<PAGE>

                                 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, 2007
                              -----------------------------

                                       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                                        34-1821148
-------------------------------               ---------------------------------
(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 13, 2008 - 1,070,294 common shares, no par value
           ---------------------------------------------------------

Transitional Small Business Disclosure Format (Check one): Yes [ ] No [X]

                                       1
<PAGE>

                                     INDEX

                                                                           Page
                                                                           ----

PART I  ITEM 1.-FINANCIAL STATEMENTS

                Consolidated Statements of Financial Condition                3

                Consolidated Statements of Earnings                           4

                Consolidated Statements of Comprehensive Income               5

                Condensed Consolidated Statements of Cash Flows               6

                Notes to Consolidated Financial Statements                    7

        ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS   10

        ITEM 3. CONTROLS AND PROCEDURES                                      14

PART II  -      OTHER INFORMATION                                            15

SIGNATURES                                                                   17

                                       2
<PAGE>

                           FFD Financial Corporation

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                       (In thousands, except share data)

<TABLE>
<CAPTION>
                                                                               December 31,      June 30,
      ASSETS                                                                           2007          2007
                                                                                (Unaudited)

<S>                                                                                <C>           <C>
Cash and due from banks                                                            $  2,163         1,871
Interest-bearing deposits in other financial institutions                             6,717         7,162
                                                                                   --------      --------
      Cash and cash equivalents                                                       8,880         9,033

Investment securities available for sale                                              3,498         3,448
Mortgage-backed securities available for sale                                           252           267
Mortgage-backed securities held to maturity
 fair value of $89 and $98 as of December 31,
 2007 and June 30, 2007, respectively                                                    88            97
Loans receivable - net of allowance of $1,079 and $930                              156,891       153,282
Loans held for sale                                                                     257           624
Premises and equipment, net                                                           2,616         2,280
Federal Home Loan Bank Stock, at cost                                                 2,327         2,327
Loan Servicing Rights                                                                   641           661
Accrued interest receivable                                                             726           683
Prepaid expenses and other assets                                                        65           292
                                                                                   --------      --------

      Total assets                                                                 $176,241      $172,994
                                                                                   ========      =======

      LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits
  Non interest bearing                                                               10,261      $  9,984
  Interest bearing                                                                  128,315       129,938
                                                                                   --------      --------
      Total deposits                                                                138,576       139,922
Federal Home Loan Bank Advances                                                      17,312        13,055
Accrued interest payable                                                                209           225
Accrued and deferred federal income tax                                                 261           409
Other liabilities                                                                     1,491         1,248
                                                                                   --------      --------
      Total liabilities                                                             157,849       154,859

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                                                          8,274         8,256
  Retained earnings                                                                  15,289        14,856
  Accumulated comprehensive  loss, net                                                   (2)          (33)
  Treasury stock at cost (373,104 and 359,148 treasury shares
   at December 31, 2007 and June 30, 2007, respectively)                             (5,169)       (4,944)
                                                                                   --------      --------
      Total shareholders' equity                                                     18,392        18,135
                                                                                   --------      --------

      Total liabilities and shareholders' equity                                   $176,241      $172,994
                                                                                   ========      ========
</TABLE>

The accompanying notes are an integral part of these statements.

                                       3
<PAGE>

                           FFD Financial Corporation

                      CONSOLIDATED STATEMENTS OF EARNINGS

                     (In thousands, except per share data)

<TABLE>
<CAPTION>
                                                                   For the three months      For the six months
                                                                    ended December 31,       ended December 31,
                                                                     2007          2006        2007        2006
                                                                                    (Unaudited)

<S>                                                                <C>           <C>         <C>         <C>
Interest income
  Loans, including fees                                            $2,870        $2,693      $5,815      $5,302
  Mortgage-backed securities                                            6             7          12          14
  Investment securities                                                42            38          84          77
  Interest-bearing deposits and other                                  86           114         163         203
                                                                   ------        ------      ------      ------
                                                                    3,004         2,852       6,074       5,596

Interest expense
  Deposits                                                          1,161         1,052       2,352       1,947
  Borrowings                                                          185           171         374         395
                                                                   ------        ------      ------      ------
                                                                    1,346         1,223       2,726       2,342
                                                                   ------        ------      ------      ------

