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

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

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

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

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

Yes [X]    No  [ ]

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

Yes [ ]    No  [X]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date:
             May 14, 2007 - 1,107,319 common shares, no par value
             ----------------------------------------------------

                                       1
<PAGE>

                                     INDEX

                                                                           Page
                                                                           ----
PART I -  FINANCIAL INFORMATION

          Consolidated Statements of Financial Condition                      3

          Consolidated Statements of Earnings                                 4

          Consolidated Statements of Comprehensive Income                     5

          Consolidated Statements of Cash Flows                               6

          Notes to Consolidated Financial Statements                          8

          Management's Discussion and Analysis or
          Plan of Operations                                                 13


PART II - OTHER INFORMATION                                                  18

SIGNATURES                                                                   19

                                       2
<PAGE>

                           FFD Financial Corporation

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                       (In thousands, except share data)

<TABLE>
<CAPTION>
                                                                                March 31,     June 30,
      ASSETS                                                                         2007         2006
                                                                              (Unaudited)

<S>                                                                              <C>          <C>
Cash and due from banks                                                          $  1,659     $  1,404
Interest-bearing deposits in other financial institutions                           8,503        6,288
                                                                                 --------     --------
      Cash and cash equivalents                                                    10,162        7,692

Investment securities designated as available for sale - at market                  3,465        3,353
Mortgage-backed securities designated as available for sale - at market               275          431
Mortgage-backed securities held to maturity - at amortized cost,
 approximate market value of $101 and $131 as of March 31,
 2007 and June 30, 2006, respectively                                                 103          130
Loans receivable - net                                                            150,049      143,642
Loans held for sale - at lower of cost or market                                      184          914
Office premises and equipment - at depreciated cost                                 2,056        1,970
Stock in Federal Home Loan Bank - at cost                                           2,327        2,260
Accrued interest receivable                                                           680          571
Prepaid expenses and other assets                                                     228          270
                                                                                 --------     --------

      Total assets                                                               $169,529     $161,233
                                                                                 ========     ========

      LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits                                                                         $133,268     $121,919
Advances from the Federal Home Loan Bank                                           16,720       18,428
Accrued interest payable                                                              229          173
Other liabilities                                                                   1,018        1,551
Accrued federal income taxes                                                          253          537
Deferred federal income taxes                                                         335          262
                                                                                 --------     --------
      Total liabilities                                                           151,823      142,870

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                                                        8,224        8,108
  Retained earnings - restricted                                                   14,476       13,745
  Accumulated comprehensive  loss; unrealized  losses on
   securities designated as available for sale, net of related tax benefits           (23)         (95)
  Shares acquired by stock benefit plans                                             (117)        (225)
  Less 348,531 and 262,497 treasury shares at March 31, 2007 and
   June 30, 2006, respectively - at cost                                           (4,854)      (3,170)
                                                                                 --------     --------
      Total shareholders' equity                                                   17,706       18,363
                                                                                 --------     --------

      Total liabilities and shareholders' equity                                 $169,529     $161,233
                                                                                 ========     ========
</TABLE>

                                       3
<PAGE>

                           FFD Financial Corporation

                CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

                     (In thousands, except per share data)

<TABLE>
<CAPTION>
                                                                  For the nine months        For the three months
                                                                    ended March 31,            ended March 31,
                                                                    2007         2006          2007          2006

<S>                                                               <C>          <C>           <C>           <C>
Interest income
  Loans                                                           $8,030       $6,516        $2,728        $2,271
  Mortgage-backed securities                                          20           27             6            10
  Investment securities, interest-bearing deposits and other         419          377           139           136
                                                                  ------       ------        ------        ------
      Total interest income                                        8,469        6,920         2,873         2,417

Interest expense
  Deposits                                                         3,050        2,050         1,103           745
  Borrowings                                                         569          608           174           167
                                                                  ------       -------       ------        ------
      Total interest expense                                       3,619        2,658         1,277           912

      Net interest income                                          4,850        4,262         1,596         1,505

Provision for losses on loans                                        197          115            95            40
                                                                  ------       ------        ------        ------
      Net interest income after provision                          4,653        4,147         1,501         1,465

Other income
  Gain on sale of loans                                              127          157            35            31
  Gain on redemption of securities                                    -            16             -             -
  Other operating                                                    324          237            90            42
                                                                  ------       ------        ------        ------
      Total other income                                             451          410           125            73

