UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB

(Mark One)

[X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT
      OF 1934

For the quarterly period ended                   December 31, 2005
                                ------------------------------------------------

                                       OR

[_]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ____________ to _______________

Commission File Number: 0-27916
                        -------

                            FFD FINANCIAL CORPORATION
--------------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

              Ohio                                         34-1921148
         -------------                                  ------------------
(State or other jurisdiction of                (IRS Employer Identification No.)
incorporation or organization)

                   321 North Wooster Avenue, Dover, Ohio 44622
--------------------------------------------------------------------------------
                    (Address of principal executive offices)

                                 (330) 364-7777
--------------------------------------------------------------------------------
                           (Issuer's telephone number)

--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)


Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period  that the  issuer was  required  to file such  reports)  and (2) has been
subject to such filing requirements for the past 90 days.

Yes |X|     No |_|

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act)

Yes |_|     No |X|

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:
           February 14, 2006 - 1,192,253 common shares, no par value
--------------------------------------------------------------------------------

Transitional Small Business Disclosure Format (Check one):   Yes |_|     No |X|

                                       1
<PAGE>


                                      INDEX

                                                                            Page
                                                                            ----
PART I  -   FINANCIAL INFORMATION

            Consolidated Statements of Financial Condition                   3

            Consolidated Statements of Earnings                              4

            Consolidated Statements of Comprehensive Income                  5

            Consolidated Statements of Cash Flows                            6

            Notes to Consolidated Financial Statements                       8

            Management's Discussion and Analysis or
            Plan of Operations                                              10


PART II  -  OTHER INFORMATION                                               15

SIGNATURES                                                                  16


                                       2
<PAGE>

                            FFD Financial Corporation

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                        (In thousands, except share data)

<TABLE>
<CAPTION>
                                                                        December 31,    June 30,
         ASSETS                                                                2005         2005
                                                                         (Unaudited)
<S>                                                                       <C>          <C>
Cash and due from banks                                                   $   2,073    $   2,113
Interest-bearing deposits in other financial institutions                    12,197        5,672
                                                                          ---------    ---------
         Cash and cash equivalents                                           14,270        7,785

Investment securities designated as available for sale - at market            3,433        3,485
Mortgage-backed securities designated as available for sale - at market         468          500
Mortgage-backed securities held to maturity - at amortized cost,
  approximate market value of $205 and $225 as of December 31,
  2005 and June 30, 2005, respectively                                          200          220
Loans receivable - net                                                      134,492      131,168
Loans held for sale - at lower of cost or market                                 --          325
Office premises and equipment - at depreciated cost                           2,035        2,031
Stock in Federal Home Loan Bank - at cost                                     2,197        2,140
Accrued interest receivable                                                     550          450
Prepaid expenses and other assets                                                68          239
Prepaid federal income taxes                                                     --          252
                                                                          ---------    ---------

         Total assets                                                     $ 157,713    $ 148,595
                                                                          =========    =========

         LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits                                                                  $ 122,140    $ 111,495
Advances from the Federal Home Loan Bank                                     15,691       17,880
Accrued interest payable                                                        158          155
Other liabilities                                                             1,476        1,385
Accrued federal income taxes                                                     63           --
Deferred federal income taxes                                                   258          242
                                                                          ---------    ---------
         Total liabilities                                                  139,786      131,157

Commitments                                                                      --           --

Shareholders' equity
  Preferred stock - authorized 1,000,000 shares without par
    value; no shares issued                                                      --           --
  Common stock - authorized 5,000,000 shares without par or
    stated value; 1,454,750 shares issued                                        --           --
  Additional paid-in capital                                                  8,085        7,987
  Retained earnings - restricted                                             13,280       12,954
  Accumulated comprehensive loss; unrealized losses on securities
    designated as available for sale, net of related tax benefits               (43)          (9)
  Shares acquired by stock benefit plans                                       (225)        (334)
  Less 262,497 and 264,773 treasury shares at December 31, 2005 and
    June 30, 2005, respectively - at cost                                    (3,170)      (3,160)
                                                                          ---------    ---------
         Total shareholders' equity                                          17,927       17,438
                                                                          ---------    ---------

         Total liabilities and shareholders' equity                       $ 157,713    $ 148,595
                                                                          =========    =========
</TABLE>

