FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

(Mark One)

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

For the quarterly period ended             December 31, 1997
                               -------------------------------------------

                                       OR

[ ]          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to _______________

Commission File No.     0-27916

                            FFD FINANCIAL CORPORATION
             (Exact name of registrant as specified in its charter)

        Ohio                                               34-1921148
(State or other jurisdiction of                       (I.R.S. Employer
incorporation or organization)                     Identification Number)

321 North Wooster Avenue
Dover, Ohio                                                 44622
(Address of principal                                     (Zip Code)
executive office)

Issuers' telephone number, including area code: (330)  364-7777

Check  whether  the issuer  (1) has 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  registrant  was required to file such reports) and (2)
has been subject to such filing requirements for the past 90 days.

Yes   X                                                  No


As of February 9, 1998, the latest  practicable  date,  1,444,750  shares of the
registrant's common stock, without par value, were issued and outstanding.









                               Page 1 of 17 pages

<PAGE>



                                      INDEX

                                                                      Page

PART I   -  FINANCIAL INFORMATION

             Consolidated Statements of Financial Condition              3

             Consolidated Statements of Earnings                         4

             Consolidated Statements of Cash Flows                       5

             Notes to Consolidated Financial Statements                  7

             Management's Discussion and Analysis of
             Financial Condition and Results of
             Operations                                                 10


PART II  -  OTHER INFORMATION                                           16

SIGNATURES                                                              17






























                                        2



<PAGE>

<TABLE>

                            FFD Financial Corporation
<CAPTION>

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                        (In thousands, except share data)

                                                                                       December 31,            June 30,
         ASSETS                                                                                1997                1997
<S>                                                                                           <C>                   <C>
Cash and due from banks                                                                    $  1,355           $     533
Interest-bearing deposits in other financial institutions                                     7,326               3,547
                                                                                            -------             -------
         Cash and cash equivalents                                                            8,681               4,080

Investment securities available for sale - at market                                          1,533               9,924
Investment securities - at amortized cost, approximate
  market value of $1,487 and $1,459 as of
  December 31, 1997 and June 30, 1997                                                         1,473               1,469
Mortgage-backed securities - at amortized cost, approximate
  market value of $6,925 and $7,304 as of
  December 31, 1997 and June 30, 1997                                                         6,733               7,165
Mortgage-backed securities designated as available for sale - at market                       7,376               7,944
Loans receivable - net                                                                       64,197              55,504
Office premises and equipment - at depreciated cost                                           1,340                 865
Federal Home Loan Bank stock - at cost                                                          655                 642
Accrued interest receivable                                                                     276                 267
Prepaid expenses and other assets                                                               100                 140
                                                                                           --------            --------

         Total assets                                                                       $92,364             $88,000
                                                                                             ======              ======

         LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits                                                                                    $58,769             $57,090
Advances from the Federal Home Loan Bank                                                     10,031               8,382
Accrued interest payable                                                                        100                  82
Other liabilities                                                                               308                 340
Accrued federal income taxes                                                                    547                 609
Deferred federal income taxes                                                                   384                  17
                                                                                           --------           ---------
         Total liabilities                                                                   70,139              66,520

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                                                                 14,217              14,137
  Retained earnings - restricted                                                              9,159               8,957
  Unrealized gains on securities designated as available for sale,
    net of related tax effects                                                                  427                  20
  Shares acquired by stock benefit plans                                                     (1,424)             (1,634)
  Less 10,000 shares of treasury stock -at cost                                                (154)                 -
                                                                                           --------             ------
         Total shareholders' equity                                                          22,225              21,480
                                                                                             ------              ------

         Total liabilities and shareholders' equity                                         $92,364             $88,000
                                                                                             ======              ======

</TABLE>


                                        3



<PAGE>

<TABLE>

                            FFD Financial Corporation
<CAPTION>

                       CONSOLIDATED STATEMENTS OF EARNINGS

                        (In thousands, except share data)


                                                                      For the six months            For the three months
                                                                       ended December 31,             ended December 31,
                                                                       1997         1996              1997         1996
<S>                                                                     <C>          <C>              <C>          <C>
Interest income
  Loans                                                              $2,260       $1,842            $1,170      $   899
  Mortgage-backed securities                                            510          622               250          329
  Investment securities, interest-bearing
    deposits and other                                                  377          438               162          254
                                                                     ------       ------            ------       ------
         Total interest income                                        3,147        2,902             1,582        1,482

