INTERCHANGE FINANCIAL SERVICES CORPORATION
                   __________________________________________
 
                            CERTIFICATE OF AMENDMENT
                                       TO
                          CERTIFICATE OF INCORPORATION
 
         Interchange Financial Services Corporation, organized under the laws of
the State of New Jersey, to amend its Certificate of Incorporation to increase
the number of authorized shares of Common Stock in connection with a division of
its outstanding shares of Common Stock in accordance with N.J.S.A.
14A:7-15.1(3), hereby certifies:
 
         FIRST:   The name of the Corporation is Interchange Financial Services
         ------
Corporation.
 
         SECOND: The Board of Directors, at a meeting duly called and held on
         -------
January 18, 2005, authorized and approved a 3 for 2 division of all its issued
and outstanding shares of Common Stock, no par value, effective February 2, 2005
and distributable to shareholders of record as of the close of business on
February 17, 2005. As of the close of business on February 17, 2005 there were
approximately 12,759,928 shares of Common Stock, no par value issued and
outstanding which are divided into approximately 19,139,892 shares of Common
Stock, no par value.
 
         THIRD: To increase the number of authorized shares of the Corporation
         ------
from 22,500,000 to 33,750,000, Article V of the Corporation's Certificate of
Incorporation is amended to delete the first paragraph thereof and replace it
with a paragraph reading as follows:
                                   "ARTICLE V
                                  CAPITAL STOCK
 
          The  Corporation  is authorized to issue  33,750,000  shares of common
          stock,  all of which are without nominal or par value, as the Board of
          Directors may determine.  The  Corporation is also authorized to issue
          1,000,000  shares of preferred stock, all of
 
                                       1
 
<PAGE>
 
          which are without  nominal or par value, as the Board of Directors may
          determine."
 
         Except as set forth in the foregoing amendment, all provisions of the
Corporation's Certificate of Incorporation shall continue in full force and
effect.
 
         FOURTH: The amendment described in Article THIRD will not adversely
         -------                                    -----
affect the rights or preferences of the holders of outstanding shares of any
class or series and will not result in the percentage of authorized shares that
remains unissued after the share division described in Article SECOND exceeding
                                                               ------
the percentage of authorized shares that was unissued before division of shares.
 
         FIFTH: The within amendment to the Certificate of Incorporation was
         ------
adopted by the Board of Directors of the Corporation at a meeting duly called
and held on January 18, 2005 in accordance with N.J.S.A. 14A:7-15.1(2).
                                                --------
         SIXTH: The foregoing amendment to the Corporation's Certificate of
         ------
Incorporation  shall  become  effective on February 2, 2005 or the date on which
this  Certificate of Amendment is filed with the Secretary of State of the State
of New Jersey.
 
         IN WITNESS WHEREOF, the Corporation has caused its duly authorized
officer to execute this certificate the 12TH  day of April, 2005.
                                        ----
ATTEST:                                     INTERCHANGE FINANCIAL SERVICES
                                            CORPORATION
 
 
BY:   /s/ Nicholas Marcalus                 BY:  /s/ Charles T. Field
      _____________________                      ____________________
       Nicholas Marcalus                          Charles T. Field
       Secretary                                  Senior Vice President & CFO
 
                                       2
 
<PAGE>
 
                     RESTATED CERTIFICATE OF INCORPORATION
                     _____________________________________
 
                                       OF
                                       __
 
                   INTERCHANGE FINANCIAL SERVICES CORPORATION
                   __________________________________________
 
 
     The  above-named  Corporation  hereby  submits  for  filing  this  Restated
Certificate of Incorporation pursuant to the provisions of N.J.S.A. 14:9-5:
 
     1.   The  Corporation's  initial  Certificate of Incorporation was filed on
          October 15, 1984 and was subsequently  amended on various dates.  This
          Restated  Certificate  of  Incorporation  restates and integrates in a
          single Certificate the provisions of the Corporation's  Certificate of
          Incorporation   as  heretofore   amended  but  does  not  contain  any
          substantive amendments.
 
