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

                                   FORM 10-QSB

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

For the quarterly period ended March 31, 2006
                               --------------

                                       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 number 000-50820

                     FIRST FEDERAL FINANCIAL SERVICES, INC.
                     --------------------------------------
        (Exact name of small business issuer as specified in its charter)

           Federal                                       37-1413556
           -------                                       ----------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)


300 St. Louis Street, Edwardsville, IL                                62025
------------------------------------------                         -----------
(Address of principal executive office)                             (Zip Code)

Registrant's telephone number, including area code (618) 656-6200
                                                   --------------

Not applicable
--------------
(Former  name,  former  address and former  fiscal year,  if changed  since last
report)

Check  whether  the issuer  (1) has filed all  reports  required  to be filed by
Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
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 [_].

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

Indicate by checkmark  whether the  Registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [_]. No [X].

Indicate  the number of shares  outstanding  of the  issuer's  classes of common
stock, as of the latest practicable date.

                Class                                 Outstanding May 1, 2006
--------------------------------------                -----------------------
Common Stock, par value $.10 per share                       3,920,060 *

* As of May 1, 2006,  2,156,033  shares  were owned by First  Federal  Financial
Services, MHC, the Company's mutual holding company parent.


<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.


                                   FORM 10-QSB

                      FOR THE QUARTER ENDED MARCH 31, 2006

                                      INDEX


                                                                     PAGE NO.


PART I - Financial Information

    Consolidated Balance Sheets                                        3

    Consolidated Statements of Income                                  4

    Consolidated Statements of Comprehensive Income                    5

    Consolidated Statements of Cash Flows                              6

    Notes to Consolidated Financial Statements                         8

    Management's Discussion and Analysis of
       Financial Condition and Results of Operations                   12

    Controls and Procedures                                            18

PART II - Other Information                                            19

Certifications                                                         21



<PAGE>
<TABLE>
<CAPTION>

                             FIRST FEDERAL FINANCIAL SERVICES, INC.

                                   Consolidated Balance Sheets
                                           (Unaudited)
                                                                   March 31,       December 31,
      Assets                                                         2006             2005
                                                                 -------------    -------------
<S>                                                                  <C>              <C>
Cash and due from banks                                          $     475,777    $   1,027,901
Federal funds sold                                                   3,100,000        2,400,000
                                                                 -------------    -------------
   Total cash and cash equivalents                                   3,575,777        3,427,901
Interest-bearing time deposits                                         250,000          250,000
Securities available for sale                                       13,879,712       12,944,395
Securities held to maturity, at amortized cost (fair value
   of $320,853 and $337,659, respectively)                             337,461          353,209
Federal Home Loan Bank stock                                         6,213,940        6,213,940
Loans, net of allowance for loan losses
   of $428,419                                                     115,769,552      115,645,079
Property and equipment                                                 846,169          860,086
Accrued interest receivable                                            405,565          439,632
Other assets                                                           499,812           24,104
                                                                 -------------    -------------
      Total assets                                               $ 141,777,988    $ 140,158,346
                                                                 =============    =============
      Liabilities and Stockholders' Equity
Deposits:
    Savings                                                      $  23,506,054    $  23,845,491
    Time, $100,000 and over                                         13,557,160       13,072,182
    Time                                                            66,479,374       65,194,451
                                                                 -------------    -------------
      Total deposits                                               103,542,588      102,112,124
Accrued interest payable                                                 5,618            4,755
Other liabilities                                                      408,238          333,885
                                                                 -------------    -------------
      Total liabilities                                            103,956,444      102,450,764
                                                                 -------------    -------------
Commitments and contingencies
Stockholders' equity:
    Preferred stock, $.10 par value;  1,000,000 shares
      authorized; no shares issued                                          --               --
   Common stock, $.10 par value; 10,000,000 shares authorized;
   3,920,060 shares issued and outstanding                             392,006          392,006
Additional paid-in capital                                          16,542,734       16,538,534
Retained earnings - substantially restricted                        21,908,775       21,759,719
Accumulated other comprehensive income (loss), net                    (237,936)        (187,842)
Unearned employee stock ownership plan shares                         (784,035)        (794,835)
                                                                 -------------    -------------
      Total stockholders' equity                                    37,821,544       37,707,582
                                                                 -------------    -------------
      Total liabilities and stockholders' equity                 $ 141,777,988    $ 140,158,346
                                                                 =============    =============
</TABLE>

See accompanying notes to consolidated financial statements.