General, administrative and other expense
  Employee compensation and benefits                               1,514        1,473           514           547
  Occupancy and equipment                                            300          303           108           101
  Franchise taxes                                                    165          161            58            56
  Data processing                                                    248          237            85            91
  Other operating                                                  1,072        1,050           333           320
                                                                  ------       ------        ------        ------
      Total general, administrative and other expense              3,299        3,224         1,098         1,115
                                                                  ------       ------        ------        ------

      Earnings before income taxes                                 1,805        1,333           528           423

Federal income taxes
  Current                                                            581          380           173           104
  Deferred                                                            36           75             8            41
                                                                  ------       ------        ------        ------
      Total federal income taxes                                     617          455           181           145
                                                                  ------       ------        ------        ------

      NET EARNINGS                                                $1,188       $  878        $  347        $  278
                                                                  ======       ======        ======        ======

      EARNINGS PER SHARE
        Basic                                                     $ 1.04       $  .75        $  .32        $  .24
                                                                  ======       ======        ======        ======

        Diluted                                                   $ 1.03       $  .74        $  .31        $  .23
                                                                  ======       ======        ======        ======

        Dividends per common share                                $ 0.40       $ 0.35        $ 0.14        $ 0.12
                                                                  ======       ======        ======        ======
</TABLE>

                                       4
<PAGE>

                           FFD Financial Corporation

          CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

                                 (In thousands)

<TABLE>
<CAPTION>
                                                                   For the nine months      For the three months
                                                                     ended March 31,           ended March 31,
                                                                     2007         2006      2007            2006

<S>                                                                <C>            <C>       <C>             <C>
Net earnings                                                       $1,188         $878      $347            $278

Other comprehensive income, net of related tax effects:
  Unrealized holding gains (losses) on securities during
   the period, net of taxes (benefits) of $37, $(24), $6
   and $(7) for the respective periods                                 72          (47)       12             (13)
                                                                   ------         ----      ----            ----

Comprehensive income                                               $1,260         $831      $359            $265
                                                                   ======         ====      ====            ====

Accumulated comprehensive loss                                     $  (23)        $(56)     $(23)           $(56)
                                                                   ======         ====      ====            ====
</TABLE>

                                       5

<PAGE>

                           FFD Financial Corporation

               CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

                      For the nine months ended March 31,
                                 (In thousands)

<TABLE>
<CAPTION>
                                                                                       2007         2006

<S>                                                                                <C>          <C>
Cash flows from operating activities:
  Net earnings for the period                                                      $  1,188     $    878
  Adjustments to reconcile net earnings to net cash
   provided by operating activities:
    Amortization of deferred loan origination costs                                      33           42
    Depreciation and amortization                                                       124          117
    Gain on redemption of investment securities                                           -          (16)
    Provision for losses on loans                                                       197          115
    Amortization expense of stock benefit plans                                         199          197
    Gain on sale of loans                                                               (40)         (64)
    Loans originated for sale in the secondary market                                (7,819)      (8,476)
    Proceeds from sale of loans in the secondary market                               7,731        8,593
    Proceeds from sale of  loans to other financial institutions                        858        2,321
    Federal Home Loan Bank stock dividends                                              (67)         (88)
    Increase (decrease) in cash due to changes in:
      Accrued interest receivable                                                      (109)         (92)
      Prepaid expenses and other assets                                                  42          (54)
      Accrued interest payable                                                           56            -
      Other liabilities                                                                (533)        (206)
      Federal income taxes
        Current                                                                        (284)         333
        Deferred                                                                         36           75
                                                                                   --------     --------
          Net cash provided by operating activities                                   1,612        3,675

Cash flows used in investing activities:
  Proceeds from redemption of investment securities                                       -           16
  Principal repayments on mortgage-backed securities                                    180           83
  Loan principal repayments                                                          34,665       38,787
  Loan disbursements                                                                (41,302)     (49,025)
  Purchase of office premises and equipment                                            (210)         (91)
                                                                                   --------     --------
          Net cash used in investing activities                                      (6,667)     (10,230)
                                                                                   --------     --------

          Net cash used in operating and investing
           activities (subtotal carried forward)                                     (5,055)      (6,555)
                                                                                   --------     --------
</TABLE>

                                       6
<PAGE>

                           FFD Financial Corporation

          CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)(CONTINUED)

                      For the nine months ended March 31,
                                 (In thousands)

<TABLE>
<CAPTION>
                                                                                       2007         2006

<S>                                                                                <C>          <C>
          Net cash used in operating and investing
           activities (subtotal brought forward)                                   $ (5,055)    $ (6,555)

