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, June 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 July 31, 2003, was 12,793,801 shares.

<PAGE>


                   INTERCHANGE FINANCIAL SERVICES CORPORATION


                                      INDEX


PART I            FINANCIAL INFORMATION
                                                                        Page No.
         Item 1   Financial Statements

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

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

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

                           Consolidated Statements of Cash Flows for the
                           six months ended June 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  . . . . . .  12

         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).  . . . . . . . . .                  26

         Item 4            Controls and Procedures . . . . .                 31

PART II         OTHER INFORMATION

         Item 1            Legal Proceedings . . . . . . . . . . . . . .     32

         Item 2            Changes in Securities and Use of Proceeds. . .    32

         Item 3            Defaults upon Senior Securities  . . . . . . .    32

         Item 4            Submission of Matters to a Vote
                           of Security Holders . . . . . . . . . . . . .     32

         Item 5            Other Information . . . . . . . . . . . . . .     32

         Item 6            Exhibits and Reports on Form 8-K . . . . . .      32

                           Signatures . . . . . . . . . . . . . . . . .      33
<PAGE>
<TABLE>

Item 1: Financial Statements


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

                                                                             June 30,      December 31,
                                                                              2003            2002
                                                                            ___________  _____________
                                                                            (unaudited)
<S>                                                                        <C>             <C>
   Assets

   Cash and due from banks                                                     $ 44,583       $ 23,266
   Federal funds sold                                                            11,000         10,650
                                                                            ___________    ___________
                                                                                 55,583         33,916
                                                                            ___________    ___________

   Securities held to maturity at amortized cost (estimated market value
         of $26,166 and $29,590 for June 30, 2003 and December 31, 2002,
         respectively)                                                           24,741         28,192
                                                                            ___________    ___________

   Securities available for sale at estimated market value (amortized cost
         of $313,667 and $217,924 for June 30, 2003 and December 31, 2002,
         respectively)                                                          320,204        224,320
                                                                            ___________    ___________
   Loans and leases (net of unearned income and deferred fees of $7,573 and
        $8,657 for June 30, 2003 and December 31, 2002, respectively)           805,084        615,641
        Less:  Allowance for loan and lease losses                                9,537          7,207
                                                                            ___________    ___________
   Net loans and leases                                                         795,547        608,434
                                                                            ___________    ___________


   Bank owned life insurance                                                     21,542         21,274
   Premises and equipment, net                                                   20,440         10,512
   Foreclosed real estate and other repossesed assets                               172            176
   Goodwill                                                                      55,270          1,447
   Intangible assets                                                              4,417            231
   Accrued interest receivable and other assets                                  14,185          7,830
                                                                            ___________    ___________

   Total assets                                                              $1,312,101       $936,332
                                                                            ===========    ===========

   Liabilities
   Deposits
     Non-Interest bearing                                                      $212,395       $118,578
     Interest bearing                                                           924,431        697,094
                                                                            ___________    ___________
  Total deposits                                                              1,136,826        815,672
                                                                            ___________    ___________

Securities sold under agreements to repurchase                                   11,420         17,390
Long-term borrowings                                                             10,000         10,000
Accrued interest payable and other liabilities                                   15,852         12,590
                                                                            ___________    ___________
Total liabilities                                                             1,174,098        855,652
                                                                            ___________    ___________

Commitments and contingent liabilities

Stockholders' equity:
Common stock, without par value; 22,500,000 shares authorized;
   12,756,842 and 9,815,207 shares issued and outstanding at
    June 30, 2003 and December 31, 2002, respectively                             5,397          5,397
Capital surplus                                                                  73,355         21,097
Retained earnings                                                                68,693         63,314
Accumulated other comprehensive income                                            3,653          3,596
                                                                            ___________     __________
                                                                                151,098         93,404
Less:  Treasury stock                                                            13,095         12,724
                                                                            ___________      _________

Total stockholders' equity                                                      138,003         80,680
                                                                            ___________      _________

   Total liabilities and stockholders' equity                                $1,312,101       $936,332
                                                                            ===========      =========
_______________________________________________________________________________________________________
   See notes to consolidated financial statements.
</TABLE>
<PAGE>

<TABLE>

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

                                                                          Three Months Ended                 Six Months Ended
                                                                               June 30,                          June 30,
                                                                      ___________________________       ___________________________


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

Interest income
Interest and fees on loans                                                $12,470        $11,340             $23,326        $22,354
Interest on federal funds sold                                                121             67                 184            120
Interest on interest bearing deposits                                           9            -                    21             -
Interest and dividends on securities
    Taxable interest income                                                 2,329          2,598               4,612          5,102
    Interest income exempt from federal income taxes                          221            149                 400            275
    Dividends                                                                  52             47                 109             94
                                                                       ___________   ____________       ____________   ____________
Total interest income                                                      15,202         14,201              28,652         27,945
                                                                       ___________   ____________       ____________   _____________


Interest expense
Interest on deposits                                                        3,416          4,313               6,823          8,697
Interest on securities sold under agreements to repurchase                     79             43                 165             92
Interest on short-term borrowings                                               -            110                   -            250
Interest on long-term borrowings                                              107            108                 212            211

                                                                       __________    ___________        ____________    ___________
Total interest expense                                                      3,602          4,574               7,200          9,250
                                                                       __________    ___________        ____________    ___________

Net interest income                                                        11,600          9,627              21,452         18,695
Provision for loan and lease losses                                           530            255                 795            480
                                                                       __________    ___________        ____________    ___________

Net interest income after provision for loan losses                        11,070          9,372              20,657         18,215
                                                                       __________    ___________        ____________    ___________

Non-interest income
Service fees on deposit accounts                                              908            649               1,561          1,263
Net gain on sale of securities                                                 19             94                  19            281
Net gain on sale of loans and leases                                          147              8                 345             38
Bank owned life insurance                                                     784            224               1,062            445
Commissions on sale of annuities and mutual funds                             175            155                 388            207
Other                                                                         611            347               1,113            804
                                                                       __________    ___________        ____________    ___________

Total non-interest income                                                   2,644          1,477               4,488          3,038
                                                                       __________    ___________        ____________    ___________

Non-interest expense
Salaries and benefits                                                       4,193          3,303               7,821          6,562
Net occupancy                                                               1,095            869               2,023          1,733
Furniture and equipment                                                       353            305                 606            590
Advertising and promotion                                                     423            364                 737            789
Federal Deposit Insurance Corporation assessment                               37             33                  71             65
Foreclosed real estate                                                          -              5                   -             11
Amortization of intangible assets                                              90             18                 109             31
Other                                                                       1,505          1,395               2,856          2,643
                                                                      ___________    ___________        ____________    ___________