      Net interest income                                           1,658         1,629       3,348       3,254

Provision for losses on loans                                         111            39         199         102
                                                                   ------        ------      ------      ------

      Net interest income after provision for losses on loans       1,547         1,590       3,149       3,152

Other income
  Net gain on sale of loans                                            26            40          64          92
  Service charges on deposit accounts                                  63            65         127         130
  Other                                                                62            52         115         104
                                                                   ------        ------      ------      ------
                                                                      151           157         306         326
General, administrative and other expense
  Employee and director compensation and benefits                     491           498       1,006       1,000
  Occupancy and equipment                                              99            97         233         192
  Franchise taxes                                                      58            54         116         107
  Data processing                                                      84            80         168         163
  Professional and consulting fees                                     68            70         126         117
  Postage and stationery supplies                                      43            41          69          81
  Advertising                                                          45            54          91         115
  Checking account maintenance expense                                 62            54         115         102
  Other                                                               197           193         361         324
                                                                   ------        ------      ------      ------
                                                                    1,147         1,141       2,285       2,201
                                                                   ------        ------      ------      ------

      Income before income taxes                                      551           606       1,170       1,277

      Income tax expense                                              189           207         400         436
                                                                   ------        ------      ------      ------

      Net Income                                                   $  362        $  399         770      $  841
                                                                   ======        ======      ======      ======

      Earnings per share
        Basic                                                        $.33          $.35        $.71        $.72
                                                                     ====          ====        ====        ====

        Diluted                                                      $.33          $.35        $.70        $.72
                                                                     ====          ====        ====        ====

        Dividends declared per share                                $.165          $.14       $.305        $.26
                                                                    =====          ====       =====        ====
</TABLE>

The accompanying notes are an integral part of these statements.

                                       4
<PAGE>

                           FFD Financial Corporation

                CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

                                 (In thousands)

<TABLE>
<CAPTION>
                                                                   For the three months      For the six months
                                                                   ended December 31,        ended December 31,
                                                                     2007          2006        2007        2006
                                                                                    (Unaudited)

<S>                                                                  <C>           <C>         <C>         <C>
Net earnings                                                         $362          $399        $770        $841

Other comprehensive income, net of related tax effects:
  Unrealized holding gains (losses) on securities during
   the period, net of taxes (benefits) of $3, $6,
   $16 and $31, during the respective periods                           6            12          31          60
                                                                     ----          ----        ----        ----

Comprehensive income                                                 $368          $411        $801        $901
                                                                     ====          ====        ====        ====
</TABLE>

The accompanying notes are an integral part of these statements.

                                       5
<PAGE>


                           FFD Financial Corporation

                     CONSOLIDATED STATEMENTS OF CASH FLOWS

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

                                                             2007          2006
                                                               (Unaudited)

Cash flows from operating activities:
      Net cash provided by operating activities           $ 1,728       $(3,844)

Cash flows from investing activities:
  Principal repayments on mortgage-backed securities           22           162
  Loan originations and payments, net                      (8,113)        1,219
  Proceeds from participation loan sales
   to other financial institutions                          4,297           655
  Additions to premises and equipment                        (438)         (129)
                                                          -------       -------
      Net cash used in investing activities                (4,232)        1,907

Cash flows financing activities:
  Net changes in deposits                                  (1,346)       12,698
  Net change in short-term Federal Home Loan
   Bank advances                                            1,500        (6,000)
  Proceeds from Federal Home Loan Bank Advances             4,500           600
  Repayments of Federal Home Loan Bank Advances            (1,743)         (202)
  Tax benefits of options exercised                             -            25
  Proceeds from exercise of stock options                      19           197
  Purchase of treasury stock                                 (242)       (1,881)
  Cash dividends paid                                        (337)         (303)
                                                          -------       -------
      Net cash from financing activities                    2,351         5,134
                                                          -------       -------

Net change in cash and cash equivalents                      (153)        3,197

Beginning cash and cash equivalents                         9,033         7,692
                                                          -------       -------

Ending cash and cash equivalents                          $ 8,880       $10,889
                                                          =======       =======


Supplemental disclosure of cash flow information:
  Cash paid during the period for:
    Federal income taxes                                  $   490       $   511
                                                          =======       =======
    Interest paid                                         $ 2,742       $ 2,303
                                                          =======       =======

The accompanying notes are an integral part of these statements.