                                               3
<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

                        Consolidated Statements of Income
                                   (Unaudited)

                                                          Three Months Ended
                                                               March 31,
                                                        -----------------------
                                                           2006         2005
                                                        ----------   ----------
Interest income:
Interest and fees on loans                              $1,693,404   $1,650,942
Securities:
   Taxable interest income                                 138,710      158,742
   Dividends                                                46,774      106,722
Interest bearing deposits                                   35,697       13,020
                                                        ----------   ----------
      Total interest income                              1,914,585    1,929,426
                                                        ----------   ----------
Interest expense:
   Deposits                                                872,568      652,130
   Advances from Federal Home Loan Bank                         --       13,939
                                                        ----------   ----------
      Total interest expense                               872,568      666,069
                                                        ----------   ----------
      Net interest income                                1,042,017    1,263,357
Provision for loan losses                                       --           --
                                                        ----------   ----------
      Net interest income after
          provision for loan losses                      1,042,017    1,263,357
                                                        ----------   ----------
Noninterest income:
   Other                                                     1,092        3,591
                                                        ----------   ----------
      Total noninterest income                               1,092        3,591
                                                        ----------   ----------
Noninterest expense:
   Compensation and employee benefits                      229,663      222,154
   Occupancy expense                                        28,634       26,655
   Data processing services                                 18,455       18,393
   Advertising                                              76,569        6,797
   Director fees                                            44,450       31,650
   Professional services                                    51,086       43,440
   Other                                                    55,382       62,699
                                                        ----------   ----------
      Total noninterest expense                            504,239      411,788
                                                        ----------   ----------
      Income before income taxes                           538,870      855,160
Income taxes                                               205,000      315,000
                                                        ----------   ----------
      Net income                                        $  333,870   $  540,160
                                                        ==========   ==========
Basic and diluted income per share (see Note 3)         $     0.09   $     0.14
                                                        ==========   ==========
Dividends per share                                     $     0.11   $     0.07
                                                        ==========   ==========

See accompanying notes to consolidated financial statements.

                                       4
<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

                 Consolidated Statements of Comprehensive Income
                                   (Unaudited)

                                                           Three Months Ended
                                                               March 31,
                                                        -----------------------
                                                           2006          2005
                                                        ---------     ---------

Net income                                              $ 333,870     $ 540,160
Other comprehensive income:
   Unrealized gains (losses) on securities
        arising during the period, net of tax of
        2006 $31,783 and 2005 $76,901                     (50,094)     (121,205)
                                                        ---------     ---------
Comprehensive income                                    $ 283,776     $ 418,955
                                                        =========     =========

See accompanying notes to consolidated financial statements.


                                       5
<PAGE>
<TABLE>
<CAPTION>

                              FIRST FEDERAL FINANCIAL SERVICES, INC.

                              Consolidated Statements of Cash Flows
                                           (Unaudited)

                                                                           Three Months Ended
                                                                                March 31,
                                                                       --------------------------
                                                                           2006           2005
                                                                       -----------    -----------
<S>                                                                    <C>            <C>
Cash flows from operating activities:
   Net income                                                          $   333,870    $   540,160
   Adjustments to reconcile net income to net
      cash provided by operating activities:
      Amortization of:
         Deferred loan origination (fees) costs, net                        (3,515)        (3,172)
         Premiums and discounts on securities                                2,861          1,953
      Provision for loan losses                                                 --             --
      Depreciation and amortization                                         13,917         13,485
      FHLB stock dividends                                                      --       (106,700)
      ESOP expense                                                          15,000         15,828
      Change in assets and liabilities:
        Decrease (increase) in accrued interest receivable                  34,067         (7,424)
        Decrease (increase) in other assets                               (475,708)      (104,323)
        Increase (decrease) in accrued interest payable                        863            282
        Increase (decrease) in other liabilities                           106,136        275,613
                                                                       -----------    -----------
                   Net cash flows from operating activities                 27,491        625,702
                                                                       -----------    -----------
Cash flows from investing activities: Available for sale securities:
      Purchases                                                         (1,769,463)            --
      Proceeds from call and maturities                                    750,000             --
  Held to maturity securities:
      Proceeds from paydowns                                                15,156         28,643
  Redemption of Federal Home Loan Bank Stock                                    --      1,900,000
  Loan originations, net of principal collected                           (120,958)       335,657
  Purchase of property and equipment                                            --           (463)
                                                                       -----------    -----------
           Net cash flows from investing activities                    $(1,125,265)   $ 2,263,837
                                                                       -----------    -----------
                                                                                      (Continued)
</TABLE>

                                                6
<PAGE>
<TABLE>
<CAPTION>

                          FIRST FEDERAL FINANCIAL SERVICES, INC.

                          Consolidated Statements of Cash Flows
                                       (Unaudited)

(Continued)
                                                                   Three Months Ended
                                                                       March 31,
                                                               --------------------------
                                                                   2006           2005
                                                               -----------    -----------
<S>                                                              <C>            <C>
Cash flows from financing activities:
   Net increase (decrease) in savings accounts                 $  (339,437)   $  (910,178)
   Net increase (decrease) in time accounts                      1,769,901      1,354,258
   Repayment of advances from FHLB                                      --     (2,900,000)
   Cash dividends                                                 (184,814)      (117,225)
                                                               -----------    -----------
         Cash flows from financing activities                    1,245,650     (2,573,145)
                                                               -----------    -----------
Net increase in cash and cash equivalents                          147,876        316,394
Cash and cash equivalents at beginning of period                 3,427,901      1,636,987
                                                               -----------    -----------
Cash and cash equivalents at end of period                     $ 3,575,777    $ 1,953,381
                                                               ===========    ===========



Supplemental disclosures of cash flow information:
Cash paid during the period for:
   Interest                                                    $   871,705        665,787
   Income taxes, net of refunds                                $        --         12,468

</TABLE>

See accompanying notes to consolidated financial statements


                                            7
<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

                   Notes to Consolidated Financial Statements

(1)   The  information  contained  in the  accompanying  consolidated  financial
      statements is unaudited.  In the opinion of management,  the  consolidated
      financial  statements  contain all  adjustments  (none of which were other
      than normal  recurring  entries)  necessary  for a fair  statement  of the
      results of operations  for the interim  period.  The results of operations
      for the interim period are not necessarily indicative of the results which
      may be expected for the entire fiscal year. These  consolidated  financial
      statements  should be read in conjunction with the consolidated  financial
      statements of the Company for the year ended  December 31, 2005  contained
      in the 2005 Annual Report to  stockholders  that is filed as an exhibit to
      the Company's Annual Report on Form 10-KSB.