Total non-interest expense                                                  7,696          6,292              14,223         12,424
                                                                      ___________    ___________        ____________    ___________

Income before income taxes                                                  6,018          4,557              10,922          8,829

Income taxes                                                                1,831          1,492               3,379          2,824
                                                                      ___________    ___________        ____________    ___________

Net income                                                                $ 4,187        $ 3,065             $ 7,543        $ 6,005
                                                                      ===========    ===========        ============    ===========

Basic earnings per common share                                             $0.35          $0.31               $0.70          $0.61
                                                                      ===========    ===========        ============    ===========

Diluted earnings per common share                                           $0.35          $0.31               $0.69          $0.60
                                                                      ============   ============       ============    ===========
___________________________________________________________________________________________________________________________________
See notes to consolidated financial statements.
/TABLE>




Interchange Financial Services Corporation
___________________________________________________________________________________________________________________________________
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY
For the Six Months Ended Ended June 30,
___________________________________________________________________________________________________________________________________
(dollars in thousands, except per share data) (unaudited)
<CAPTION>
                                                                                    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                                                     $6,005     6,005                                             6,005
  Other comprehensive income, net of taxes
    Unrealized gains on AFS debt securities                       1,187
    Less: gains on disposition of securities                       (187)
                                                            ____________
  Other comprehensive income, net of taxes                        1,000                   1,000                               1,000
                                                            ____________
Comprehensive income                                             $7,005
                                                            ============

Dividends on common stock                                                  (1,961)                                           (1,961)
Issued 21,069 shares of common stock in connection
   with Executive Compensation Plan                                                                            66      244      310
Exercised 18,435 option shares                                                                                (66)     213      147
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 June 30, 2002                                                   58,802         2,156   5,397    21,124  (12,605)  74,874

Comprehensive income                                             $6,872     6,872                                             6,872
   Other comprehensive income, net of taxes
     Unrealized  gains on AFS debt securities                     1,850
     Add: losses on disposition of securities                      (410)
                                                            ___________
 Other comprehensive income, net of taxes                         1,440                   1,440                               1,440
                                                            ___________
Comprehensive income                                             $8,312
                                                            ===========
Dividends on common stock                                                  (2,360)                                           (2,360)
Exercised 6,723 option shares                                                                                 (27)      78       51
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                                                  $7,543     7,543                                             7,543
     Other comprehensive income, net of taxes
       Unrealized net gains on AFS debt securities                  282
       Less: net gains on disposition of securities                (206)
       Minimum pension liability                                    (19)
                                                            ___________
       Other comprehensive income, net of taxes                      57                     57                                   57
                                                            ___________
Comprehensive income                                             $7,600
                                                            ===========

Dividends on common stock                                                  (2,164)                                           (2,164)
Issued 20,833 shares of common stock in connection
   with Executive Compensation Plan                                                                          109       245      354
Exercised 7,141 option shares                                                                                (31)       77       46
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 June 30, 2003                                                  $68,693       $3,653   $5,397  $73,355  $(13,095)$138,003
                                                                          ========  ==========  =======  ========  ======== =======
___________________________________________________________________________________________________________________________________
See notes to consolidated financial statements.
</TABLE>

<PAGE>
<TABLE>

Interchange Financial Services Corporation
___________________________________________________________________________________________________________
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30,
___________________________________________________________________________________________________________
(dollars in thousands)
(unaudited)

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

Cash flows from operating activities
Net income                                                                             $ 7,543      $ 6,005
Adjustments to reconcile net income to net cash provided by operating activities
    Depreciation and amortization                                                          801          728
    Amortization of securities premiums                                                  1,649          853
    Accretion of securities discounts                                                     (166)        (147)
    Amortization of premiums in connection with acquisition                                250           32
    Provision for loan and lease losses                                                    795          480
    Increase in cash surrender value of Bank Owned Life Insurance                         (268)        (446)
    Net gain on the sale of repossessed assets                                              (7)           -
    Origination of loans held for sale                                                  (7,549)           -
    Sale of loans held for sale                                                          7,775            -
    Other than temporary impairment of securities                                          415            -
    Net gain on sale of securities available for sale                                     (475)        (284)
    Net gain on sale of loans and leases                                                  (345)         (38)
    Net gain on sale of fixed assets                                                        10            -
Decrease (increase) in operating assets
    Accrued interest receivable                                                           (554)        (442)
    Accounts receivable- leases sold                                                         -        4,921
    Other                                                                               (5,309)        (253)
(Decrease) increase in operating liabilities
    Accrued interest payable                                                              (319)         (97)
    Other                                                                                1,962        2,915
                                                                                    __________  ___________
Cash provided by operating activities                                                    6,208       14,227
                                                                                    __________  ___________

Cash flows from investing activities
(Payments for) proceeds from
    Purchase of loans                                                                      (53)     (14,945)
    Net originations of loans                                                           (6,343)     (27,066)
    Net proceeds from the sale of leases                                                 1,520          493
    Purchase of securities available for sale                                         (134,890)     (74,343)
    Maturities of securities available for sale                                         64,603       20,450
    Sale of securities available for sale                                               13,029        7,234
    Maturities of securities held to maturity                                            3,342        7,795
    Purchase of fixed assets                                                              (560)        (997)
    Sale of reposessed assets                                                              100          251
    Net cash proceeds from acquisition of Bridge View Bancorp                           20,191            -
    Premium in connection with acquisition                                                 -         (1,861)
                                                                                    __________  ___________
Cash used in investing activities                                                      (39,061)     (82,989)
                                                                                    __________  ___________
Cash flows from financing activities
Proceeds from (payments for)
    Deposits in excess of withdrawals                                                   62,272       65,692
    Securities sold under agreements to repurchase and other borrowings                 14,059       13,542
    Retirement of securities sold under agreement to repurchase and
      other borrowings                                                                 (20,028)     (14,187)
    Minimum pension liability, net of taxes                                                (19)           -
    Dividends                                                                           (2,164)      (1,961)
    Treasury stock                                                                           -         (235)
    Common stock issued                                                                    354        1,685
    Exercise of option shares                                                               46          147
                                                                                    __________  ___________
Cash provided by financing activities                                                   54,520       64,683
                                                                                    __________  ___________

Increase in cash and cash equivalents                                                   21,667       (4,079)
Cash and cash equivalents, beginning of year                                            33,916       22,211
                                                                                    __________  ___________
Cash and cash equivalents, end of period                                               $55,583      $18,132
                                                                                    ==========  ===========