     2.   This Restated Certificate of Incorporation provides as follows:
 
                                    ARTICLE I
                                    _________
 
                                 CORPORATE NAME
 
     The name of the Corporation is Interchange  Financial Services  Corporation
     (hereinafter referred to as the "Corporation").
 
                                   ARTICLE II
                                   __________
 
                            CURRENT REGISTERED OFFICE
                          AND CURRENT REGISTERED AGENT
 
     The address of the Corporation's  current registered office is c/o Andora &
Romano,  L.L.C.,  15 Essex  Road,  Paramus,  New Jersey  07652.  The name of the
Corporation's  current  registered  agent at that  address is Anthony D. Andora,
Esq.
 
                                   ARTICLE III
                                   ___________
 
                               BOARD OF DIRECTORS
 
     Number  of  Directors;  Classification.  The  number  of  directors  of the
Corporation shall be not less than 5 nor more than 15 persons.  The exact number
of  directors  within such minimum and maximum  limitations  shall be fixed from
time to time by the Board of  Directors  pursuant to a  resolution  adopted by a
majority of the entire Board of Directors.  Directors  shall be classified  with
respect to the time for which  they hold  office  into  three  classes as nearly
equal in number as possible.  At each annual meeting thereafter,  the successors
of the class of directors who term expires in that year shall be elected to hold
office for a term of three  years and  thereafter  until  their  successors  are
elected and qualified.
 
     Newly Created  Directorships  and  Vacancies.  Newly created  directorships
resulting  from any  increase  in the number of  directors  may be filled by the
Board of Directors  and any vacancies on the Board of Directors  resulting  from
death, resignation, disqualification,  retirement, removal or other cause may be
filled by the  affirmative  vote of a majority of the remaining  directors  even
though less than a quorum of the Board,  or by a sole  remaining
 
<PAGE>
 
director.  Any director  elected by the Board in  accordance  with the preceding
sentence  shall hold office until the next annual  meeting of  shareholders  and
thereafter  until his  successor  shall  have been  elected  and  qualified.  No
decrease in the number of directors  constituting  the Board of Directors  shall
shorten the term of any incumbent director.
 
     Removal. Any director, or the entire Board of Directors,  may be removed at
any time by the shareholders, with or without cause, but only by the affirmative
vote of the holders of at least 80% of the shares of the Corporation entitled to
vote for the election of directors generally.  The Board of Directors may remove
any director for cause or suspend a director pending a final  determination that
cause exists for removal,  but , in either case,  only by a majority vote of the
entire Board.
 
     Amendment,   Repeal,  etc.   Notwithstanding  anything  contained  in  this
Certificate of Incorporation  to the contrary,  the affirmative vote of at least
80% of the shares of the Corporation  entitled to vote therein shall be required
to amend or repeal any provision in Article III of this Certificate.
 
     The current Board of Directors of the Corporation is as follows:
 
            Name of Director                  Address
            ________________                  _______
 
            Anthony S. Abbate                 6 Robin Hood Court
                                              Montvale, NJ 07645
 
            Anthony D. Andora, Esq.           211 Sagamore Lane
                                              Franklin Lakes, NJ 07417
 
            Donald L. Correll                 746 Wooded Trail
                                              Franklin Lakes, NJ 07417
 
            Anthony Coscia                    35 Cypress Avenue
                                              North Caldwell, NJ 07006
 
            John J. Eccleston                 32 Devereux Drive
                                              Manchester, NJ 08759
 
            David Ficca                       296 Feather Lane
                                              Franklin Lakes, NJ 07417
 
            James E. Healey                   5 Briarwood Court
                                              Woodcliff Lake, NJ 07677
 
            Nicholas R. Marcalus              101 Barrister Court
                                              Wyckoff, NJ 07481
 
            Eleanore S. Nissley               145 Phelps Road
                                              Ridgewood, NJ 07450
 
            Jeremiah F. O'Connor              150 River Road - Apt. 4E
                                              Edgewater, NJ 07020
 
            Robert P. Rittereiser             766 Butternut Drive
                                              Franklin Lakes, NJ 07417
 
            Benjamin Rosenzweig               49 East 37th Street
                                              Paterson, NJ 07517
 
<PAGE>
 
                                   ARTICLE IV
                                   __________
 
                                CORPORATE PURPOSE
 
     The  purpose for which the  Corporation  is  organized  is to engage in any
activities for which corporations may be organized under the New Jersey Business
Corporation Act,  subject to any restrictions  which may be imposed from time to
time by the Laws of the United  States or the State or New Jersey with regard to
the activities of a bank holding company.
 