Interest expense
  Deposits                                                            1,394        1,295               702          657
  Borrowings                                                            265          241               144          134
                                                                     ------       ------            ------       ------
         Total interest expense                                       1,659        1,536               846          791
                                                                      -----        -----            ------       ------

         Net interest income                                          1,488        1,366               736          691


Other operating income                                                   35           26                23           16

General, administrative and other expense
  Employee compensation and benefits                                    471          405               265          199
  Occupancy and equipment                                                85           56                49           34
  Federal deposit insurance premiums                                     18          374                 6           12
  Franchise taxes                                                        73           56                33           25
  Other operating                                                       289          192               158           94
                                                                     ------       ------            ------      -------
         Total general, administrative and other expense                936        1,083               511          364
                                                                     ------        -----            ------       ------

         Earnings before income taxes                                   587          309               248          343

Federal income taxes
  Current                                                                42           86                55           96
  Deferred                                                              157           15                29           17
                                                                     ------      -------           -------      -------
         Total federal income taxes                                     199          101                84          113
                                                                     ------       ------           -------       ------

         NET EARNINGS                                               $   388       $  208           $   164      $   230
                                                                     ======        =====            ======       ======

         EARNINGS PER SHARE
           Basic                                                       $.29         $.16              $.12         $.17
                                                                        ===          ===               ===          ===

           Diluted                                                     $.28         $.15              $.12         $.17
                                                                        ===          ===               ===          ===

</TABLE>






                                        4



<PAGE>

<TABLE>

                            FFD Financial Corporation
<CAPTION>

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

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

                                                                               1997              1996
<S>                                                                           <C>                <C>
Cash flows from operating activities:
  Net earnings for the period                                             $     388           $   208
  Adjustments to reconcile net earnings to net cash
  provided by (used in) operating activities:
    Amortization of discounts and premiums on loans,
      investments and mortgage-backed securities - net                           14                 1
    Amortization of deferred loan origination fees                              (32)              (28)
    Depreciation and amortization                                                45                23
    Amortization expense of stock benefit plans                                 290                -
    Federal Home Loan Bank stock dividends                                      (24)              (21)
    Increase (decrease) in cash due to changes in:
      Accrued interest receivable                                                 2               (50)
      Prepaid expenses and other assets                                          40                91
      Accrued interest payable                                                   18                61
      Other liabilities                                                         (32)              337
      Federal income taxes
        Current                                                                 (62)              (24)
        Deferred                                                                157                15
                                                                           --------           -------
         Net cash provided by operating activities                              804               613

Cash flows provided by (used in) investing activities:
  Proceeds from maturity of investment securities                            12,429             1,000
  Proceeds from sale of investment securities designated as
    available for sale                                                        6,430                -
  Purchase of investment securities                                          (9,925)               -
  Purchase of mortgage-backed securities                                         -             (4,737)
  Principal repayments on mortgage-backed securities                          1,056             1,842
  Loan principal repayments                                                   5,240             4,627
  Loan disbursements                                                        (13,901)           (7,395)
  Purchase of office premises and equipment                                    (520)             (159)
                                                                           --------            ------
         Net cash provided by (used in) investing activities                    809            (4,822)

Cash flows provided by (used in) financing activities:
  Net increase in deposit accounts                                            1,679             2,242
  Proceeds from Federal Home Loan Bank advances                               1,950             4,600
  Repayment of Federal Home Loan Bank advances                                 (301)             (701)
  Purchase of shares for Recognition and Retention Plan                          -               (419)
  Purchase of treasury shares                                                  (154)               -
  Dividends on common stock                                                    (186)             (145)
                                                                           --------            ------
         Net cash provided by financing activities                            2,988             5,577
                                                                            -------             -----

Net increase in cash and cash equivalents                                     4,601             1,368

Cash and cash equivalents at beginning of period                              4,080             2,698
                                                                            -------             -----

Cash and cash equivalents at end of period                                 $  8,681            $4,066
                                                                            =======             =====
</TABLE>


                                        5



<PAGE>

<TABLE>

                            FFD Financial Corporation
<CAPTION>

                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

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

                                                                                                 1997              1996
<S>                                                                                              <C>               <C>
Supplemental  disclosure of cash flow  information:  Cash paid during the period
  for:
    Federal income taxes                                                                      $   148           $   128
                                                                                               ======            ======