Supplemental disclosure of cash flow information:
Cash paid for:
    Interest                                                                            $7,101       $9,348
    Income taxes                                                                         4,365        2,679

Supplemental disclosure of non-cash investing activities:
    Loans transferred to foreclosed real estate and other
      repossessed assets                                                                    89          351
    Stock issued related to Bridge View acquisition                                     52,180           -


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



 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND SIX-MONTH PERIODS
                               ENDED JUNE 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 six-month  periods ended
June 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 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 FASB  Statement No. 123, " Accounting for
Stock-Based  Compensation,"  to stock-based  compensation  for the three and six
months ended June 30, 2003 and 2002:
<TABLE>

(in thousands, except share data) (unaudited)


                                                    ___________________________  __________________________
                                                    For the three months ended     For the six months ended
                                                            June 30,                      June 30,

                                                      2003              2002        2003            2002
                                                    ________       ____________  _________      ___________
<S>                                                 <C>            <C>           <C>            <C>
Net Income
  As reported                                         $4,187             $3,065     $7,543           $6,005

  Less: Total stock-based
  compensation
  expense determined under the fair
  value method for all rewards,
  net of related tax effects                              90                 62        160              121
                                                    ________       ____________  _________      ___________
      Pro-forma                                       $4,097             $3,003     $7,383           $5,884
                                                    ========       ============  =========      ===========
Diluted earnings per common share
  As reported                                         $ 0.35              $0.31      $0.69            $0.60
 Less: Total stock-based
  compensation
  expense determined under the fair
  value method for all rewards,
  net of related tax effects                            0.01               0.01       0.02             0.01
                                                     _______       ____________  _________       ___________

      Pro-forma                                        $0.34              $0.30      $0.67            $0.59
                                                     =======      =============  =========       ===========

</TABLE>
<PAGE>

     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 three months ended
June 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
$57.7 million was allocated to net identified  intangibles of approximately $4.3
million and goodwill of approximately $53.7 million.

     The following pro forma condensed consolidated statements of income for the
three and six months  ended June 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.
<TABLE>
           Interchange Financial Services Corporation and Subsidiaries
                   PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
                      (in thousands, except per share data)
                                   (unaudited)
                                                                     Three Months Ended           Six Months Ended
                                                                        June 30,                     June 30,
                                                                  ________________________     _________________________
                                                                    2003            2002          2003            2002
<S>                                                               <C>             <C>          <C>              <C>

Interest income                                                   $ 16,243        $ 17,316      $ 32,912        $ 34,105
Interest expense                                                     3,726           4,862         7,743           9,887
                                                                  ________        ________      ________        ________
      Net interest income                                           12,517          12,454        25,169          24,218
                                                                  ________        ________      ________        ________

Provision for loan and lease losses                                    530             405           810             690
                                                                  ________        ________      ________        ________
Net interest income after provision for loan
and lease losses                                                    11,987          12,049        24,359          23,528
Non-interest income                                                  2,877           2,236         5,272           4,279
Non-interest expense
   Salaries and benefits                                             4,619           4,307         9,315           8,511
   Occupancy and FF&E                                                1,618           1,643         3,246           3,159
   Other expenses                                                    2,353           2,539         4,773           4,866
                                                                 _________         _______      ________         _______
                                                                     8,590           8,489        17,334          16,536

     Net income before taxes                                         6,274           5,796        12,297          11,271

Income Taxes                                                         1,936           1,922         3,931           3,672
                                                                 _________         _______      ________        ________
     Net income                                                    $ 4,338         $ 3,874       $ 8,366         $ 7,599
                                                                 =========         =======      ========        ========
Earnings per common share:
     Basic                                                            0.34            0.31          0.66            0.61
     Diluted                                                          0.33            0.30          0.65            0.60


</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.
<PAGE>
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 June 30, 2003, the Company had commitments of approximately $178 million
to extend credit, of which  approximately $2 million  represents standby letters
of credit.

5. Goodwill and Other Intangibles

     With the adoption of SFAS 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 June 30,  2003,  gross  intangible  assets  amounted to $4.6 million and
accumulated  amortization  amounted to $178,000.  At December  31,  2002,  gross
intangible assets amounted to $300,000 and accumulated  amortization amounted to
$69,000. Amortization of intangible assets as a result of acquisitions, which is
included in non-interest expense,  amounted to $109,000, and $31,000 for the six
months ended June 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  $72,000 for the first half of 2003.  The
core  deposit  intangible  will be  periodically  reviewed  for  impairment.  In
addition,  the Company recorded goodwill of $53.7 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.

6. Recent Accounting Pronouncements

     In April 2003,  the  Financial  Accounting  Standards  Board (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 is not expected to 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 Financial  Accounting  Standards  Board  ("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.

7. Cash Dividend

     The  Company  paid a cash  dividend  of $0.11 per share on May 26,  2003 to
holders of record as of April 28, 2003.

<PAGE>
<TABLE>

8.  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)
                                                   _____________________________________________
                                                                 June 30, 2003
                                                   _____________________________________________
                                                                 (unaudited)

                                                                  Gross       Gross     Estimated
                                                    Amortized   Unrealized  Unrealized   Market
                                                     Cost         Gains       Losses     Value
                                                    __________  __________  __________ __________
<S>                                                 <C>         <C>         <C>        <C>

Securities HTM
   Mortgage-backed securities                          $13,405       $329    $       -    $ 13,734
   Obligations of U.S. agencies                          1,998         15            -       2,013
   Obligations of states & political subdivisions        9,238      1,081            -      10,319
   Other debt securities                                   100          -            -         100
                                                    __________  _________   __________ ___________
                                                        24,741      1,425            -      26,166
                                                    __________  _________   __________ ___________
Securities AFS
   Obligations of U.S. Treasury                        $41,174        $10   $        -    $ 41,184
   Mortgage-backed securities                           88,985      1,102          552      89,535
   Obligations of U.S. agencies                        145,244      4,506           47     149,703
   Obligations of states & political subdivisions       34,309      1,520            2      35,827
   Equity securities                                     3,955          -            -       3,955
                                                    __________  _________   __________ ___________
                                                       313,667      7,138          601     320,204
                                                    __________  _________   __________ ___________

    Total securities                                  $338,408     $8,563         $601    $346,370
                                                    ==========  =========   ========== ===========

