -             2,059
   Obligations of states & political subdivisions                     9,664              663               -            10,327
   Other debt securities                                                100                -               -               100
                                                              _____________       __________     ___________        __________
                                                                     28,192            1,399               -            29,590
                                                              _____________       __________     ___________        __________

Securities AFS
   Mortgage-backed securities                                       101,028            1,778             201           102,605
   Obligations of U.S. agencies                                      91,577            3,982               -            95,559
   Obligations of states & political subdivisions                    21,382              889              52            22,219
   Equity securities                                                  3,937                -               -             3,937
                                                              _____________       __________     ___________       ___________
                                                                    217,924            6,649             253           224,320
                                                              _____________       __________     ___________       ___________

     Total securities                                              $246,116           $8,047            $253          $253,910
                                                              =============       ==========     ===========       ===========
</TABLE>
<PAGE>

<TABLE>



     At September 30, 2003,  the  contractual  maturities of securities  HTM and
securities AFS are as follows: (in thousands)



                                             Securities                   Securities
                                                HTM                          AFS
                                   _____________________________   _______________________
                                                   Estimated                    Estimated
                                   Amortized         Fair          Amortized       Fair
                                     Cost            Value            Cost        Value
                                   ______________ ______________   ___________ __________
<S>                                <C>             <C>             <C>          <C>
Within 1 year                           $ 275          $ 278        $ 72,904     $ 72,957
After 1 but within 5 years             13,360         13,992         271,514      276,088
After 5 but within 10 years             4,772          5,253          12,883       13,150
After 10 years                          2,127          2,313          22,402       23,457
Equity securities                           -              -           3,955        4,031
                                  _______________ ______________   ___________ ___________

                            Total     $20,534       $ 21,836       $ 383,658     $389,683
                                  =============== ==============   =========== ===========

</TABLE>


     Proceeds  from the sale of  securities  AFS  amounted to $29.7  million and
$19.8  million  for  the  nine  months  ended   September  30,  2003  and  2002,
respectively,  which  resulted in gross realized gains of $981 thousand and $478
thousand for those periods, respectively. Gross realized losses from the sale of
securities  AFS  amounted to $46  thousand  and $3 thousand  for the nine months
ended September 30, 2003 and 2002,  respectively.  These amounts are included in
net gain on sale of securities in the Consolidated Statements of Income.
     Proceeds from the sale of  securities  HTM amounted to $2.0 million for the
nine months ended  September 30, 2002,  which  resulted in realized gains of $23
thousand. The securities were either scheduled to mature within 3 months or were
called  before  maturity.  There  were no sales of  securities  HTM for the nine
months ended September 30, 2003.
     On a quarterly  basis,  we evaluate our  investment  portfolio to determine
whether there are any other than temporary  impairment  valuation  issues.  This
analysis is performed by comparing  quoted market  prices to amortized  cost and
evaluating  each  identified  security whose market value is less than amortized
cost for a sustained period of time. Our accounting policy requires  recognition
of an other than temporary  impairment  charge on a security if it is determined
that we are unable to recover all amounts due under the contractual  obligations
of the  security.  Management  uses its best  estimate  regarding  the estimated
future payments on the contractual  obligation by reviewing  changes in security
ratings and evaluating the financial performance of the underlying issuer.
     During the second  quarter  of 2003,  the  Company  realized  gross  losses
resulting from an acceleration of premium amortization on certain collateralized
mortgage obligations of $415 thousand.  The acceleration of premium amortization
was largely driven by the historically  high mortgage  prepayment  speeds due to
the low interest rate environment.
     Securities  with  carrying  amounts of $47.5  million and $58.6  million at
September 30, 2003 and December 31, 2002, respectively,  were pledged for public
deposits,  Federal Home Loan Bank  advances,  securities  sold under  repurchase
agreements and other purposes required by law.


<PAGE>

10.  Loans
    The  composition  of the loan  portfolio  is  summarized  as  follows:  (in
thousands)

<TABLE>

                                       _____________________   _________________
                                           September 30,          December 31,
                                               2003                   2002
                                       _____________________   _________________
                                            (unaudited)
<S>                                    <C>                     <C>

Amount of loans by type
     Real estate-mortgage
         1-4 family residential
             First liens                          $107,151              $100,302
             Junior liens                            4,697                 6,241
             Home equity                           142,039               125,037
         Commercial                                323,252               222,628
         Construction                               21,983                11,359
                                       ___________________   ___________________
                                                   599,122               465,567
                                        __________________   ___________________
     Commercial loans
         Commercial and financial                  138,571               104,542
         Lease financing                            27,737                26,356
                                        __________________   ___________________
                                                   166,308               130,898
                                        __________________   ___________________
     Consumer loans
         Lease financing                            13,428                15,969
         Installment                                 4,828                 3,207
                                        __________________    __________________
                                                    18,256                19,176
                                         _________________    __________________

               Total                              $783,686              $615,641
                                        ==================    ==================




Nonperforming Assets
     Nonperforming  loans  include loans which are accounted for on a nonaccrual
basis and troubled debt restructurings.  Nonperforming loans are as follows: (in
thousands)

                                       ____________________   __________________
                                          September 30,         December 31,
                                              2003                  2002
                                       ____________________   __________________
                                           (unaudited)
Nonaccrual loans
     Residential real estate                  $ 946                $ 495
     Commercial real estate                   1,632                1,780
     Commercial and financial                 3,026                1,300
     Commercial lease financing               2,011                2,357
     Consumer                                   308                   31
                                       ___________________    __________________
                                            $ 7,923              $ 5,963
                                       ===================   ===================
</TABLE>


<PAGE>

11. Allowance for Loan and Lease Losses
     The  Company's  recorded  investment in impaired  loans is as follows:  (in
thousands)
<TABLE>

                                                            ______________________________       ______________________________
                                                                     September 30,                         December 31,
                                                                        2003                                  2002
                                                            ______________________________       ______________________________
                                                                         (Unaudited)
<S>                                                         <C>                <C>               <C>               <C>
                                                             Investment           Related           Investment       Related
                                                                in              Allowance              in           Allowance
                                                             Impaired            for Loan           Impaired        for Loan
                                                               Loans               Losses             Loans          Losses
                                                            __________          __________       ______________   _____________
Impaired loans
    With a related allowance for loan losses
           Commercial and financial                              $ 982               $ 245             $ 1,104            $ 128
           Commercial real estate                                  664                  17               1,780               45
           Residential mortgages                                   547                  82                   -                -
    Without a related allowance for loan losses                      -                   -                   -                -
                                                            __________          __________        ____________    _____________
                                                                $2,193               $ 344              $2,884            $ 173
                                                            ==========          ==========        ============    =============
____________________________________________________________________________________________________________________________________
The impairment of the above loans was measured based on the fair value of collateral.


Changes in the  allowance  for loan and lease losses are  summarized as follows:
(in thousands)
(unaudited)

                                                                 ________________________              ________________________
                                                                  Three months ended                       Nine months ended
                                                                     September 30,                            September 30,
                                                                 ________________________              ________________________
                                                                    2003            2002                    2003        2002
                                                                 __________    __________              ___________   __________
Balance at beginning of period                                       $9,537        $6,430                   $7,207       $6,569
Additions (deductions)
     Provision for loan and lease losses                                485           405                   1,280           885
     Recoveries on loans previously charged off                          39             9                      44            55
     Loans charged off                                                 (706)         (137)                 (1,105)         (802)
     Additions due to merger                                           -             -                      1,929             -
                                                                 __________    __________               __________   __________
Balance at end of year                                               $9,355        $6,707                  $9,355        $6,707
                                                                 ==========    ==========               ==========   ==========
</TABLE>




12. Other Non-interest Expense
     Expenses included in other non-interest  expense,  which exceed one percent
of the  aggregate  of total  interest  income  and  non-interest  income for the
periods noted, are as follows:(in thousands)
<TABLE>

                                                                 ________________________              ________________________
                                                                      Three months                             Nine months
                                                                   ended September 30,                     ended September 30,
                                                                 ________________________              ________________________

                                                                    2003            2002                    2003        2002
                                                                 __________    __________              _____________   _______
<S>                                                              <C>           <C>                     <C>             <C>

Professional fees                                                 $    476       $   484                $   1,187    $   1,166
Data processing                                                   $    308       $   176                $     877    $     558



</TABLE>
<PAGE>


Item 2.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
General
     The  following  discussion  is an  analysis of the  consolidated  financial
condition  and results of operations of the Company for the three and nine month
periods  ended  September 30, 2003 and 2002,  and should be read in  conjunction
with the consolidated  financial statements and notes thereto included in Item 1
hereof.  In  addition,   you  should  read  this  section  in  conjunction  with
Management's  Discussion and Analysis and Results of Operations  included in the
Company's 2002 Annual Report on Form 10-K.
     On April 30,  2003 the Company  completed  its  acquisition  of Bridge View
Bancorp ("Bridge View"). Accordingly the results of operations for the three and
nine month periods ending  September 30, 2003 include the results of Bridge View
from that date.

