UNITED STATES 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): July 14, 2005


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


                                   New Jersey
                                  ____________
                 (State or other Jurisdiction of Incorporation)

          1-10518                                      22-2553159
 ________________________                  __________________________________
 (Commission File Number)                 (I.R.S. Employer 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)

                                   Not Applicable
______________________________________________________________________________
            (Former name or former address, if changed since last report.)

Check the  appropriate  box below if the Form 8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

  [X ]  Written communications pursuant to Rule 425 under the Securities Act
        (17 CFR 230.425)

  [  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act
        (17 CFR 240.14a-12)

  [  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
        Exchange Act (17 CFR 240.14d-2(b))

  [  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
        Exchange Act (17 CFR 240.13e-4(c))




Item 8.01.  Other Events

     On July 14, 2005,  Franklin Bank  ("Franklin")  sent to the shareholders of
Franklin a letter  announcing  that on June 23,  2005 they have  entered  into a
definitive   agreement   with   Interchange   Financial   Services   Corporation
("Interchange")  that  provides  for  the  merger  of  Franklin  with  and  into
Interchange Bank, a wholly-owned subsidiary of Interchange.

     A copy of the Letter to  Shareholders  announcing the definitive  agreement
between Interchange and Franklin is attached hereto as Exhibit 99.1.


Item 9.01.  Financial Statement and Exhibits

(c)    Exhibits

99.1   Letter to Shareholders dated July 14, 2005.





                                    SIGNATURE

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.

Date: July 14, 2005               Interchange Financial Services Corporation


                                  By:   /s/ Charles T. Field
                                        _________________________
                                  Name: Charles T. Field
                                  Title:SVP & Chief Financial Officer




                                 EXHIBIT INDEX


EXHIBIT NUMBER     DESCRIPTION

99.1               Letter to Shareholders dated July 14, 2005.