Cash flows provided by financing activities:
  Net increase in deposit accounts                                                   11,349        9,908
  Proceeds from Federal Home Loan Bank advances                                       4,600       13,000
  Repayment of Federal Home Loan Bank advances                                       (6,308)     (16,285)
  Proceeds from bank lines of credit                                                  1,000            -
  Repayment of bank lines of credit                                                  (1,000)           -
  Tax benefits of options exercised                                                      25            -
  Proceeds from exercise of stock options                                               197           64
  Purchase of treasury shares                                                        (1,881)         (64)
  Dividends on common shares                                                           (457)        (417)
                                                                                   --------     --------
          Net cash provided by financing activities                                   7,525        6,206
                                                                                   --------     --------

Net increase (decrease) in cash and cash equivalents                                  2,470         (349)

Cash and cash equivalents at beginning of period                                      7,692        7,785
                                                                                   --------     --------
Cash and cash equivalents at end of period                                         $ 10,162     $  7,436
                                                                                   ========     ========

Supplemental disclosure of cash flow information:
  Cash paid during the period for:
    Federal income taxes                                                           $    883     $     85
                                                                                   ========     ========
    Interest on deposits and borrowings                                            $  3,563     $  2,658
                                                                                   ========     ========

Supplemental disclosure of noncash investing activities:
  Unrealized gains (losses) on securities designated as available
   for sale, net of related tax effects                                            $     72     $    (47)
                                                                                   ========     ========

  Recognition of mortgage servicing rights in accordance with
   SFAS No. 140                                                                    $     87     $     93
                                                                                   ========     ========

Transfer from loans to real estate acquired through foreclosure                    $     62     $      -
                                                                                   ========     ========

Loans originated upon sale of real estate
 acquired through foreclosure                                                      $     62     $      -
                                                                                   ========     ========
</TABLE>

                                       7
<PAGE>

                           FFD Financial Corporation

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

      For the nine- and three-month periods ended March 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, 2006. 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 nine- and three-month periods ended March 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 less shares in the FFD Financial
Corporation Employee Stock Ownership Plan (the "ESOP") that are unallocated and
not committed to be released. Weighted-average common shares deemed outstanding
give effect to 13,162 unallocated ESOP shares for the nine- and three-month
periods ended March 31, 2006. No ESOP shares were unallocated during the nine-
and three-month periods ended March 31, 2007. 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 nine months ended     For the three months ended
                                                       March 31,                      March 31,
                                                    2007            2006          2007             2006

<S>                                            <C>             <C>           <C>              <C>
      Weighted-average common shares
       outstanding (basic)                     1,143,448       1,169,803     1,106,219        1,179,091
      Dilutive effect of assumed exercise
       of stock options                           13,696          24,492        15,052           27,353
                                               ---------       ---------     ---------        ---------
      Weighted-average common shares
       outstanding (diluted)                   1,157,144       1,194,295     1,121,271        1,206,444
                                               =========       =========     =========        =========
</TABLE>

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.

Prior to April 1, 2006, the Corporation accounted for the Plan in accordance
with Statement of Financial Accounting Standards ("SFAS") No. 123, "Accounting
for Stock-Based Compensation," which contains a fair value-based method for
valuing stock-based compensation that entities may use, which measures
compensation cost at the grant date based on the fair value of the award.
Compensation is then recognized over the service period, which is usually the
vesting period. Alternatively, SFAS No. 123 permitted entities to continue to
account

                                       8
<PAGE>

                           FFD Financial Corporation

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

      For the nine- and three-month periods ended March 31, 2007 and 2006

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

for stock options and similar equity instruments under Accounting Principles
Board ("APB") Opinion No. 25, "Accounting for Stock Issued to Employees."
Entities that continued to account for stock options using APB Opinion No. 25
were required to make pro forma disclosures of net earnings and earnings per
share, as if the fair value-based method of accounting defined in SFAS No. 123
had been applied.