                                    ARTICLE V
                                    _________
 
                                  CAPITAL STOCK
 
     The Corporation is authorized to issue  33,750,000  shares of common stock,
all of which are without  nominal or par value,  as the Board of  Directors  may
determine.  The  Corporation  is also  authorized to issue  1,000,000  shares of
preferred  stock, all of which are without nominal or par value, as the Board of
Directors may determine.
 
The Board of Directors  may, at any time or from time to time, (a) divide any or
all  of  the  preferred  shares  into  series:  (b)  determine  for  any  series
established by the Board its designation, number of shares, and relative rights,
preferences,  and  limitations;  (c) increase the number of shares of any series
established  by the Board,  as long as the number,  together  with the number of
shares of all series of preferred shares, does not exceed number of those shares
authorized  pursuant to this  certificate  of  incorporation;  (d)  decrease the
number of shares of any  series  established  by the Board to a number  not less
than the  number of shares of that  series  then  outstanding;  (e)  change  the
designation,  number of shares, relative rights,  preferences, or limitations of
the shares of any series  established by the Board, no shares of which have been
issued;  and (f) cause to be executed and filed without further  approval of the
shareholders  of  this   Corporation,   any  amendment  or  amendments  to  this
certificate  of  incorporation  as may be  required to  accomplish  any of these
amendments.
 
     In particular,  but without limiting the generality of the above authority,
the  Board  of  Directors  shall  have  authority  to  determine  the  following
concerning any series of preferred stock established by the Board:
 
     1.   The dividend rate or rates on shares of the series,  any restrictions,
          limitations,  or conditions on the payment of the  dividends,  whether
          dividends shall be cumulative and, if so, the date or dates from which
          dividends  shall  cumulate,  and the  dates  on  which  dividends,  if
          declared, shall be payable.
 
     2.   Whether the shares of the series shall be  redeemable  and, if so, the
          time or times,  the price or prices,  the required  notice or notices,
          and the  other  terms  and  conditions  on  which  the  shares  may be
          redeemed.
 
     3.   The  rights of the  holders  of  shares of the  series in the event of
          liquidation, dissolution, or winding up of the Corporation.
 
     4.   Whether the shares of the series shall be  convertible  into shares of
          any class, classes, or series, and, if convertible, the price, prices,
          rate, or rates of conversion,  any method of adjusting these prices or
          rates, and any other terms and conditions on which the shares shall be
          convertible.
 
<PAGE>
 
     5.   The extent of any voting powers of the shares of the series.
 
                                   ARTICLE VI
                                   __________
 
                                 INDEMNIFICATION
 
The Corporation shall indemnify its officers,  directors,  employees, and agents
and former  officers,  directors,  employees,  and agents,  and any other person
serving at the request of the Corporation as an officer,  director,  employee or
agent of another corporation, association, partnership, joint venture, trust, or
other enterprise, against expenses (including attorneys' fees, judgments, fines,
and  amounts  paid in  settlement)  incurred in  connection  with any pending or
threatened action, suit, or proceeding, whether civil, criminal, administrative,
or investigative, with respect to which such officer, director, employee, agent,
or other person is a party,  or is  threatened  to be made a party,  to the full
extent permitted by the New Jersey Business Corporation Act. The indemnification
provided  herein  shall not be deemed  exclusive of any other right to which any
person seeking  indemnification may be entitled under any by-law,  agreement, or
vote of stockholders or disinterested directors or otherwise,  both as to action
in his official capacity and as to action in another  capacity,  and shall inure
to the  benefit  of the heirs,  executors,  and the  administrators  of any such
person.  The Corporation shall have the power to purchase and maintain insurance
on behalf of any persons enumerated above against any liability asserted against
him and incurred by him in any such capacity, arising out of his status as such,
whether or not the  Corporation  would have the power to  indemnify  him against
such liability  under the provisions of this Article.  Notwithstanding  anything
contained in this Certificate of Incorporation to the contrary,  the affirmative
vote of at least 80% of the shares of the  Corporation  entitled to vote thereon
shall be  required  to amend or repeal  any  provision  in  Article  III of this
Certificate.
 