                                       3
<PAGE>

                            FFD Financial Corporation

                       CONSOLIDATED STATEMENTS OF EARNINGS

                      (In thousands, except per share data)
<TABLE>
<CAPTION>
                                                          For the six months    For the three months
                                                           ended December 31,   ended December 31,
                                                             2005      2004       2005      2004
<S>                                                        <C>       <C>        <C>       <C>
                                                                         (Unaudited)
Interest income
  Loans                                                    $ 4,245   $ 3,111    $ 2,185   $ 1,587
  Mortgage-backed securities                                    17        19          9         9
  Investment securities, interest-bearing
    deposits and other                                         241       171        146        93
                                                           -------   -------    -------   -------
         Total interest income                               4,503     3,301      2,340     1,689

Interest expense
  Deposits                                                   1,305       894        700       457
  Borrowings                                                   441       286        212       143
                                                           -------   -------    -------   -------
         Total interest expense                              1,746     1,180        912       600
                                                           -------   -------    -------   -------

         Net interest income                                 2,757     2,121      1,428     1,089

Provision for losses on loans                                   75         4         45         4
                                                           -------   -------    -------   -------

         Net interest income after provision
           for losses on loans                               2,682     2,117      1,383     1,085

Other income
  Gain on sale of loans                                        126        95         48        26
  Gain on redemption of securities                              16        --         --        --
  Other operating                                              195       223         98       128
                                                           -------   -------    -------   -------
         Total other income                                    337       318        146       154

General, administrative and other expense
  Employee compensation and benefits                           926       878        511       464
  Occupancy and equipment                                      202       184        102        92
  Franchise taxes                                              105       103         52        48
  Data processing                                              146       142         71        69
  Other operating                                              730       561        350       308
                                                           -------   -------    -------   -------
         Total general, administrative and other expense     2,109     1,868      1,086       981
                                                           -------   -------    -------   -------

         Earnings before income taxes                          910       567        443       258

Federal income taxes
  Current                                                      276       209        134
                                                                                               87
  Deferred                                                      34       (16)        17         1
                                                           -------   -------    -------   -------
         Total federal income taxes                            310       193        151        88
                                                           -------   -------    -------   -------

         NET EARNINGS                                      $   600   $   374    $   292   $   170
                                                           =======   =======    =======   =======

         EARNINGS PER SHARE
           Basic                                           $   .51   $   .33    $   .25   $   .15
                                                           =======   =======    =======   =======

           Diluted                                         $   .50   $   .32    $   .24   $   .15
                                                           =======   =======    =======   =======
</TABLE>

                                       4
<PAGE>

                            FFD Financial Corporation

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

                                 (In thousands)

<TABLE>
<CAPTION>
                                                               For the six months For the three months
                                                               ended December 31,  ended December 31,
                                                                 2005     2004      2005      2004
                                                                           (Unaudited)
<S>                                                             <C>      <C>        <C>      <C>
Net earnings                                                    $ 600    $ 374      $ 292    $ 170

Other comprehensive income, net of related tax effects:
  Unrealized holding gains (losses) on securities
    during the period, net of taxes (benefits) of $(18), $30,
    $(10) and $(6), during the respective periods                 (34)      59        (19)     (12)
                                                                -----    -----      -----    -----

Comprehensive income                                            $ 566    $ 433      $ 273    $ 158
                                                                =====    =====      =====    =====

Accumulated comprehensive loss                                  $ (43)   $  (7)     $ (43)   $  (7)
                                                                =====    =====      =====    =====
</TABLE>

                                       5
<PAGE>

                            FFD Financial Corporation

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                      For the six months ended December 31,
                                 (In thousands)

<TABLE>
<CAPTION>
                                                                    2005         2004
                                                                      (Unaudited)
<S>                                                               <C>         <C>
Cash flows from operating activities:
  Net earnings for the period                                     $    600    $    374
  Adjustments to reconcile net earnings to net cash
  provided by operating activities:
    Amortization of discounts and premiums on loans,
      investments and mortgage-backed securities - net                  --           1
    Amortization of deferred loan origination costs                     27          24
    Depreciation and amortization                                       78          92
    Gain on redemption of investment  securities                       (16)         --
    Provision for losses on loans                                       75           4
    Amortization expense of stock benefit plans                        197         182
    Gain on sale of loans                                              (53)        (30)
    Loans originated for sale in the secondary market               (6,324)     (4,175)
    Proceeds from sale of loans in the secondary market              6,702       4,422
    Proceeds from sale of loans to other financial institutions      2,321       1,068
    Federal Home Loan Bank stock dividends                             (57)        (44)
    Increase (decrease) in cash due to changes in:
      Accrued interest receivable                                     (100)        (13)
      Prepaid expenses and other assets                                171         134
      Accrued interest payable                                           3          13
      Other liabilities                                                 91        (220)
      Federal income taxes
        Current                                                        315         104
        Deferred                                                        34         (16)
                                                                  --------    --------
         Net cash provided by operating activities                   4,064       1,920