A summary of the status of the Corporation's stock option plan as of March 31,
2007 and June 30, 2006 and 2005, and changes during the periods then ended are
presented below:

<TABLE>
<CAPTION>
                                              March 31,                             June 30,
                                                2007                    2006                      2005
                                                    Weighted-               Weighted-                 Weighted-
                                                      average                 average                   average
                                                     exercise                exercise                  exercise
                                         Shares         price    Shares         price      Shares         price

<S>                                     <C>            <C>       <C>           <C>        <C>            <C>
Outstanding at beginning of period       54,621        $10.11    60,618        $10.17      89,998        $ 9.84
Granted                                       -             -     8,958         10.11           -             -
Exercised                               (21,541)         9.15    (5,997)        10.71     (29,305)         9.15
Forfeited                                     -             -    (8,958)       (10.11)        (75)        12.48
                                        -------        ------    ------        ------     -------        ------
Outstanding at end of period             33,080        $10.74    54,621        $10.11      60,618        $10.17
                                        =======        ======    ======        ======     =======        ======
Options exercisable at period-end        33,080                  54,621        $10.11      46,831        $ 9.66
                                        =======                  ======        ======     =======        ======
Weighted-average fair value of
 options granted during the period                        N/A                  $ 4.04                       N/A
                                                       ======                  ======                    ======
</TABLE>

The following information applies to options outstanding at March 31, 2007:

Number outstanding                                                       22,080
Range of exercise prices                                         $8.38 - $10.10
Number outstanding                                                       11,000
Range of exercise prices                                        $12.00 - $14.88
Weighted-average exercise price                                          $10.74
Weighted-average remaining contractual life in years                  4.9 years
Aggregate intrinsic value                                              $187,000
Intrinsic value of options exercised                                   $133,000

SFAS No. 123 was amended in March 2004 by SFAS No. 123(R), "Share-Based
Payment" to require compensation expense recognition by the Corporation
beginning July 1, 2006. The Corporation adopted SFAS No. 123(R) in the fourth
quarter of fiscal 2006, and coincident therewith modified and vested all
outstanding options. The effect of such modification and the fourth quarter
adoption of SFAS No. 123 (R) on the first three quarters of fiscal 2006 was not
material. At March 31, 2007 all options were granted and had vested.

                                       9
<PAGE>

                           FFD Financial Corporation

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

      For the nine- and three-month periods ended March 31, 2007 and 2006

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

In February 2006, the FASB issued SFAS No. 155, "Accounting for Certain Hybrid
Instruments - an Amendment of FASB Statements No. 133 and 140," to simplify and
make more consistent the accounting for certain financial instruments.
Specifically, SFAS No. 155 amends SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities," to permit fair value remeasurement for any
hybrid financial instrument with an embedded derivative that otherwise would
require bifurcation, provided that the whole instrument is accounted for on a
fair value basis. SFAS No. 155 amends SFAS No. 140, "Accounting for Transfers
and Servicing of Financial Assets and Extinguishment of Liabilities," to allow
a qualifying special purpose entity to hold a derivative instrument that
pertains to a beneficial interest other than another derivative financial
instrument.

SFAS No. 155 is effective for all financial instruments acquired or issued
after the beginning of an entity's first fiscal year that begins after
September 15, 2006, or July 1, 2007 as to the Corporation, with earlier
application allowed. The Corporation is currently evaluating SFAS No. 155, but
does not expect it to have a material effect on the Corporation's financial
position or results of operations.

In March 2006, the FASB issued SFAS No. 156, "Accounting for Servicing of
Financial Assets - an amendment of SFAS No. 140," to simplify the accounting
for separately recognized servicing assets and servicing liabilities.
Specifically, SFAS No. 156 amends SFAS No. 140 to require an entity to take the
following steps:

   o  Separately recognize financial assets as servicing assets or servicing
      liabilities each time it undertakes an obligation to service a financial
      asset by entering into certain kinds of servicing contracts;

   o  Initially measure all separately recognized servicing assets and
      liabilities at fair value, if practicable; and

   o  Separately present servicing assets and liabilities subsequently measured
      at fair value in the statement of financial position and additional
      disclosures for all separately recognized servicing assets and servicing
      liabilities.

Additionally, SFAS No. 156 permits, but does not require, an entity to choose
either the amortization method or the fair value measurement method for
measuring each class of separately recognized servicing assets and servicing
liabilities. SFAS No. 156 also permits a servicer that uses derivative
financial instruments to offset risks on servicing to use fair value
measurement when reporting both the derivative financial instrument and related
servicing asset or liability.

SFAS No. 156 applies to all separately recognized servicing assets and
liabilities acquired or issued after the beginning of an entity's fiscal year
that begins after September 15, 2006, or July 1, 2007 as to the Corporation,
with earlier application permitted. The Corporation does not expect SFAS No.
156 to have a material adverse effect on the Corporation's financial position
or results of operations.

In September 2006, the SEC staff issued Staff Accounting Bulletin ("SAB") No.
108, "Considering the Effects of Prior Year Misstatements when Quantifying
Misstatements in Current Year Financial Statements." SAB 108 was issued to
provide consistency between how registrants quantify financial statement
misstatements.