                                                    ______________________________________________
                                                                 December 31, 2002
                                                    ______________________________________________
                                                                  Gross        Gross    Estimated
                                                    Amortized   Unrealized  Unrealized   Market
                                                      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  June  30,  2003,  the  contractual  maturities  of  securities HTM and
securities AFS are as follows: (in thousands)


                                    Securities                   Securities
                                       HTM                         AFS
                               ___________________       ______________________
<S>                            <C>          <C>           <C>           <C>
                               Amortized    Market        Amortized      Market
                                 Cost        Value              Cost      Value
                               ______________________     ______________________

Within 1 year                  $ 3,283     $ 3,305        $ 73,404     $ 73,312
After 1 but within 5 years      10,011      10,461         200,804      205,766
After 5 but within 10 years      7,640       8,238           8,969        9,137
After 10 years                   3,807       4,162          26,535       28,034
Equity securities                   -           -            3,955        3,955
                               _______    ________        ________     ________

                     Total     $24,741    $ 26,166        $313,667     $320,204
                               =======    ========        ========     ========

</TABLE>

     Proceeds from the sale of securities AFS amounted to $13.0 million and $7.2
million  for the six months  ended June 30, 2003 and 2002,  respectively,  which
resulted in gross  realized  gains of $478,000 and  $261,000 for those  periods,
respectively.  Gross realized losses from the sale of securities AFS amounted to
$44,000  and  $3,000  for  the  six  months   ended  June  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 six
months ended June 30, 2002,  which  resulted in realized  gains of $23,000.  The
securities were either scheduled to mature within 3 months or were called before
maturity.  There were no sales of  securities  HTM for the six months ended June
30, 2003.

     During the first half 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 $51.4 million and $58.6 million at June
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>
<TABLE>


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



                                        ____________________  __________________
                                             June 30,             December 31,
                                               2003                   2002
                                        ____________________  __________________
                                            (unaudited)
<S>                                     <C>                   <C>
Amount of loans by type
     Real estate-mortgage
         Residential                               $269,281             $231,580
         Commercial                                 318,316              222,628
         Construction                                29,783               11,359
                                        ____________________ ___________________
                                                    617,380              465,567
                                        ____________________ ___________________
     Commercial loans
         Commercial and financial                   134,728              104,542
         Lease financing                             31,477               26,356
                                        ____________________ ___________________
                                                    166,205              130,898
                                        ____________________ ___________________
     Consumer loans
         Lease financing                             14,313               15,969
         Installment                                  7,186                3,207
                                        ____________________ ___________________
                                                     21,499               19,176
                                        ____________________ ___________________

               Total                               $805,084             $615,641
                                        ====================   =================



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


                                        _________________  ___________________
                                            June 30,          December 31,
                                              2003                2002
                                        _________________  ___________________
Nonaccrual loans
     Residential real estate                      $1,220                 $495
     Commercial real estate                          834                1,780
     Commercial and financial                      2,040                1,300
     Commercial lease financing                    2,696                2,357
     Consumer                                         45                   31
                                       _________________  ___________________
                                                  $6,835               $5,963
                                       =================  ===================

</TABLE>


<PAGE>
<TABLE>

10.  Allowance for Loan and Lease Losses

     The  Company's  recorded  investment in impaired  loans is as follows:  (in thousands)

                                                         ____________________________       _____________________________
                                                               June 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               $ 251           $ 1,104            $ 128
       Commercial real estate                                  664                  17             1,780               45
Without a related allowance for loan losses                    -                    -                  -                -
                                                         _________           __________       ___________    ____________
                                                            $1,646               $ 268            $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 June 30,             Six months ended June 30,
                                                                   ___________________________             _________________________

                                                                     2003               2002                 2003             2002
                                                                   __________        ________              ______          ________
Balance at beginning of period                                         $7,227          $6,299              $7,207            $6,569
Additions (deductions)
     Provision for loan and lease losses                                  530             255                 795               480
     Recoveries on loans previously charged off                             3              40                   5                46
     Loans charged off                                                   (152)           (164)               (399)             (665)
     Additions due to merger                                            1,929               -               1,929                -
                                                                   __________        ________              ______            _______
Balance at end of year                                                 $9,537          $6,430              $9,537            $6,430
                                                                   ==========        ========              ======            =======

</TABLE>

<TABLE>

11.  Other Non-interest Expense
        (in thousands)

                                       Three months                  Six months
                                      ended June 30,                ended June 30,
                                     2003     2002               2003            2002
                                     ____     ____               ____            ____
<S>                                  <C>      <C>                <C>             <C>

 Professional fees                   $367     $263               $711            $487
 Data processing                      308      187                523             381


</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 six month
periods ended June 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
six month  periods  ending June 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)  the  risk  that  the
businesses of the Company and Bridge View will not be integrated successfully or
such integration may be more difficult,  time-consuming or costly than expected;
(viii)expected  revenue synergies from the Company's  acquisition of Bridge View
may not be fully  realized  or realized  within the  expected  time frame;  (ix)
revenues  following the Company's  acquisition  of Bridge View may be lower than
expected;  (x) 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 (xi) 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.
<PAGE>

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 $9.5 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 SFAS 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 JUNE 30, 2003 AND JUNE 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 six month periods ending
June 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.  Integrating  Bridge View during the quarter did not
result in a  material  economic  benefit  to the  Company  during  the  quarter.
However,  management  believes that future periods should benefit from resulting
cost savings.

     For the second quarter of 2003, the Company  reported  earnings per diluted
common share of $0.35,  an increase of 12.9% over the $0.31 reported in the same
period  in 2002.  Net  income  for the  three  months  ended  June 30,  2003 was
approximately $4.2 million, an increase of $1.1 million, or 36.6%, over the same
period last year.  The increase in earnings  resulted  from the  acquisition  of
Bridge View during the quarter, a strong net interest margin ("margin") of 4.38%
and an increase in non-interest income.

     The growth in  revenues  was  partly  offset by a $1.4  million,  or 22.3%,
increase in non-interest  expense.  This increase  largely reflects the expenses
associated  with the  acquisition  of Bridge  View during the quarter and normal
increases in salaries, benefits and occupancy expenses.