                                  ARTICLE VII
                                  ___________
 
          Section 1. Vote Required For Certain Business Combinations.
 
          A.   Higher Vote for Certain Business Combinations. In addition to any
               affirmative  vote  required  by law  or by  this  Certificate  of
               Incorporation,  and except as  otherwise  expressly  provided  in
               Section 2 of this Article VII:
 
               (i)  Any  merger  or  consolidation  of  the  Corporation  or any
                    Subsidiary (as hereinafter  defined) with (a) any Interested
                    Shareholder  (as  hereinafter  defined)  or  (b)  any  other
                    corporation  or  other  person  (whether  or not  itself  an
                    Interested  Shareholder)  which is, or after such  merger or
                    consolidation  would  be,  an  Affiliate  of  an  Interested
                    Shareholder; or
 
               (ii) Any  plan of  exchange  for all  outstanding  shares  of the
                    Corporation  or any  Subsidiary  or for any  class of either
                    with  (a)  any  Interested  Shareholder  or  (b)  any  other
                    corporation  or other  person  (whether  or not  itself  and
                    Interested  Shareholder)  which  is,  or after  such plan of
                    exchange would be an Affiliate of an Interested Shareholder;
                    or
 
               (iii) Any sale, lease, exchange,  mortgage,  pledge,  transfer or
                    other  disposition  (in  one  transaction  or  a  series  of
                    transactions)  to or with any Interested  Shareholder or any
                    Affiliate of any Interested Shareholder of any assets of the
                    Corporation  or any  Subsidiary  having  an  aggregate  Fair
                    Market Value of $2,000,000 or more; or
 
<PAGE>
 
               (iv) The  issuance  or  transfer  by  the   Corporation   or  any
                    Subsidiary (in one transaction or a series of  transactions)
                    of any  securities of the  Corporation  or any Subsidiary to
                    any   Interested   Shareholder   or  any  Affiliate  of  any
                    Interested  Shareholder in exchange for cash,  securities or
                    other  property  (or  a  combination   thereof)   having  an
                    aggregate Fair Market Value of $2,000,000 or more; or
 
               (v)  The adoption of any plan or proposal for the  liquidation or
                    dissolution of the  Corporation  proposed by or on behalf of
                    an Interested Shareholder or any Affiliate of any Interested
                    Shareholder; or
 
               (vi) Any  reclassification  of securities  (including any reverse
                    stock split), or recapitalization of the Corporation, or any
                    merger or  consolidation  of the Corporation with any of its
                    subsidiaries or any other transaction(whether or not with or
                    into or otherwise involving an Interested Shareholder) which
                    has the effect,  directly or  indirectly,  of increasing the
                    proportionate  share of the outstanding  shares of any class
                    of equity or  convertible  securities of the  Corporation or
                    any Subsidiary  which is directly or indirectly owned by any
                    Interested  Shareholder  or any Affiliate of any  Interested
                    Shareholder;
 
               shall require the affirmative vote of the holders of at least 80%
               of  the  then   outstanding   shares  of  capital  stock  of  the
               Corporation  entitled  to  vote  generally  in  the  election  of
               directors  (the  "Voting  Stock"),  voting  together  as a single
               class.  Such affirmative  vote shall be required  notwithstanding
               the  fact  that  no  vote  may be  required,  or  that  a  lesser
               percentage  may be  specified,  by law,  by this  Certificate  of
               Incorporation, or otherwise.
 