                                      10
<PAGE>

                           FFD Financial Corporation

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

      For the nine- and three-month periods ended March 31, 2007 and 2006

5. Recent Accounting Developments (continued)
   ------------------------------

Historically, there have been two widely-used methods for quantifying the
effects of financial statement misstatements. These methods are referred to as
the "roll-over" and "iron curtain" method. The roll-over method quantifies the
amount by which the current year income statement is misstated. Exclusive
reliance on an income statement approach can result in the accumulation of
errors on the balance sheet that may not have been material to any individual
income statement, but which may misstate one or more balance sheet accounts.
The iron curtain method quantifies the error as the cumulative amount by which
the current year balance sheet is misstated. Exclusive reliance on a balance
sheet approach can result in disregarding the effects of errors in the current
year income statement that result from the correction of an error existing in
previously issued financial statements. We currently use the roll-over method
for quantifying identified financial statement misstatements.

SAB 108 established an approach that requires quantification of financial
statement misstatements based on the effects of the misstatement on each of the
company's financial statements and the related financial statement disclosures.
This approach is commonly referred to as the "dual approach" because it
requires quantification of errors under both the roll-over and iron curtain
methods.

SAB 108 allows registrants to initially apply the dual approach either by (1)
retroactively adjusting prior financial statements as if the dual approach had
always been used, or by (2) recording the cumulative effect of initially
applying the dual approach as adjustments to the carrying values of assets and
liabilities as of July 1, 2006, with an offsetting adjustment recorded to the
balance of retained earnings at that date. Use of this "cumulative effect"
transition method requires detailed disclosure of the nature and amount of each
individual error being corrected through the cumulative adjustment and how and
when it arose.

Management does not expect SAB 108 to have a material adverse effect on the
Company's financial position or results of operations.

In July 2006, the FASB issued FASB Interpretation No. 48 ("FIN 48"),
"Accounting for Uncertainty in Income Taxes." The interpretation clarifies the
accounting for uncertainty in income taxes recognized in a company's financial
statements in accordance with SFAS No. 109, "Accounting for Income Taxes."
Specifically, FIN 48 prescribes a recognition threshold and a measurement
attribute for the financial statement recognition and measurement of a tax
provision taken or expected to be taken on a tax return. FIN 48 also provides
guidance on the related derecognition, classification, interest and penalties,
accounting for interim periods, disclosure, and transition of uncertain tax
positions. FIN 48 is effective for fiscal years beginning after December 15,
2006, or July 1, 2007 as to the Company. The Company is currently evaluating
the requirements of FIN 48 and has not quantified the effects of adoption.

In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements."
This Statement defines fair value, establishes a framework for measuring fair
value and expands disclosures about fair value measurements. This Statement
emphasizes that fair value is a market-based measurement and should be
determined based on assumptions that a market participant would use when
pricing an asset or liability. This Statement clarifies that market participant
assumptions should include assumptions about risk as well as the effect of a
restriction on the sale or use of an asset. Additionally, this Statement
establishes a fair value hierarchy that provides the highest priority to quoted
prices in active markets and the lowest priority to unobservable data. This
Statement is effective for fiscal years beginning after November 15, 2007, or
July 1, 2008, for the Company. The adoption of this Statement is not expected
to have a material effect on the Company's consolidated financial statements.

                                      11
<PAGE>

                           FFD Financial Corporation

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

      For the nine- and three-month periods ended March 31, 2007 and 2006

5. Recent Accounting Developments (continued)
   ------------------------------

In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for
Financial Assets and Financial Liabilities - Including an Amendment of FASB
Statement No. 115." This Statement allows companies the choice to measure many
financial instruments and certain other items at fair value. The objective is
to improve financial reporting by providing entities with the opportunity to
mitigate volatility in reported earnings caused by measuring related assets and
liabilities differently without having to apply complex hedge accounting
provisions. This Statement is expected to expand the use of fair value
measurement, which is consistent with the Board's long-term measurement
objectives for accounting for financial instruments. This Statement is
effective as of the beginning of an entity's first fiscal year that begins
after November 15, 2007, or July 1, 2008 as to the Company, and interim periods
within that fiscal year. Early adoption is permitted as of the beginning of a
fiscal year that begins on or before November 15, 2007, provided the entity
also elects to apply the provisions of SFAS No. 157, "Fair Value Measurements."
The Company is currently evaluating the impact the adoption of SFAS No. 159
will have on the financial statements.