     For the three months ended June 30, 2003,  the Company's  Return on Average
Assets  ("ROA")  improved to 1.40% from 1.38%.  Return on Average Equity ("ROE")
was 14.03% a decline from 17.23% when compared to the same period last year. The
main  reason for the  decline  in ROE was due to an  increase  in  stockholders'
equity  resulting from the related  issuance of the Company's stock as a part of
the merger consideration with 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 six months ended June
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 $2.0 million,  or
20.5%,  to $11.7  million for the quarter ended June 30, 2003 as compared to the
same quarter in 2002.  The  increase in net interest  income was due mostly to a
27.7% growth in interest earning assets.  This interest earning asset growth was
funded  primarily  by deposit  liabilities,  which grew 32.2% on average for the
second  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 Company's internal growth for
interest  earning  assets and deposits  were 8.0% and 10.2%,  respectively.  The
margin,  which decreased 26 basis points to 4.38% for the second quarter of 2003
as compared to the same quarter in 2002, partially offset the growth in interest
earning  assets.

     Interest income, on a tax-equivalent  basis,  totaled $15.3 million for the
second quarter of 2003, an increase of $1.0 million, or 7.2%, as compared to the
same quarter in 2002. The increase was mostly attributed to a $232.3 million, or
27.7%,   growth  in  interest  earning  assets.   The  Bridge  View  acquisition
contributed approximately $165 million in average interest earning assets during
the current  quarter.  The growth in interest  earning  assets was the result of
increases in average loans and average  investments  of $123.9 million and $78.9
million,  respectively.  The Bridge View acquisition  contributed  approximately
$120  million  and  $28  million  in  average  loans  and  average  investments,
respectively,  during the current  quarter.  The increase in interest income was
partly offset by a 110 basis point decline in interest  earning asset yields for
the second  quarter of 2003 as compared to the same quarter in 2002. The decline
in interest earning asset yields was largely  attributed to a decrease in market
interest rates.
<PAGE>

     Interest  expense,  which  totaled $3.6  million for the second  quarter of
2003, decreased $972 thousand, or 21.3%, 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 102 basis points to 1.64% for the quarter ended
June 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  $189.6  million,  or 28.5%,  for the second quarter of
2003 as  compared  to the same  period  in 2002.  The  Bridge  View  acquisition
contributed  approximately  $122 million in average  interest  bearing  deposits
during the current quarter.

<PAGE>
<TABLE>

___________________________________________________________________________________________________________________________________
Analysis of Net Interest Income
___________________________________________________________________________________________________________________________________
for the quarter ended June 30,
(dollars in thousands)                                        2003                                   2002
<CAPTION>
                                                __________________________________       _________________________________
(unaudited)                                       Average                  Average       Average                   Average
                                                  Balance       Interest    Rate         Balance      Interest      Rate
                                                ____________    _________  ________      _________    _________    ________
<S>                                             <C>             <C>        <C>           <C>          <C>          <C>
           Assets
Interest earning assets:
Loans (1)                                           $732,516     $12,498       6.82 %     $608,589      $11,377        7.48 %
Taxable securities (4)                               265,754       2,382       3.59        199,186        2,645        5.31
Tax-exempt securities (2) (4)                         26,095         304       4.66         13,775          200        5.81
Interest earning deposits                              3,846           9       0.94              -            -           -
Federal funds sold                                    41,180         120       1.17         15,582           67        1.72
                                                  ___________   _________      _____      ________       ______       _____
     Total interest-earning assets                 1,069,391      15,313       5.73        837,132       14,289        6.83
                                                                _________                                _______
Non-interest earning assets:
Cash and due from banks                               37,642                                20,270
Allowance for loan and lease losses                   (8,606)                               (6,336)
Other assets                                          97,085                                38,454
                                                  __________                              ________
     Total assets                                 $1,195,512                              $889,520
                                                  ==========                              ========

     Liabilities and stockholders' equity
Interest-bearing liabilities
Interest bearing deposits                           $855,189       3,416       1.60       $665,563        4,313        2.59
Borrowings                                            25,035         186       2.97         23,407          261        4.46
                                                  __________    ________       ____       ________       ______       _____
     Total interest-bearing liabilities              880,224       3,602       1.64        688,970        4,574        2.66
                                                                ________                                 ______
Non-interest bearing liabilities
Demand deposits                                      178,434                               116,267
Other liabilities                                     17,462                                13,124
                                                  __________                              ________
     Total liabilities (3)                         1,076,120                               818,361
Stockholders' equity                                 119,392                                71,159
                                                  __________                              ________
     Total liabilities and stockholders' equity   $1,195,512                              $889,520
                                                  ==========                              ========

Net interest income (tax-equivalent basis)                        11,711       4.09                       9,715        4.17
Tax-equivalent basis adjustment                                     (112)                                   (88)
                                                                ________                                 ______
     Net interest income                                         $11,599                                 $9,627
                                                                ========                                 ======

Net interest income as a percent of interest-
earning assets (tax-equivalent basis)                                          4.38 %                                  4.64 %
____________________________________________________________________________________________________________________________________
<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 second  quarter of 2003 and
2002,  the  Company's  provision for loan and lease losses was $530 thousand and
$255  thousand,  respectively.  The increase in the provision for loan and lease
losses  during the  quarter was a result of an  increase  in  commercial  loans,
certain nonperforming assets and the Bridge View merger.
<PAGE>
Non-interest Income

     For the quarter  ended June 30,  2003,  non-interest  income  totaled  $2.6
million,  an increase of $1.2 million, or 79%, 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,  "other"  non-interest  income and service
charges  on  deposits  of  $560  thousand,  $264  thousand  and  $259  thousand,
respectively.  The  increase  in BOLI  income  was due to a claim  on  insurance
policies,  which  amounted to $499  thousand.  The growth in service  charges on
deposits and "other"  non-interest  income was mostly due to the  acquisition of
Bridge View.  Contributing to the growth in non-interest  income was an increase
in net gains from the sale of loans of $139 thousand.  The increase in net gains
from the sale of loans was due to income of $120 thousand realized from the sale
of  conforming  20  and 30  year  residential  mortgages  through  the  Mortgage
Partnership Finance ("MPF") program with the Federal Home Loan Bank of New York.
Excluding the BOLI claim and Bridge  View's  non-interest  income  contribution,
non-interest income increased $369 thousand, or 25.0%, for the second quarter of
2003 as compared to the same period last year.

     During  the  quarter,  the  Company  recognized  net  gains  on the sale of
securities  of $19  thousand as compared to $94  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 $434 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 quarter ended June 30, 2003,  non-interest  expense  increased $1.4
million to $7.7  million,  an increase of 22.3% 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.  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 30.4% for the
three months ended June 30, 2003 as compared to 32.7% for the second  quarter of
2002.