Cash flows used in investing activities:
  Proceeds from redemption of investment securities                     16          --
  Principal repayments on mortgage-backed securities                    52         215
  Loan principal repayments                                         25,996      17,556
  Loan disbursements                                               (31,743)    (23,436)
  Purchase of office premises and equipment                            (82)        (59)
                                                                  --------    --------
         Net cash used in investing activities                      (5,761)     (5,724)

Cash flows provided by financing activities:
  Net increase in deposit accounts                                  10,645       2,650
  Proceeds from Federal Home Loan Bank advances                     11,000       1,000
  Repayment of Federal Home Loan Bank advances                     (13,189)     (1,123)
  Proceeds from exercise of stock options                               64          82
  Purchase of treasury shares                                          (64)       (271)
  Dividends on common stock                                           (274)       (256)
                                                                  --------    --------
         Net cash provided by financing activities                   8,182       2,082
                                                                  --------    --------

Net (decrease) increase in cash and cash equivalents                 6,485      (1,722)

Cash and cash equivalents at beginning of period                     7,785      10,820
                                                                  --------    --------

Cash and cash equivalents at end of period                        $ 14,270    $  9,098
                                                                  ========    ========
</TABLE>

                                       6
<PAGE>

                            FFD Financial Corporation

                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

                      For the six months ended December 31,
                                 (In thousands)

<TABLE>
<CAPTION>
                                                                                     2005         2004
<S>                                                                                <C>         <C>
                                                                                        (Unaudited)
Supplemental  disclosure of cash flow  information:
  Cash paid during the period for:
    Federal income taxes                                                           $      --   $     104
                                                                                   =========   =========

    Interest on deposits and borrowings                                            $   1,743   $   1,167
                                                                                   =========   =========

Supplemental disclosure of noncash investing activities:
  Unrealized gains (losses) on securities designated as available for
    sale, net of related tax effects                                               $     (34)  $      59
                                                                                   =========   =========

  Recognition of mortgage servicing rights in accordance
    with SFAS No. 140                                                              $      73   $      65
                                                                                   =========   =========
</TABLE>

                                       7
<PAGE>

                            FFD Financial Corporation

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

      For the six- and three-month periods ended December 31, 2005 and 2004


1. Basis of Presentation
   ---------------------

The accompanying  unaudited  consolidated  financial statements were prepared in
accordance with the instructions for Form 10-QSB and, therefore,  do not include
information  or footnotes  necessary  for a complete  presentation  of financial
position,  results of operations  and cash flows in conformity  with  accounting
principles  generally  accepted in the United  States of  America.  Accordingly,
these financial  statements  should be read in conjunction with the Consolidated
Financial  Statements  and  Notes  thereto  of FFD  Financial  Corporation  (the
"Corporation")  included in the Annual  Report on Form 10-KSB for the year ended
June  30,  2005.  However,  in  the  opinion  of  management,   all  adjustments
(consisting of only normal  recurring  accruals)  which are necessary for a fair
presentation  of the financial  statements  have been  included.  The results of
operations for the six- and three-month periods ended December 31, 2005, are not
necessarily  indicative  of the  results  which may be  expected  for the entire
fiscal year.

2. Principles of Consolidation
   ---------------------------

The accompanying  consolidated  financial statements include the accounts of the
Corporation,  First  Federal  Community  Bank (the  "Bank")  and  Dover  Service
Corporation, a wholly owned subsidiary of the Bank. All significant intercompany
items have been eliminated.

3. Earnings Per Share
   ------------------

Basic  earnings  per share is computed  based upon the  weighted-average  common
shares   outstanding  during  the  period  less  shares  in  the  FFD  Financial
Corporation  Employee Stock Ownership Plan (the "ESOP") that are unallocated and
not committed to be released.  Weighted-average common shares deemed outstanding
give  effect to 13,162  and  26,339  unallocated  ESOP  shares  for the six- and
three-month  periods  ended  December 31, 2005 and 2004,  respectively.  Diluted
earnings per common share includes the dilutive  effect of additional  potential
common  shares  issuable  under  the   Corporation's   stock  option  plan.  The
computations are as follows:

<TABLE>
<CAPTION>
                                     For the six months ended   For the three months ended
                                            December 31,               December 31,
                                           2005        2004           2005        2004
<S>                                   <C>         <C>            <C>         <C>

Weighted-average common shares
  outstanding (basic)                 1,165,261   1,145,968      1,166,057   1,143,438
Dilutive effect of assumed exercise
  of stock options                       22,823      26,392         24,207      27,083
                                      ---------   ---------      ---------   ---------
Weighted-average common shares
  outstanding (diluted)               1,188,084   1,172,360      1,190,264   1,170,521
                                      =========   =========      =========   =========
</TABLE>

4. Stock Option Plan
   -----------------

The FFD Financial  Corporation 1996 Stock Option and Incentive Plan (the "Plan")
provides  for grants of options to  purchase  169,838  authorized  but  unissued
common shares.

