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: June 2, 1999

                         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, N.J.                07663
__________________________________________             __________
(Address of principal executive offices)               (Zip Code)

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


                                      None
- --------------------------------------------------------------------------------
          Former name or former address, if changed since last report.






Item 5.  Other Events

     On  June 2,  1999,  the  registrant  issued  the  following  press  release
pertaining to the 10% Stock Repurchase Plan.

SADDLE BROOK,  NJ, June 2, 1999 -- Interchange  Financial  Services  Corporation
("Interchange")   (AMEX:  ISB),  announced  that  its  Board  of  Directors  has
authorized a program to  repurchase up to 10% of the  Interchange's  outstanding
common stock.  The  repurchase of shares will occur in open market  transactions
as,  in the  opinion  of  management,  market  conditions  dictate.  Interchange
currently has 7.2 million shares of common stock outstanding.

"We believe that Interchange stock is an exceptional value in the current market
and the  repurchase  program will serve to enhance  shareholder  value,"  stated
Anthony S. Abbate,  Interchange's  President and Chief  Executive  Officer.  Mr.
Abbate  also  stated  that,  "our stock  price over the last  twelve  months has
decreased  19%,  despite a 19% increase in our  earnings  per share  ("EPS") for
1998.  Furthermore,  as of March 31, 1999, Interchange was trading at about 12.1
times analyst consensus earnings estimates for 1999 and 1.8 times book value."

The  repurchased  shares will be held as treasury  stock and will be principally
used for the exercise of stock  options,  incentive  plan stock awards and other
general corporate purposes.

Interchange is a $675.8  million-asset  commercial bank holding  company,  whose
principal  subsidiary  is  Interchange  Bank  ("Bank").  The  Bank  operates  15
community-banking offices located in Bergen County, New Jersey.

Further  information  on  the  Bank  can  be  found  on the  World  Wide  Web at
HTTP://WWW.INTERCHANGEBANK.COM






     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 2, 1999