Forward Looking Information

     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
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 and lease portfolio,  the quality of the loan and lease 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; (vii) expected revenue synergies
from the  Company's  acquisition  of Bridge  View may not be fully  realized  or
realized within the expected time frame; (viii) revenues following the Company's
acquisition of Bridge View may be lower than expected;  (ix) deposit  attrition,
operating costs,  customer loss and business disruption  following the Company's
acquisition  of Bridge View,  including,  without  limitation,  difficulties  in
maintaining  relationships with employees,  may be greater than expected and (x)
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.

Company
     The Company is a bank holding company  headquartered in Bergen County,  New
Jersey. The Company's principal operating  subsidiary is Interchange Bank, a New
Jersey-chartered  commercial  bank. In addition to the Bank, the Company has one
other wholly owned direct subsidiary: Clover Leaf Mortgage Company, a New Jersey
corporation,  which is not currently engaged in any business activity.  The Bank
has five direct subsidiaries:  Clover Leaf Investment Corporation, an investment
company  operating  pursuant to New Jersey law;  Clover Leaf  Insurance  Agency,
Inc., a New Jersey corporation engaged in the sale of tax-deferred annuities and
insurance;  Clover Leaf Management Realty Corporation,  a Real Estate Investment
Trust ("REIT"),  which manages certain real estate assets of the Company; Bridge
View Investment  Company, an investment company operating pursuant to New Jersey
law; and  Interchange  Capital  Company,  L.L.C.  ("ICC"),  a New Jersey limited
liability company which engages in equipment lease financing.  All of the Bank's
subsidiaries are 100% owned by the Bank, except for the REIT, which is 99% owned
by the Bank.  Bridge View  Investment  Company has one wholly owned  subsidiary,
Bridge View Delaware,  Inc.  ("BVDI").  BVDI is an investment  company operating
pursuant to Delaware law.

Critical Accounting Policies and Judgments
     The Company's  consolidated  financial statements are prepared based on the
application of certain  accounting  policies,  the most significant of which are
described in Note 1 "Accounting Policies in the Notes to Consolidated  Financial
Statements  and  in  the  Management's  Discussion  and  Analysis  of  Financial
Condition  and  Results  of  Operations:   Critical   Accounting   Policies  and
Judgements"  in our 2002 Annual Report on Form 10-K.  Certain of these  policies
require numerous estimates and strategic or economic  assumptions that may prove
inaccurate or subject to variations and may  significantly  affect the Company's
reported results and financial position for the period or in future periods. The
use of estimates, assumptions, and judgments are necessary when financial assets
and  liabilities  are required to be recorded  at, or adjusted to reflect,  fair
value.  Assets and liabilities  carried at fair value inherently  result in more
financial statement  volatility.  Fair values and the information used to record
valuation  adjustments  for certain assets and  liabilities  are based on either
quoted market prices or are provided by other independent  third-party  sources,
when available.  When such  information is not available,  management  estimates
valuation  adjustments primarily by using internal cash flow and other financial
modeling techniques. Changes in underlying factors, assumptions, or estimates in
any of  these  areas  could  have a  material  impact  on the  Company's  future
financial condition and results of operations.

Allowance  for Loan and Lease  Losses:  The  allowance for loan and lease losses
("ALLL") is  established  through  periodic  charges to income.  Loan losses are
charged against the ALLL when management  believes that the future collection of
principal is unlikely.  Subsequent recoveries, if any, are credited to the ALLL.
If the ALLL is  considered  inadequate  to absorb future loan losses on existing
loans,  based  on,  but not  limited  to,  increases  in the  size  of the  loan
portfolio,  increases in charge-offs or changes in the risk  characteristics  of
the loan portfolio, then the provision for loan and lease losses is increased.
     The Company  considers the ALLL of $9.4 million adequate to cover estimated
losses  inherent in the loan portfolio,  loan  commitments and standby and other
letters  of  credit  that  may  become   uncollectible   based  on  management's
evaluations of the size and current risk  characteristics  of the loan and lease
portfolio as of the balance sheet date. The evaluations consider such factors as
changes  in the  composition  and  volume of the loan  portfolio,  the impact of
changing economic  conditions on the credit worthiness of the borrowers,  review
of specific problem loans and  management's  assessment of the inherent risk and
overall quality of the loan portfolio.

Business  Combinations:  Business  combinations are accounted using the purchase
method of accounting,  the net assets of the companies  acquired are recorded at
their estimated fair value at the date of acquisition and include the results of
operations of the acquired business from the date of acquisition.  The excess of
the purchase price over the estimated  fair value of the net assets  acquired is
recognized as goodwill.

Goodwill:  With the adoption of Statements of Financial Accounting Standards No.
142,  "Goodwill and Other  Intangible  Assets" ("SFAS 142"), on January 1, 2002,
goodwill is no longer amortized to expense,  but rather is tested for impairment
periodically.   Other   intangible   assets  are   amortized  to  expense  using
straight-line  methods over their  respective  estimated  useful lives. At least
annually,  management reviews goodwill and other intangible assets and evaluates
events or changes in circumstances that may indicate  impairment in the carrying
amount of such  assets.  If the sum of the  expected  undiscounted  future  cash
flows,  excluding  interest  charges,  is less than the  carrying  amount of the
asset,  an impairment loss is recognized.  Impairment,  if any, is measured on a
discounted future cash flow basis.  Goodwill is reviewed for impairment annually
and on an interim  basis when  conditions  require.  If necessary an  impairment
charge is recognized in the period that goodwill has been deemed to be impaired.
At the date of adoption, there was no unamortized goodwill.
<PAGE>


          THREE MONTHS ENDED SEPTEMBER 30, 2003 AND SEPTEMBER 30, 2002
                              RESULTS OF OPERATIONS

Summary
     On April 30, 2003,  the Company  completed its  acquisition of Bridge View.
Accordingly  the  results of  operations  for the three and nine  month  periods
ending September 30, 2003 include the results of Bridge View from that date. The
Company was able to fully integrate  Bridge View,  including the data processing
function within 40 days of closing.
     Net income for the three months ended September 30, 2003 was  approximately
$4.5 million,  an increase of $1.1 million,  or 30.5%, over the same period last
year.  The increase in earnings  resulted  from the  acquisition  of Bridge View
during the second quarter and an increase in non-interest  income. For the third
quarter of 2003,  the Company  reported  earnings  per diluted  common  share of
$0.35,  the same as reported in 2002,  while average diluted shares  outstanding
increased 30.3% over the same period in the prior year.
     The growth in  revenues  was  partly  offset by a $2.4  million,  or 38.5%,
increase in non-interest  expense.  This change largely  reflects an increase in
expenses primarily due to additional  operating costs associated with the Bridge
View  acquisition  and normal  increases  in salaries  and  benefits  along with
occupancy expenses.
     For the three  months  ended  September  30, 2003 and 2002,  the  Company's
Return on Average Assets ("ROA") was 1.34% and 1.51%,  respectively.  The change
in ROA was a result of core deposit growth  outpacing  deployment of those funds
into higher yielding loans and an investment  strategy that mitigates  extension
risk.  Return on Average  Equity  ("ROE") was 12.93% a decline  from 18.22% when
compared to the same  period  last year.  The main reason for the decline in ROE
was due to the increase in  stockholders'  equity related to the issuance of the
Company's stock as a part of the merger consideration for Bridge View.