The Corporation  accounts for the Plan in accordance with Statement of Financial
Accounting   Standards   ("SFAS")   No.   123,   "Accounting   for   Stock-Based
Compensation,"  which contains a fair value-based method for valuing stock-based
compensation  that entities may use,  which  measures  compensation  cost at the
grant date based on the fair value of the award. Compensation is then recognized
over the service  period,  which is usually the vesting  period.  Alternatively,
SFAS No. 123 permits  entities  to  continue  to account  for stock  options and
similar equity

                                       8
<PAGE>

                            FFD Financial Corporation

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

      For the six- and three-month periods ended December 31, 2005 and 2004


4. Stock Option Plan (continued)
   ----------------------------

instruments   under   Accounting   Principles  Board  ("APB")  Opinion  No.  25,
"Accounting  for Stock Issued to  Employees."  Entities that continue to account
for stock  options  using APB  Opinion  No.  25 are  required  to make pro forma
disclosures of net earnings and earnings per share,  as if the fair  value-based
method of accounting defined in SFAS No. 123 had been applied.  Such disclosures
are not included  herein due to  materiality  as no option grants have been made
during the periods covered by this report.

The fair value of each option  grant is estimated on the date of grant using the
modified Black-Scholes options-pricing model with the following assumptions used
for grants in fiscal 2004: dividend yield of 3.0%; expected volatility of 38.2%;
risk-free  interest  rates of 4.3% and an  expected  life of ten  years  for all
grants.

A summary of the status of the  Corporation's  stock  option plan as of December
31, 2005 and June 30, 2005 and 2004,  and changes  during the periods then ended
are presented below:

<TABLE>
<CAPTION>
                                           December 31,                       June 30,
                                              2005                   2005                  2004
                                                 Weighted-              Weighted-              Weighted-
                                                   average                average                average
                                                  exercise               exercise               exercise
                                        Shares       price     Shares       price     Shares       price
<S>                                     <C>       <C>          <C>       <C>         <C>        <C>
Outstanding at beginning of period      60,618    $  10.17     89,998    $   9.84    115,183    $   9.47
Granted                                     --          --         --          --      4,500       14.87
Exercised                               (5,997)      10.71    (29,305)       9.15    (28,365)       9.15
Forfeited                                   --          --        (75)      12.48     (1,320)       9.54
                                      --------    --------   --------    --------  ---------    --------
Outstanding at end of period            54,621    $  10.11     60,618    $  10.17     89,998    $   9.84
                                      ========    ========   ========    ========  =========    ========

Options exercisable at period-end       43,663    $   9.55     46,831    $   9.66     68,755    $   9.33
                                      ========    ========   ========    ========  =========    ========
Weighted-average fair value of
  options granted during the period                    N/A                    N/A               $   4.36
                                                       ===                    ===               ========
</TABLE>

The following information applies to options outstanding at December 31, 2005:

Number outstanding                                                       43,621
Range of exercise prices                                           $8.38-$10.10
Number outstanding                                                       11,000
Range of exercise prices                                          $12.00-$14.88
Weighted-average exercise price                                          $10.11
Weighted-average remaining contractual life in years                  4.2 years

SFAS No.  123 was  amended in  December  2004 by SFAS No.  123(R),  "Share-Based
Payment" to require  compensation  expense  recognition  beginning  in the first
annual  period  beginning  after  December 15,  2005,  or July 1, 2006 as to the
Corporation.  To the extent  options  are  granted or vest after June 30,  2006,
expense will be  recognized  based on the fair value of such shares on the grant
date.