                                       6
<PAGE>

                           FFD Financial Corporation

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

     For the three- and six-month periods ended December 31, 2007 and 2006

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 ("FFD" or
the "Corporation") included in the Corporation's Annual Report on Form 10-KSB
for the year ended June 30, 2007. 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 three- and six-month periods ended December 31,
2007, 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. 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 three months ended    For the six months ended
                                                 December 31,                 December 31,
                                               2007             2006         2007           2006

<S>                                       <C>              <C>          <C>            <C>
   Weighted-average common shares
    outstanding (basic)                   1,085,403        1,127,436    1,089,314      1,161,658
   Dilutive effect of assumed exercise
    of stock options                          5,704           13,305        6,288         12,956
                                          ---------        ---------    ---------      ---------
   Weighted-average common shares
    outstanding (diluted)                 1,091,107        1,140,741    1,095,602      1,174,614
                                          =========        =========    =========      =========
</TABLE>

Three thousand five hundred options were not considered in computing earnings
per share for the three months ended December 31, 2007 because they were
antidilutive.

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

The FFD Financial Corporation 1996 Stock Option and Incentive Plan (the "Plan")
provided for grants of options to purchase 169,838 authorized but unissued
common shares. Although the Plan expired in October of 2006, options granted
prior to the expiration date remain exercisable for ten years from the grant
date, unless terminated in accordance with the Plan or the applicable award
agreement.

During the fourth quarter of fiscal 2006, the Corporation early adopted
Statement of Financial Accounting Standards ("SFAS") No. 123(R), Share-based
Payment, using the modified prospective method. At the time of adoption, the
Corporation accelerated the vesting of all unvested options.

Accordingly, the Corporation has recorded stock-based employee compensation
cost using the fair value method beginning in the fourth quarter of fiscal
2006. Prior to the fourth quarter of fiscal 2006, employee compensation expense
under stock options was reported using the intrinsic value method.

                                       7
<PAGE>

                           FFD Financial Corporation

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

     For the six- and three-month periods ended December 31, 2007 and 2006

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

A summary of the activity in the stock option plan for the six months ended
December 31, 2007 follows:

<TABLE>
<CAPTION>
                                                                 Weighted
                                                   Weighted      average
                                                    average     remaining     Aggregate
                                                   exercise    contractual    intrinsic
                                        Shares       price         term         value
                                        ------     --------    -----------    ---------

<S>                                     <C>          <C>         <C>           <C>
Outstanding at beginning of period      29,780       $10.75
Granted                                      -            -             -             -
Exercised                               (2,000)        9.25
Forfeited or expired                         -            -
                                        ------       ------
Outstanding at end of period            27,780       $10.85       3.5 yrs      $102,284
                                        ======       ======                    ========
Exercisable at end of period            27,780       $10.85       3.5 yrs      $102,284
                                        ======       ======                    ========
Options available for grant                  -
                                        ======
</TABLE>

Information related to the stock option plan during the six months ended
December 31, 2007 follows:
Intrinsic value of options exercised   $12,200
Cash received from options exercised    18,500
Tax benefit from options exercised           -

                                       8
<PAGE>

                           FFD Financial Corporation

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

     For the six- and three-month periods ended December 31, 2007 and 2006

5. Recent Accounting Developments
   ------------------------------

In January 2007, the FASB issued Statement of Financial Accounting Standard No.
159 ("SFAS 159"), The Fair Value Option for Financial Assets and Financial
Liabilities, which gives entities the option to measure eligible financial
assets and financial liabilities at fair value on an instrument by instrument
basis, that are otherwise not permitted to be accounted for at fair value under
other accounting standards. The election to use the fair value option is
available when an entity recognizes a financial asset or financial liability.
Subsequent changes in fair value must be recorded in earnings. This statement
is effective for the company as of July 1, 2008. The Corporation is in the
process of analyzing the potential impact of SFAS 159.

