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          September 30, 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)

Registrant's 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 November 10, 1997, the latest  practicable  date,  1,444,750 shares of the
registrant's common stock, without par value, were issued and outstanding.









                               Page 1 of 14 pages

<PAGE>



                                      INDEX

                                                                      Page

PART I  - FINANCIAL INFORMATION

           Consolidated Statements of Financial Condition                3

           Consolidated Statements of Operations                         4

           Consolidated Statements of Cash Flows                         5

           Notes to Consolidated Financial Statements                    6

           Management's Discussion and Analysis of
           Financial Condition and Results of
           Operations                                                    9


PART II - OTHER INFORMATION                                             13

SIGNATURES                                                              14






























                                        2



<PAGE>

<TABLE>

                                             FFD Financial Corporation
<CAPTION>

                                  CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                                         (In thousands, except share data)

                                                                                      September 30,            June 30,
<S>                                                                                            <C>                 <C> 
         ASSETS                                                                                1997                1997

Cash and due from banks ................................................................  $     647           $     533
Interest-bearing deposits in other financial institutions ..............................      1,985               3,547
                                                                                            -------             -------
         Cash and cash equivalents .....................................................      2,632               4,080

Investment securities available for sale - at market ...................................      8,428               9,924
Investment securities - at amortized cost, approximate
  market value of $1,480 and $1,459 as of
  September 30, 1997 and June 30, 1997 .................................................      1,471               1,469
Mortgage-backed securities - at amortized cost, approximate
  market value of $7,208 and $7,304 as of
  September 30, 1997 and June 30, 1997 .................................................      7,015               7,165
Mortgage-backed securities designated as available for sale - at market ................      7,643               7,944
Loans receivable - net .................................................................     58,810              55,504
Office premises and equipment - at depreciated cost ....................................      1,037                 865
Federal Home Loan Bank stock - at cost .................................................        654                 642
Accrued interest receivable ............................................................        349                 267
Prepaid expenses and other assets ......................................................        181                 140
                                                                                            -------             -------

         Total assets ..................................................................    $88,220             $88,000
                                                                                             ======              ======

         LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits ...............................................................................    $57,280             $57,090
Advances from the Federal Home Loan Bank ...............................................      8,281               8,382
Accrued interest payable ...............................................................         75                  82
Other liabilities ......................................................................        459                 340
Accrued federal income taxes ...........................................................        491                 609
Deferred federal income taxes ..........................................................        161                  17
                                                                                           --------           ---------
         Total liabilities .............................................................     66,747              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 and outstanding ..............................         -                   -
  Additional paid-in capital ...........................................................     14,137              14,137
  Retained earnings ....................................................................      9,072               8,957
  Unrealized gains on securities designated as available for sale,
    net of related tax effects .........................................................         52                  20
  Shares acquired by Employee Stock Ownership Plan .....................................     (1,634)             (1,634)
  Treasury stock, 10,000 shares - at cost ..............................................       (154)                 -
                                                                                            -------              ------
         Total shareholders' equity ....................................................     21,473              21,480
                                                                                             ------              ------

         Total liabilities and shareholders' equity ....................................    $88,220             $88,000
                                                                                             ======              ======
</TABLE>



                                                         3



<PAGE>

<TABLE>

                                             FFD Financial Corporation
<CAPTION>

                                       CONSOLIDATED STATEMENTS OF OPERATIONS

                                     For the three months ended September 30,
                                         (In thousands, except share data)


<S>                                                                   <C>                 <C> 
                                                                     1997                1996

Interest income
  Loans .........................................................  $1,090             $   909
  Mortgage-backed securities ....................................     260                 293
  Investment securities and interest-bearing
    deposits and other ..........................................     215                 218
                                                                   ------              ------
         Total interest income ..................................   1,565               1,420

Interest expense
  Deposits ......................................................     692                 638
  Borrowings ....................................................     121                 107
                                                                   ------              ------
         Total interest expense .................................     813                 745
                                                                   ------              ------