    Interest on deposits and borrowings                                                        $1,641            $1,475
                                                                                                =====             =====

Supplemental disclosure of noncash investing activities:
  Unrealized gains on securities designated as available for
    sale, net of related tax effects                                                          $   407           $   148
                                                                                               ======            ======

</TABLE>


































                                        6


<PAGE>


                            FFD Financial Corporation

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

          For the three and six months ended December 31, 1997 and 1996


    1.   Basis of Presentation

    The accompanying  unaudited  consolidated financial statements were prepared
    in  accordance  with  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
    generally  accepted  accounting  principles.  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, 1997. 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,
    1997 and 1996 are not  necessarily  indicative  of the results  which may be
    expected for an entire fiscal year.

    2.   Principles of Consolidation

    The accompanying  consolidated  financial statements include the accounts of
    the  Corporation  and First  Federal  Savings  Bank of Dover  (the  "Savings
    Bank"). All significant intercompany items have been eliminated.

    3.   Effects of Recent Accounting Pronouncements

    In June 1996, the Financial  Accounting  Standards Board (the "FASB") issued
    Statement of Financial  Accounting  Standards ("SFAS") No. 125,  "Accounting
    for  Transfers  and  Servicing of Financial  Assets and  Extinguishments  of
    Liabilities",  that provides  accounting  guidance on transfers of financial
    assets,  servicing of financial assets,  and  extinguishment of liabilities.
    SFAS No. 125 introduces an approach to accounting for transfers of financial
    assets that  provides a means of dealing with more complex  transactions  in
    which the seller disposes of only a partial interest in the assets,  retains
    rights  or  obligations,  makes  use  of  special  purpose  entities  in the
    transaction,  or otherwise has continuing  involvement  with the transferred
    assets.  The  new  accounting  method,  known  as the  financial  components
    approach,  provides  that  the  carrying  amount  of  the  financial  assets
    transferred  be allocated to  components of the  transaction  based on their
    relative fair values. SFAS No. 125 provides criteria for determining whether
    control of assets has been relinquished and whether a sale has occurred.  If
    the transfer  does not qualify as a sale,  it is accounted  for as a secured
    borrowing.  Transactions  subject to the provisions of SFAS No. 125 include,
    among others, transfers involving repurchase agreements,  securitizations of
    financial assets, loan participations, factoring arrangements, and transfers
    of receivables with recourse.








                                        7



<PAGE>


                            FFD Financial Corporation

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

          For the three and six months ended December 31, 1997 and 1996


    3.   Effects of Recent Accounting Pronouncements (continued)

    An  entity  that  undertakes  an  obligation  to  service  financial  assets
    recognizes either a servicing asset or liability for the servicing  contract
    (unless  related  to a  securitization  of assets,  and all the  securitized
    assets are retained and classified as  held-to-maturity).  A servicing asset
    or liability  that is purchased  or assumed is initially  recognized  at its
    fair value. Servicing assets and liabilities are amortized in proportion to,
    and over the period of, estimated net servicing income or net servicing loss
    and are  subject to  subsequent  assessments  for  impairment  based on fair
    value.

    SFAS No. 125 provides  that a liability  is removed  from the balance  sheet
    only  if  the  debtor  either  pays  the  creditor  and is  relieved  of its
    obligation  for the liability or is legally  released from being the primary
    obligor.

    SFAS No. 125 is effective for  transfers  and servicing of financial  assets
    and extinguishment of liabilities  occurring after December 31, 1997, and is
    to be applied  prospectively.  Earlier  or  retroactive  application  is not
    permitted.  Management  adopted SFAS No. 125 without  material effect on the
    Corporation's consolidated financial position or results of operations.

    In June  1997,  the FASB  issued  SFAS  No.  130,  "Reporting  Comprehensive
    Income."  SFAS No. 130  establishes  standards  for reporting and display of
    comprehensive  income  and its  components  (revenues,  expenses,  gains and
    losses) in a full set of general-purpose financial statements.  SFAS No. 130
    requires that all items that are required to be recognized  under accounting
    standards as components of  comprehensive  income be reported in a financial
    statement  that is displayed  with the same  prominence  as other  financial
    statements.  It does not  require  a  specific  format  for  that  financial
    statement  but requires that an  enterprise  display an amount  representing
    total comprehensive income for the period in that financial statement.