          B.   Definition  of  "Business   Combination".   The  term   "Business
               Combination"   as  used  in  this  Article  VII  shall  mean  any
               transaction  which is  referred  to in any one or more of clauses
               (i) through (vi) of paragraph A of this Section 1.
 
     Section 2. When Higher Vote is Not Required.
 
          The  provisions  of  Section  1 of  this  Article  VII  shall  not  be
     applicable  to any  particular  Business  Combination,  and  such  Business
     Combination  shall  require  only  such  affirmative  vote,  if any,  as is
     required  by  law  and  any  other   provision  of  this   Certificate   of
     Incorporation,  if  either  the  conditions  in  paragraph  A or all of the
     conditions in paragraph B are met:
 
          A  Approval by Continuing  Directors.  The Business  Combinations
          _  __________________________________
     shall have been approved by a majority of the Continuing Directors (as
     hereinafter defined).
 
          B  Price  and  Procedure  Requirements.   All  of  the  following
          _  ____________________________________
     conditions shall have been met:
 
               (i)  The  aggregate  of the cash and the Fair  Market  Value  (as
                    hereinafter  defined) as of the date of the  consummation of
                    the Business Combination of consideration other than cash to
                    be  received  per share by holders  of Common  Stock in such
                    Business  Combination shall be at least equal to the highest
                    of the following:
 
                    (a)  (If applicable) the highest per share price  (including
                         any   brokerage   commissions,   transfer   taxes   and
                         soliciting   dealers'
 
<PAGE>
 
                         fees)  paid  by  the  Interested  Shareholder  for  any
                         shares of Common  Stock  acquired  by it (1) within the
                         two-year period  immediately  prior to the first public
                         announcement   of  the   proposal   of   the   Business
                         Combination (the  "Announcement  Date");  or (2) in the
                         transaction   in  which   it   became   an   Interested
                         Shareholder, whichever is higher;
 
                    (b)  The Fair Market  Value per share of Common Stock on the
                         Announcement   Date  or  on  the  date  on  which   the
                         Interested Shareholder became an Interested Shareholder
                         (such latter date is referred to in this Article as the
                         "Determination Date"), whichever is higher; and
 
                    (c)  (If  applicable)  the price per share equal to the Fair
                         Market  Value  per  share of  Common  Stock  determined
                         pursuant to paragraph B(i)(b) above,  multiplied by the
                         ratio of (1) the highest per share price (including any
                         brokerage  commissions,  transfer  taxes and soliciting
                         dealers' fees) paid by the Interested  Shareholder  for
                         any shares of Common  Stock  acquired  by it within the
                         two-year period  immediately  prior to the Announcement
                         Date to (2) the Fair  Market  Value per share of Common
                         Stock on the first  day in such  two-year  period  upon
                         which the Interested Shareholder acquired any shares of
                         Common Stock.
 
               (ii) The  consideration to be received by holders of a particular
                    class of outstanding  Voting Stock (including  Common Stock)
                    shall  be in cash  or in the  same  form  as the  Interested
                    Shareholder  has previously paid for shares of such class of
                    Voting Stock.  If the  Interested  Shareholder  has paid for
                    shares of any class of Voting  Stock with  varying  forms of
                    consideration,  the form of consideration  for such class of
                    Voting  Stock  shall  be  either  cash or the  form  used to
                    acquire the largest number of shares of such class of Voting
                    Stock previously acquired by it.
 
               (iii) After such Interested  Shareholder has become an Interested
                    Shareholder  and prior to the  consummation of such Business
                    Combination:  (a) except as  approved  by a majority  of the
                    Continuing  Directors,  there  shall have been no failure to
                    declare  and  pay at the  regular  date  therefor  any  full
                    quarterly  dividends  (whether  or  not  cumulative)  on any
                    outstanding  Preferred  Stock; (b) there shall have been (1)
                    no  reduction  in the annual rate of  dividends  paid on the
                    Common  Stock except as necessary to reflect any division of
                    the Common  Stock,  except as  approved by a majority of the
                    Continuing  Directors,  and (2) an  increase  in such annual
                    rate   of    dividends   as   necessary   to   reflect   any
                    reclassification   (including   any  reverse  stock  split),
                    recapitalization,  reorganization or any similar transaction
                    which has the effect of reducing  the number of  outstanding
                    shares  of  the  Common  Stock,  unless  the  failure  so to
                    increase  such  annual rate is approved by a majority of the
                    Continuing  Directors;  and (c) such Interested  Shareholder
                    shall have not become the beneficial owner of any additional
                    shares of  Voting  Stock  except as part of the  transaction
                    which  results in such  Interested  Shareholder  becoming an
                    Interested Shareholder.
 