Net Interest  Income
     Net  interest  income  is the  most  significant  source  of the  Company's
operating  income.  A portion of the Company's  total interest income is derived
from  investments  that are exempt from federal  taxation.  The amount of pretax
income realized from those investments,  due to the tax exemption,  is less than
the amount of pretax income  realizable from comparable  investments  subject to
federal taxation. For purposes of the following discussion, interest exempt from
federal  taxation has been  restated to a fully  tax-equivalent  basis using the
corporate  federal tax rate of 34% for the three  months and nine  months  ended
September  30, 2003 and 2002.  This was  accomplished  by adjusting  this income
upward to make it equivalent to the level of taxable income required to earn the
same amount after taxes.
     Net interest income on a  tax-equivalent  basis increased $2.6 million,  or
25.6%,  to $12.8 million for the quarter ended September 30, 2003 as compared to
the same quarter in 2002. The tax equivalent  adjustments for the quarters ended
September 30, 2003 and 2002 were $161  thousand and $98 thousand,  respectively.
The increase in net interest income was due mostly to a 37.9% growth in interest
earning  assets.  This  interest  earning  asset growth was funded  primarily by
deposit  liabilities,  which grew 40.5% on average for the third quarter of 2003
as compared to the same quarter in 2002.  The growth in interest  earning assets
and deposits were  attributed to the Bridge View  acquisition  and the Company's
internal  growth.  The margin for the third quarter of 2003 was 4.29%, a decline
of 42 basis points as compared to the same quarter in 2002 which was a result of
assets  repricing more quickly than  liabilities and maintaining an average life
in the investment portfolio of approximately 2 years.
     Interest income, on a tax-equivalent  basis,  totaled $16.1 million for the
third quarter of 2003, an increase of $1.7 million, or 11.5%, as compared to the
same quarter in 2002. The increase was mostly attributed to a $326.5 million, or
37.9%,  growth in interest earning assets. The growth in interest earning assets
was the result of increases in average loans and average  investments  of $161.6
million and $130.6  million,  respectively.  The increase in interest income was
partly offset by a 128 basis point decline in interest  earning asset yields for
the third  quarter of 2003 as compared to the same quarter in 2002.  The decline
in interest earning asset yields was largely  attributed to the historically low
market interest rate environment.
     Interest expense, which totaled $3.4 million for the third quarter of 2003,
decreased $939 thousand,  or 21.8%,  as compared to the same period in 2002. The
decrease in interest  expense was a byproduct of the decline in market  interest
rates,  particularly  short-term rates,  during 2003. In addition,  a beneficial
shift in the composition of the Company's  deposits,  which is discussed further
in the analysis of financial condition below, also had a favorable impact on the
Company's  interest  expense.  The  improved  deposit  mix  combined  with lower
short-term  interest  rates  reduced the average  rate paid on interest  bearing
liabilities  by 105 basis points to 1.38% for the quarter  ended  September  30,
2003 as  compared  to the same  period in 2002.  The  magnitude  of the  benefit
derived  from the  decrease in rates paid on interest  bearing  liabilities  was
partially reduced by the positive growth of deposits.  Interest bearing deposits
grew on  average  $272.9  million,  or 40.5%,  for the third  quarter of 2003 as
compared to the same period in 2002.
<PAGE>
<TABLE>
____________________________________________________________________________________________________________________________________
Analysis of Net Interest Income
____________________________________________________________________________________________________________________________________
for the quarter ended September 30,
(dollars in thousands)                                       2003                                             2002
<CAPTION>
                                          ______________________________________     _______________________________________________
(unaudited)                                Average                   Average             Average                          Average
                                           Balance     Interest       Rate               Balance           Interest        Rate
                     Assets
<S>                                        <C>        <C>          <C>              <C>                 <C>          <C>
                                          __________   _________   ____________     ____________        _____________ ______________
Interest earning assets:
Loans (1)                                   $788,705     $13,094         6.64 %         $627,092              $11,599         7.40 %
Taxable securities (4)                       325,435       2,562         3.15            211,099                2,603         4.93
Tax-exempt securities (2) (4)                 29,873         365         4.89             13,620                  221         6.49
Interest earning deposits                     13,996          36         1.03                  -                    -            -
Federal funds sold                            30,571          69         0.90             10,261                   45         1.75
                                          __________   _________   __________      _____________        _____________   __________
     Total interest-earning assets         1,188,580      16,126         5.43            862,072               14,468         6.71
                                                       _________                                        _____________
Non-interest earning assets:
Cash and due from banks                       42,652                                      19,561
Allowance for loan and lease losses           (9,704)                                     (6,477)
Other assets                                 120,090                                      37,809
                                          ___________                              _____________

     Total assets                         $1,341,618                                    $912,965
                                          ===========                              ==============
      Liabilities and stockholders' equity
Interest-bearing liabilities
Interest bearing deposits                   $946,970       3,204         1.35           $674,038                3,991        2.37
Borrowings                                    27,436         167         2.43             34,749                  319        3.66
                                          __________   _________   __________      ______________        _____________   _________
     Total interest-bearing liabilities      974,406       3,371         1.38            708,787                4,310        2.43
                                                       _________                                         _____________

Non-interest bearing liabilities
Demand deposits                              211,765                                     116,028
Other liabilities                             15,901                                      12,245
                                          __________                               ______________
     Total liabilities (3)                 1,202,072                                     837,060
Stockholders' equity                         139,546                                      75,905
                                          __________                               ______________
     Total liabilities and stockholders'  $1,341,618                                    $912,965
     equity                               ==========                               ==============
Net interest income (tax-equivalent basis)                12,755         4.05                                   10,158        4.28
Tax-equivalent basis adjustment                             (161)                                                  (98)
                                                       _________                                         _____________
     Net interest income                                 $12,594                                               $10,060
                                                       =========                                         =============

Net interest income as a percent of interest-
earning assets (tax-equivalent basis)                                    4.29 %                                               4.71 %

____________________________________________________________________________________________________________________________________
<FN>

(1)  Nonaccrual  loans and any related  interest  recorded have been included in
computing the average rate earned on the loan portfolio.  When  applicable,  tax
exempt  loans  are  computed  on a fully  taxable  equivalent  basis  using  the
corporate  federal tax rate of 34%.
(2) Computed on a fully  taxable  equivalent
basis using the  corporate  federal  tax rate of 34%.
(3) All  deposits  are in domestic bank offices.
(4) The average balances are based on historical cost and
do not reflect unrealized gains or losses.
</FN>
</TABLE>


Provision for Loan and Lease Losses
     The provision for loan and lease losses represents management's calculation
of the  amount  necessary  to bring  the  allowance  for loan and  lease  losses
("ALLL") to a level that  management  considers  adequate to reflect the risk of
estimated  losses  inherent in the  Company's  loan  portfolio as of the balance
sheet date. A more  detailed  discussion  of the  evaluation  of the ALLL can be
found in the  section  titled  "Critical  Accounting  Policies  and  Judgements:
Allowance  for Loan and Lease  Losses"  above.  In the third quarter of 2003 and
2002,  the  Company's  provision for loan and lease losses was $485 thousand and
$405 thousand, respectively.
<PAGE>

Non-interest Income
     For the quarter ended September 30, 2003,  non-interest income totaled $3.3
million,  an increase of $1.6 million,  or 87.9%, as compared to the same period
in 2002. The improvement in non-interest  income, was mostly due to increases in
Bank Owned Life  Insurance  ("BOLI")  income,  service  charges on deposits  and
"other"  non-interest income of $472 thousand,  $339 thousand and $336 thousand,
respectively.  The  increase  in BOLI  income  was due to a claim  on  insurance
policies,  which  amounted to $422  thousand.  The growth in service  charges on
deposits was mostly due to the acquisition of Bridge View.
     During  the  quarter,  the  Company  recognized  net  gains  on the sale of
securities  of $501 thousand as compared to $214 thousand for the same period in
2002.

Non-interest Expense
     For the quarter ended September 30, 2003,  non-interest  expense  increased
$2.4  million to $8.8  million,  an increase of 38.4% when  compared to the same
period one year ago. The increase  was due largely to the  additional  operating
costs  resulting  from the merger with Bridge  View.  Also  contributing  to the
increase  were normal  increases  related to salaries,  benefits  and  occupancy
expense.

Income Taxes
     Income tax  expense  as a  percentage  of pre-tax  income was 32.5% for the
three months ended September 30, 2003 as compared to 32.3% for the third quarter
of 2002.