         Net interest income ....................................     752                 675

Other operating income ..........................................      12                  10

General, administrative and other expense
  Employee compensation and benefits ............................     206                 206
  Occupancy and equipment .......................................      36                  22
  Federal deposit insurance premiums ............................      12                 362
  Franchise taxes ...............................................      40                  31
  Other operating ...............................................     131                  98
                                                                   ------              ------
         Total general, administrative and other expense ........     425                 719
                                                                   ------              ------

         Earnings (loss) before income taxes (credits) ..........     339                 (34)

Federal income taxes (credits)
  Current .......................................................     (13)                (10)
  Deferred ......................................................     128                  (2)
                                                                   ------             -------
         Total federal income taxes (credits) ...................     115                 (12)
                                                                   ------             -------

         NET EARNINGS (LOSS) .................................... $   224            $    (22)
                                                                   ======             ======= 

         EARNINGS (LOSS) PER SHARE ..............................    $.17               $(.02)
                                                                      ===                ==== 

</TABLE>








                                                         4



<PAGE>

<TABLE>

                                             FFD Financial Corporation
<CAPTION>

                                       CONSOLIDATED STATEMENTS OF CASH FLOWS

                                     For the three months ended September 30,
                                                  (In thousands)

<S>                                                                            <C>               <C> 
                                                                              1997              1996
Cash flows from operating activities:
  Net earnings (loss) for the period ...................................   $   224          $    (22)
  Adjustments to reconcile net earnings (loss) to net cash
  provided by (used in) operating activities:
    Amortization of discounts and premiums on loans,
      investments and mortgage-backed securities - net .................         8                 2
    Amortization of deferred loan origination fees .....................       (21)              (16)
    Depreciation and amortization ......................................        19                11
    Federal Home Loan Bank stock dividends .............................       (12)              (11)
    Increase (decrease) in cash due to changes in:
      Accrued interest receivable ......................................       (82)             (144)
      Prepaid expenses and other assets ................................       (41)               17
      Accrued interest payable .........................................        (7)               50
      Other liabilities ................................................       119               414
      Federal income taxes
        Current ........................................................      (118)              (57)
        Deferred .......................................................       128                (2)
                                                                          --------          --------
         Net cash provided by operating activities .....................       217               242

Cash flows provided by (used in) investing activities:
  Purchase of investment securities ....................................   (11,175)               -
  Proceeds from maturities of investment securities ....................    12,679                -
  Purchase of mortgage-backed securities ...............................        -             (4,737)
  Principal repayments on mortgage-backed securities ...................       481               850
  Loan principal repayments ............................................     2,739             2,383
  Loan disbursements ...................................................    (6,024)           (3,756)
  Purchase of office premises and equipment ............................      (191)             (117)
                                                                          --------            ------
         Net cash used in investing activities .........................    (1,491)           (5,377)

Cash flows provided by (used in) financing activities:
  Net increase in deposit accounts .....................................       190             1,298
  Proceeds from Federal Home Loan Bank advances ........................        -              4,600
  Repayment of Federal Home Loan Bank advances .........................      (101)             (400)
  Dividends on common stock ............................................      (109)              (73)
  Purchase of treasury stock ...........................................      (154)               -
                                                                          --------             ----
         Net cash provided by (used in) financing activities ...........      (174)            5,425
                                                                          --------             -----

Net increase (decrease) in cash and cash equivalents ...................    (1,448)              290

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

Cash and cash equivalents at end of period .............................  $  2,632            $2,988
                                                                           =======             =====


Supplemental  disclosure of cash flow  information:  
  Cash paid during the period for:
    Federal income taxes ...............................................  $    124          $     55
                                                                           =======           =======

    Interest on deposits and borrowings ................................  $    820           $   695
                                                                           =======            ======