<PAGE>
 
               (iv) After such  Interested  Shareholder has become an Interested
                    Shareholder,  such  Interested  Shareholder  shall  not have
                    received  the  benefit,   directly  or  indirectly   (except
                    proportionately as a shareholder),  of any loans,  advances,
                    guarantees, pledges or other financial assistance or any tax
                    credits or other tax advantages provided by the Corporation,
                    whether  in  anticipation  of or  in  connection  with  such
                    Business Combination or otherwise.
 
               (v)  A proxy or  information  statement  describing  the proposed
                    Business Combination, and complying with the requirements of
                    the  Securities  Exchange  Act of  1934  and the  rules  and
                    regulations   thereunder  (or  any   subsequent   provisions
                    replacing such Act, rules or regulations) shall be mailed to
                    public  shareholders  of the  Corporation  at  least 30 days
                    prior  to the  consummation  of  such  Business  Combination
                    (whether  or not such  proxy  or  information  statement  is
                    required  to be mailed  pursuant  to such Act or  subsequent
                    provisions).
 
          Section 3.  Certain Definitions.
 
          For the purpose of this Article VII:
 
               A.   A "person" shall mean individual, firm, corporation or other
                    entity.
 
               B.   "Interested  Shareholder"  shall mean any person (other than
                    the  Corporation,  any Subsidiary or any individual who is a
                    Director of the Corporation on the date this  Certificate of
                    Incorporation  is adopted and any  Affiliate or Associate of
                    such Director) who or which:
 
                    (i)  is the beneficial  owner,  directly or  indirectly,  of
                         more  than  10% of the  outstanding  shares  of  Voting
                         Stock; or
 
                    (ii) is an  Affiliate  of the  corporation  and at any  time
                         within the  two-year  period  immediately  prior to the
                         date was the beneficial owner,  directly or indirectly,
                         of 10%  or  more  of  the  voting  power  of  the  then
                         outstanding Voting Stock; or
 
                    (iii) is an assignee of or has  otherwise  succeeded  to any
                         shares of Voting  Stock  which were at any time  within
                         the two-year  period  immediately  prior to the date in
                         question   beneficially   owned   by   any   Interested
                         Shareholder,  if such  assignment or  succession  shall
                         have occurred in the course of a transaction  or series
                         of transactions  not involving a public offering within
                         the meaning of the Securities Act of 1933.
 
               C.   A person shall be "beneficial owner" of any Voting Stock:
 
                    (i)  which  such  person  or  any  of  its   Affiliates   or
                         Associates (as hereinafter defined)  beneficially owns,
                         directly or indirectly" or
 
                    (ii) which  such  person  or  any  of  its   Affiliates   or
                         Associates  has (a) the right to acquire  (whether such
                         right is  exercisable
 
<PAGE>
 
                         immediately  or  only  after   the  passage  of  time),
                         pursuant to any agreement, arrangement or understanding
                         or upon the  exercise of  conversion  rights,  exchange
                         rights,  warrants or options or  otherwise,  or (b) the
                         right to vote pursuant to any agreement, arrangement or
                         understanding; or
 
                    (iii) which are beneficially owned,  directly or indirectly,
                         by any other  person  with which such  person or any of
                         its   Affiliates  or  Associates   has  any  agreement,
                         arrangement  or   understanding   for  the  purpose  of
                         acquiring,  holding,  voting or disposing of any shares
                         of Voting Stock.
 