<PAGE>



           NINE MONTHS ENDED SEPTEMBER 30, 2003 AND SEPTEMBER 30, 2002
                              RESULTS OF OPERATIONS

Summary
     For the first nine months of 2003, the Company reported net income of $12.1
million,  or $1.04  diluted  earnings per common  share,  as compared  with $9.5
million,  or $0.95  diluted  earnings  per common share for the same period last
year.  The  increase in earnings  was driven  largely by growth in net  interest
income on a taxable  equivalent basis,  which increased $5.4 million,  or 18.6%.
The  improvement in net interest  income was  attributable to the acquisition of
Bridge View along with a strong growth in deposits  from the Company's  original
eighteen  branches that fueled  additional growth in interest earning assets. In
addition,  non-interest income, which increased $3.0 million, or 62.5%, over the
same period last year also  contributed  to the  improvement  in  earnings.  The
growth in revenues was partly  offset by a $4.2  million,  or 22.6%  increase in
non-interest expense.
     For the nine months  ended  September  30, 2003 and 2002,  ROA was 1.38% as
compared to 1.43% and ROE was to 14.12% as compared to 17.49%, respectively. The
main  reason for the  decline in ROE was due to the  increase  in  stockholders'
equity  related to the issuance of the  Company's  stock as a part of the merger
consideration for Bridge View.

Net Interest Income
     Net interest income on a  tax-equivalent  basis increased $5.4 million,  or
18.6%, to $34.4 million for the nine months ended September 30, 2003 as compared
to the same period in 2002.  The increase in net interest  income was due mostly
to a 25.8% growth in average  interest  earning  assets.  This interest  earning
asset growth was funded  primarily by deposit  liabilities,  which grew 30.4% on
average  for the first nine  months of 2003 as  compared  to the same  period in
2002.  The  growth in  interest  earning  assets  and  deposits  were  primarily
attributed to the Bridge View acquisition.  The margin, which decreased 27 basis
points to 4.38% for the first nine months of 2003 as compared to the same period
in 2002, partially offset the growth in interest earning assets.
     Interest income, on a tax-equivalent  basis,  totaled $45.0 million for the
first nine months of 2003, an increase of $2.4 million,  or 5.7%, as compared to
the same period in 2002.  For the year to date periods ended  September 30, 2003
and September 30, 2002, the tax equivalent basis  adjustments were $381 thousand
and $276 thousand,  respectively. The increase was mostly attributed to a $214.8
million,  or 25.8%,  growth in average  interest  earning assets.  The growth in
interest earning assets was the result of increases in average loans and average
investments of $103.2 million and $85.8 million,  respectively.  The Bridge View
acquisition  was the primary  contributor  to the  increase in interest  earning
assets,  loans and  investments  for 2003.  The increase in interest  income was
partly offset by a 109 basis point decline in interest  earning asset yields for
the  first  nine  months of 2003 as  compared  to the same  period in 2002.  The
decline in interest earning asset yields was largely attributed to a decrease in
market interest rates.
     Interest expense,  which totaled $10.6 million for the first nine months of
2003,  decreased $3.0 million, or 22.0%, as compared to the same period in 2002.
The decrease in interest expense was a byproduct of the decline in interest
rates,  particularly  short-term rates,  during 2003. In addition,  a beneficial
shift in the composition of the Company's  deposits,  which is discussed further
in the analysis of financial condition below, also had a favorable impact on the
Company's  interest  expense.  The  improved  deposit  mix  combined  with lower
short-term  interest  rates  reduced the average  rate paid on interest  bearing
liabilities by 101 basis points to 1.63% for the nine months ended September 30,
2003 as  compared  to the same  period in 2002.  The  magnitude  of the  benefit
derived  from the  decrease in rates paid on interest  bearing  liabilities  was
partially reduced by the positive growth of deposits.  Interest bearing deposits
grew on average $179.3 million,  or 27.3%,  for the first nine months of 2003 as
compared to the same period in 2002.

<PAGE>

<TABLE>
____________________________________________________________________________________________________________________________________
Analysis of Net Interest Income
____________________________________________________________________________________________________________________________________
for the nine months ended September 30,
(dollars in thousands)                                                 2003                             2002
                                                  __________________________________________________________________________________
(unaudited)                                         Average                   Average       Average                Average
                                                    Balance      Interest      Rate         Balance     Interest    Rate
                                                  ___________    _______      _______       _______     ________   _______
<S>                                                 <C>          <C>          <C>           <C>         <C>        <C>
                     Assets
Interest earning assets
Loans (1)                                           $712,480     $36,489        6.83 %      $609,248    $34,030     7.45 %
Taxable securities (4)                               270,379       7,284        3.59         195,056      7,799     5.33
Tax-exempt securities (2) (4)                         26,529         916        4.60          16,048        597     4.96
Interest earning deposits                              7,427          57        1.02               -          -        -
Federal funds sold                                    31,145         253        1.08          12,828        165     1.71
                                                   _________     _______      ______        ________    _______     ____
     Total interest-earning assets                 1,047,960      44,999        5.73         833,180     42,591     6.82

Non-interest earning assets
Cash and due from banks                               34,229                                  20,289
Allowance for loan and lease losses                   (8,515)                                 (6,460)
Other assets                                          88,642                                  37,714
                                                  __________                                ________
     Total assets                                 $1,162,316                                $884,723
                                                  ==========                                ========

      Liabilities and stockholders' equity
Interest-bearing liabilities
Interest bearing deposits                           $836,922      10,027        1.60        $657,584      12,688    2.57
Borrowings                                            26,238         544        2.76          28,045         872    4.15
                                                  __________     _______      ______        ________   _________    ____
     Total interest-bearing liabilities              863,160      10,571        1.63         685,629      13,560    2.64
                                                                 _______                               _________

Non-interest bearing liabilities
Demand deposits                                      170,000                                 114,824
Other liabilities                                     15,308                                  12,136
                                                  __________                                ________
     Total liabilities (3)                         1,048,468                                 812,589
Stockholders' equity                                 113,848                                  72,134
     Total liabilities and stockholders' equity   $1,162,316                                $884,723
                                                  ==========                               =========

Net interest income (tax-equivalent basis)                        34,428        4.10                      29,031    4.18
Tax-equivalent basis adjustment                                     (381)                                   (276)
                                                                 _______                               _________
     Net interest income                                         $34,047                                 $28,755
                                                                 =======                               =========
Net interest income as a percent of interest-earning assets
 (tax-equivalent basis)                                                         4.38 %                              4.65 %
____________________________________________________________________________________________________________________________________

<FN>
(1)  Nonaccrual  loans and any related  interest  recorded have been included in
computing the average rate earned on the loan portfolio.  When  applicable,  tax
exempt  loans  are  computed  on a fully  taxable  equivalent  basis  using  the
corporate  federal tax rate of 34%.
(2) Computed on a fully  taxable  equivalent
basis using the  corporate  federal  tax rate of 34%.
(3) All  deposits  are in domestic bank offices.
(4) The average balances are based on historical cost and
do not reflect unrealized gains or losses.
</FN>
</TABLE>


Provision for Loan and Lease Losses
     For the nine  months  ended  September  30,  2003 and 2002,  the  Company's
provision  for  loan  and  lease  losses  was $1.3  million  and $885  thousand,
respectively.  A more detailed  discussion of the  evaluation of the ALLL can be
found in the  section  titled  "Critical  Accounting  Policies  and  Judgements:
Allowance  for Loan and Lease Losses"  above.  The increase in the provision for
loan and lease  losses  during the nine  months was a result of an  increase  in
commercial loans, certain nonperforming assets and the Bridge View merger.

Non-interest Income
     For the nine months ended September 30, 2003,  non-interest  income grew to
$7.8  million,  an increase of $3.0 million,  or 62.5%,  as compared to the nine
months ended  September 30, 2002.  The  improvement in  non-interest  income was
largely due to  increases in BOLI income,  "other"  non-interest  income and net
gains from the sale of loans of $1.1 million,  $645 thousand and $344  thousand,
respectively.  The  increase  in BOLI  income  was due to a claim  on  insurance
policies,  which amounted to $921  thousand.  The increase in net gains from the
sale of loans was due to income of $362  thousand  realized  primarily  from the
sale of conforming  20 and 30 year  residential  mortgages  through the Mortgage
Partnership  Financing program with the Federal Home Loan Bank.  Contributing to
the  improvement  in  non-interest  income was  increases in service  charges on
deposits  and  commissions  on the sale of mutual  funds and  annuities  of $637
thousand  and $270  thousand,  respectively.  The growth in  service  charges on
deposits and "other"  non-interest income were largely due to the acquisition of
Bridge View.