                                       9
<PAGE>

                            FFD Financial Corporation

           MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS


Forward Looking Statements
--------------------------

Certain  statements  contained in this report that are not historical  facts are
forward-looking  statements that are subject to certain risks and uncertainties.
When used herein, the terms "anticipates,"  "plans," "expects,"  "believes," and
similar  expressions  as they relate to FFD or its  management  are  intended to
identify such forward looking statements.  FFD's actual results,  performance or
achievements  may  materially  differ  from  those  expressed  or implied in the
forward-looking  statements.   Risks  and  uncertainties  that  could  cause  or
contribute to such material differences include, but are not limited to, general
and  local  economic  conditions,  changes  in the  interest  rate  environment,
competitive  conditions  in the  financial  services  industry,  changes in law,
governmental policies and regulations, and rapidly changing technology affecting
financial services.


Discussion  of  Financial  Condition  Changes from June 30, 2005 to December 31,
--------------------------------------------------------------------------------
2005
----

The Corporation's total assets at December 31, 2005, were $157.7 million, a $9.1
million, or 6.1%, increase over the total at June 30, 2005.

Cash and cash  equivalents  totaled  $14.3  million at  December  31,  2005,  an
increase of $6.5 million, or 83.3%, from the total at June 30, 2005.  Investment
securities  totaled  $3.4  million at December  31,  2005,  a $52,000,  or 1.5%,
decrease from the total at June 30, 2005, which resulted  primarily from mark to
market  adjustments under SFAS No. 115,  "Accounting for Certain  Investments in
Debt and Equity  Securities."  Mortgage-backed  securities  totaled  $668,000 at
December 31, 2005, a $52,000,  or 7.2%,  decrease  compared to the total at June
30, 2005, which resulted from principal repayments.

Loans  receivable,  including  loans held for sale,  totaled  $134.5  million at
December 31, 2005, an increase of $3.0 million,  or 2.3%, from the June 30, 2005
total.  Loan  disbursements  during  the  period  totaling  $38.1  million  were
partially  offset by principal  repayments of $26.0  million,  loans sold in the
secondary market of $6.6 million and loans sold to other financial  institutions
of $2.3  million.  During the  six-month  period ended  December 31, 2005,  loan
originations were comprised of $19.0 million of one- to four-family  residential
real  estate  loans,  $3.8  million  of  commercial  loans,   $12.2  million  of
nonresidential  real estate loans,  $800,000 of  multi-family  residential  real
estate loans and $2.3  million of consumer  loans.  Nonresidential  real estate,
multi-family  residential real estate and commercial lending generally involve a
higher degree of risk than one- to four-family  residential  real estate lending
due to the  relatively  larger loan amounts and the effects of general  economic
conditions  on the  successful  operation  of  income-producing  properties  and
businesses.  The Bank  endeavors  to reduce such risk by  evaluating  the credit
history and past  performance of the borrower,  the location of the real estate,
the quality of the  management  operating  the  property or  business,  the debt
service ratio, the quality and characteristics of the income stream generated by
the property or business and appraisals supporting the real estate or collateral
valuation.

The allowance for loan losses totaled  $754,000 at December 31, 2005, a decrease
of $12,000, or 1.6%, from the June 30, 2005 balance of $766,000, and represented
..55% and .57% of total loans at each of those  respective  dates.  The  decrease
resulted from $87,000 of charge offs which were partially  offset by an addition
of $75,000 to the  allowance.  At December 31, 2005, the allowance was comprised
solely of a general  allowance.  The Bank's  impaired  and  nonperforming  loans
totaled $1.3 million at December  31,  2005, a 6.8%  increase  from the June 30,
2005 total of $1.2 million.  Although management believes that the allowance for
loan losses at December 31, 2005, is adequate based upon the available facts and
circumstances,  there can be no assurance  that  additions to the allowance will
not  be  necessary  in  future  periods,   which  could  adversely   affect  the
Corporation's results of operations.

                                       10
<PAGE>

                            FFD Financial Corporation

     MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS (CONTINUED)


Discussion  of  Financial  Condition  Changes from June 30, 2005 to December 31,
--------------------------------------------------------------------------------
2005 (continued)
----------------

Deposits totaled $122.1 million at December 31, 2005, a $10.6 million,  or 9.5%,
increase  from total  deposits at June 30, 2005.  FHLB  advances  totaled  $15.7
million at December 31, 2005, a $2.2 million,  or 12.2%,  decrease from the June
30, 2005 total, due to repayments funded by deposit growth.

Shareholders'  equity totaled $17.9 million at December 31, 2005, an increase of
$489,000,  or 2.8%, over June 30, 2005. The increase was due primarily to period
net  earnings of $600,000  and  amortization  of stock  benefit  plans  totaling
$197,000,  which  were  partially  offset by  unrealized  losses  on  securities
designated as available for sale of $34,000 and dividends paid of $274,000.  The
Bank is required to meet minimum capital standards  promulgated by the Office of
Thrift  Supervision  ("OTS") and at December  31,  2005,  the Bank's  regulatory
capital exceeded the minimum capital requirements.