                                      12
<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, 2006.

Discussion of Financial Condition Changes from June 30, 2006 to March 31, 2007
------------------------------------------------------------------------------

The Corporation's total assets at March 31, 2007, were $169.5 million, a $8.3
million, or 5.1%, increase from the total at June 30, 2006.

Cash and cash equivalents totaled $10.2 million at March 31, 2007, an increase
of $2.5 million, or 32.1%, from the total at June 30, 2006. Investment
securities totaled $3.5 million at March 31, 2007, representing a $112,000, or
3.3%, increase from the total at June 30, 2006, which resulted primarily from
mark-to-market adjustments under SFAS No. 115, "Accounting for Certain
Investments in Debt and Equity Securities." Mortgage-backed securities,
including the designated for sale classification, totaled $378,000 at March 31,
2007, a $183,000, or 32.6%, decrease compared to the total at June 30, 2006,
which resulted primarily from principal repayments.

Loans receivable, including loans held for sale, totaled $150.2 million at
March 31, 2007, an increase of $5.7 million, or 3.9%, from the June 30, 2006
total. Loan disbursements during the period totaling $49.1 million were
partially offset by principal repayments of $34.7 million, loans sold in the
secondary market of $7.7 million and loans sold to other financial institutions
of $858,000. During the nine-month period ended March 31, 2007, loan
originations were comprised of $24.4 million of one- to four-family residential
real estate loans, $15.8 million of nonresidential real estate loans, $3.2
million of consumer loans, $5.5 million of commercial loans, and $200,000 of
multi-family 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 Bank 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 $859,000 at March 31, 2007, an increase
of $107,000, or 14.2%, from the June 30, 2006 balance of $752,000, and
represented .56% and .51% of total loans at each of those respective dates. The
increase resulted from a provision of $197,000, which was partially offset by
charge-offs of $90,000. The Bank's impaired and nonperforming loans totaled
$586,000 at March 31, 2007 and $1.3 million at June 30, 2006. Although
management believes that the allowance for loan losses at March 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.

                                      13
<PAGE>

                           FFD Financial Corporation

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

Discussion of Financial Condition Changes from June 30, 2006 to March 31, 2007
------------------------------------------------------------------------------
(continued)

Deposits totaled $133.3 million at March 31, 2007, an $11.3 million, or 9.3%,
increase from total deposits at June 30, 2006. The increase in deposits was
primarily due to management's marketing efforts and conversion of the
Sugarcreek, Ohio and Coshcoton, Ohio lending centers to limited service
offices. FHLB advances totaled $16.7 million at March 31, 2007, a $1.7 million,
or 9.3%, decrease from the June 30, 2006 total. The deposit growth facilitated
repayment of FHLB advances during the period.

Shareholders' equity totaled $17.7 million at March 31, 2007, a decrease of
$657,000, or 3.6%, from June 30, 2006. The decrease was due primarily to share
repurchases of $1.9 million and dividends paid of $457,000, which were
partially offset by net earnings of $1.2 million, proceeds from exercise of
stock options of $222,000, amortization of stock benefit plans of $199,000 and
a decrease in the unrealized losses on securities designated as available for
sale of $72,000. The Bank is required to meet minimum capital standards
promulgated by the Office of Thrift Supervision, and at March 31, 2007, the
Bank's regulatory capital exceeded these minimum capital requirements.

Comparison of Operating Results for the Nine-Month Periods Ended
----------------------------------------------------------------
March 31, 2007 and 2006
-----------------------

General
-------

The Corporation's net earnings totaled $1.2 million for the nine months ended
March 31, 2007, an increase of $310,000, or 35.3%, from the net earnings of
$878,000 recorded in the comparable period in 2006. The increase in net
earnings resulted from increases of $588,000, or 13.8%, in net interest income
and $41,000, or 10.0%, in other operating income, which were partially offset
by increases of $162,000, or 35.6%, in federal income taxes, $82,000, or 71.3%,
in the provision for losses on loans and $75,000, or 2.3%, in general,
administrative and other expenses.