<PAGE>

                SIX MONTHS ENDED JUNE 30, 2003 AND JUNE 30, 2002
                                   RESULTS OF
                                   OPERATIONS

Summary
     For the first six months of 2003,  the Company  reported net income of $7.5
million,  or $0.69  diluted  earnings per common  share,  as compared  with $6.0
million,  or $0.60  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 $2.8 million,  or 14.8%.
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 $1.5 million, or 47.7%, over the
same period last year also  contributed  to the  improvement  in  earnings.  The
growth in revenues was partly  offset by a $1.8  million,  or 14.5%  increase in
non-interest expense.
     For the six months  ended June 30,  2003,  ROA improved to 1.41% from 1.38%
and ROE  decreased  to 14.97% from 17.10% when  compared to the same period last
year.  The  main  reason  for  the  decline  in ROE was  due to an  increase  in
stockholders'  equity resulting from the related issuance of the Company's stock
as a part of the merger consideration with Bridge View.

Net Interest Income

     Net interest income on a  tax-equivalent  basis increased $2.8 million,  or
14.8%,  to $21.7  million for the six months  ended June 30, 2003 as compared to
the same period in 2002. The increase in net interest income was due mostly to a
19.3% growth in interest earning assets.  This interest earning asset growth was
funded  primarily  by deposit  liabilities,  which grew 21.8% on average for the
first six 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 17 basis points to 4.44% for the
first  six  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 $28.9 million for the
first six months of 2003, an increase of $749 thousand,  or 2.7%, as compared to
the same period in 2002. The increase was mostly attributed to a $158.0 million,
or 19.3%,  growth in  interest  earning  assets.  The  Bridge  View  acquisition
contributed  approximately  $83 million in average  interest  earning assets for
2003.  The growth in  interest  earning  assets was the result of  increases  in
average  loans and  average  investments  of $73.6  million  and $63.0  million,
respectively.  The Bridge View acquisition contributed approximately $60 million
and $14 million in average  loans and  average  investments,  respectively,  for
2003.  The  increase  in interest  income was partly  offset by a 96 basis point
decline in  interest  earning  asset  yields for the first six 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 $7.2 million for the first six months of
2003,  decreased $2.1 million, or 22.2%, 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 96 basis  points to 1.79% for the six months ended June 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 $131.8 million,  or 20.3%,  for the first six months of 2003 as compared
to  the  same  period  in  2002.   The  Bridge  View   acquisition   contributed
approximately $61 million in average interest bearing deposits for 2003.


<PAGE>
<TABLE>

Analysis of Net Interest Income
_________________________________________________________________________________________________________________________________
for the six months ended June 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)                                           $673,735     $23,395       6.94 %     $600,178      $22,431        7.47 %
Taxable securities (4)                               240,454       4,721       3.93        191,606        5,196        5.42
Tax-exempt securities (2) (4)                         26,770         551       4.12         12,577          376        5.98
Interest earning deposits                              4,088          21       1.03              -            -           -
Federal funds sold                                    31,436         184       1.17         14,133          120        1.70
                                                 ___________    ________                   _______    _________
     Total interest-earning assets                   976,483      28,872       5.91        818,494       28,123        6.87
                                                                ________                              _________
Non-interest earning assets
Cash and due from banks                               29,947                                20,659
Allowance for loan and lease losses                   (7,910)                               (6,451)
Other assets                                          72,658                                37,666
                                                 ___________                               ________
     Total assets                                 $1,071,178                              $870,368
                                                 ===========                               ========

     Liabilities and stockholders' equity
Interest-bearing liabilities
Interest bearing deposits                           $780,986       6,823       1.75       $649,221        8,697        2.68
Borrowings                                            25,629         377       2.94         24,637          553        4.49
                                                 ___________    ________                   _______    _________
     Total interest-bearing liabilities              806,615       7,200       1.79        673,858        9,250        2.75
                                                                ________                              _________

Non-interest bearing liabilities
Demand deposits                                      148,771                               114,213
Other liabilities                                     15,006                                12,080
                                                  __________                               _______
     Total liabilities (3)                           970,392                               800,150
Stockholders' equity                                 100,786                                70,218
                                                  __________                               _______
     Total liabilities and stockholders' equity   $1,071,178                              $870,368
                                                  ==========                               =======

Net interest income (tax-equivalent basis)                        21,672       4.12                      18,873        4.12
Tax-equivalent basis adjustment                                     (220)                                  (178)
                                                                ________                              _________
     Net interest income                                         $21,452                                $18,695
                                                                ========                              =========

Net interest income as a percent of interest-earning assets (tax-equivalent
basis)                                                                         4.44 %                             4.61 %
__________________________________________________________________________________________________________________________________
<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.
(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 six months ended June 30, 2003 and 2002,  the  Company's  provision
for loan and lease losses was $795 thousand and $480 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 six months was a result of an increase in commercial  loans,  certain
nonperforming assets and the Bridge View merger.
<PAGE>

Non-interest Income

     For the six months  ended June 30, 2003,  non-interest  income grew to $4.5
million,  an increase of $1.5 million,  or 47.7%,  as compared to the six months
ended June 30, 2003. 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 $617 thousand,  $309 thousand and $307 thousand,  respectively.
The  increase in BOLI  income was  largely  due to a claim on an insured,  which
amounted to $499 thousand.  The increase in net gains from the sale of loans was
due to income of $257  thousand  realized  from the sale of conforming 20 and 30
year  residential  mortgages  through the MPF program with the Federal Home Loan
Bank of New York.  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 $298 thousand and $181 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 six months ended June 30, 2003, the Company recognized net gains
on the sale of  securities  of $19 thousand as compared to $281 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 $434  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 six months ended June 30, 2003,  non-interest expense totaled $14.2
million,  an increase of $1.8 million,  or 14.5%, 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,  benefits and 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 30.9% for the six
months ended June 30, 2003 as compared to 32.0% for the same period of 2002.


<PAGE>

                               FINANCIAL CONDITION

     The Company's  consolidated  balance sheet as of June 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 $53.7 million.  The Company's total assets were $1.3 billion at June
30, 2003, which represents an increase of $375.8 million,  or 40.1%, 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 June 30, 2003,  cash and cash  equivalents  increased  $21.7  million to
$55.6 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
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 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, to provide a source of income,  to
ensure  collateral  is available for pledging  requirements  and to manage asset
quality diversification.  At June 30, 2003, investment securities totaled $344.9
million and represented 26.3% of total assets, as compared to $252.5 million and
27.0%, respectively, at December 31, 2002. Securities AFS comprised 92.8% of the
total securities portfolio at June 30, 2003 as compared to 88.8% at December 31,
2002.   During  2003,  the  Company  sold   securities  with  a  book  value  of
approximately $13.0 million and recognized $478 thousand in gross gains and $44

<PAGE>

thousand in gross losses.  During the first half 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.