In July 2006, the FASB issued Financial Accounting Standards Interpretation No.
48 ("FIN 48"), Accounting for Uncertainty in Income Taxes. FIN 48 clarifies the
accounting for uncertainty in income taxes recognized in an enterprise's
financial statements in accordance with FASB No. 109, Accounting for Income
taxes. FIN 48 prescribes a recognition threshold and measurement attributable
for the financial statement recognition and measurement of a tax position taken
or expected to be taken in a tax return. A tax position is recognized as a
benefit only if it is "more likely than not" that the tax position would be
sustained in a tax examination, with a tax examination being presumed to occur.
The amount recognized is the largest amount of tax benefit that is greater than
50% likely of being realized on examination. For tax positions not meeting the
"more likely than not" test, no tax benefit is recorded. FIN 48 was effective
for the Corporation after July 1, 2007. The adoption of this standard had no
effect on the Corporation's financial statements.

The Corporation and its subsidiaries are subject to U.S. federal income tax as
well as various other state income taxes. The Corporation is no longer subject
to examination by taxing authorities for years prior to 2002. The Corporation
does not expect the total amount of unrecognized tax benefit to significantly
increase in the next twelve months.

The Corporation recognizes interest related to income tax matters as interest
expense and penalties related to income tax matters as other expense. The
Corporation did not have any amounts accrued for interest and penalties at
either July 1, 2007 or December 31, 2007.

In September 2006, FASB issued SFAS No. 157, "Fair Value Measurements." SFAS
No. 157 defines fair value, establishes a framework for measuring fair value
under generally accepted accounting principles and expands disclosures about
fair value measurements. SFAS No. 157 is effective for financial statements
issued for fiscal years beginning after November 15, 2007. Management does not
expect that the adoption of this standard will have a material impact on the
Corporation's financial statements. Management has not completed its evaluation
of the impact of adoption of this standard.

                                       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.

Critical Accounting Policies
----------------------------

There have been no material changes to the critical accounting policies as
disclosed in the Corporation's Form 10-KSB for the year ended June 30, 2007.

Discussion of Financial Condition Changes from June 30, 2007 to
---------------------------------------------------------------
December 31, 2007
-----------------

The Corporation's total assets at December 31, 2007, were $176.2 million, a
$3.2 million, or 1.9%, increase from the total at June 30, 2007.

Cash and cash equivalents totaled $8.9 million at December 31, 2007, a decrease
of $153,000, or 1.7%, from the total at June 30, 2007. Investment securities
totaled $3.5 million at December 31, 2007, a $50,000, or 1.5%, increase from
the total at June 30, 2007, 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 $340,000 at December 31,
2007, a $24,000, or 6.6%, decrease compared to the total at June 30, 2007,
which resulted from principal repayments and a $2,000 mark-to-market adjustment
under SFAS No. 115.

Loans receivable totaled $156.9 million at December 31, 2007, an increase of
$3.6 million, or 2.4%, from the June 30, 2007 total. Loan originations during
the period totaling $41.7 million were substantially offset by principal
repayments of $28.2 million, loans sold in the secondary market of $5.8 million
and loans sold to other financial institutions of $4.3 million. During the
six-month period ended December 31, 2007, loan originations were comprised of
$20.1 million of one- to four-family residential real estate loans, $15.2
million of nonresidential real estate loans, $3.2 million of commercial loans,
$2.3 million of consumer loans, and $900,000 of multifamily loans.
Nonresidential 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 Corporation endeavors to reduce this 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 $1.1 million at December 31, 2007, an
increase of $149,000, or 16.1%, from the June 30, 2007 balance of $930,000, and
represented .68% and .60% of total loans at each of those respective dates. The
increase resulted from a provision of $199,000, which was partially offset by
charge-offs of $50,000. Although management believes that the allowance for
loan losses at December 31, 2007, 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, 2007 to
---------------------------------------------------------------
December 31, 2007 (continued)
-----------------

Deposits totaled $138.6 million at December 31, 2007, a $1.3 million, or 1.0%,
decrease from total deposits at June 30, 2007. The decrease was primarily in
interest bearing deposits. FHLB advances totaled $17.3 million at December 31,
2007, a $4.3 million, or 32.6%, increase from the June 30, 2007 total. The FHLB
advances were used to fund loan growth and provide liquidity in light of the
deposit decline.