    SFAS  No.  130  requires  that an  enterprise  (a)  classify  items of other
    comprehensive  income  by their  nature  in a  financial  statement  and (b)
    display the accumulated  balance of other  comprehensive  income  separately
    from retained earnings and additional  paid-in capital in the equity section
    of a statement of financial  position.  SFAS No. 130 is effective for fiscal
    years  beginning  after  December  15, 1997.  Reclassification  of financial
    statements  for  earlier  periods  provided  for  comparative   purposes  is
    required.  SFAS No. 130 is not  expected  to have a  material  impact on the
    Corporation's financial statements.

    In June 1997, the FASB issued SFAS No. 131,  "Disclosures  about Segments of
    an Enterprise and Related  Information." SFAS No. 131 significantly  changes
    the way that public business  enterprises report information about operating
    segments in annual financial  statements and requires that those enterprises
    report selected  information about reportable  segments in interim financial
    reports issued to shareholders.  It also  establishes  standards for related
    disclosures  about  products  and  services,   geographic  areas  and  major
    customers. SFAS No. 131 uses a




                                        8



<PAGE>


                            FFD Financial Corporation

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

          For the three and six months ended December 31, 1997 and 1996


    3.   Effects of Recent Accounting Pronouncements (continued)

    "management  approach" to disclose  financial  and  descriptive  information
    about the way that  management  organizes the segments within the enterprise
    for  making  operating  decisions  and  assessing   performance.   For  many
    enterprises,  the  management  approach  will likely result in more segments
    being  reported.  In  addition,  SFAS No. 131  requires  significantly  more
    information  to be disclosed for each  reportable  segment than is presently
    being  reported  in  annual  financial  statements  and also  requires  that
    selected information be reported in interim financial  statements.  SFAS No.
    131 is effective for fiscal years  beginning  after December 15, 1997.  SFAS
    No.  131 is not  expected  to have a  material  impact on the  Corporation's
    financial statements.

    4.  Earnings Per Share

    Basic earnings per share is computed based upon the weighted-average  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,
    which gives effect to 114,044 unallocated ESOP shares, totaled 1,333,913 and
    1,330,706  for the three and six month  periods  ended  December  31,  1997.
    Weighted-average  common  shares deemed  outstanding,  which gives effect to
    116,380 unallocated ESOP shares, totaled 1,338,370 for each of the three and
    six month periods ended December 31, 1996.

    Diluted  earnings  per share is computed  taking into  consideration  common
    shares  outstanding and dilutive  potential common shares to be issued under
    the Corporation's stock option plan.  Weighted-average  common shares deemed
    outstanding  for purposes of computing  diluted  earnings per share  totaled
    1,362,089 and  1,364,056 for the six and three month periods ended  December
    31, 1997,  respectively,  and  1,348,521 for each of the six and three month
    periods ended December 31, 1996.

















                                        9



<PAGE>


                            FFD Financial Corporation

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS


Discussion of Financial Condition Changes from June 30, 1997 to December 31, 
  1997

The Corporation's  total assets at December 31, 1997, amounted to $92.4 million,
a $4.4 million, or 5.0%, increase over the total at June 30, 1997. This increase
was funded primarily  through an increase in advances from the Federal Home Loan
Bank ("FHLB") of $1.6 million and growth in deposits of $1.7 million.

Cash and  interest-bearing  deposits  totaled $8.7 million,  an increase of $4.6
million over the total as of June 30, 1997. This increase was due primarily to a
transfer  of funds from the  maturity of  investment  securities  to  short-term
deposits.

Investment  securities  totaled $3.0 million at December 31, 1997, a decrease of
$8.4  million,  from the  total at June 30,  1997,  as  maturities  and sales of
securities  totaling  $12.4  million and $6.4 million were  partially  offset by
purchases of $9.9 million during the period.

Mortgage-backed  securities  totaled  $14.1 million at December 31, 1997, a $1.0
million,  or 6.6%,  decrease  from the  total at June 30,  1997.  This  decrease
resulted primarily from principal repayments of $1.1 million.