      On  January  2,  2001,   First  Federal  Savings  &  Loan  Association  of
      Edwardsville  (Association)  reorganized  into the two-tier mutual holding
      company structure. As part of the reorganization, the Association became a
      capital stock savings and loan  association and a wholly-owned  subsidiary
      of First Federal  Financial  Services,  Inc.  (Company),  which became the
      wholly-owned  subsidiary of First Federal Financial Services,  MHC (Mutual
      Holding  Company).  On November 20, 2003, the Board of Directors adopted a
      plan to complete  an initial  public  offering of the common  stock of the
      Company.  In connection  with the offering the Company  offered its common
      stock to the depositors of the Association as of specified dates and to an
      employee stock ownership plan. The initial public offering was consummated
      on June 28, 2004 through the sale and issuance by the Company of 1,764,027
      shares of common stock at $10 per share.  In addition,  the Company issued
      2,156,033 shares to the Mutual Holding Company. The Mutual Holding Company
      has a 55% ownership  percentage in the Company. Net proceeds from the sale
      of common stock were  $16,011,975  after deduction of conversion  costs of
      $746,285, and unearned compensation related to shares issued to the ESOP.

      On February 3, 2006, the Company  announced that the Board of Directors of
      the MHC adopted a Plan of Conversion and Reorganization to convert the MHC
      to a capital stock  corporation and conduct a simultaneous  stock offering
      (Conversion).

      In addition,  on February 3, 2006,  the Company  entered into a definitive
      merger  agreement  to acquire  Clover Leaf  Financial  Corp.,  the holding
      company of Clover  Leaf Bank,  an  Illinois  state bank  headquartered  in
      Edwardsville,  Illinois  (collectively,  Clover Leaf),  pursuant to which,
      upon  completion of the Conversion,  First Clover Leaf Financial  Corp., a
      new  Maryland  corporation  (First  Clover  Leaf) will  acquire all of the
      common stock of Clover Leaf (Acquisition).

      Upon  consummation of the Conversion,  the MHC will cease to exist and its
      shares of the Company's common stock will be cancelled. Existing shares of
      the Company's common stock held by public  stockholders  will be exchanged
      for shares of First Clover Leaf which is being formed as the  successor to
      the Company,  pursuant to an exchange ratio that has yet to be determined,
      and will be based on an independent appraisal. Shares of First Clover Leaf
      common  stock will be  offered  in a  subscription  offering  pursuant  to
      non-transferable subscription rights at a price of $10.00 per share in the
      following order of preference:  (1) to the Association's  eligible account
      holders of record as of December 31, 2004;  (2) to the  Association's  tax
      qualified  employee  stock benefit  plans;  (3) to  supplemental  eligible
      account  holders  of  record  as of the last day of the  calendar  quarter
      preceding  OTS  approval of the  Conversion  and  Reorganization;  (4) any
      person other than an eligible  account holder or a  supplemental  eligible
      account holder, holding a qualifying deposit on the voting record date and
      any  borrower of the  Association  with  borrowings  from the  Association
      outstanding  as  of  January  2,  2001  provided  such  borrowings  remain
      outstanding  as of April 29, 2006,  the voting  record date for members of
      First Federal Financial Services,  MHC. Concurrently with the subscription
      offering,  shares not subscribed for in the subscription  offering will be
      offered  to  the  general  public  in a  direct  community  offering  with
      preference  given in the following  order: (1) to natural persons residing
      in Madison,  St. Clair,  Montgomery,  Clinton,  Bond, Jersey, and Macoupin
      counties in Illinois;  (2) to minority shareholders as of May 8, 2006; (3)
      to Clover Leaf  depositors as May 8, 2006; and (4) to other members of the
      general public.

                                       8
<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

                   Notes to Consolidated Financial Statements

      Subsequent to the  Conversion  and  Reorganization,  voting rights will be
      held and exercised  exclusively by the  stockholders of First Clover Leaf.
      Deposit  account  holders  will  continue  to be  insured  by the FDIC.  A
      liquidation  account  will  be  established  in an  amount  equal  to  the
      percentage of outstanding  shares of the common stock of the Company owned
      by the MHC multiplied by the Company's total stockholders equity as of the
      latest balance sheet date in the final  prospectus used in the Conversion.
      Each  eligible  account  holder or  supplemental  account  holder  will be
      entitled  to a  proportionate  share  of this  account  in the  event of a
      complete  liquidation  of the  Association,  and only in such event.  This
      share will be reduced if the  eligible  account  holder's or  supplemental
      account  holder's  deposit  balance falls below the amounts on the date of
      record and will cease to exist if the account is closed.  The  liquidation
      account will never be increased  despite any increase after  Conversion in
      the related deposit balance.