Shareholders' equity totaled $18.4 million at December 31, 2007, an increase of
$257,000, or 1.4%, over June 30, 2007. The increase was due primarily to period
net earnings of $770,000, proceeds from the exercise of stock options totaling
$36,000, and a decrease in the unrealized losses on securities designated as
available for sale of $31,000, which were partially offset by dividends paid of
$337,000 and the purchase of treasury shares totaling $243,000. The Bank is
required to meet minimum capital standards promulgated by the Office of Thrift
Supervision, and at December 31, 2007, the Bank's regulatory capital exceeded
the minimum capital requirements.

Comparison of Operating Results for the Six-Month Periods Ended
---------------------------------------------------------------
December 31, 2007 and 2006
--------------------------

General
-------

The Corporation's net earnings totaled $770,000 for the six months ended
December 31, 2007, a decrease of $71,000, or 8.4%, from the net earnings of
$841,000 recorded in the comparable period in 2006. The $71,000, or 8.4%,
decrease in net earnings resulted from increases of $97,000, or 95.1%, in the
provision for losses on loans and $84,000, or 3.8%, in general, administrative
and other expenses and a decrease of $20,000, or 6.1%, in other income, which
were partially offset by an increase of $94,000, or 2.9%, in net interest
income and a decrease of $36,000, or 8.3%, in income tax expense.

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

Total interest income increased by $478,000, or 8.5%, to $6.1 million for the
six months ended December 31, 2007, compared to the six months ended December
31, 2006. Interest income on loans increased by $513,000, or 9.7%, due to an
increase of $12.3 million, or 8.5%, in the average loan portfolio balance
outstanding and a 8 basis point increase in yield. The current period increase
in yield generally reflects better yields in the first part of the six month
period comparing year over year. Interest income on investment securities,
interest-bearing deposits and other assets decreased by $33,000, or 11.8%, to a
total of $247,000 for the six months ended December 31, 2007, due to a $1.3
million, or 11.5%, decrease in the average balance outstanding and a 3 basis
point decrease in yield. Interest income on mortgage-backed securities
decreased by $2,000, or 14.3%, due to a decrease of $114,000, or 24.6%, in the
average balance outstanding.

Total interest expense increased by $384,000, or 16.4%, to $2.7 million for the
six months ended December 31, 2007, compared to the six months ended December
31, 2006. Interest expense on deposits increased by $405,000, or 20.8%, due to
a 35 basis point increase in the average cost of deposits, to 3.39%, for the
2007 period and a $10.9 million, or 8.5%, increase in the average balance of
deposits outstanding period to period. Interest expense on borrowings decreased
by $21,000, or 5.3%, due to a decrease of $903,000, or 6.0%, in the average
balance of advances outstanding and a 57 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 $94,000, or 2.9%, for the six months ended
December 31, 2007, compared to the same period in 2006. The interest rate
spreads were 3.74% and 3.88%, and the net interest margins were 4.00% and
4.16%, for the six-month periods ended December 31, 2007 and 2006,
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, 2007 and 2006 (continued)
--------------------------

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

The Corporation recorded a $199,000 provision for losses on loans during the
six months ended December 31, 2007, and a $102,000 provision for the comparable
period in 2006. The increase in the provision for losses on loans was due to a
combination of loan portfolio growth, net charge-offs, changes in the
classifications of some loans, and management's assessment of current economic
conditions applied to the portfolio. There can be no assurance that the loan
loss allowance will be adequate to cover losses on nonperforming loans in the
future, which can adversely affect the Corporation's results of operations.

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

Other income totaled $306,000 for the six months ended December 31, 2007, a
decrease of $20,000, or 6.1%, from the 2006 total. The $20,000 decrease in
other income resulted from a $28,000, or 30.4%, decrease in gain on sale of
loans due to a continued soft residential mortgage market and a $3,000, or
2.3%, decrease in service charges on deposit accounts, which were partially
offset by an $11,000, or 10.6%, increase in other operating income.