Supplemental disclosure of noncash investing activities:
  Unrealized gains on securities designated as available for
    sale, net of related tax effects ...................................  $     32           $   100
                                                                           =======            ======
</TABLE>

                                                         5


<PAGE>


                            FFD Financial Corporation

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

             For the three months ended September 30, 1997 and 1996


    On November 14, 1995,  the Board of Directors of First Federal  Savings Bank
    of Dover (the  "Savings  Bank")  adopted a plan of  conversion  (the "Plan")
    whereby the Savings Bank would convert to the stock form of  ownership,  and
    issue all of the Savings Bank's  outstanding stock to a newly formed holding
    company,  FFD Financial  Corporation  (the  "Corporation").  Pursuant to the
    Plan,  the  Corporation  offered for sale up to 1,454,750  common  shares to
    certain  depositors  of the Savings Bank and members of the  community.  The
    conversion  was completed on April 2, 1996,  and resulted in the issuance of
    1,454,750  common shares of the Corporation  which,  after  consideration of
    offering expenses totaling approximately $400,000,  resulted in net proceeds
    of $14.2 million.

    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 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
    months ended September 30, 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 its wholly owned  subsidiary,  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 of Financial Assets,  Servicing Rights,  and Extinguishment 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.

                                        6



<PAGE>


                            FFD Financial Corporation

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

             For the three months ended September 30, 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  does not believe that  adoption of SFAS No. 125 will
    have a material adverse effect on the Corporation's  consolidated  financial
    position or results of operations.

    In February 1997, the FASB issued SFAS No. 128, "Earnings Per Share",  which
    requires  companies to present basic  earnings per share and, if applicable,
    diluted  earnings per share,  instead of primary and fully diluted  earnings
    per  share,  respectively.  Basic  earnings  per share is  computed  without
    including  potential  common  shares,  i.e.,  no  dilutive  effect.  Diluted
    earnings  per share is computed  taking  into  consideration  common  shares
    outstanding  and  dilutive  potential  common  shares,   including  options,
    warrants,  convertible securities and contingent stock agreements.  SFAS No.
    128  is  effective  for  periods  ending  after  December  15,  1997.  Early
    application  is not  permitted.  SFAS  No.  128 is not  expected  to  have a
    material impact on the Corporation's financial statements.

    In February  1997, the FASB issued SFAS No. 129,"Disclosures of Information
    about Capital  Structure."  SFAS No. 129 consolidated  existing  accounting
    guidance relating to disclosure about a company's capital  structure.  SFAS
    No. 129 is effective  for  financial  statements  for periods  ending after
    December 15, 1997.  SFAS No. 129 is not expected to have a material  impact
    on the Corporation's financial statements.

    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.


                                        7



<PAGE>


                            FFD Financial Corporation

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

             For the three months ended September 30, 1997 and 1996


    3.   Effects of Recent Accounting Pronouncements (continued)

    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 "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

    Earnings per share for the three months ended September 30, 1997 and 1996 is
    based upon the  weighted-average  shares  outstanding during the period plus
    those stock  options  that are  dilutive,  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 and  116,380  unallocated  ESOP
    shares, totaled 1,337,119 and 1,338,370 for the three months ended September
    30, 1997 and 1996, respectively. There is no dilutive effect associated with
    the Corporation's stock option plan.

    5.  Proposed Legislation

    Congress is  considering  legislation  to eliminate the federal  savings and
    loan  charter  and  separate   federal   regulation   of  savings  and  loan
    associations.  Pursuant to such  legislation,  Congress may develop a common
    charter  for all  financial  institutions,  eliminate  the  Office of Thrift
    Supervision ("OTS") and regulate the Savings Bank as a bank or require it to
    change its charter to that of a national bank.  Management  does not believe
    the  pending  legislation  would  have a  material  effect on the  financial
    statements of the Corporation.


                                        8



<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 
  September 30, 1997

The Corporation's total assets at September 30, 1997, amounted to $88.2 million,
a $220,000,  or .3%, increase over the total at June 30, 1997. This increase was
funded primarily through growth in deposits of $190,000.