Loans receivable totaled $64.2 million at December 31, 1997, an increase of $8.7
million,  or 15.7%, over the June 30, 1997 total. Loan disbursements  during the
period  totaled  $13.9  million,   which  were  partially  offset  by  principal
repayments  of $5.2  million.  Loan  disbursements  during the six months  ended
December  31,  1997,  increased  by $6.5  million,  or  88.0%,  compared  to the
origination  volume during the same period in 1996. Growth in the loan portfolio
consisted of approximately $3.7 million in nonresidential  real estate loans and
$5.0 million in loans secured by one- to four-family residential real estate.

The  allowance  for loan losses  totaled  $270,000 at both December 31, 1997 and
June 30, 1997, which represented .4% and .5% of total loans and 643% and 422% of
nonperforming  loans at those respective dates.  Nonperforming loans amounted to
$42,000  and  $64,000 at  December  31,  1997 and June 30,  1997,  respectively.
Although  management believes that its allowance for loan losses at December 31,
1997, is adequate based upon the available facts and circumstances, there can be
no assurance  that  additions to such  allowance will not be necessary in future
periods, which could adversely affect the Corporation's results of operations.

Deposits  totaled $58.8  million at December 31, 1997, a $1.7 million,  or 2.9%,
increase over June 30, 1997. This increase resulted  primarily from $1.4 million
of new deposits at the new branch  office  location,  coupled with  management's
efforts to obtain moderate growth through advertising and pricing strategies.

FHLB  advances  increased by $1.6 million as  management  elected to fund a $1.9
million  non-residential  real estate loan with an advance of similar amount and
term, partially offset by normal repayments during the period.




                                       10


<PAGE>


                            FFD Financial Corporation

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                      AND RESULTS OF OPERATIONS (CONTINUED)


Discussion  of  Financial  Condition  Changes from June 30, 1997 to December 31,
  1997 (continued)

The Savings  Bank is required to meet each of three  minimum  capital  standards
promulgated by the Office of Thrift Supervision (OTS),  hereinafter described as
the  tangible  capital  requirement,   the  core  capital  requirement  and  the
risk-based  capital  requirement.  The  tangible  capital  requirement  mandates
maintenance of shareholders'  equity less all intangible assets equal to 1.5% of
adjusted total assets. The core capital requirement provides for the maintenance
of tangible  capital plus certain forms of  supervisory  goodwill equal to 3% of
adjusted  total  assets,  while  the  risk-based  capital  requirement  mandates
maintenance  of core capital plus  general loan loss  allowances  equal to 8% of
risk-weighted assets as defined by OTS regulations.

At December 31, 1997, the Savings Bank's tangible and core capital totaled $14.0
million,  or  16.4%  of  adjusted  total  assets,  which  exceeded  the  minimum
requirements  of $1.3  million  and $2.6  million  by $15.2  million  and  $11.4
million,  respectively.  The Savings Bank's risk-based capital of $14.2 million,
or 32.7% of risk-weighted  assets,  exceeded the current 8% requirement by $10.7
million.


Comparison of Operating Results for the Six Month Periods Ended December 31, 
  1997 and 1996

General

The  Corporation's  net  earnings  totaled  $388,000  for the six  months  ended
December 31, 1997, an increase of $180,000,  or 86.5%,  over the net earnings of
$208,000 recorded in the comparable period in 1996. The increase in net earnings
resulted  primarily  from the absence of a $219,000  after tax  one-time  charge
recorded  at  September  30,  1996,  as a result of the  legislative  mandate to
recapitalize  the Savings  Association  Insurance  Fund  ("SAIF") of the Federal
Deposit  Insurance   Corporation   (FDIC).   Absent  the  effects  of  the  SAIF
recapitalization assessment, net earnings declined by $39,000, or 9.1%, due to a
$185,000  increase in general,  administrative  and other  expense and a $98,000
increase in the provision for federal income taxes which were  partially  offset
by a $122,000  increase in net  interest  income and a $9,000  increase in other
income.

Net Interest Income

Total interest income increased by $245,000, or 8.4%, to a total of $3.1 million
for the six months ended December 31, 1997.  Interest  income on loans increased
by $418,000,  or 22.7%,  due primarily to a $9.6 million increase in the average
loan  portfolio  balance   outstanding.   Interest  income  on   mortgage-backed
securities  decreased by  $112,000,  or 18.0%,  due  primarily to a $2.6 million
decrease in the  average  balance  outstanding.  Interest  income on  investment
securities and  interest-bearing  deposits  decreased by $61,000,  or 13.9%, due
primarily to a $1.5 million decrease in the related investment balance.