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



<TABLE>

                                                   _____________________________________________
                                                                 June 30, 2003
                                                   _____________________________________________
                                                                 (unaudited)

                                                                  Gross       Gross     Estimated
                                                    Amortized   Unrealized  Unrealized   Market
                                                     Cost         Gains       Losses     Value
                                                    __________  __________  __________ __________
<S>                                                 <C>         <C>         <C>        <C>

Securities HTM
   Mortgage-backed securities                          $13,405       $329    $       -    $ 13,734
   Obligations of U.S. agencies                          1,998         15            -       2,013
   Obligations of states & political subdivisions        9,238      1,081            -      10,319
   Other debt securities                                   100          -            -         100
                                                    __________  _________   __________ ___________
                                                        24,741      1,425            -      26,166
                                                    __________  _________   __________ ___________

Securities AFS
   Obligations of U.S. Treasury                        $41,174        $10   $        -    $ 41,184
   Mortgage-backed securities                           88,985      1,102          552      89,535
   Obligations of U.S. agencies                        145,244      4,506           47     149,703
   Obligations of states & political subdivisions       34,309      1,520            2      35,827
   Equity securities                                     3,955          -            -       3,955
                                                    __________  _________   __________ ___________
                                                       313,667      7,138          601     320,204
                                                    __________  _________   __________ ___________

    Total securities                                  $338,408     $8,563         $601    $346,370
                                                    ==========  =========   ========== ===========

                                                    ______________________________________________
                                                                 December 31, 2002
                                                    ______________________________________________
                                                                  Gross        Gross    Estimated
                                                    Amortized   Unrealized  Unrealized   Market
                                                      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  June  30,  2003,  the  contractual  maturities  of  securities  HTM and
securities AFS are as follows: (dollars in thousands)(unaudited)

<PAGE>
<TABLE>

                                    Securities                   Securities
                                       HTM                         AFS
                               ___________________       ______________________

                               Amortized    Market        Amortized      Market
                                 Cost        Value         Cost          Value
                               ______________________     ______________________
<S>                            <C>         <C>            <C>         <C>

Within 1 year                  $ 3,283     $ 3,305        $ 73,404     $ 73,312
After 1 but within 5 years      10,011      10,461         200,804      205,766
After 5 but within 10 years      7,640       8,238           8,969        9,137
After 10 years                   3,807       4,162          26,535       28,034
Equity securities                   -           -            3,955        3,955
                               _______    ________        _________     ________

                     Total     $24,741    $ 26,166         $313,667     $320,204
                               =======    ========        =========     ========



Loans

     Total loans  amounted to $805.1  million at June 30,  2003,  an increase of
$189.4  million  from  $615.6  million  at  December  31,  2002.  The growth was
primarily   attributed  to  the  Bridge  View  acquisition,   which  contributed
approximately  $123 million and $56 million in commercial and residential loans,
respectively,  at June 30,  2003.  The  increase  in loans  occurred  mostly  in
commercial  mortgage loans and commercial  loans,  which increased $95.7 million
and $35.3 million, respectively.



<CAPTION>

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

                                        ____________________   __________________
                                             June 30,             December 31,
                                               2003                   2002
                                        ____________________   __________________
                                            (unaudited)
<S>                                     <C>                    <C>
Amount of loans by type
     Real estate-mortgage
         1-4 family residential
             First liens                           $115,039              $100,302
             Junior liens                             5,198                 6,241
             Home equity                            149,044               125,037
         Commercial                                 318,316               222,628
         Construction                                29,783                11,359
                                        ___________________    __________________
                                                    617,380               465,567
                                        ___________________    __________________
     Commercial loans
         Commercial and financial                   134,728               104,542
         Lease financing                             31,477                26,356
                                        ___________________    __________________
                                                    166,205               130,898
                                        ___________________    __________________
     Consumer loans
         Lease financing                             14,313                15,969
         Installment                                  7,186                 3,207
                                        ___________________    __________________
                                                     21,499                19,176
                                        ___________________    __________________

               Total                               $805,084              $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 June 30,  2003
amounted to $7.0 million, an increase of $865 thousand, or 14.1%, from $6.1
<PAGE>

million at December 31, 2002. The ratio of  nonperforming  assets to total loans
and  foreclosed  real estate  decreased  to 0.87% at June 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 June 30,  2003,  and
December 31, 2002: (dollars in thousands)
<TABLE>


                                                                   _________________    __________________
                                                                       June 30,           December 31,
                                                                         2003                 2002
                                                                   _________________    __________________
                                                                      (unaudited)
<S>                                                                <C>                  <C>

Nonperforming loans                                                           $6,832                $5,963
Foreclosed real estate and other repossessed assets                              172                   176
                                                                   _________________    __________________
      Total nonperforming assets                                              $7,004                $6,139
                                                                   ==================   ==================
</TABLE>

Allowance for Loan and Lease Losses

     The ALLL is  generally  established  through  periodic  charges  to income.
During the quarter, the ALLL also increased by approximately $1.9 million, which
was 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 $9.5 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  six  months   ended  June  30,  2003  and  2002:   (dollars  in
thousands)(unaudited)
<PAGE>
<TABLE>
                                                                     _____________________________          _____________________
                                                                        Three months ended                    Six months ended
                                                                            June 30,                                June 30,
                                                                      ____________________________          _____________________
                                                                        2003                2002               2003         2002


                                                                      _________         __________          ________    _________
<S>                                                                   <C>               <C>                 <C>         <C>
Average loans outstanding                                              $732,516           $608,589          $673,735     $600,178
                                                                      =========         ==========          ========    =========

Allowance at beginning of period                                          7,227              6,299             7,207        6,569
                                                                      _________         __________          _________   _________
Loans charged off
     Real estate                                                            -                  -                   -           -
     Commercial and financial                                               -                    9                 25           9
     Commercial lease financing                                             147                155                355         634
     Consumer loans                                                           5                -                   19          22
                                                                      _________         __________          _________   _________
          Total                                                             152                164                399         665
                                                                      _________         __________          _________   _________

Recoveries of loans previously charged off
     Real estate                                                             -                  28                 -           28
     Commercial and financial                                                -                  -                  -           -
     Commercial lease financing                                               1                  3                  2           8
     Consumer loans                                                           2                  9                  3          10
                                                                      _________         __________          _________   _________
          Total                                                               3                 40                  5          46
                                                                      _________         __________          _________   _________