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

General, administrative and other expense totaled $2.3 million for the six
months ended December 31, 2007, an increase of $84,000, or 3.8%, compared to
the same period in 2006. The increase in general, administrative and other
expense includes increases of $41,000, or 21.4%, in occupancy and equipment,
$37,000, or 11.4%, in other operating expense, $13,000, or 12.7%, in checking
account maintenance expense, $9,000, or 7.7%, in professional and consulting
fees, $9,000, or 8.4%, in franchise tax, $6,000, or .6%, in employee and
director compensation and benefits, and $5,000, or 3.1%, in data processing,
which were partially offset by decreases of $24,000, or 20.9%, in advertising
and $12,000, or 14.8% in postage and stationery supplies. The increase in
occupancy and equipment was due to equipment purchases to convert the
Sugarcreek office from a limited service office to a full service office. The
increase in other operating expense was the result of increases in internet
banking expense. The increase in employee compensation was due to normal merit
increases and additional staffing from the conversion of the Sugarcreek office
to a full service office, which were partially offset by decreases in
advertising expense and office supplies. The increase in data processing
expense was due to the Corporation's growth period to period.

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

The Corporation recorded a $400,000 income tax expense for the six months ended
December 31, 2007, a decrease of $36,000, or 8.3%, over the same period in
2006. The decrease resulted from a $107,000, or 8.4%, decrease in earnings
before taxes. The Corporation's effective tax rates were 34.2% and 34.1% for
the six months ended December 31, 2007 and 2006, respectively.

                                      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, 2007 and 2006
--------------------------

General
-------

The Corporation's net earnings totaled $362,000 for the three months ended
December 31, 2007, a decrease of $37,000, or 9.3%, from the net earnings of
$399,000 recorded in the comparable period in 2006. The $37,000, or 9.3%,
decrease in net earnings resulted from increases of $72,000, or 184.6%, in the
provision for losses on loans and $6,000, or .5%, in general, administrative
and other expenses and a decrease of $6,000, or 3.8%, in other income, which
were partially offset by an increase of $29,000, or 1.8%, in net interest
income and a decrease of $18,000, or 8.7%, in income tax expense.

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

Total interest income increased by $152,000, or 5.3%, to $3.0 million for the
three months ended December 31, 2007, compared to the three months ended
December 31, 2006. Interest income on loans increased by $177,000, or 6.6%, due
to an increase of $11.8 million, or 8.10%, in the average loan portfolio
balance outstanding which was partially offset by a 10 basis point decrease in
yield. The current period decrease in yield generally reflects repricing of
adjustable rate loans in the portfolio and the overall interest rate
environment. Interest income on investment securities, interest-bearing
deposits and other assets decreased by $24,000, or 15.8%, to a total of
$128,000 for the three months ended December 31, 2007, due to a $1.8 million,
or 14.8%, decrease in the average balance outstanding and a 9 basis point
decrease in yield. Interest income on mortgage-backed securities decreased by
$1,000, or 14.3%, due to a decrease of $56,000, or 14.1%, in the average
balance outstanding and a 13 basis point decrease in yield.

Total interest expense increased by $123,000, or 10.1%, to $1.3 million for the
three months ended December 31, 2007, compared to the three months ended
December 31, 2006. Interest expense on deposits increased by $109,000, or
10.4%, due to a 15 basis point increase in the average cost of deposits, to
3.35%, and a $7.1 million, or 5.4%, increase in the average balance of deposits
outstanding period to period. Interest expense on borrowings increased by
$14,000, or 8.2%, due to an increase of $3.9 million, or 30.0%, in the average
balance of advances outstanding, which was partially offset by a 9 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 $29,000, or 1.8%, for the three months ended
December 31, 2007, compared to the same period in 2006. The interest rate
spreads were 3.69% and 3.83%, and the net interest margins were 3.95% and
4.12%, for the three-month periods ended December 31, 2007 and 2006,
respectively.

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

The Corporation recorded a $111,000 provision for losses on loans during the
three months ended December 31, 2007, and a $39,000 provision for the
comparable quarter in 2006. The increase in the provision for losses on loans
was due to a combination of loan portfolio growth, net charge-offs, changes in
the classifications of some loans, and management's assessment of current
economic conditions applied to the portfolio. There can be no assurance that
the loan loss allowance will be adequate to cover losses on nonperforming loans
in the future, which can adversely affect the Corporation's results of
operations.

