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)
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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