Comparison  of Operating  Results for the Six-Month  Periods Ended  December 31,
--------------------------------------------------------------------------------
2005 and 2004
-------------

General
-------

The  Corporation's  net  earnings  totaled  $600,000  for the six  months  ended
December 31, 2005, an increase of $226,000,  or 60.4%,  from the net earnings of
$374,000 recorded in the comparable period in 2004. The increase in net earnings
resulted  from  increases of  $636,000,  or 30.0%,  in net  interest  income and
$19,000,  or 6.0%, in other  operating  income,  which were partially  offset by
increases of $241,000,  or 12.9% in general,  administrative and other expenses,
$117,000 in federal  income  taxes,  and $71,000 in the  provision for losses on
loans.

Net Interest Income
-------------------

Total interest income  increased by $1.2 million,  or 36.4%, to $4.5 million for
the six months  ended  December  31,  2005,  compared  to the six  months  ended
December 31, 2004. Interest income on loans increased by $1.1 million, or 36.5%,
due to an increase of $15.4  million,  or 13.0%,  in the average loan  portfolio
balance  outstanding and a 99 basis point increase in yield.  Interest income on
mortgage-backed  securities decreased by $2,000, or 10.5%, due to a $119,000, or
14.6%,  decrease in the average balance outstanding,  which was partially offset
by  a  103  basis  point  increase  in  yield.  Interest  income  on  investment
securities,  interest-bearing deposits and other increased by $70,000, or 40.9%,
to a total of $241,000 for the six months ended December 31, 2005, due to a $1.6
million,  or 17.5%,  increase in the average balance outstanding and a 127 basis
point increase in the yield.

Total interest expense increased by $566,000,  or 48.0%, to $1.7 million for the
six months ended  December 31, 2005,  compared to the six months ended  December
31, 2004.  Interest  expense on deposits  increased by $411,000,  or 46.0%,  due
primarily to a 58 basis point  increase in the average cost of deposits to 2.26%
for the 2005  period,  and a $7.2  million,  or 6.7%,  increase  in the  average
balance of deposits outstanding period to period. Interest expense on borrowings
increased by $155,000,  or 54.2%, due to an increase of $7.0 million,  or 55.4%,
in the average  balance of advances  outstanding and a 5 basis point increase in
the average cost of borrowings.

As a result of the foregoing  changes in interest  income and interest  expense,
net interest income  increased by $636,000,  or 30.0%,  for the six months ended
December 31, 2005, compared to the same period in 2004. The interest rate spread
was 3.56% and 3.11%,  and the net interest  margin totaled 3.77% and 3.27%,  for
the six-month periods ended December 31, 2005 and 2004, respectively.

                                       11
<PAGE>

                            FFD Financial Corporation

     MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS (CONTINUED)


Comparison  of Operating  Results for the Six-Month  Periods Ended  December 31,
--------------------------------------------------------------------------------
2005 and 2004 (continued)
-------------------------

Provision for Losses on Loans
-----------------------------

The Corporation  recorded a $75,000 provision for losses on loans during the six
months ended  December  31,  2005,  and a $4,000  provision  for the  comparable
quarter in 2004. The increase in the allowance for losses on loans was primarily
due to growth in the loan  portfolio,  an increase in commercial  loans,  and an
increase related to management's assessment of economic conditions. There can be
no assurance  that the loan loss  allowance  will be adequate to cover losses on
nonperforming and impaired assets in the future,  which can adversely affect the
Corporation's results of operations.

Other Income
------------

Other income  totaled  $337,000 for the six months ended  December 31, 2005,  an
increase of $19,000,  or 6.0%, from the 2004 total.  The increase was due to the
receipt of $16,000 in holdback  proceeds  from the  previously  reported gain on
redemption of the Intrieve  securities from its acquisition by Harland Financial
Solutions,  Inc.  and an increase of $31,000,  or 32.6%,  in the gain on sale of
loans,  both of which were partially offset by a decrease of $28,000,  or 12.6%,
in other operating income.

General, Administrative and Other Expense
-----------------------------------------

General,  administrative  and other  expense  totaled  $2.1  million for the six
months ended December 31, 2005, an increase of $241,000,  or 12.9%,  compared to
the same  period in 2004.  The  increase in  general,  administrative  and other
expense includes increases of $169,000,  or 30.1%, in other operating,  $48,000,
or 5.5%, in employee  compensation and benefits,  $18,000, or 9.8%, in occupancy
and equipment and $4,000,  or .2.8%, in data  processing.  The increase in other
operating   expense  was  primarily   attributable   to  costs  related  to  the
Corporation's  growth  year  to  year,  as well as  discretionary  increases  in
advertising  and legal  costs  associated  with  terminating  the going  private
transaction.