     During the nine months ended September 30, 2003, the Company recognized net
gains on the sale of  securities  of $520  thousand as compared to $495 thousand
for the same  period  in  2002.  The net  gains  for  2003  were a  result  of a
combination of net realized gains from security sales of $935 thousand and gross
losses  resulting  from an  acceleration  of  premium  amortization  on  certain
collateralized  mortgage  obligations  of $415  thousand.  The  acceleration  of
premium  amortization  was  largely  driven by the  historically  high  mortgage
prepayment speeds due to the low interest rate environment.

Non-interest Expense
     For the nine months ended September 30, 2003,  non-interest expense totaled
$23.0 million,  an increase of $4.2 million,  or 22.6%,  as compared to the same
period in 2002. The increase was due largely to the additional  operating  costs
resulting from the merger with Bridge View.  Also  contributing  to the increase
were normal  increases  related to salaries  and benefits  along with  occupancy
expense.  In  addition,  the Company  incurred  direct  integration  expenses of
approximately  $357  thousand  associated  with the Bridge  View  merger,  which
included expenses  associated with data processing,  customer  notifications and
advertising, and salaries.

Income Taxes
     Income tax expense as a percentage of pre-tax income was 31.5% for the nine
months  ended  September  30,  2003 as  compared to 32.1% for the same period of
2002.

<PAGE>

                               FINANCIAL CONDITION
     The Company's  consolidated balance sheet as of September 30, 2003 includes
the assets and  liabilities  of the former  Bridge View,  which were recorded at
their respective fair values as of April 30, 2003. Based on the fair values, the
Company  recorded  purchase  accounting  adjustments  related to:  loans of $1.6
million;  securities  of $376  thousand;  other  assets of $1.9  million;  other
liabilities  of $2.5  million;  core  deposit  intangibles  of $4.3  million and
goodwill of $54.1  million.  The  Company's  total  assets were $1.3  billion at
September 30, 2003,  which  represents an increase of $412.5 million,  or 44.1%,
from $936.3 million at December 31, 2002. The growth was largely attributable to
the  acquisition  of  Bridge  View on  April  30,  2003  with  total  assets  of
approximately  $278 million and loans and deposits of approximately $185 million
and  $259  million,  respectively,   without  giving  effect  for  any  purchase
accounting adjustments.

Cash and Cash Equivalents
     At September 30, 2003, cash and cash equivalents increased $16.5 million to
$50.4 million as compared to December 31, 2002. This was primarily attributed to
the Bridge View merger and the result of investing activities (funding loans and
investment  growth)  investing  cash  less  rapidly  than  financing  activities
(reflecting  principally  deposit  growth less  repayments  of  borrowings)  and
operating  activities  (reflecting net income and changes in other assets) could
generate  it. This can be seen more  completely  on the  accompanying  unaudited
Consolidated Statements of Cash Flows.

Securities Portfolio
     Under Statement of Financial  Accounting  Standards No. 115 "Accounting for
Certain  Investments in Debt and Equity  Securities" ("SFAS 115"), each security
is classified as either trading, available for sale ("AFS"), or held to maturity
("HTM"). The Company has no securities held in a trading account. The securities
AFS are recorded at their estimated fair value. The after-tax difference between
amortized  cost and fair value of  securities  AFS is recorded  as  "accumulated
other comprehensive  income" in the equity section of the balance sheet. The tax
impact of such  adjustment  is  recorded as an  adjustment  to the amount of the
deferred tax liability.  The securities HTM are carried at cost adjusted for the
amortization of premiums and accretion of discounts,  which are recognized as an
adjustment to income.  Under SFAS No. 115, securities HTM, with some exceptions,
may only be sold within three months of maturity.
     The Company uses its securities portfolio to ensure liquidity for cash flow
requirements  to manage interest rate risk,  provide a source of income,  ensure
collateral  is available  for  pledging  requirements  and manage asset  quality
diversification.  At September 30, 2003,  investment  securities  totaled $410.2
million and represented 30.4% of total assets, as compared to $252.5 million and
27.0%, respectively, at December 31, 2002. Securities AFS comprised 95.0% of the
total  securities  portfolio  at  September  30,  2003 as  compared  to 88.8% at
December 31, 2002. During 2003, the Company sold securities with a book value of
approximately  $29.7 million and recognized $981 thousand in gross gains and $46
thousand  in gross  losses.  During the  second  quarter  of 2003,  the  Company
realized gross losses resulting from an acceleration of premium  amortization on
certain  collateralized  mortgage obligations of $415 thousand. The acceleration
of premium  amortization  was largely driven by the  historically  high mortgage
prepayment speeds due to the low interest rate environment.
<PAGE>

The  following  table  reflects the  composition  of the  securities  portfolio:
(dollars in thousands)
<TABLE>

                                                              _________________________________________________________
                                                                                 September 30, 2003
                                                              _________________________________________________________
                                                                                     (unaudited)

                                                                                 Gross         Gross           Estimated
                                                               Amortized      Unrealized    Unrealized           Fair
                                                                 Cost            Gains        Losses            Value
                                                              _____________   ____________  ___________     _____________
<S>                                                           <C>             <C>           <C>             <C>

Securities HTM
   Mortgage-backed securities                                       $11,187           $421          $ -          $ 11,608
   Obligations of states & political subdivisions                     9,247            881            -            10,128
   Other debt securities                                                100              -            -               100
                                                              _____________  _____________  ___________     _____________
                                                                     20,534          1,302            -            21,836
                                                              _____________  _____________  ___________     _____________

Securities AFS
   Obligations of U.S. Treasury                                      28,098             12            -          $ 28,110
   Mortgage-backed securities                                        93,952          1,519          213            95,258
   Obligations of U.S. agencies                                     225,034          3,886          256           228,664
   Obligations of states & political subdivisions                    32,619          1,099           98            33,620
   Equity securities                                                  3,955             76            -             4,031
                                                              _____________  _____________  ___________     _____________
                                                                    383,658          6,592          567           389,683
                                                              _____________  _____________  ___________     _____________

     Total securities                                              $404,192         $7,894         $567          $411,519
                                                              =============  =============  ===========     =============

                                                              ___________________________________________________________
                                                                                  December 31, 2002
                                                              ___________________________________________________________

                                                                                 Gross         Gross        Estimated
                                                               Amortized      Unrealized    Unrealized         Fair
                                                                 Cost            Gains        Losses          Value
                                                              _____________  _____________  ___________     _____________
Securities HTM
   Mortgage-backed securities                                       $16,437           $667          $ -          $ 17,104
   Obligations of U.S. agencies                                       1,991             68            -             2,059
   Obligations of states & political subdivisions                     9,664            663            -            10,327
   Other debt securities                                                100              -            -               100
                                                              _____________  _____________  ___________     _____________
                                                                     28,192          1,399            -            29,590
                                                              _____________  _____________  ___________     _____________
Securities AFS
   Mortgage-backed securities                                       101,028          1,778          201           102,605
   Obligations of U.S. agencies                                      91,577          3,982            -            95,559
   Obligations of states & political subdivisions                    21,382            889           52            22,219
   Equity securities                                                  3,937              -            -             3,937
                                                              _____________  _____________  ___________     _____________
                                                                    217,924          6,649          253           224,320
                                                              _____________  _____________  ___________     _____________

     Total securities                                              $246,116         $8,047         $253          $253,910

                                                              =============  =============  ===========     =============
</TABLE>


At September 30, 2003,  the  contractual  maturities of securities  HTM and
securities AFS are as follows: (dollars in thousands) (unaudited)

<TABLE>
                                    Securities                   Securities
                                       HTM                         AFS
                              _______________________      _________________________
                                            Estimated                      Estimated
                               Amortized      Fair          Amortized        Fair
                                 Cost         Value            Cost          Value
                              _______________________      _________________________
<S>                           <C>          <C>             <C>              <C>

Within 1 year                     $   275     $   278        $  72,904      $ 72,957
After 1 but within 5 years         13,360      13,992          271,514       276,088
After 5 but within 10 years         4,772       5,253           12,883        13,150
After 10 years                      2,127       2,313           22,402        23,457
Equity securities                       -           -            3,955         4,031
                              ___________   _________       __________     _________
                     Total        $20,534     $21,836         $383,658      $389,683
                              ===========   =========       ==========     =========
</TABLE>

Loans
     Total loans  amounted to $783.7  million at September 30, 2003, an increase
of $168.1  million  from $615.6  million at December  31,  2002.  The growth was
primarily attributed to the Bridge View acquisition.