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

Total interest income increased by $1.5 million, or 22.4%, to $8.5 million for
the nine months ended March 31, 2007, compared to the nine months ended March
31, 2006. Interest income on loans increased by $1.5 million, or 23.2%, due to
an increase of $10.3 million, or 7.6%, in the average loan portfolio balance
outstanding and a 93 basis point increase in yield. The current period increase
in yield generally reflects upward repricing of adjustable rate loans in the
portfolio. Interest income on investment securities, interest-bearing deposits
and other assets increased by $42,000, or 11.1%, to a total of $419,000 for the
nine months ended March 31, 2007, due to a $741,000, or 7.0%, increase in the
average balance outstanding and a 19 basis point increase in yield. Interest
income on mortgage-backed securities decreased by $7,000, or 25.9%, due to a
decrease of $236,000, or 34.8%, in the average balance outstanding which was
partially offset by a 92 basis point increase in yield.

Total interest expense increased by $961,000, or 36.2%, to $3.6 million for the
nine months ended March 31, 2007, compared to the nine months ended March 31,
2006. Interest expense on deposits increased by $1.0 million, or 48.8%, due to
a 81 basis point increase in the average cost of deposits, to 3.14%, for the
2007 period and a $12.0 million, or 10.25% increase in the average balance of
deposits outstanding period to period. Interest expense on borrowings decreased
by $39,000, or 6.4%, due to a decrease of $3.2 million, or 18.7%, in the
average balance of advances outstanding, which was partially offset by a 65
basis point increase in the average cost of borrowings.

As a result of the foregoing changes in interest income and interest expense,
net interest income increased by $588,000, or 13.8%, for the nine months ended
March 31, 2007, compared to the same period in 2006. The interest rate spread
was 3.83% and 3.68%, and the net interest margin was 4.11% and 3.88%, for the
nine-month periods ended March 31, 2007 and 2006, respectively.

                                      14
<PAGE>

                           FFD Financial Corporation

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

Comparison of Operating Results for the Nine-Month Periods Ended
----------------------------------------------------------------
March 31, 2007 and 2006 (continued)
-----------------------

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

The Corporation recorded a $197,000 provision for losses on loans during the
nine months ended March 31, 2007, and a $115,000 provision for the comparable
period in 2006. The increase in the allowance for losses on loans was primarily
due to a combination of loan portfolio growth, net charge-offs 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 $451,000 for the nine months ended March 31, 2007, an
increase of $41,000, or 10.0%, from the 2006 total. The increase was due to an
increase of $87,000, or 36.7%, in other operating income, which was partially
offset by a decrease of $30,000, or 19.1%, in gain on sale of loans and the
absence of $16,000 from the previously reported gain on redemption of
securities of Intrieve Incorporated from its acquisition by Harland Financial
Solutions, Inc. The decrease in gain on sale of loans was the result of a
continued soft residential real estate market. The increase in other operating
income was the result of an increase of $87,000 in service charges and other
fee income.

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

General, administrative and other expense totaled $3.3 million for the nine
months ended March 31, 2007, an increase of $75,000, or 2.3%, compared to the
same period in 2006. The increase in general, administrative and other expense
includes increases of $41,000, or 2.8%, in employee compensation and benefits,
$22,000, or 2.1%, in other operating, $11,000, or 4.6%, in data processing, and
$4,000, or 2.5%, in franchise tax, which were partially offset by a decrease of
$3,000, or 1.0%, in occupancy and equipment. The increase in employee
compensation was due to normal merit increases, incentive compensation accruals
and additional staffing. The increase in data processing expense was due to the
Corporation's growth.

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

The Corporation recorded a provision for federal income taxes totaling $617,000
for the nine months ended March 31, 2007, an increase of $162,000, or 35.6%,
over the same period in 2006. The increase resulted from a $472,000, or 35.4%,
increase in earnings before taxes. The Corporation's effective tax rates were
34.2% and 34.1% for the nine months ended March 31, 2007 and 2006,
respectively.

Comparison of Operating Results for the Three-Month Periods Ended
-----------------------------------------------------------------
March 31, 2007 and 2006
-----------------------

General
-------

The Corporation's net earnings totaled $347,000 for the three months ended
March 31, 2007, an increase of $69,000, or 24.8%, from the net earnings of
$278,000 recorded in the comparable period in 2006. The increase in net
earnings resulted from increases of $91,000, or 6.0%, in net interest income
and $52,000, or 71.2%, in other operating income and a decrease of $17,000, or
1.5%, in general, administrative and other expenses, which were partially
offset by increases of $55,000, or 137.5% in the provision for losses on loans
and $36,000, or 24.8%, in the provision for federal income taxes.