Federal Income Taxes
--------------------

The Corporation  recorded a provision for federal income taxes totaling $310,000
for the six months ended  December 31, 2005, an increase of $117,000,  or 60.6%,
over the same period in 2004. The increase  resulted from a $343,000,  or 60.5%,
increase in earnings before taxes.  The  Corporation's  effective tax rates were
34.1%,  and a 34.0%  for the  six-months  ended  December  31,  2005  and  2004,
respectively.


Comparison of Operating  Results for the Three-Month  Periods Ended December 31,
--------------------------------------------------------------------------------
2005 and 2004 General
---------------------

The  Corporation's  net  earnings  totaled  $292,000  for the three months ended
December 31, 2005, an increase of $122,000,  or 71.8%,  from the net earnings of
$170,000 recorded in the comparable period in 2004. The increase in net earnings
resulted from increases of $339,000,  or 31.1%,  in net interest  income,  which
were  partially  offset by a decrease  of $8,000,  or 5.2%,  in other  operating
income,  and increases of $105,000,  or 10.7%,  in general,  administrative  and
other  expenses,  $63,000 in federal income taxes,  and $41,000 in the provision
for losses on loans.

                                       12
<PAGE>

                            FFD Financial Corporation

     MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS (CONTINUED)


Comparison of Operating  Results for the Three-Month  Periods Ended December 31,
--------------------------------------------------------------------------------
2005 and 2004 (continued)
-------------------------

Net Interest Income
-------------------

Total interest income  increased by $651,000,  or 38.5%, to $2.3 million for the
three  months  ended  December  31,  2005,  compared to the three  months  ended
December 31, 2004. Interest income on loans increased by $598,000, or 37.7%, due
to an increase of $17.4 million, or 14.8%, in the average loan portfolio balance
outstanding  and a 107  basis  point  increase  in  yield.  Interest  income  on
mortgage-backed  securities was the same period to period,  with the decrease of
$185,000,  or 21.4%, in the average balance  outstanding,  offset by a 130 basis
point   increase   in  yield.   Interest   income  on   investment   securities,
interest-bearing  deposits and other increased by $53,000,  or 57.0%, to a total
of $146,000  for the three months  ended  December 31, 2005,  due to a 109 basis
point  increase in yield and a $2.0 million,  or 18.4%,  increase in the average
balance outstanding.

Total  interest  expense  increased by $312,000,  or 52.0%,  to $912,000 for the
three  months  ended  December  31,  2005,  compared to the three  months  ended
December 31, 2004. Interest expense on deposits increased by $243,000, or 53.2%,
due to a 66 basis point  increase  in the average  cost of deposits to 2.37% for
the 2005 quarter and a $11.2 million, or 10.5%,  increase in the average balance
of  deposits  outstanding  period to  period.  Interest  expense  on  borrowings
increased by $69,000, or 48.3%, due to an increase of $6.6 million, or 53.0%, in
the average balance of advances outstanding,  which was partially offset by a 11
basis point decrease in the average cost of borrowings.

As a result of the foregoing  changes in interest  income and interest  expense,
net interest income increased by $339,000,  or 31.1%, for the three months ended
December 31, 2005, compared to the same period in 2004. The interest rate spread
was 3.62% and 3.20%,  and the net interest  margin was 3.83% and 3.36%,  for the
three-month periods ended December 31, 2005 and 2004, respectively.

Provision for Losses on Loans
-----------------------------

The  Corporation  recorded a $45,000  provision  for losses on loans  during the
three months ended December 31, 2005, and a $4,000  provision for the comparable
quarter in 2004. The increase in the allowance for losses on loans was primarily
due to the growth in the loan  portfolio,  a modest  increase  in  nonperforming
loans,  and  an  increase   related  to  management's   assessment  of  economic
conditions.  There  can be no  assurance  that the loan loss  allowance  will be
adequate  to cover  losses  on  nonperforming  assets in the  future,  which can
adversely affect the Corporation's results of operations.

Other Income
------------

Other income  totaled  $146,000 for the three months ended  December 31, 2005, a
decrease  of  $8,000,  or 5.2%,  from  the 2004  total.  The  reduction  was due
primarily  to a decline of  $30,000,  or 23.4%,  in other  operating,  which was
partially offset by an increase of $22,000, or 84.6%, in gain on sale of loans.