     The  following  table  reflects  the  composition  of the  loan  and  lease
portfolio: (dollars in thousands)

<TABLE>

                                        ___________________    ___________________
                                           September 30,          December 31,
                                               2003                   2002
                                        ___________________    ___________________
                                           (unaudited)

<S>                                     <C>                   <C>

Amount of loans by type
     Real estate-mortgage
         Residential                               $253,887              $231,580
         Commercial                                 323,252               222,628
         Construction                                21,983                11,359
                                        ___________________    ___________________
                                                    599,122               465,567
                                        ___________________    ___________________
     Commercial loans
         Commercial and financial                   138,571               104,542
         Lease financing                             27,737                26,356
                                        ___________________    __________________
                                                    166,308               130,898
                                        ___________________    __________________
     Consumer loans
         Lease financing                             13,428                15,969
         Installment                                  4,828                 3,207
                                        ___________________    __________________
                                                     18,256                19,176
                                        ___________________    __________________
               Total                               $783,686              $615,641
                                        ===================    ==================

</TABLE>


Nonperforming Assets
     Nonperforming assets are comprised of nonaccrual loans, restructured loans,
foreclosed real estate and other repossessed  assets. With the completion of the
Bridge View merger,  the Company's,  nonperforming  assets at September 30, 2003
amounted  to $8.2  million,  an increase of $2.1  million,  or 33.1%,  from $6.1
million at December 31, 2002. The ratio of  nonperforming  assets to total loans
and foreclosed real estate and other  repossessed  assets  increased to 1.04% at
September 30, 2003 from 1.00% at December 31, 2002.
     The  following  table  lists  nonaccrual  loans,   restructured  loans  and
foreclosed real estate and other  repossessed  assets at September 30, 2003, and
December 31, 2002: (dollars in thousands)
<TABLE>

                                                                   _________________    _________________
                                                                     September 30,        December 31,
                                                                         2003                 2002
                                                                   _________________    _________________
                                                                      (Unaudited)
<S>                                                                <C>                  <C>

Nonperforming loans                                                           $7,923               $5,963
Foreclosed real estate and other repossessed assets                              251                  176
                                                                   _________________    _________________
      Total nonperforming assets                                              $8,174               $6,139
                                                                   ==================   ==================

</TABLE>


Allowance for Loan and Lease Losses
     The ALLL is  generally  established  through  periodic  charges  to income.
During the nine months,  the ALLL also increased by approximately  $2.1 million,
of which,  approximately $1.9 million was due to the amount that Bridge View had
on its  statement  of financial  condition  on April 30,  2003.  Loan losses are
charged  against the ALLL when  management  believes  that the  probable  future
collection of principal is unlikely. Subsequent recoveries, if any, are credited
to the ALLL. If the ALLL is  considered  inadequate to absorb future loan losses
on existing  loans,  based on, but not limited to,  increases in the size of the
loan portfolio,  increases in charge-offs or changes in the risk characteristics
of the  loan  portfolio,  then  the  provision  for loan  and  lease  losses  is
increased.
     The Company  considers the ALLL of $9.4 million adequate to cover estimated
losses  inherent in the loan  portfolio that may become  uncollectible  based on
management's  evaluations  of the size and current risk  characteristics  of the
loan and lease portfolio as of the balance sheet date. The evaluations  consider
such factors as changes in the composition and volume of the loan portfolio, the
impact  of  changing  economic  conditions  on  the  credit  worthiness  of  the
borrowers,  review of specific problem loans and management's  assessment of the
inherent risk and overall quality of the loan portfolio.



     The  following  table  presents the  provisions  for loan and lease losses,
loans charged off and recoveries on loans previously  charged off, the amount of
the allowance,  the average loans  outstanding and certain  pertinent ratios for
the three and nine  months  ended  September  30,  2003 and  2002:  (dollars  in
thousands) (unaudited)
<TABLE>


                                                       Three months ended                   Nine months ended
                                                          September 30,                       September 30,
                                                       _________________________          ___________________________
                                                           2003             2002            2003              2002
                                                       __________       ________          ________        ___________
<S>                                                    <C>              <C>               <C>             <C>


Average loans outstanding                                $788,705       $627,092          $712,480          $609,248
                                                       ==========       ========          ========        ===========

Allowance at beginning of period                            9,537          6,430             7,207             6,569
                                                       __________       ________          ________        ___________
Loans charged off
     Real estate                                                4             14                 4                14
     Commercial and financial                                   -              -                25                 9
     Commercial lease financing                               686            123             1,041               757
     Consumer loans                                            16              -                35                22
                                                       __________       ________          ________        __________
          Total                                               706            137             1,105               802
                                                       __________       ________          ________        __________

Recoveries of loans previously charged off
     Real estate                                               35              -                35                28
     Commercial and financial                                   -              -                 -                 -
     Commercial lease financing                                 1              1                 3                 9
     Consumer loans                                             3              8                 6                18
                                                       __________       ________          ________        __________
          Total                                                39              9                44                55
                                                       __________       ________          ________        __________

Additions due to merger                                         -              -             1,929                 -
Provision for loan and lease losses                           485            405             1,280               885
                                                       __________       ________          ________        __________
Allowance at end of period                                 $9,355         $6,707            $9,355            $6,707
                                                       ==========       ========          ========        ==========


Allowance to total loans (end of period)                     1.19  %        1.12  %
Ratio of net charge-offs to average loans (annualized)       0.34  %        0.08  %           0.20  %           0.16%
</TABLE>



Deposits
     Deposits, which include non-interest-bearing demand deposits, time deposits
and other interest-bearing  deposits are an essential and cost-effective funding
source for the Company.  The Company  attributes its success in growing deposits
to the emphasis it places on building core customer  relationships by offering a
variety of products  designed to meet the financial needs of its customers based
on their identifiable "life stages".
     At September 30, 2003, total deposits  increased $349.1 million,  or 42.8%,
to $1.2 billion from $815.7  million at December  31, 2002.  Deposit  growth was
mainly a function of the Bridge View  merger,  excluding  the  deposits  held at
former Bridge View branches on September 30, 2003,  the Company's  deposits grew
$98.8 million or 12.1% as compared to December 31, 2002.  The growth in deposits
occurred mostly in other interest-bearing
deposits,  non-interest  bearing  demand  deposits,  and time deposits less than
$100,000,  which  increased  $202.5  million,  $96.4 million and $55.0  million,
respectively,  at September  30, 2003 as compared to December  31,  2002.  Other
interest-bearing  deposits,  which include interest-bearing demand, money market
and savings  accounts,  comprise  the  largest  segment of the  Company's  total
deposits.  At  September  30, 2003,  such  deposits  amounted to $662.1  million
representing  56.8% of total  deposits  compared  to 56.4% of total  deposits at
December  31,  2002.  The  growth in other  interest-bearing  deposits  occurred
largely in interest bearing checking,  which increased $114.8 million, or 35.4%,
for September 30, 2003 as compared to December 31, 2002. Time deposits  amounted
to $295.6 million at September 30, 2003, an increase of $50.3 million, or 21.2%,
from December 31, 2002. Total time deposits  represented 24.7% of total deposits
at September 30, 2003 compared to 29.1% at December 31, 2002.
<PAGE>

     For the three and nine months  ended  September  30,  2003,  the  Company's
overall  yield on  deposits  declined  by 91 basis  points to 1.11% and 86 basis
points to 1.33%,  respectively,  as compared to the same periods last year.  The
decrease was attributed  predominately to changes in market interest rates and a
change in the composition of deposit liabilities.
     The  following  table  reflects  the  composition  of deposit  liabilities:
(dollars in thousands)

<TABLE>
                                        ________________       _________________
                                         September 30,          December 31,

                                            2003                  2002
                                        ________________       _________________
                                         (Unaudited)
<S>                                     <C>                    <C>

Non-interest Demand                             $214,969                $118,578
Interest Bearing Demand                          438,767                 323,998
Savings                                          121,917                  80,300
Money Market Savings                             101,452                  55,372
Time Deposits <$100,000                          265,729                 210,727
Time Deposits >$100,000                           21,948                  26,697
                                        ________________       _________________
     Total                                    $1,164,783                $815,672
                                        ================       =================
</TABLE>


Item 3:  Quantitative and Qualitative Disclosures About Market Risk
     Market risk is generally  described as the sensitivity of income to adverse
changes in interest rates,  foreign currency  exchange rates,  commodity prices,
and other relevant  market rates or prices.  Market rate  sensitive  instruments
include:  financial  instruments  such as  investments,  loans,  mortgage-backed
securities,   deposits,  borrowings  and  other  debt  obligations;   derivative
financial  instruments,  such as  futures,  forwards,  swaps  and  options;  and
derivative commodity instruments, such as commodity futures, forwards, swaps and
options  that  are  permitted  to  be  settled  in  cash  or  another  financial
instrument.
     The  Company  does not have  any  material  exposure  to  foreign  currency
exchange rate risk or commodity  price risk.  The Company did not enter into any
market rate sensitive  instruments for trading purposes nor did it engage in any
trading or  hedging  transactions  utilizing  derivative  financial  instruments
during the first nine months of 2003. The Company's real estate loan  portfolio,
concentrated  primarily in northern New Jersey,  is subject to risks  associated
with the local and regional  economies.  The Company's  primary source of market
risk  exposure  arises from changes in market  interest  rates  ("interest  rate
risk").