                                       11



<PAGE>


                            FFD Financial Corporation

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                      AND RESULTS OF OPERATIONS (CONTINUED)


Comparison of Operating  Results for the Six Month  Periods  Ended  December 31,
1997 and 1996 (continued)

Net Interest Income (continued)

Interest expense on deposits  increased by $99,000,  or 7.6%, for the six months
ended  December  31,  1997,  compared to 1996,  due  primarily to a $4.3 million
increase in the average deposit portfolio balance outstanding.

Interest  expense on  borrowings  increased  by $24,000 due  primarily to a $1.0
million increase in average advances outstanding,  as management elected to fund
the  origination  of a  nonresidential  loan with such  advances,  as previously
discussed.

As a result of the  foregoing,  net interest  income  increased by $122,000,  or
8.9%, for the six months ended December 31, 1997, compared to 1996. The interest
rate spread  amounted to  approximately  2.24% for the six months ended December
31,  1997,  compared  to 2.09% for the  comparable  1996  period,  while the net
interest margin increased to approximately  3.41% in 1997,  compared to 3.34% in
1996.

Provision for Losses on Loans

A  provision  for  losses on loans is  charged  to  earnings  to bring the total
allowance for losses on loans to a level  considered  appropriate  by management
based on historical loss experience, the volume and type of lending conducted by
the  Savings  Bank,  the status of past due  principal  and  interest  payments,
general  economic  conditions,  particularly  as such  conditions  relate to the
Savings Bank's market area, and other factors related to the  collectibility  of
the Savings  Bank's loan  portfolio.  As a result of such  analysis,  management
concluded  that the allowance for loan losses was adequate and therefore did not
record a  provision  for  losses  on loans  during  the six month  period  ended
December 31, 1997. There can be no assurance that the loan loss allowance of the
Savings  Bank will be adequate to cover  losses on  nonperforming  assets in the
future.

Other Operating Income

Other  operating  income  totaled  $35,000 for the six months ended December 31,
1997,  an  increase  of $9,000,  or 34.6%,  over the 1996  total.  Other  income
consists  primarily of fees  generated  from ATM  transactions,  late charges on
loans,  safety  deposit box rentals and  negotiable  order of  withdrawal  (NOW)
account fees.

General, Administrative and Other Expense

General,  administrative and other expense decreased by $147,000,  or 13.6%, for
the six months ended December 31, 1997, compared to the same period in 1996. The
decrease  resulted  primarily  from the  $332,000  one-time  pre-tax  charge  to
recapitalize  the SAIF  recorded  in the 1996  period,  coupled  with a  $24,000
decrease in premium rates for SAIF insurance,  which were partially  offset by a
$66,000, or 16.3%, increase in employee compensation and benefits, a $29,000, or
51.8%,  increase in occupancy and equipment,  a $17,000,  or 30.4%,  increase in
franchise  taxes  and an  increase  of  $97,000,  or 50.5%,  in other  operating
expenses.


                                       12



<PAGE>


                            FFD Financial Corporation

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                      AND RESULTS OF OPERATIONS (CONTINUED)


Comparison of Operating  Results for the Six Month  Periods  Ended  December 31,
  1997 and 1996 (continued)

General, Administrative and Other Expense (continued)

The  increase  in  employee  compensation  and  benefits  was due  primarily  to
increased staffing levels related to the opening of the New Philadelphia  office
location in November  1997,  and the  addition of a commercial  lending  officer
during  fiscal  1997,  coupled with an increase in costs  associated  with stock
benefit  plans and  normal  merit  increases.  The  increase  in  occupancy  and
equipment and other operating  expense resulted  primarily from costs associated
with the  start-up of the New  Philadelphia  office.  The  increase in franchise
taxes was due to the increase in shareholders' equity year to year.

Federal Income Taxes

The Corporation  recorded a provision for federal income taxes totaling $199,000
for the six months ended  December 31, 1997,  an increase of $98,000,  or 97.0%,
over the same period in 1996. The decrease  resulted  primarily from a $278,000,
or 90.0%,  increase in earnings before taxes. The effective tax rates were 33.9%
and 32.7% for the six months ended December 31, 1997 and 1996, respectively.