      Following  completion of the Conversion,  the Association may not declare,
      pay a  dividend  on,  or  repurchase  any  of  its  capital  stock  of the
      Association,  if the effect  thereof would cause  retained  earnings to be
      reduced  below  the  liquidation  account  amount  or  regulatory  capital
      requirements.  Any  purchase of First  Clover  Leaf  common  stock will be
      conducted  in  accordance  with  applicable  laws  and  regulations.   The
      Conversion is expected to be completed in July 2006.

      Conversion  costs will be deferred and reduce the proceeds from the shares
      sold in the Conversion. If the Conversion is not completed, all costs will
      be  expensed.  At March 31, 2006  conversion  costs of  $454,000  had been
      incurred  and are  included in other  assets on the  consolidated  balance
      sheet.

      Under the terms of the  merger  agreement,  the merger  consideration  for
      Clover  Leaf  stockholders  will be  based  on the  final  outcome  of the
      Conversion.  If the  Conversion  closes  at the  minimum,  maximum  or the
      adjusted maximum of the valuation  range,  Clover Leaf  stockholders  will
      receive a  combination  of First Clover Leaf stock and cash valued at $40,
      $42 or $43,  respectively,  per share. Between the minimum and maximum and
      maximum and  adjusted  maximum of the  valuation  range,  the value of the
      merger  consideration for Clover Leaf  stockholders  will be prorated.  In
      exchange for their shares, stockholders of Clover Leaf will have the right
      to elect either all First Clover Leaf stock, all cash, or a combination of
      First Clover Leaf stock and cash, provided that, in the aggregate,  70% of
      the Clover Leaf shares are  exchanged  for First Clover Leaf stock and 30%
      are exchanged for cash.

      The transaction is subject to certain  conditions,  including the required
      regulatory  approvals and approval by the  stockholders of Clover Leaf and
      the Company,  as well as approval of the Plan of Conversion by the members
      of the MHC and  stockholders  of the Company.  The Acquisition is to occur
      immediately  after,  and  is  contingent  upon,  the  consummation  of the
      Conversion.

      The Association operates as a  federally-chartered  stock savings and loan
      association,  originally  chartered by the State of Illinois in 1921.  The
      Association's  deposit accounts are insured up to a maximum of $100,000 by
      the FDIC.  On February 15, 2006,  federal  legislation  to reform  federal
      deposit insurance was enacted. This new legislation requires,  among other
      things,  an increase in the amount of federal deposit  insurance  coverage
      from  $100,000 to  $130,000  (with a cost of living  adjustment  to become
      effective in five years).

                                       9
<PAGE>


                     FIRST FEDERAL FINANCIAL SERVICES, INC.

                   Notes to Consolidated Financial Statements

(2)   Unrealized  losses and fair value,  aggregated by investment  category and
      length  of time  that  individual  securities  have  been in a  continuous
      unrealized loss position, as of March 31, 2006, are summarized as follows:

<TABLE>
<CAPTION>
                                    Less than 12 Months          12 Months or More                Total
                                     Fair      Unrealized        Fair      Unrealized        Fair       Unrealized
                                    Value         loss          Value         loss          Value         loss
                                 -----------   -----------   -----------   -----------   -----------   -----------
<S>                                  <C>            <C>        <C>             <C>         <C>             <C>
 Securities available for sale:
  U.S. government agency
      obligations                $ 3,225,165   $    45,208   $ 5,752,537   $   147,401   $ 8,977,702   $   192,609
  Corporate                          960,015        31,925     2,941,995       164,365     3,902,010       196,290
                                 -----------   -----------   -----------   -----------   -----------   -----------
                                 $ 4,185,180   $    77,133   $ 8,694,532   $   311,766   $12,879,712   $   388,899
                                 ===========   ===========   ===========   ===========   ===========   ===========

  Securities held to maturity:
  Mortgage-backed securities     $        --   $        --   $   298,457   $    16,608   $   298,457   $    16,608
                                 ===========   ===========   ===========   ===========   ===========   ===========
</TABLE>

     For all of the above  investment  securities,  the  unrealized  losses  are
     generally due to changes in interest  rates and, as such, are considered to
     be temporary, by the Company.

(3)   Basic and diluted income per share (EPS)  represents  income  available to
      common  stockholders  divided  by the  weighted  average  number of common
      shares  outstanding.  ESOP shares  which are  committed to be released are
      considered outstanding for basic and diluted income per share.

