Prospectus Supplement Filed Pursuant to Rule 424(b)(3)

(To  Reoffer  Prospectus  filed with the  Commission  on June 26,  2000 with the
Interchange Financial Services Corporation  Registration  Statement of Form S-8,
Registration  #  333-40098,  relating  to  the  Interchange  Financial  Services
Corporation Outside Director Incentive Compensation Plan.)

                   Interchange Financial Services Corporation

This prospectus  supplement  contains  information about the persons who can use
this  prospectus  supplement to offer and sell shares of  Interchange  Financial
Services  Corporation (the "Company") those persons acquired or may acquire upon
the exercise of options  granted to them under the  Company's  Outside  Director
Incentive Compensation Plan (the "Plan").

The  Plan,  the  description  of which  was  incorporated  by  reference  in the
Interchange Financial Services Corporation  Registration  Statement of Form S-8,
Registration  #  333-40098  filed  with the  Commission  on June 26,  2000  (the
"Registration Statement"),  authorizes the Company to issue up to 150,000 shares
of the Company's  Common Stock,  no par value per share  (adjusted  from 100,000
shares as set forth in the  Registration  Statement  to reflect a 3-for-2  stock
split paid on July 12, 2002),  in connection  with the exercise of stock options
granted by the Company  pursuant to the Plan.  In order to reflect the aggregate
number of shares of Company Common Stock, no par value per share,  available for
issuance  pursuant to the Plan, all references in the reoffer  prospectus  filed
with the  Registration  Statement  relating  to  proposed  sales by the  Selling
Stockholders  shall be  revised  to  reflect  the  aggregate  number  of  shares
available  to be  acquired  by the  Selling  Stockholders  upon the  exercise of
options granted to them under the Plan,  namely 150,000 shares of Company Common
Stock, no par value per share.

In addition,  the information set forth in the table under the caption  "Selling
Stockholders" in the reoffer  prospectus  filed with the Registration  Statement
relating to the Plan, is amended and restated in its entirety as follows:

As of the date of this prospectus supplement,  the number of shares held by each
of the Selling  Stockholders which have been acquired or to be acquired upon the
exercise of options granted to them under the Plan are as follows:

Name                         Position with Company              No. of Shares
____                         _____________________              _____________

Anthony D. Andora            Director                                  6,000
Donald L. Correll            Director                                  6,000
Anthony R. Coscia            Director                                  6,000
John J. Eccleston            Director                                  3,500
David R. Ficca               Director                                  6,000
James E. Healey              Director                                  4,500
Nicholas R. Marcalus         Director                                  4,500
Eleanore S. Nissley          Director                                  5,500
Jeremiah F. O'Connor         Director                                  4,500
Robert P. Rittereiser        Director                                  6,000
Benjamin Rosenzweig          Director                                  6,000
William Schuber              Director                                  1,500



This prospectus  supplement also covers any additional  shares of Company Common
Stock,  no par value per share,  which become  issuable in  connection  with the
shares registered for sale hereby by reason of any stock dividend,  stock split,
recapitalization  or other similar  transaction  effected without the receipt of
consideration  which results in an increase in the number of outstanding  shares
of Company  Common Stock,  no par value per share.  The date of this  prospectus
supplement is November 18, 2003.

REFERENCE IS HEREBY MADE TO THE CONTENTS OF THE INTERCHANGE  FINANCIAL  SERVICES
CORPORATION   REGISTRATION  STATEMENT  OF  FORM  S-8,  REGISTRATION  #333-40098,
RELATING TO THE INTERCHANGE  FINANCIAL  SERVICES  CORPORATION  OUTSIDE  DIRECTOR
INCENTIVE COMPENSATION PLAN, WHEREIN THERE IS A COMPLETE DESCRIPTION OF THE PLAN
PURSUANT TO WHICH THE SECURITIES OFFERED PURSUANT TO THE REOFFER PROSPECTUS WERE
INITIALLY ACQUIRED BY THE SELLING SHAREHOLDERS.