               D.   For the  purposes  of  determining  whether  a person  is an
                    Interested  Shareholder  pursuant  to  paragraph  B of  this
                    Section 3, the number of shares of Voting Stock deemed to be
                    outstanding   shall  include  shares  deemed  owned  through
                    application  of  paragraph C of this Section 3 but shall not
                    include  any  other  shares  of  Voting  Stock  which may be
                    issuable   pursuant  to  any   agreement,   arrangement   or
                    understanding,   or  upon  exercise  of  conversion  rights,
                    warrants or options, or otherwise.
 
               E.   "Affiliate"  or   "Associate"   shall  have  the  respective
                    meanings ascribed to such terms in Rule 12b-2 of the General
                    Rules and  Regulations  under the Securities Act of 1934, as
                    in effect on September 1, 1984.
 
               F.   "Subsidiary"  means any  corporation  of which a majority or
                    any  class  of  equity   security  is  owned,   directly  or
                    indirectly, by the Corporation;  provided, however, that for
                    the purposes of the definition of Interested Shareholder set
                    forth  in   paragraph   B  of  this   Section  3,  the  term
                    "Subsidiary"  shall  mean  only a  corporation  of  which  a
                    majority of each class of equity security is owned, directly
                    or indirectly, by the Corporation.
 
               G.   "Continuing  Director"  means  any  member  of the  Board of
                    Directors of the  Corporation  (the  "Board") who was on the
                    Board when this  Article VII was adopted and any  subsequent
                    member of the Board who is unaffiliated  with the Interested
                    Shareholder  and was a member of the Board prior to the time
                    that  the  Interested   Shareholder   became  an  Interested
                    Shareholder,  and any successor of a Continuing Director who
                    is  unaffiliated  with  the  Interested  Shareholder  and is
                    recommended  to succeed a Continuing  Director by a majority
                    of Continuing Directors then on the Board.
 
               H.   "Fair Market  Value"  means:  (i) in the case of stock,  the
                    highest   closing  sale  price  during  the  30-day   period
                    immediately  preceding  the date in  question  of a share of
                    such  stock  on  the  Composite  Tape  for  New  York  Stock
                    Exchange-Listed  Stock or if such stock is not quoted on the
                    Composite Tape, on the New York Stock  Exchange,  or if such
                    stock  is not  listed  on such  Exchange,  on the  principal
                    United  States  securities  exchange  registered  under  the
                    Securities  Exchange  Act of 1934 on  which  such  stock  is
                    listed, or if such stock is not listed on any such exchange,
                    the highest closing bid quotation with respect to a share of
                    stock  during  the  30-day  period  preceding  the  date  in
                    question on the National  Association of Securities
 
<PAGE>
 
                    Dealers, Inc. Automated Quotations System or any system then
                    in use, or if no such  quotations  are  available,  the fair
                    market  value  on the  date in  question  of a share of such
                    stock as determined by the Board in good faith;  and (ii) in
                    the case of  property  other  than cash or  stock,  the fair
                    market  value of such  property  on the date in  question as
                    determined by the Board in good faith.
 
               I.   In the  event  of any  Business  Combination  in  which  the
                    Corporation survives,  the phrase "other consideration to be
                    received" as used in  paragraphs  B(i) and (ii) of Section 2
                    of this  Article  VII,  shall  include  the shares of Common
                    Stock  and/or the shares of any other  class of  outstanding
                    Voting Stock retained by the holders of such shares.
 
               Section 4.  Powers of the Board of Directors.
 
                    The  Directors of the  Corporation  shall have the power and
               duty to  determine  for the  purposes of this Article VII, on the
               basis of information known to them after reasonable inquiry,  (A)
               whether a person is an Interested Shareholder,  (B) the number of
               shares of Voting  Stock  beneficially  owned by any  person,  (C)
               whether a person is an  Affiliate or Associate of another and (D)
               whether  the  assets  which  are  the  subject  of  any  Business
               Combination  has, an aggregate Fair Market Value of $2,000,000 or
               more.
 
               Section 5.  No Effect on Fiduciary Obligations on Interested
                           Shareholders.
 