                                                         Three Months Ended
                                                             March 31,
                                                     -------------------------
                                                         2006          2005
                                                     -----------   -----------

Net income available to common stockholders          $   333,870   $   540,160
                                                     ===========   ===========

Basic potential common shares:
   Weighted average shares outstanding                 3,920,060     3,920,060
   Weighted average unallocated Employee Stock
      Ownership Plan shares                              (78,923)      (82,794)
                                                     -----------   -----------
          Basic weighted average shares outstanding    3,841,137     3,837,266

Dilutive potential common shares                              --            --
                                                     -----------   -----------

Dilutive weighted average shares outstanding           3,841,137     3,837,266
                                                     ===========   ===========

Basic and diluted income per share                   $      0.09   $      0.14
                                                     ===========   ===========

(4)   Subsequent  to March 31, 2006 the Board of Directors  declared a $0.13 per
      share  cash  dividend  payable  May 18,  2006 to  stockholders  of record,
      excluding First Federal  Financial  Services,  MHC, as of May 4, 2006. The
      Company expects that,  subject to regulatory  capital  requirements of the
      Association, financial condition and results of operations for the Company
      and  Association,  quarterly  dividends  will  continue  to be paid in the
      future.  No  assurances  can be given that  dividends  will be paid in the
      future.


                                       10
<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

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


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

When used in this Form 10-QSB,  the words or phrases "will likely  result," "are
expected  to," "will  continue,"  "is  anticipated,"  "estimate,"  "project"  or
similar expressions are intended to identify "forward-looking statements" within
the meaning of the Private  Securities  Litigation Act of 1995.  Such statements
are subject to certain  risks and  uncertainties  including  changes in economic
conditions  in our market  area,  changes in  policies by  regulatory  agencies,
fluctuations  in  interest  rates,  demand  for loans in our  market  area,  and
competition that could cause actual results to differ materially from historical
earnings and those  presently  anticipated  or projected.  The Company wishes to
caution you not to place undue reliance on any such forward-looking  statements,
which only speak as of the date made.  The Company wishes to advise you that the
factors listed above could affect the Company's financial  performance and could
cause the Company's actual results for future periods to differ  materially from
any  opinions or  statements  expressed  with  respect to future  periods in any
current statements.  The Company does not undertake,  and specifically disclaims
any  obligation,  to publicly  release the result of any revisions  which may be
made to any forward looking statements to reflect events or circumstances  after
the date of such  statements  or to reflect the  occurrence  of  anticipated  or
unanticipated events.

Overview
--------

The Company  completed an initial  public  offering on June 28, 2004 through the
sale and issuance by the Company of 1,764,027  shares of common stock at $10 per
share. Basic and diluted income per share was $.09 and $.14 for the three months
ended March 31, 2006 and 2005, respectively.

Qualitative Disclosures of Market Risk
--------------------------------------

The   Company's   principal   financial   objective  is  to  achieve   long-term
profitability  while reducing its exposure to fluctuating  interest  rates.  The
Company has an exposure to interest rate risk. The Company has employed  various
strategies  intended to minimize  the  adverse  effect of interest  rate risk on
future  operations  by  providing  a better  match  between  the  interest  rate
sensitivity  of  its  assets  and  liabilities.  In  particular,  the  Company's
strategies  are intended to stabilize  net interest  income for the long-term by
protecting its interest rate spread against  increases in interest  rates.  Such
strategies  include the  origination for portfolio of  adjustable-rate  mortgage
loans (AMLs) secured by one- to four- family,  multi-family,  and nonresidential
real estate and the origination of other types of adjustable-rate and short-term
loans with  greater  interest  rate  sensitivities  than  long-term,  fixed-rate
residential mortgage loans.

Quantitative Disclosures of Market Risk
---------------------------------------

The  Company  does  not  purchase  derivative  financial  instruments  or  other
financial instruments for trading purposes.  Further, the Company is not subject
to any foreign currency exchange rate risk, commodity price risk or equity price
risk.  The  Company is subject to  interest  rate risk.  The OTS  provides a net
market value  methodology  to measure the interest  rate risk exposure of thrift
institutions.  This  exposure is a measure of the  potential  decline in the net
portfolio value (NPV) of the institution based upon the effect of an assumed 100
basis point increase or decrease in interest rates.  NPV is the present value of
the  expected  net cash  flows  from  the  institution's  financial  instruments
(assets, liabilities and off-balance sheet contracts). Loans, deposits, advances
and investments are valued taking into consideration similar maturities, related
discount rates and applicable prepayment assumptions.

                                       11
<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

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

Liquidity and Capital Resources
-------------------------------

The Company's  principal sources of funds are cash receipts from deposits,  loan
repayments by borrowers,  proceeds from maturing  securities,  advances from the
Federal Home Loan Bank (FHLB) and net income.  The  Association has an agreement
with the FHLB of Chicago to obtain cash advances,  should the  Association  need
additional funds for loan originations or other purposes.

Commitments to originate  mortgage loans are legally binding  agreements to lend
to the Company's  customers.  Commitments,  which generally expire in 90 days or
less,  at March  31,  2006 to  originate  fixed-rate  loans for  portfolio  were
approximately  $879,000.  Commitments on behalf of borrowers for unused lines of
credit for  construction  adjustable  and  fixed-rate  loans were  approximately
$574,000  and  $706,000,  respectively.   Interest  rates  on  these  fixed-rate
commitments generally ranged from 5.50% to 7.00%.