Interest Rate Risk

     Interest  rate risk is generally  described as the exposure to  potentially
adverse  changes in  current  and future net  interest  income  resulting  from:
fluctuations in interest rates; product spreads; and imbalances in the repricing
opportunities  of  interest-rate-sensitive  assets and  liabilities.  Therefore,
managing the Company's  interest rate sensitivity is a primary  objective of the
Company's senior management. The Company's Asset/Liability Committee ("ALCO") is
responsible for managing the exposure to changes in market interest rates.  ALCO
attempts to maintain stable net interest margins by periodically  evaluating the
relationship  between   interest-rate-sensitive   assets  and  liabilities.  The
evaluation,  which is performed at least  quarterly  and presented to the Board,
attempts  to  determine  the impact on net  interest  margin  from  current  and
prospective changes in market interest rates.

     The Company  manages  interest rate risk exposure with the  utilization  of
financial modeling and simulation  techniques.  These methods assist the Company
in  determining  the effects of market rate changes on net  interest  income and
future economic value of equity. The objective of the Company is to maximize net
interest  income within  acceptable  levels of risk  established by policy.  The
techniques  utilized  for  managing  exposure to market rate  changes  involve a
variety of interest  rate,  pricing and volume  assumptions.  These  assumptions
include projections on growth, prepayment and withdrawal levels as well as other
embedded options inherently found in financial instruments.  The Company reviews
and validates these assumptions at least annually or more frequently if economic
or other  conditions  change.  At September 30, 2003, the Company  simulated the
effects on net interest income given an instantaneous  and parallel shift in the
yield curve of up to a 200 basis point rising  interest rate  environment  and a
100 basis point declining  interest rate environment.  Based on that simulation,
it was estimated that net interest income,  over a twelve-month  horizon,  would
not decrease by more than 6.0%.  At September  30, 2003,  the Company was within
policy limits  established by the board of directors for changes in net interest
income and future economic value of equity.  The following table illustrates the
effects on net interest income given an instantaneous  and parallel shift in the
yield curve of up to a 200 basis point rising  interest rate  environment  and a
100 basis point declining interest rate environment:
<PAGE>

<TABLE>

Net Interest Income Sensitivity Simulation


                      Percentage Change in Estimated Net Interest
                          Income over a twelve month horizon
                      ___________________________________________
                                   September 30,

                         2003                  2002
                      ____________        _____________
<S>                   <C>                 <C>

+200 basis points            -3.9 %               -4.8 %

+100 basis points            -0.3 %               -0.1 %

-100 basis points            -6.0 %               -1.8 %

</TABLE>



     The simulation  described  above does not represent a Company  forecast and
should not be relied upon as being  indicative  of expected  operating  results.
These hypothetical estimates are based upon numerous assumptions including:  the
nature  and  timing  of  interest  rate  levels  including  yield  curve  shape;
prepayments on loans and securities;  deposit decay rates;  pricing decisions on
loans and deposits;  reinvestment/replacement  of asset and liability cashflows;
and others.  While  assumptions  are developed  based upon current  economic and
local  market  conditions,  the  Company  cannot make any  assurances  as to the
predictive  nature of these  assumptions  including how customer  preferences or
competitor influences might change.
     Further,  as market  conditions  vary from those assumed in the simulation,
actual results will also differ due to:  prepayment/refinancing levels deviating
from those  assumed;  the  varying  impact of interest  rate  changes on caps or
floors on adjustable rate assets;  the potential effect of changing debt service
levels on customers with adjustable rate loans;  depositor early withdrawals and
product preference changes; and other internal/external variables.  Furthermore,
the  simulation  does not  reflect  actions  that ALCO might take in response to
anticipated  changes in interest rates or  competitive  conditions in the market
place.  In  addition to the  above-mentioned  techniques,  the Company  utilizes
sensitivity gap analysis as an interest rate risk  measurement.  Sensitivity gap
is determined by analyzing the difference between the amount of interest-earning
assets  maturing or  repricing  within a specific  time period and the amount of
interest  bearing  liabilities  maturing or repricing within that same period of
time. Sensitivity gap analysis provides an indication of the extent to which the
Company's  net  interest  income  may be  affected  by future  changes in market
interest rates.  The cumulative gap position  expressed as a percentage of total
assets provides one relative measure of the Company's interest rate exposure.
     The cumulative gap between the Company's interest-rate-sensitive assets and
its interest-rate-sensitive liabilities repricing within a one-year period was a
negative 10.9% at September 30, 2003. Since the cumulative gap was negative, the
Company has a "negative gap" position, which theoretically will cause its assets
to reprice  more slowly than its deposit  liabilities.  In a declining  interest
rate  environment,  interest  costs  may be  expected  to fall  faster  than the
interest received on earning assets, thus increasing the net interest spread. If
interest  rates  increase,  a negative gap means that the  interest  received on
earning assets may be expected to increase more slowly than the interest paid on
the Company's liabilities therefore decreasing the net interest spread.

Capital Adequacy
     The  Company is subject to  capital  adequacy  requirements  imposed by the
Board of Governors of the Federal  Reserve System (the "Federal  Reserve");  and
the Bank is subject  to similar  capital  adequacy  requirements  imposed by the
Federal Deposit Insurance  Corporation (the "FDIC"). The Federal Reserve and the
FDIC have adopted  risk-based  capital  requirements  for assessing bank holding
company and bank capital adequacy.  These standards define capital and establish
minimum  capital  requirements  in  relation  to assets  and  off-balance  sheet
exposure,  adjusted for credit risk. The risk-based capital standards  currently
in effect are designed to make regulatory capital requirements more sensitive to
differences in risk profiles among bank holding  companies and banks, to account
for off-balance sheet exposure and to minimize  disincentives for holding liquid
assets.   Assets  and  off-balance  sheet  items  are  assigned  to  broad  risk
categories,  each with appropriate  relative risk weights. The resulting capital
ratios  represent  capital as a  percentage  of total  risk-weighted  assets and
offbalance sheet items.
     A banking  organization's total qualifying capital includes two components:
core capital (Tier 1 capital) and supplementary  capital (Tier 2 capital).  Core
capital,  which must comprise at least half of total  capital,  includes  common
shareholders'  equity,  qualifying  perpetual  preferred stock,  trust preferred
securities  (subject  to  certain  limitations)  and  minority  interests,  less
goodwill and any unrealized gains or losses.  Supplementary capital includes the
allowance  for loan losses  (subject to certain  limitations),  other  perpetual
preferred stock, trust preferred  securities that exceed Tier 1 limits,  certain
other capital  instruments and term subordinated  debt. Total capital is the sum
of core and supplementary capital.
     At September 30, 2003, the minimum  risk-based  capital  requirements to be
considered  adequately  capitalized  were 4% for Tier 1 capital and 8% for total
capital.
     Federal banking regulators have also adopted leverage capital guidelines to
supplement the risk-based measures. The leverage ratio is determined by dividing
Tier 1 capital as  defined  under the  risk-based  guidelines  by average  total
assets (non risk-adjusted) for the preceding quarter. At September 30, 2003, the
minimum leverage ratio requirement to be considered  adequately  capitalized was
3%.
     The capital  levels of the Company and the Bank at September 30, 2003,  and
the  two  highest  capital  adequacy  levels  recognized  under  the  guidelines
established by the federal banking agencies are included in the following table.
The Company's and the Bank's ratios all exceeded the well-capitalized guidelines
shown in the table.