                    Nothing  contained in this Article VII shall be construed to
               relieve any Interested  Shareholder from any fiduciary obligation
               imposed by law.
 
               Section 6.  Amendment, Repeal, etc.
 
                    Notwithstanding  any other provisions of this Certificate of
               Incorporation   or   the   By-Laws   of  the   Corporation   (and
               notwithstanding   the  fact  that  a  lesser  percentage  may  be
               specified  by  law,  this  Certificate  of  Incorporation  or the
               By-Laws of the Corporation),  the affirmative vote of the holders
               of 80% or more  of the  shares  of the  then  outstanding  Voting
               Stock,  voting  together as a single class,  shall be required to
               amend  or  repeal  this  Article  VII  of  this   Certificate  of
               Incorporation.
 
                                  ARTICLE VIII
                                  ____________
 
                               SHAREHOLDER ACTION:
                                SPECIAL MEETINGS
 
               Any action required or permitted to be taken by the  shareholders
          of the  Corporation  shall be  effected  at a duly  called  annual  or
          special  meeting of  shareholders  of the  Corporation  and may not be
          effected by any consent in writing by such shareholders unless all the
          shareholders  entitled  to vote  thereon  consent  thereto in writing.
          Special meetings of shareholders of the corporation may be called only
          by the Board of  Directors  pursuant  to a  resolution  approved  by a
          majority of the entire Board of  Directors,  or by the Chairman of the
          Board,  the  President,  or the  Executive  Committee  of the Board of
          Directors.  Notwithstanding  anything  contained in the Certificate of
          Incorporation to the contrary,  the affirmative vote of the holders of
          at least 80% of the shares of the corporation entitled to vote thereon
          shall be required to amend or repeal this Article VIII.
 
<PAGE>
 
                                   ARTICLE IX
 
                LIMITATION OF LIABILITY OF DIRECTORS AND OFFICERS
 
     1.   Except to the extent  prohibited  by law, a director or officer of the
          Corporation  shall not be personally  liable to the Corporation or its
          shareholders   for  damages  for  breach  of  any  duty  owed  to  the
          Corporation or its  shareholders,  provided that such provision  shall
          not relieve a director  or officer  from  liability  for any breach of
          duty based upon an act or omission (i) in breach of such person's duty
          of loyalty to the  Corporation or its  shareholders;  (ii) not in good
          faith or involving a knowing  violation of law; or (iii)  resulting in
          receipt by such person of an  improper  personal  benefit.  If the New
          Jersey  Business  Corporation  Act is amended  after  approval  by the
          shareholders of this provision to authorize  corporate  action further
          eliminating  or  limiting  the  personal  liability  of  directors  or
          officers,  then the  liability  of a  director  and/or  officer of the
          Corporation  shall be  eliminated  or  limited to the  fullest  extent
          permitted by the New Jersey Business Corporation Act as to amended.
 
          Any  repeal  or  modification  of  the  foregoing   paragraph  by  the
          shareholders  of the  Corporation  or  otherwise  shall not  adversely
          affect  any  right or  protection  of a  director  or  officer  of the
          Corporation existing at the time of such repeal or modification.
 
                                    ARTICLE X
                                    _________
 
               This Restated Certificate of Incorporation shall become effective
          upon filing.
 
 
                       INTERCHANGE FINANCIAL SERVICES CORPORATION
 
       Attest:
 
       /s/ Benjamin Rosenzweig              By: /s/ Anthony S. Abbate
       ______________________________           ____________________________
       Benjamin Rosenzweig, Secretary           Anthony S. Abbate, President
 
 
 
          I HEREBY CERTIFY that the within Restated Certificate of Incorporation
          of Interchange Financial Services Corporation was adopted by the Board
          of Directors of the  Corporation at a regular meeting held on the 14th
          day of November 2002.
 
                            INTERCHANGE FINANCIAL SERVICES CORPORATION
 
                            By: /s/ Benjamin Rosenzweig
                                --------------------------------
                                  Benjamin Rosenzweig, Secretary