Financial Condition
-------------------

Total assets  increased to $141.8  million at March 31, 2006 from $140.2 million
at December 31, 2005.  Securities  available for sale increased to $13.9 million
at March 31, 2006 from $12.9  million at December  31,  2005.  Purchases of $1.8
million were  partially  offset by  maturities  of $800,000.  At March 31, 2006,
Federal Home Loan Bank of Chicago (FHLBC) stock amounted to $6.2 million. During
October 2005, the Board of Directors of FHLBC decided to discontinue redemptions
of excess  or  voluntary  stock,  which is stock  held in  excess of the  amount
required  as a  condition  of  membership  or for  borrowings  from  the  FHLBC.
Dividends will continue to require approval by the Federal Housing Finance Board
(FHFB).  On  April  18,  2006,  the  FHLBC  announced  that it  would  reinstate
redemptions of excess or voluntary stock beginning later in 2006,  following the
issuance  during June 2006 by the FHLBC of $1 billion of  ten-year  subordinated
bonds.  The  Association may redeem excess stock in the future when permitted by
the FHLBC.  Loans, net were virtually unchanged from $115.6 million at March 31,
2005 to $115.8 million at March 31, 2006 as new loan originations were offset by
loan  collections.  Other  assets  increased  to $500,000 at March 31, 2006 from
$24,000 at December 31, 2005 due to costs  incurred  with the plan of conversion
and  reorganization  from a mutual holding company  formation to a capital stock
corporation and acquisition of Clover Leaf, pending regulatory approval.

Deposits  increased  slightly  to $103.5  million at March 31,  2006 from $102.1
million at December 31, 2005. Other  liabilities  increased to $408,000 at March
31, 2006 from $334,000 at December 31, 2005 as a result of the timing of payment
of Federal income taxes and certain accrued expenses.

Stockholders'  equity  increased  to $37.8  million at March 31, 2006 from $37.7
million at December  31,  2005,  as a result of net income of  $334,000  for the
three months ended March 31, 2006  partially  offset by cash  dividends  paid of
$185,000 and an increase in unrealized losses on securities,  net of tax effect,
of $50,000.

Subsequent  to March 31, 2006 the Board of Directors  declared a $0.13 per share
cash dividend  payable May 18, 2006 to stockholders  of record,  excluding First
Federal Financial Services, MHC, as of May 4, 2006.

The Association is required to maintain  certain  minimum  capital  requirements
under OTS regulations.  Failure by a savings institution to meet minimum capital
requirements can result in certain mandatory and possible  discretionary actions
by regulators,  which, if undertaken, could have a direct material effect on the
Association's  financial  statements.  Under the capital adequacy guidelines and
regulatory  framework for prompt  corrective  action,  the Association must meet
specific  capital   guidelines  that  involve   quantitative   measures  of  the
Association's  assets,  liabilities,  and  certain  off-balance  sheet  items as
calculated  under  regulatory  accounting  practices.  The  capital  amounts and
classifications   are  also  subject  to  judgments  by  the  regulators   about
components, risk-weightings and other factors.

                                       12
<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

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

The  Association's  actual and required  capital amounts and ratios at March 31,
2006 were as follows:

<TABLE>
<CAPTION>

                                                                               Minimum Required
                                                                  ----------------------------------------------
                                                                      for Capital             to be "Well
                                                 Actual                 Adequacy               Capitalized"
                                         ---------------------    ---------------------    ---------------------
                                           Amount      Ratio       Amount       Ratio       Amount      Ratio
                                         ---------   ---------    ---------   ---------    ---------   ---------
<S>                                     <C>             <C>      <C>              <C>     <C>               <C>
                                                                 (Dollars in Thousands)
Stockholders' equity                     $  29,953
Unrealized loss on securities AFS, net         159
                                         ---------
Tangible capital                         $  30,112       22.2%    $   2,033        1.5%         N/A
General valuation allowance                    429
                                         ---------

Total capital to risk-weighted assets    $  30,541       42.3%    $   5,782        8.0%    $   7,227        10.0%
                                         =========

Tier 1 capital to risk-weighted assets   $  30,112       41.7%    $     N/A                $   4,336         6.0%

Tier 1 capital to total assets           $  30,112       22.2%    $   5,421        4.0%    $   6,777         5.0%

</TABLE>

Critical Accounting Estimates
-----------------------------

The  Company  considers  the  allowance  for  loan  losses  to be  its  critical
accounting  estimate,  due to the higher degree of judgment and complexity  than
its other  significant  accounting  estimates.  The allowance for loan losses is
evaluated  quarterly by management and is based upon management's  consideration
of current  economic  conditions,  the Company's loan portfolio  composition and
historical loss experience used to estimate probable losses as well as the level
of  nonperforming   assets  and  classified  assets.   Management  also  reviews
individual loans for which full  collectibility  may not be reasonably  assured.
This  evaluation is  inherently  subjective  as it requires  estimates  that are
susceptible to significant revision as more information becomes available.

The analysis has two  components:  specific  and general  allocations.  Specific
allocations are made for loans that are determined to be impaired. Impairment is
measured by determining  the present value of expected future cash flows or, for
collateral-dependent loans, the fair value of the collateral adjusted for market
conditions  and  selling  expenses.  The general  allocation  is  determined  by
segregating  the remaining loans by type of loan, risk weighting (if applicable)
and payment  history.  Management  also  analyzes  historical  loss  experience,
delinquency  trends,  general  economic  conditions  and geographic and industry
concentrations.  This analysis  establishes factors that are applied to the loan
groups to determine the amount of the general allowance for loan losses.  Actual
loan losses may be  significantly  more than the  allowances  established  which
could have a material negative effect on the Company's financial results.

