SECURITIES AND EXCHANGE COMMISSION
                                              WASHINGTON, D.C. 20549

                                                     FORM 8-K

                             Current Report Pursuant to Section 13 or 15(d) of
                                        The Securities Act of 1934

                                       Date of Report: March 17, 1998

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

NEW JERSEY                        1-10508                     22-2553159
(State or other jurisdiction of  (Commission File Number)   (I.R.S. Employer
incorporation or organization)                               Identification No.)

PARK 80 WEST/PLAZA TWO, SADDLE BROOK, N.J.                      07663
(Address of principal executive offices)                       (Zip Code)

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






Item 5.  Other Events

         On February 27, 1998, the registrant issued the following press release
increasing quarterly cash dividend and 3 for 2 stock split.

         SADDLE  BROOK,  New Jersey,  February  27, 1998 - On February 26, 1998,
Interchange Financial Services Corporation,  the holding company for Interchange
State Bank, declared an increased quarterly cash dividend of 15 cents per common
share payable on April 17, 1998, to holders of record as of March 20, 1998.  The
dividend  will be paid on shares  outstanding  before the effects of the 3 for 2
stock split. This dividend represents 60 cents per share on an annualized basis.
Based upon the price of the stock as quoted on  2/26/98 of $30.00,  the yield is
2.0 percent.

         In  addition,  Interchange  declared  a 3  for  2  stock  split,  to be
distributed on April 17, 1998, to  shareholders  of record as of March 20, 1998.
The dividend  (after  considering the effects of the split) will be 10 cents per
share per quarter.

         Interchange  Financial  Services  Corporation  is  a  one-bank  holding
company whose  principal  subsidiary is  Interchange  State Bank, a full-service
commercial bank in Saddle Brook, New Jersey,  with 12 offices  throughout Bergen
County. Total resources as of 12/31/97 were $548.0 million.

         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 hereunto duly authorized.

                         INTERCHANGE FINANCIAL SERVICES CORPORATION

                           By: S/S ANTHONY LABOZZETTA

                         Anthony Labozzetta, Executive Vice President and CFO

Date:    February 27, 1998