Cash and  interest-bearing  deposits  totaled $2.6  million at September  30, 
1997, a decrease of $1.4 million from the total as of June 30, 1997.

Investment  securities  totaled  $9.9  million at  September  30,  1997,  a $1.5
million,  or 13.1%,  decrease from June 30, 1997, as maturities  totaling  $12.7
million were  partially  offset by purchases of $11.2 million during the period.
Mortgage-backed  securities  declined by $451,000,  or 3.0%,  from June 30, 1997
levels due primarily to principal repayments of $481,000.  Such declines in cash
and cash equivalents,  and investment and  mortgage-backed  securities  resulted
from management's election to redeploy such funds into loan originations.

Loans  receivable  totaled  $58.8  million at September 30, 1997, an increase of
$3.3 million,  or 6.0%, over the June 30, 1997 total. Loan disbursements  during
the quarter  totaled  $6.0  million,  which were  partially  offset by principal
repayments  of $2.7  million.  Loan  disbursements  during the  current  quarter
exceeded those of the 1996 quarter by $2.3 million, or 60.4%.

The allowance for loan losses  totaled  $270,000 at both  September 30, 1997 and
June 30, 1997,  which  represented  .5% of total loans at those dates.  Although
management believes that its allowance for loan losses at September 30, 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  $57.3  million at September  30,  1997,  a $190,000,  or .3%,
increase over June 30, 1997.

FHLB advances  totaled $8.3 million at September 30, 1997, a $101,000,  or 1.2%,
decrease from June 30, 1997. The decrease resulted from principal repayments.

Shareholders'  equity  totaled  $21.5  million at  September  30, 1997, a $7,000
decline from June 30, 1997.  The decrease  resulted  from a purchase of treasury
stock totaling  $154,000 and dividends of $109,000,  which were partially offset
by  net  earnings  of  $224,000  and an  increase  in net  unrealized  gains  on
securities designated as available for sale of $32,000.










                                        9


<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 September 30,
1997 (continued)

The Savings  Bank is required to meet each of three  minimum  capital  standards
promulgated  by  the  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 September  30, 1997,  the Savings  Bank's  tangible and core capital  totaled
$13.5  million,  16.6% of adjusted  total  assets,  which  exceeded  the minimum
requirements  of $1.2  million  and $2.4  million  by $12.3  million  and  $11.1
million,  respectively.  The Savings Bank's risk-based capital of $13.8 million,
or 34.8% of risk-weighted assets, exceeded the current 8.0% requirement by $10.6
million.


Comparison of Operating Results for the Three Month Periods Ended September 30, 
  1997 and 1996

General

The  Corporation  reported  net  earnings of $224,000 for the three months ended
September  30,  1997,  as compared  to a net loss of $22,000 for the  comparable
period in 1996. The increase in net earnings  resulted  primarily from a $77,000
increase  in  net   interest   income  and  a  $294,000   decrease  in  general,
administrative  and other  expense,  which were  partially  offset by a $127,000
increase in federal income taxes. The reduction in general,  administrative  and
other expense  resulted  primarily from the one-time charge recorded in the 1996
quarter related to the  recapitalization  of the Savings  Association  Insurance
Fund ("SAIF") totaling $332,000, or $219,000 after-tax.

Net Interest Income

Total  interest  income  increased  by  $145,000,  or 10.2%,  to a total of $1.6
million for the three months ended September 30, 1997.  Interest income on loans
increased by $181,000, or 19.9%, due primarily to a $7.9 million increase in the
average  loan  portfolio   outstanding.   Interest  income  on   mortgage-backed
securities  decreased  by $33,000,  or 11.3%,  due  primarily  to a $2.0 million
decrease in the  average  balance  outstanding.  Interest  income on  investment
securities  and  interest-bearing  deposits  decreased by $3,000,  or 1.4%,  due
primarily to a $148,000 decrease in the average balance outstanding.