                                       13
<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

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

Asset Quality
-------------

The  following  table  sets forth  information  with  respect  to the  Company's
nonperforming loans at the dates indicated.

<TABLE>
<CAPTION>
                                                          March 31,    December 31,
                                                            2006           2005
                                                        ------------   ------------
<S>                                                          <C>              <C>
Loans 90 days or more past due and still accruing       $         --   $     11,035
Non-accruals                                                 441,207          4,453
                                                        ------------   ------------
  Total nonperforming loans                             $    441,207   $     15,488
                                                        ============   ============

Allowance for losses on nonperforming loans             $      6,947   $      4,453
                                                        ============   ============

Nonperforming loans with no allowance for loan losses   $    434,260   $     11,035
                                                        ============   ============
</TABLE>

At March 31, 2006, the Company had no loans which were not currently  classified
as  nonaccrual,  90 days past due or  restructured  but where known  information
about possible  credit problems of borrowers  caused  management to have serious
concerns  as to the  ability  of the  borrowers  to  comply  with  present  loan
repayment  terms and which may result in disclosure as nonaccrual,  90 days past
due or restructured.

Under the Company's  internal  review  policy,  loans  classified as substandard
increased to $438,766 at March 31, 2006 from $4,453 at December 31, 2005.

Following is a summary of activity in the allowance for loan losses:

Balance at December 31, 2005          $428,419
   Charge-offs                              --
   Recoveries                               --
   Provision charged to expense             --
                                      --------
Balance at March 31, 2006             $428,419
                                      ========

Results of Operations
---------------------

Net income  decreased to $334,000 for the three months ended March 31, 2006 from
$540,000 for the three  months ended March 31, 2005.  The decrease in net income
resulted  from lower net interest  income,  higher  noninterest  expense  offset
partially by lower income taxes.

Net interest income  decreased to $1.04 million for the three months ended March
31, 2006 from $1.26  million for the three  months  ended  March 31,  2005.  The
decrease was due, primarily, to a reduction in our interest rate spread to 2.10%
for the three months ended March 31, 2006 from 3.02% form the three months ended
March 31, 2005.  The decline in the  interest  rate spread was  attributable  to
higher rates paid on customer  deposits and, to a lesser  extent,  the effect of
lower rates earned on securities and loans.

                                       14
<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

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


The ratio of  interest-earning  assets to  interest-bearing  liabilities rose to
135.55% for the three  months  ended  March 31,  2006 from  134.97% for the same
period in 2005.  The  interest  rate spread was 2.10% for the three months ended
March 31, 2006 and 3.02% for the three months ended March 31, 2005.  The average
rate on interest-earning  assets decreased by 15 basis points, while the average
rate on interest-bearing  liabilities  increased by 77 basis points. The decline
in the interest  rate spread was  attributable  to higher rates paid on customer
deposits, and to a lesser extent, the effect of lower rates earned on securities
and loans.

Interest  income on loans  increased  slightly  to $1.69  million  for the three
months ended March 31, 2006 from $1.65  million for the three months ended March
31, 2005.  Interest  income on loans  increased as a result of a higher  average
balance, which offset a slightly lower average yield. The average yield on loans
decreased  to 5.84% for the three months ended March 31, 2006 from 5.87% for the
three months ended March 31, 2005.  Interest  income on securities  decreased to
$185,000  for the three  months  ended  March 31,  2006  from  $265,000  for the
comparable period in 2005.  Interest income on securities  dropped due primarily
to a lower yield  earned on FHLBC stock.  The dividend  yield on FHLBC stock has
dropped  from 5.50% at March 31, 2005 to 3.00% at March 31, 2006.  Overall,  the
average yield on securities  decreased to 3.67% for the three months ended March
31,  2006 from 4.81% for the three  months  ended  March 31,  2005.  The average
balance of  securities  was $20.2 million and $22.1 million for the three months
ended March 31, 2006 and 2005, respectively.  Components of interest income vary
from  time to time  based on the  availability  and  interest  rates  of  loans,
securities and other interest-earning assets.

Interest  expense on deposits  increased  to $873,000 for the three months ended
March 31, 2006 from $652,000 for the  comparable  period in 2005 due to a higher
average rate on deposits and a higher average balance.  The higher cost of funds
resulted from higher market interest rates paid on certificates.

There was no provision for loan losses for the three months ended March 31, 2006
and 2005. Provision for loan losses is based upon management's  consideration of
current  economic  conditions,  the Company's  loan  portfolio  composition  and
historical loss experience used to estimate probable losses as well as the level
of  nonperforming   assets  and  classified  assets.   Management  also  reviews
individual loans for which full collectibility may not be reasonably assured and
considers,  among other  matters,  the  estimated  fair value of the  underlying
collateral.  This  evaluation  is  ongoing  and  results  in  variations  in the
Company's  provision  for loan  losses.  The  Company  is  subject  to  periodic
examination  by the Office of Thrift  Supervision  (OTS),  which may require the
Company to record  increases  in the  allowances  based on their  evaluation  of
available  information.  There can be no assurance that the OTS will not require
further increases to the allowances.