Comparison of Operating Results for the Three Month Periods Ended December 31, 
  1997 and 1996

General

The  Corporation's  net  earnings  totaled  $164,000  for the three months ended
December 31, 1997, a decrease of $66,000,  or 28.7%,  from the comparable period
in 1996.  The  decrease  in net  earnings  resulted  primarily  from a  $147,000
increase in  general,  administrative  and other  expense,  which was  partially
offset by a $45,000  increase in net interest income, a $7,000 increase in other
income and a $29,000 decrease in the provision for federal income taxes.

Net Interest Income

Total interest income increased by $100,000, or 6.7%, to a total of $1.6 million
for the three months ended December 31, 1997. Interest income on loans increased
by  $271,000,  or 30.1%,  due  primarily  to an  increase  in the  average  loan
portfolio balance  outstanding.  Interest income on  mortgage-backed  securities
decreased  by  $79,000,  or 24.0%,  due  primarily  to a decrease in the average
balance   outstanding.    Interest   income   on   investment   securities   and
interest-bearing  deposits  decreased by $92,000,  or 36.2%,  due primarily to a
decrease in the related investment balances.





                                       13



<PAGE>


                            FFD Financial Corporation

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                      AND RESULTS OF OPERATIONS (CONTINUED)


Comparison of Operating  Results for the Three Month Periods Ended  December 31,
  1997 and 1996 (continued)

Interest expense on deposits increased by $45,000, or 6.8%, for the three months
ended  December 31, 1997,  compared to 1996, due primarily to an increase in the
average deposit portfolio balance outstanding.

Interest expense on borrowings increased by $10,000 due primarily to an increase
in average advances  outstanding,  as management elected to fund the origination
of a nonresidential loan with such advances, as previously discussed.

As a result of the foregoing, net interest income increased by $45,000, or 6.5%,
for the three months ended December 31, 1997, compared to 1996.

Provision for Losses on Loans

A  provision  for  losses on loans is  charged  to  earnings  to bring the total
allowance for losses on loans to a level  considered  appropriate  by management
based on historical loss experience, the volume and type of lending conducted by
the  Savings  Bank,  the status of past due  principal  and  interest  payments,
general  economic  conditions,  particularly  as such  conditions  relate to the
Savings Bank's market area, and other factors related to the  collectibility  of
the Savings  Bank's loan  portfolio.  As a result of such  analysis,  management
concluded  that the allowance for loan losses was adequate and therefore did not
record a  provision  for losses on loans  during the three  month  period  ended
December 31, 1997. There can be no assurance that the loan loss allowance of the
Savings  Bank will be adequate to cover  losses on  nonperforming  assets in the
future.


Other Operating Income

Other  operating  income totaled $23,000 for the three months ended December 31,
1997,  an  increase  of $7,000,  or 43.8 %, over the 1996  total.  Other  income
consists primarily of fees generated on ATM transactions, late charges on loans,
safety deposit box rentals and NOW account fees.

General, Administrative and Other Expense

General,  administrative and other expense increased by $147,000,  or 40.4%, for
the three months ended  December 31, 1997,  compared to the same period in 1996.
The  increase  resulted  primarily  from an increase of  $66,000,  or 33.2%,  in
employee  compensation  and  benefits,  an  increase of  $15,000,  or 44.1%,  in
occupancy and equipment, due primarily to depreciation and other costs attendant
to the new office  location,  and an  increase of  $64,000,  or 68.1%,  in other
operating  expenses.  These  increases  were  partially  offset by a decline  of
$6,000, or 50.0%, in federal deposit insurance premiums,  reflecting a reduction
in premium rates following the recapitalization assessment.



                                       14


<PAGE>


                            FFD Financial Corporation

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                      AND RESULTS OF OPERATIONS (CONTINUED)


Comparison of Operating  Results for the Three Month Periods Ended  December 31,
  1997 and 1996 (continued)

Federal Income Taxes

The Corporation  recorded a provision for federal income taxes totaling  $84,000
for the three months ended  December 31, 1997, a decrease of $29,000,  or 25.7%,
over the same period in 1996. The decrease resulted primarily from a $95,000, or
27.7%, decrease in earnings before taxes. The effective tax rates were 33.9% and
32.9% for the three months ended December 31, 1997 and 1996, respectively.