Additions due to merger                                                   1,929                 -               1,929           -
Provision for loan and lease losses                                         530                255                795         480
                                                                      _________         __________          _________   _________
Allowance at end of period                                               $9,537             $6,430             $9,537      $6,430
                                                                      =========         ==========          =========   =========

Allowance to total loans (end of period)                                   1.18  %            1.07  %
Ratio of net charge-offs to average loans (annualized)                     0.08  %            0.08  %            0.12  %     0.21

</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 June 30, 2003, total deposits increased $321 million,  or 39.4%, to $1.1
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 June 30, 2003,  the  Company's  deposits grew $73.4 million or
9.0% 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,  which  increased  $169.2  million,  $93.8 million and $58.2  million,
respectively,  at  June  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  June  30,  2003,  such  deposits   amounted  to  $628.8  million
representing  55.3% 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 $78.4 million,  or 24.2%,
for June 30, 2003 as compared to December 31, 2002.  Time  deposits  amounted to
$295.6  million at June 30, 2003, an increase of $58.2 million,  or 24.5%,  from
<PAGE>


December 31, 2002.  Total time deposits  represented  26.0% of total deposits at
June 30,  2003  compared to 29.0% at December  31,  2002.

     For the three and six months ended June 30,  2003,  the  Company's  overall
yield on deposits  declined by 89 basis  points to 1.32% and 81 basis  points to
1.47%, 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>

                                          ___________         _____________
                                            June 30,           December 31,
                                              2003                 2002
                                          (unaudited)
                                          ___________         _____________
<S>                                       <C>                 <C>
Non-interest Demand                          $212,395              $118,578
Interest Bearing Demand                       402,409               323,998
Savings                                       122,314                80,300
Money Market Savings                          104,116                55,372
Time Deposits <$100,000                       265,856               210,727
Time Deposits >$100,000                        29,736                26,697
                                           __________          ____________
     Total                                 $1,136,826              $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 six 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
<PAGE>

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 June 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 7%.  At June 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:

<TABLE>

Net Interest Income Sensitivity Simulation


                   Percentage Change in Estimated Net Interest
                       Income over a twelve month horizon
                 _______________________________________________
                                    June 30,
                        2003                    2002
                 ________________       ____________________
<S>              <C>                    <C>

+200 basis points            -1.3 %                     -7.3 %
+100 basis points             0.7 %                     -1.9 %
-100 basis points            -6.7 %                     -0.7 %
-200 basis points           *                           -2.1 %

* Not simulated due to the historically low interest rate environment.
</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
<PAGE>

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  8.4% at June 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
<PAGE>

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
off-balance 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 June  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 June 30, 2003,  the
minimum leverage ratio requirement to be considered  adequately  capitalized was
3%.
     The capital  levels of the Company and the Bank at June 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.

<TABLE>

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

As of June 30, 2003 (unaudited):
    Total Capital (to Risk Weighted Assets):
       The Company                                    $85,542        10.03 %         $68,226        8.00 %          N/A        N/A
       The Bank                                        85,874        10.06            68,267        8.00         $85,334     10.00 %
    Tier 1 Capital (to Risk Weighted Assets):
       The Company                                     76,005         8.91            34,113        4.00             N/A        N/A
       The Bank                                        76,267         8.94            34,134        4.00          51,201      6.00
    Tier 1 Capital (to Average Assets):
       The Company                                     76,005         6.65            34,290        3.00            N/A         N/A
       The Bank                                        76,267         6.59            34,702        3.00          57,836      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>
<PAGE>

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.

     Financing for the Company's loans and investments is derived primarily from
deposits,  along with interest and principal  payments on loans and investments.
At June 30, 2003, total deposits  amounted to $1.1 billion,  an increase of $321
million, or 39.4%, 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 June 30,  2003,  advances  from  the  FHLB and  REPOS
amounted to $10.0 million and $11.4 million,  respectively, as compared to $10.0
million and $17.4 million, respectively, at December 31, 2002. Net loans at June
30, 2003 amounted to $795.5  million,  an increase of $187 million,  from $608.4
million at December 31, 2002.

     The Company's most liquid assets are cash and cash equivalents. At June 30,
2003,  the total of such assets  amounted to $55.6  million,  or 4.2%,  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 pending investment in loans and securities.

     Another  significant  liquidity source is the Company's  securities AFS. At
June 30,  2003  securities  AFS  amounted  to $320.2  million,  or 93%, 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
$86.3 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  statement of
condition.  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 June 30, 2003 outstanding commitments to fund loans
<PAGE>

totaled  $176  million  and  outstanding  standby  letters of credit  totaled $2
million.

     The Company  historically  paid quarterly  cash  dividends and  anticipates
continuing that paying quarterly  dividend 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 June 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 June 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
        (a) The company held its Annual Meeting of Shareholders on
            April 24, 2003.
        (b) Each of the persons nominated for director was elected; the issuance
            of shares of the Company's common stock in connection with the
            Company's acquisition of Bridge View Bancorp was approved; and the
            selection of Deloitte & Touche LLP as the Company's independent
            auditors for 2003 was ratified. The following are the voting
            results on each of these matters:
                                                       Against
                                                         Or
                                               For     Withheld     Abstentions
                                               ___     _________    ___________

(1) ELECTION OF DIRECTORS
    Donald L. Correll                       8,242,415     11,056              0
    James E. Healey                         8,243,107     10,364              0
    Jeremiah F. O'Connor                    8,123,599    129,872              0
    Robert P. Rittereiser                   8,242,804     10,667              0

(2) Approve the issuance of shares of the
    Company's common stock in connection
    with the Company's acquisition
    of Bridge View Bancorp.                 6,020,885  2,224,487          8,099

(3) Ratification of the selection of
    Deloitte & Touche LLP as the Company's
    independent Auditors for 2003.          8,213,608     30,745          9,118


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
<PAGE>

             (b)     Reports on Form 8-K

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

                     Form 8-K filed April 24, 2003, reporting earnings for the
                     first quarter period ending March 31, 2003.

                     Form 8-K filed May 2, 2003, announcing the Company had
                     completed its acquisition of Bridge View Bancorp.

                     Form 8-K filed May 15, 2003, announcing the Company had
                     consummated its previously announced acquisition of
                     Bridge View Bancorp.

                     Form 8-K/A filed May 16, 2003,amending Exhibit 23.11 to the
                     Form 8-K previously filed on May 15, 2003.

                                   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
         ______________________________________
         Senior Vice President & CFO
         (Duly Authorized Officer and Principal
         Financial and Accounting Officer)

Dated: August 14, 2003