Other noninterest income declined for the March 2006 quarter due to lower rental
income.

Noninterest  expense  increased to $504,000 for the three months ended March 31,
2006 from $412,000 for the three months ended March 31, 2005.  Compensation  and
employee benefits,  the largest component of noninterest  expense,  increased to
$230,000  for the three  months  ended  March 31,  2006  from  $222,000  for the
comparable  period in 2005.  Compensation and employee  benefits  increased as a
result of higher salary levels.  Advertising  increased to $77,000 for the three
months  ended March 31, 2006 from  $7,000 for the three  months  ended March 31,
2005.  Advertising  increased  due to  marketing  expenses  associated  with the
proposed  acquisition of Clover Leaf. Director fees increased to $44,000 for the
quarter ended March 31, 2006 from $32,000 for the comparable period in 2005 as a
result of an additional  board of directors  meeting held due to the acquisition
of Clover Leaf.

Professional  services increased to $51,000 for the three months ended March 31,
2006 from  $43,000  for the  comparable  period in 2005.  Professional  services
increased as a result of consulting fees associated with the Company's status as
a public company.  Other noninterest  expense decreased to $55,000 for the three
months ended March 31, 2006 from $62,000 for the  comparable  period in 2005 due
primarily to higher miscellaneous corporate expenses incurred in 2005.

                                       15
<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

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


Income  taxes  decreased  to $205,000  for the three months ended March 31, 2006
from $315,000 for the  comparable  period in 2005 due to lower  earnings  before
income taxes.  The effective tax rate was 38.0% for the three months ended March
31, 2006 versus 36.8% for the comparable period in 2005.

                             Controls and Procedures

As of the end of the period covered by this report,  the Company  carried out an
evaluation,  under the supervision and with the  participation  of the Company's
principal   executive   officer  and  principal   financial   officer,   of  the
effectiveness of the design and operation of the Company's  disclosure  controls
and procedures.  Based on this  evaluation,  the Company's  principal  executive
officer and principal financial officer concluded that the Company's  disclosure
controls  and  procedures  are  effective  in timely  alerting  them to material
information  required to be included in the Company's  periodic SEC reports.  It
should be noted that the design of any system of  controls is based in part upon
certain  assumptions about the likelihood of future events,  and there can be no
assurance  that any design will succeed in achieving  its stated goals under all
potential future conditions, regardless of how remote.

In addition,  there have been no changes in the Company's  internal control over
financial  reporting  during the most recent fiscal  quarter that has materially
affected,  or is reasonably likely to materially  affect, the Company's internal
control over financial reporting.

                                       16
<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

                           PART II - Other Information

Item 1 - Legal Proceedings.

      There are no material legal proceedings to which the Company is a party or
      of which any of their property is subject.  From time to time, the Company
      is a party to various legal proceedings incident to its business.

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

      No equity securities were sold during the quarter that were not registered
      under the  Securities  Exchange  Act.  No  repurchases  of stock were made
      during the quarter.

Item 3 - Defaults upon Senior Securities.

      Not applicable.

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

   (a) On April 20, 2006 the Company held its Annual Meeting of Stockholders.

   (b) At the meeting,  Larry W. Mosby, Joseph Stevens, and Robert Richards were
elected, each to serve a three-year term.

   (c) Stockholders voted on the following matters:

         (i) The election of the following directors of the Company:

         DIRECTOR:                  FOR          WITHHELD
         --------                   ---          --------

         Larry W. Mosby          3,531,019        12,900

         Joseph Stevens          3,531,019        12,900

         Robert Richards         3,531,019        12,900

   (ii) The  ratification  of the  appointment  of  McGladrey  & Pullen,  LLP as
   independent auditor for the Company for the year ended December 31, 2006:

                      VOTES            FOR        AGAINST     ABSTAIN
                      -----            ---        -------     -------

                    3,543,919       3,538,719       200        5,000

Item 5 - Other Information.

      None

Item 6 - Exhibits.

      (a)  Exhibits.
         31.1:  Certification of Chief Executive Officer pursuant to Section 302
                of the Sarbanes-Oxley Act of  2002.
         31.2:  Certification of Chief Financial Officer pursuant to Section 302
                of the Sarbanes-Oxley Act of 2002.
         32:    Certification  pursuant to Section 906 of the Sarbanes-Oxley Act
                of 2002.


                                       17
<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

                                   SIGNATURES
                                   ----------

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

                           FIRST FEDERAL FINANCIAL SERVICES, INC.
                           --------------------------------------
                                 (Small Business Issuer)

DATE: May 15, 2006         BY:      /s/ Larry W. Mosby
      ------------                  -------------------------------------
                                    Larry W. Mosby, President and Chief
                                    Executive Officer

DATE: May 15, 2006         BY:      /s/ Donald Engelke
      ------------                  -------------------------------------
                                    Donald Engelke, Senior Vice President
                                    and Chief Financial Officer


                                       18