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

Other income totaled $151,000 for the three months ended December 31, 2007, a
decrease of $6,000, or 3.8%, from the 2006 total. The decrease was due to
decreases of $14,000, or 35.0%, in gain on sale of loans and $2,000, or 3.1%,
in service charges on deposit accounts, which were partially offset by an
increase of $10,000, or 19.2%, in other operating income.

                                      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, 2007 and 2006 (continued)
--------------------------

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

General, administrative and other expense totaled $1.1 million for the three
months ended December 31, 2007, an increase of $6,000, or .5%, compared to the
same period in 2006. The increase in general, administrative and other expense
includes increases of $8,000, or 14.8%, in checking account maintenance
expense, $4,000, or 7.4%, in franchise tax, $4,000, or 5.0%, in data
processing, $4,000, or 2.1%, in other expense, $2,000, or 2.1%, in occupancy
and equipment, and $2,000, or 4.9%, in postage and stationery supplies, which
were partially offset by decreases of $9,000, or 16.7, in advertising, $7,000,
or 1.4%, in employee compensation and benefits, and $2,000, or 2.9%, in
professional and consulting fees.

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

The Corporation recorded a $189,000 income tax expense for the three months
ended December 31, 2007, a decrease of $18,000, or 8.7%, over the same period
in 2006. The decrease resulted from a $55,000, or 9.1%, decrease in earnings
before taxes. The Corporation's effective tax rates were 34.3% and 34.2% for
the three months ended December 31, 2007 and 2006, respectively.


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, 2007, the Corporation issued
             a total of 1,000 unregistered shares upon the exercise of employee
             stock options for an aggregate purchase price of $9,250. The sales
             were exempt from registration pursuant to Section 4(2) of the
             Securities Act of 1933, as amended.

        (b)  Not applicable

        (c)  Not applicable

        (d)  Purchases of Equity Securities

<TABLE>
<CAPTION>
                                                                             (d)
                                                        (c)            Maximum number
                                                   Total number        (or approximate
                         (a)                         of shares         dollar amount)
                        Total          (b)         purchased as      of shares that may
                        number       Average     part of publicly     yet be purchased
                      of shares    price paid     announced plan       under the plans
Period                purchased     per share    or programs (1)       or programs (1)
------                ---------    ---------     ----------------    ------------------

<S>                     <C>          <C>               <C>                 <C>
October 1, 2007
     through
October 31, 2007            -        $    -                -               45,645

November 1, 2007
     through
November 30, 2007       3,702        $15.00            3,702               41,943

December 1, 2007
     through
December 31, 2007       2,589        $15.00            2,589               39,354

(1)   The Corporation's Board of Directors approved the repurchase of up to an
      aggregate of 55,310 of the Corporation's common shares pursuant to a
      program announced May 8, 2007 (the "Program"). Unless earlier terminated
      by the Board of Directors, the Program will expire when the Corporation
      has repurchased all shares authorized for repurchase under the Program.
      The Corporation has no other publicly announced repurchase plans or
      programs and no plans or programs expired or were terminated in the
      reported periods.
</TABLE>

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

        Not applicable

                                      15
<PAGE>

                           FFD Financial Corporation

                              PART II (CONTINUED)

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

        On October 16, 2007, the Corporation held its 2007 Annual Meeting of
        Shareholders. All of the directors nominated were reelected to terms
        expiring in 2008 by the following votes:

                                                    For              Withheld

        Richard A. Brinkman, Jr.                891,271                30,119
        Stephen G. Clinton                      891,471                29,919
        Leonard L. Gundy                        891,396                29,994
        David W. Kaufman                        901,514                19,876
        Enos L. Loader                          908,945                12,445
        Robert D. Sensel                        908,920                12,470

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

        None

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

            31.1    Section 302 Chief Executive Officer certification
            31.2    Section 302 Chief Financial Officer certification
            32.1    Section 906 Chief Executive Officer certification
            32.2    Section 906 Chief Financial Officer certification

                                      16
<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, 2008                By: /s/Trent B. Troyer
      -----------------------              -------------------------------------
                                           Trent B. Troyer
                                           President and Chief Executive Officer


Date: February 14, 2008                By: /s/Robert R. Gerber
      -----------------------              -------------------------------------
                                           Robert R. Gerber
                                           Senior Vice President, Treasurer and
                                           Chief Financial Officer

                                      17