The Company's and the Bank's capital amounts and ratios are as follows: (dollars
in thousands)
<TABLE>
                                                                                                                 To Be "Well
                                                                                                               Capitalized" Under
                                                                                        For Capital            Prompt Corrective
                                                           Actual                     Adequacy Purposes        Action Provisions
                                                       _______________________    _______________________    _____________________
                                                       Amount           Ratio     Amount        Ratio          Amount        Ratio

                                                       ___________   ___________  __________  ___________    ___________   _________
As of September 30, 2003 (unaudited):
<S>                                                    <C>           <C>          <C>         <C>            <C>           <C>

    Total Capital (to Risk Weighted Assets):
       The Company                                        $88,552       10.43 %     $67,921        8.00 %           N/A        N/A
       The Bank                                            90,068       10.57        68,141        8.00         $85,176       10.00%
    Tier 1 Capital (to Risk Weighted Assets):
       The Company                                         79,092        9.32        33,961        4.00             N/A         N/A
       The Bank                                            80,608        9.46        34,071        4.00          51,106        6.00
    Tier 1 Capital (to Average Assets):
       The Company                                         79,092        6.18        38,389        3.00             N/A         N/A
       The Bank                                            80,608        6.28        38,486        3.00          64,143        5.00

As of December 31, 2002:
    Total Capital (to Risk Weighted Assets):
       The Company                                        $82,658       13.33 %     $49,619        8.00 %           N/A         N/A
       The Bank                                            80,813       13.00        49,714        8.00         $62,143       10.00%
    Tier 1 Capital (to Risk Weighted Assets):
       The Company                                         75,451       12.16        24,809        4.00             N/A         N/A
       The Bank                                            73,606       11.84        24,857        4.00          37,286        6.00
    Tier 1 Capital (to Average Assets):
       The Company                                         75,451        8.12        27,864        3.00             N/A         N/A
       The Bank                                            73,606        7.92        27,868        3.00          46,446        5.00
</TABLE>


Liquidity
     Liquidity  is the  ability  to  provide  sufficient  resources  to meet all
current financial  obligations and finance prospective  business  opportunities.
The Company's  liquidity  position over any given period of time is a product of
its operating, financing and investing activities. The extent of such activities
is often shaped by such external  factors as competition for deposits and demand
for loans.
     The  Company's  most  liquid  assets  are  cash and  cash  equivalents.  At
September 30, 2003, the total of such assets amounted to $50.4 million, or 3.7%,
of total assets, compared to $33.9 million, or 3.6%, of total assets at December
31, 2002. The increase in cash and cash  equivalents  was due largely to deposit
growth and loan  prepayments,  which  produced funds that were placed in federal
funds  sold or  interest  earning  deposits  pending  investment  in  loans  and
securities.
     Financing for the Company's loans and investments is derived primarily from
deposits,  along with interest and principal  payments on loans and investments.
At September 30, 2003, total deposits  amounted to $1.2 billion,  an increase of
$349.1  million,  or 42.8%,  from  December 31, 2002.  In addition,  the Company
supplemented  the more  traditional  funding  sources with  borrowings  from the
Federal  Home Loan Bank of New York  ("FHLB")  and with  securities  sold  under
agreements to  repurchase  ("REPOS").  At September 30, 2003,  advances from the
FHLB and REPOS  amounted to $12.2 million and $16.5  million,  respectively,  as
compared to $10.0 million and $17.4 million, respectively, at December 31, 2002.
     Net loans and leases at September 30, 2003 amounted to $774.3  million,  an
increase of $165.9  million,  from $608.4 million at December 31, 2002.  Another
significant  liquidity  source  is the  Company's  securities  portfolio.  Total
securities  at September  30, 2003  amounted to $410.2  million,  an increase of
$157.7 million,  from $252.5 million at December 31, 2002. At September 30, 2003
securities AFS amounted to $389.7 million,  or 74%, of total securities compared
to $224.3 million, or 89%, of total securities at December 31, 2002.
     In addition to the  aforementioned  sources of  liquidity,  the Company has
available various other sources of liquidity,  including federal funds purchased
from other banks and the Federal Reserve  discount  window.  The Bank also has a
$96.3 million line of credit available through its membership in the FHLB.
     The Company is party to financial  instruments with off-balance  sheet risk
in the normal course of business to meet the financing  needs of its  customers.
These  instruments,  which  include  commitments  to extend  credit and  standby
letters of credit, involve, to a varying degree, elements of credit and interest
rate risk in excess of the amount recognized in the Consolidated Balance Sheets.
Commitments  to extend  credit are  agreements  to lend to a customer as long as
there is no violation of any condition established in the contract.  Commitments
generally  have  fixed  expiration  dates and may  require  collateral  from the
borrower  if deemed  necessary  by the  Company.  Standby  letters of credit are
conditional  commitments issued by the Company to guarantee the performance of a
customer to a third party up to a stipulated amount and with specified terms and
conditions.  Commitments to extend credit and standby  letters of credit are not
recorded on the Company's  consolidated  balance  sheet until the  instrument is
exercised.  At September 30, 2003 outstanding  commitments to fund loans totaled
$197.6 million and outstanding standby letters of credit totaled $2.1 million.
     The Company  historically  paid quarterly  cash  dividends and  anticipates
continuing  paying  quarterly  dividends in the future.  The Company  could,  if
necessary,  modify the amount or frequency, of dividends as an additional source
of liquidity.  There are imposed  dividend  restrictions on the Bank,  which are
described in Note 17 "Restrictions of Subsidiary Bank Dividends" in the Notes to
Consolidated  Financial  Statements in the Company's  2002 Annual Report on Form
10-K.  Management  believes  that  the  Company  has  sufficient  cash  flow and
borrowing capacity to fund all outstanding commitments and letters of credit and
to maintain proper levels of liquidity.

Item 4.  Controls and Procedures
     In accordance  with Rule 13a-15(b) of the  Securities  Exchange Act of 1934
(the "Exchange  Act"), as of the end of the quarter ended September 30, 2003, we
carried out an evaluation  under the supervision and with the  participation  of
our  management,  including  our Chief  Executive  Officer  and Chief  Financial
Officer,  of the  effectiveness  of the design and  operation of our  disclosure
controls and  procedures  as defined in Rule  13a-15(e)  under the Exchange Act.
Based on that  evaluation,  our Chief  Executive  Officer  and  Chief  Financial
Officer  have  concluded  that  our  disclosure   controls  and  procedures  are
effective.
     The Company maintains internal control over financial reporting. During the
quarter  ended  September  30, 2003,  there have been no changes in our internal
controls  over  financial  reporting  that  have  materially  affected,  or  are
reasonably  likely to materially  affect,  the Company's  internal  control over
financial reporting.

<PAGE>

                                            PART II - OTHER INFORMATION
Item 1.  Legal Proceedings
         Reference  is  also  made  to  Note 4 of the  Company's  Consolidated
         Financial Statements in this Form 10-Q.

Item 2.  Change in Securities and Use of Proceeds
         None

Item 3.  Defaults Upon Senior Securities
         None

Item 4.  Submission of Matters to a Vote of Security Holders
         None


Item 5.  Other Information
         None

Item 6.  Exhibits and Reports on Form 8-K
         (a)  The following exhibits are furnished herewith:
              Exhibit.
              ________
              11       Statement re computation of per share earnings
              31.1     Certification of Chief Executive Officer pursuant to
                       Section 302 of the Sarbanes-Oxley Act of 2002
              31.2     Certification of Chief Financial Officer pursuant to
                       Section 302 of the Sarbanes-Oxley Act of 2002
              32       Certifications Pursuant to Section 906 of the
                       Sarbanes-Oxley Act of 2002

         (b)  Reports on Form 8-K

              During the quarter ended September 30, 2003, the Company filed the
              following Current Report on Form 8-K:

              Form 8-K filed July 24, 2003, reporting earnings for the second
              quarter period ending June 30,2003.
<PAGE>


                                                    SIGNATURES

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.

Interchange Financial Services Corporation

By:     /s/ Charles T. Field
        ______________________________________
        Charles T. Field
        Senior Vice President & CFO
        (Duly Authorized Officer and Principal
        Financial and Accounting Officer)

Dated: November 14, 2003