General, Administrative and Other Expense
-----------------------------------------

General,  administrative  and other  expense  totaled $1.1 million for the three
months ended December 31, 2005, an increase of $105,000,  or 10.7%,  compared to
the same  period in 2004.  The  increase in  general,  administrative  and other
expense includes  increases of $47,000,  or 10.1%, in employee  compensation and
benefits, $42,000, or 13.6%, in other operating, $10,000, or 10.9%, in occupancy
and equipment,  and $4,000, or 8.3%, in franchise tax. The increases in general,
administrative  and other  expenses for the 2005 quarter  generally  reflect the
Corporation's growth year over year.

                                       13
<PAGE>

                            FFD Financial Corporation

     MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS (CONTINUED)


Comparison of Operating  Results for the Three-Month  Periods Ended December 31,
--------------------------------------------------------------------------------
2005 and 2004 (continued)
-------------------------

Federal Income Taxes
--------------------

The Corporation  recorded a provision for federal income taxes totaling $151,000
for the three months ended December 31, 2005, an increase of $63,000,  or 71.6%,
over the same period in 2004. The increase  resulted from a $185,000,  or 71.7%,
increase in earnings  before  taxes.  The  Corporation's  effective tax rate was
34.1% for both three months ended December 31, 2005 and 2004.


ITEM 3:  Controls and Procedures
         -----------------------

The  Corporation's  Chief  Executive  Officer and Chief  Financial  Officer have
evaluated the Corporation's disclosure controls and procedures (as defined under
Rules 13a-15 and 15d-15 of the  Securities  Exchange Act of 1934, as amended) as
of the end of the period covered by this report. Based upon that evaluation, the
Chief  Executive  Officer and Chief  Financial  Officer have  concluded that the
Corporation's  disclosure  controls and procedures are effective.  There were no
changes in the Corporation's internal controls which materially affected, or are
reasonably likely to materially effect, the Corporation's internal controls over
financial reporting.


                                       14
<PAGE>

                            FFD Financial Corporation

                                     PART II


ITEM 1.    Legal Proceedings
           -----------------

           Not applicable

ITEM 2.    Unregistered Sales of Equity Securities and Use of Proceeds
           -----------------------------------------------------------

           (a)    During the quarter ended  December 31, 2005,  the  Corporation
                  issued a total of 2,276 unregistered  shares upon the exercise
                  of stock options for an aggregate  purchase  price of $24,379.
                  The sales were  exempt from  registration  pursuant to section
                  4(2) of the Securities Act of 1933, as amended.

           (b)    None

           (c)    None

           (d)    None

ITEM 3.    Defaults Upon Senior Securities
           -------------------------------

           Not applicable

ITEM 4.    Submission of Matters to a Vote of Security Holders
           ---------------------------------------------------

           On October 25, 2005, the Corporation  held its 2005 Annual Meeting of
           Shareholders.  All of the directors nominated were reelected to terms
           expiring in 2006 by the following vote:

                                                      For               Withheld

           Richard A. Brinkman, Jr.                 965,277              45,438
           Stephen G. Clinton                       964,927              45,788
           Leonard L. Gundy                         964,813              45,902
           Enos L. Loader                           966,627              44,088
           Robert D. Sensel                         966,527              44,188

ITEM 5.    Other Information
           -----------------

           None

ITEM 6.    Exhibits
           --------

            31.1        Chief  Executive  Officer   certification   pursuant  to
                         Section 302 of the Sarbanes-Oxley Act of 2002

            31.2        Chief  Financial  Officer   certification   pursuant  to
                         Section 302 of the Sarbanes-Oxley Act of 2002

            32.1        Chief  Executive  Officer   certification   pursuant  to
                         Section 906 of the Sarbanes-Oxley Act of 2002

            32.2        Chief  Financial  Officer   certification   pursuant  to
                         Section 906 of the Sarbanes-Oxley Act of 2002



                                       15
<PAGE>

                            FFD Financial Corporation

                                   SIGNATURES


In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.


                            FFD FINANCIAL CORPORATION




Date:  February 14, 2006    By:  /s/Trent B. Troyer
      -------------------        -----------------------------------------------
                                 Trent B. Troyer
                                 President and Chief Executive Officer





Date:  February 14, 2006    By:  /s/Robert R. Gerber
      -------------------        -----------------------------------------------
                                 Robert R. Gerber
                                 Vice President, Treasurer and Chief Financial
                                 Officer


                                       16