SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 Current Report

                     Pursuant to Section 13 or 15(d) of the

                         Securities Exchange Act of 1934

         Date of Report: (Date of earliest event reported) June 1, 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 2. Acquisition or Disposition of Assets.

         On June 1, 1998,  the  registrant  issued the  following  press release
pertaining to the acquisition of The Jersey Bank for Savings by merger.

         SADDLE  BROOK,  NJ (June 1,  1998) --  Interchange  Financial  Services
Corporation  (AMEX:ISB),  the one-bank  holding  company for  Interchange  Bank,
announced  the  completion  of the  acquisition  of The Jersey  Bank for Savings
("Jersey")  effective May 31, 1998,  by merger into  Interchange  Bank.  "We are
pleased with this acquisition, which fits our expansion plans and reinforces our
position as the  largest  independent  community  bank in Bergen  County,"  said
Anthony S. Abbate, President and Chief Executive Officer of Interchange.

         Interchange  reached an agreement to acquire  Jersey earlier this year.
The merger was completed on a share for share tax free transaction  basis and is
being  treated  as a pooling of  interests.  Each of the  outstanding  shares of
Jersey was exchanged for  one-and-one-half  shares of Interchange  common stock.
Taking into account the conversion of Jersey's convertible  preferred stock, the
transaction involved the issuance of approximately 780,300 shares of Interchange
common stock. The transaction is valued at approximately $15 million.

         According to Richard A. Gilsenan, former Chairman of Jersey, who is
expected to take a seat on the Board of Directors  of  Interchange  later this
month,  along with former Jersey Vice-Chairman Arthur Odabash,  "Interchange
provided us with an ideal partner  since they are a Bergen County bank with a
strong  presence in Jersey's  service area. The merger benefits the entire
community as well as our customers and stockholders."

         After giving effect to the  acquisition,  Interchange  would have, on a
proforma  basis,  $658 million in assets,  $568  million in  deposits,  and $450
million in loans as of March 31, 1998 (the last date for which publicly reported
data is available).  Stockholder  equity would be approximately $58 million on a
proforma basis.

         Interchange  will offer  Bergen  County a  14-branch  network  directly
serving the communities of Montvale,  River Edge, Elmwood Park,  Franklin Lakes,
Garfield,  Hillsdale,  Little Ferry, Lodi, Oakland,  Park Ridge,  Rochelle Park,
Saddle Brook, and Washington Township. Interchange is also planning the addition
of branches in Paramus and Waldwick,  NJ. The Paramus branch is expected to open
this year with the Waldwick opening slated for 1999.

         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/ ANTHONY LABOZZETTA

                           Anthony Labozzetta, Executive Vice President and CFO

Date:    June 12, 1998