Other Matters

As with most providers of financial services,  the Savings Bank's operations are
almost entirely dependent on information technology systems. The Savings Bank is
addressing  the potential  problems  associated  with the  possibility  that the
computers  that  control or operate the Savings  Bank's  information  technology
system and  infrastructure  may not be programmed to read  four-digit date codes
and, upon arrival of the year 2000, may recognize the two-digit code "00" as the
year 1900,  causing  systems to fail to function or to generate  erroneous data.
The  Savings  Bank is working  with the  companies  that  supply or service  its
information  technology  systems to  identify  and remedy any year 2000  related
problems.

As of the date of this Form  10-QSB,  the  Corporation  has not  identified  any
specific  expenses that are reasonably likely to be incurred by the Savings Bank
in connection with this issue and does not expect to incur  significant  expense
to implement  the  necessary  corrective  measures.  No assurance  can be given,
however, that significant expense will not be incurred in future periods. In the
event that the Savings  Bank is  ultimately  required  to  purchase  replacement
computer systems,  programs and equipment,  or incur substantial expense to make
the Savings Bank's current systems,  programs and equipment year 2000 compliant,
the  Corporation's  net  earnings  and  financial  condition  could be adversely
affected.   While  the  Savings   Bank  is   endeavoring   to  ensure  that  its
computer-dependent operations are year 2000 compliant, no assurance can be given
that some year 2000 problems will not occur.

In addition to possible  expense  related to its own  systems,  the  Corporation
could incur  losses if year 2000  issues  adversely  affect the  Savings  Bank's
depositors or borrowers.  Such problems could include  delayed loan payments due
to year 2000  problems  affecting  any  significant  borrowers or impairing  the
payroll  systems of large  employers in the Savings  Bank's primary market area.
Because the Savings Bank's loan portfolio is highly  diversified  with regard to
individual  borrowers and types of  businesses  and the Savings  Bank's  primary
market area is not  significantly  dependent upon one employer or industry,  the
Savings Bank does not expect any significant or prolonged difficulties that will
affect net earnings or cash flow.






                                       15



<PAGE>


                            FFD Financial Corporation

                                     PART II


ITEM 1.  Legal Proceedings

               Not applicable


ITEM 2.  Changes in Securities and Use of Proceeds

               Not applicable


ITEM 3.  Defaults Upon Senior Securities

               Not applicable


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

               Not applicable

ITEM 5.  Other Information

               In June 1997, the  Corporation  announced that it is taking steps
               toward the payment of a capital distribution to its shareholders,
               with  the   expectation   that  a  significant   portion  of  the
               distribution   would  be  nontaxable.   A  prerequisite   to  the
               nontaxable nature of the distribution is the  discontinuation  of
               the  consolidated   filing  group  that  included  Dover  Service
               Corporation,  an inactive  subsidiary of the Savings Bank. At the
               time of the  announcement,  the Corporation  anticipated that the
               deconsolidation  would be completed by September  30, 1997.  As a
               result of the procedures  being utilized by the Internal  Revenue
               Service  to  simultaneously  process   deconsolidation   requests
               submitted  by a  large  number  of  filers,  the  deconsolidation
               process has not yet been completed.  The Corporation has received
               a draft  from  the IRS of the  agreement  to be  entered  into to
               complete the deconsolidation, and the Corporation is not aware of
               any issues which would  adversely  affect the  completion  of the
               deconsolidation.  However, because the Corporation's  application
               remains part of a larger group of deconsolidation applicants, the
               Corporation expects that the  deconsolidation  process may not be
               completed for several months.  At this time, the Board intends to
               defer  action  on the  proposed  capital  distribution  until the
               deconsolidation process has been completed.

ITEM 6.  Exhibits and Reports on Form 8-K

               Reports on Form 8-K:      None

               Exhibits:                 Financial data schedule for the six 
                                           months ended December 31, 1997


                                       16


<PAGE>




                            FFD Financial Corporation

                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.





Date:       February 9, 1998                   By:  /s/Robert R. Gerber
       ---------------------------                  -------------------
                                                    Robert R. Gerber
                                                    President and
                                                    Principal Financial Officer




Date:       February 9, 1998                  By:  /s/Charles A. Bradley
       -----------------------------               ---------------------
                                                   Charles A. Bradley
                                                   Treasurer






























                                       17