Interest expense on deposits increased by $54,000, or 8.5%, for the three months
ended  September  30, 1997,  compared to 1996,  due  primarily to a $4.3 million
increase in the average deposit portfolio outstanding.


                                       10



<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 September 30,
1997 and 1996 (continued)

Net Interest Income (continued)

Interest expense on borrowings  increased by $14,000, or 13.1%, due primarily to
a $1.0  million  increase in average  advances  outstanding.  As a result of the
foregoing,  net interest income  increased by $77,000,  or 11.4%,  for the three
months ended  September  30, 1997,  compared to 1996.  The interest  rate spread
amounted to 2.31% for the three months  ended  September  30, 1997,  compared to
2.12% for the comparable 1996 period, while the net interest margin increased to
3.49% in 1997, compared to 3.36% 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 an additional provision for losses on loans during the three month period
ended September 30, 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 $12,000 for the three months ended September 30,
1997,  an  increase  of $2,000,  or 20.0%,  over the 1996  total.  Other  income
consists  primarily of fees  generated  from late  charges,  safety  deposit box
rentals and NOW account fees.

General, Administrative and Other Expense

General,  administrative and other expense decreased by $294,000,  or 40.9%, for
the three  months  ended  September  30,  1997,  compared to 1996.  The decrease
resulted primarily from the  aforementioned  $332,000 charge to recapitalize the
SAIF, coupled with an $18,000 reduction due to a decline in premium rates, which
were  partially  offset by an increase of $14,000,  or 63.6%,  in occupancy  and
equipment and $33,000,  or 33.7%,  in other operating  expenses,  which resulted
primarily from expenses related to newly acquired  automated teller machines and
an increase in service bureau  expense.  The increase in occupancy and equipment
was due to increased costs related to the new office location.






                                       11



<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 September 30,
1997 and 1996 (continued)

Federal Income Taxes

The Corporation  recorded a provision for federal income taxes totaling $115,000
for the three months ended September 30, 1997, an increase of $127,000, compared
to the credit provision  totaling $12,000 which was recorded for the same period
in 1996. The increase  resulted  primarily from a $373,000  increase in earnings
before taxes.  The effective tax rates were 33.9% and 35.3% for the three months
ended September 30, 1997 and 1996, respectively.





































                                       12



<PAGE>


                            FFD Financial Corporation

                                     PART II


ITEM 1.  Legal Proceedings

           Not applicable


ITEM 2.  Changes in Securities

           Not applicable


ITEM 3.  Defaults Upon Senior Securities

           Not applicable


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

           On October 14, 1997, the Annual  Meeting of the  Corporation's
           Shareholders  was held. Each of the three directors  nominated
           were elected to terms expiring in 1998 by the following votes:

               J. Richard Gray           For:  1,260,178      Withheld:  12,925
               Roy O. Mitchell, Jr.      For:  1,251,937      Withheld:  21,166
               Robert D. Sensel          For:  1,270,253      Withheld:  2,850

          One other matter was submitted to the shareholders,  for which
          the following votes were cast:

          Ratification  of the  appointment  of  Grant  Thornton  LLP as
          independent  auditors of the  Corporation  for the fiscal year
          ended June 30, 1998.

          For: 1,243,340  Against: 10,428  Abstain: 19,335 Broker Non-votes:  0


ITEM 5.  Other Information

           None


ITEM 6.  Exhibits and Reports on Form 8-K

          Reports on Form 8-K:    None.

          Exhibits:                Financial data schedule for the three months
                                   ended September 30, 1997.




                                       13



<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:      November 10, 1997                     By:  /s/Robert R. Gerber
       -----------------------                        -------------------
                                                      Robert R. Gerber
                                                      President



Date:      November 10, 1997                     By:  /s/Charles A. Bradley
       -----------------------                        ---------------------
                                                      Charles A. Bradley
                                                      Treasurer































                                       14