                                      15
<PAGE>

                           FFD Financial Corporation

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

Comparison of Operating Results for the Three-Month Periods Ended
-----------------------------------------------------------------
March 31, 2007 and 2006 (continued)
-----------------------

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

Total interest income increased by $456,000, or 18.9%, to $2.9 million for the
three months ended March 31, 2007, compared to the three months ended March 31,
2006. Interest income on loans increased by $457,000, or 20.1%, due to an
increase of $11.8 million, or 8.7%, in the average loan portfolio balance
outstanding and a 70 basis point increase in yield. The current period increase
in yield generally reflects upward repricing of adjustable rate loans in the
portfolio. Interest income on investment securities, interest-bearing deposits
and other assets increased by $3,000, or 2.2%, to a total of $139,000 for the
three months ended March 31, 2007, due to a $104,000, or 1.0%, increase in the
average balance outstanding and a 6 basis point increase in yield. Interest
income on mortgage-backed securities decreased by $4,000, or 40.0%, due to a
decrease of $260,000, or 40.1%, in the average balance outstanding which was
partially offset by a 124 basis point increase in yield.

Total interest expense increased by $365,000, or 40.0%, to $1.3 million for the
three months ended March 31, 2007, compared to the three months ended March 31,
2006. Interest expense on deposits increased by $358,000, or 48.1%, due to a 87
basis point increase in the average cost of deposits, to 3.30%, and a $11.0
million, or 8.9%, increase in the average balance of deposits outstanding
period to period. Interest expense on borrowings increased by $7,000, or 4.2%,
due to a decrease of $870,000, or 5.9%, in the average balance of advances
outstanding, which was partially offset by a 50 basis point increase in the
average cost of borrowings.

As a result of the foregoing changes in interest income and interest expense,
net interest income increased by $91,000, or 6.0%, for the three months ended
March 31, 2007, compared to the same period in 2006. The interest rate spread
was 3.73% and 3.87%, and the net interest margin was 4.00% and 4.07%, for the
three-month periods ended March 31, 2007 and 2006, respectively.

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

The Corporation recorded a $95,000 provision for losses on loans during the
three months ended March 31, 2007, and a $40,000 provision for the comparable
quarter in 2006. The increase in the allowance for losses on loans was
primarily due to a combination of loan portfolio growth, net charge-offs 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 $125,000 for the three months ended March 31, 2007, an
increase of $52,000, or 71.2%, from the 2006 total. The increase was due to
increases of $48,000, or 114.3%, in other operating income and $4,000, or
12.9%, in gain on sale of loans. The increase in other operating income was
primarily due to an increase in service charges and other fee income.

                                      16
<PAGE>

                           FFD Financial Corporation

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

Comparison of Operating Results for the Three-Month Periods Ended
-----------------------------------------------------------------
March 31, 2007 and 2006 (continued)
-----------------------

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

General, administrative and other expense totaled $1.1 million for the three
months ended March 31, 2007, a decrease of $17,000 or 1.5%, compared to the
same period in 2006. The decrease in general, administrative and other expense
resulted from decreases of $33,000, or 6.0%, in employee compensation and
$6,000, or 6.6%, in data processing, which were partially offset by increases
of $13,000, or 4.1% in other operating expense, $7,000, or 6.9%, in occupancy
and equipment, and $2,000, or 3.6%, in franchise tax. The decrease in employee
compensation and benefits during the 2007 quarter is largely attributable to
lower accrual for incentive compensation.

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

The Corporation recorded a provision for federal income taxes totaling $181,000
for the three months ended March 31, 2007, an increase of $36,000, or 24.8%,
over the same period in 2006. The increase resulted from a $105,000, or 24.8%,
increase in earnings before taxes. The Corporation's effective tax rates was
34.3% for both the three months ended March 31, 2007 and 2006.

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.

                                      17
<PAGE>

                           FFD Financial Corporation

                                    PART II

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

        Not applicable

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

        (a)  None

        (b)  None

        (c)  None

        (d)  None

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

        Not applicable

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

        Not  applicable

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

        None

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

            31.1    Section 302 Chief Executive Officer certification (2)
            31.2    Section 302 Chief Financial Officer certification (2)
            32.1    Section 906 Chief Executive Officer certification (2)
            32.2    Section 906 Chief Financial Officer certification (2)

                                      18
<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: May 15, 2007                     By: /s/Trent B. Troyer
      -----------------------              -------------------------------------
                                           Trent B. Troyer
                                           President and Chief Executive Officer


Date: May 15, 2007                     By: /s/Robert R. Gerber
      -----------------------              -------------------------------------
                                           Robert R. Gerber
                                           Senior Vice President, Treasurer and
                                           Chief Financial Officer

                                      19