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 June 30, 2004
                               -------------

                                       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)

Indicate by check mark whether the registrant (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 . No X .

Transitional Small Business Disclosure Format (Check one): 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 August 6, 2004
--------------------------------------                --------------------------
Common Stock, par value $.10 per share                3,920,060 *

*    As of  August  6,  2004,  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 JUNE 30, 2004

                                      INDEX


                                                                        PAGE NO.


PART I - Financial Information                                             3

    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                       9

     Controls and Procedures                                              15

PART II - Other Information                                               16

Certifications                                                            17



<PAGE>


                     FIRST FEDERAL FINANCIAL SERVICES, INC.

                                   Form 10-QSB

                       For the Quarter Ended June 30, 2004

                           Consolidated Balance Sheets
                                   (Unaudited)


<TABLE>
<CAPTION>

                                                                                     June 30,           December 31,
      Assets                                                                           2004                 2003
                                                                                 ------------------  ------------------
<S>                                                                            <C>                           <C>
Cash and due from banks                                                        $           791,690           1,343,860
Federal funds sold                                                                      15,600,000             800,000
                                                                                 ------------------  ------------------
   Total cash and cash equivalents                                                      16,391,690           2,143,860
Interest-bearing time deposits                                                             500,000             500,000
Securities available for sale                                                            7,526,528           9,856,218
Securities held to maturity, at amortized cost (fair value
   of $536,523 and $665,577, respectively)                                                 552,367             668,602
Federal Home Loan Bank stock                                                             5,582,500           5,401,700
Loans, net of allowance for loan losses
   of $428,419 and $428,700, respectively                                              103,243,435         101,144,595
Property and equipment                                                                     861,661             873,029
Accrued interest receivable                                                                302,341             299,587
Foreclosed real estate                                                                      18,377                   -
Other assets                                                                               125,190              83,216
                                                                                 ------------------  ------------------
      Total assets                                                             $       135,104,089         120,970,807
                                                                                 ==================  ==================
      Liabilities and Stockholders' Equity
Deposits:
    Savings                                                                    $        29,623,823          27,386,692
    Time                                                                                68,361,501          70,544,640
                                                                                 ------------------  ------------------
      Total deposits                                                                    97,985,324          97,931,332
Advances from FHLB                                                                       1,000,000           4,000,000
Accrued interest payable                                                                     4,414              13,243
Other liabilities                                                                          501,197             307,506
                                                                                 ------------------  ------------------
      Total liabilities                                                                 99,490,935         102,252,081
                                                                                 ------------------  ------------------
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 and 100 shares issued and outstanding                                         392,006                  10
Additional paid-in capital                                                              16,514,931               4,990
Unearned employee stock ownership plan shares                                             (882,010)                  -
Retained earnings - substantially restricted                                            19,654,512          18,705,730
Accumulated other comprehensive income (loss), net                                         (66,285)              7,996
                                                                                 ------------------  ------------------
      Total stockholders' equity                                                        35,613,154          18,718,726
                                                                                 ------------------  ------------------
      Total liabilities and stockholders' equity                               $       135,104,089         120,970,807
                                                                                 ==================  ==================
</TABLE>

See accompanying notes to consolidated financial statements.


                                       3

<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

                        Consolidated Statements of Income
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                               Three Months Ended                  Six Months Ended
                                                                      June 30,                          June 30,
                                                          -------------------------------  -------------------------------
                                                              2004             2003            2004             2003
                                                          --------------   --------------  --------------   --------------
Interest income:
<S>                                                     <C>                    <C>             <C>              <C>
Interest and fees on loans                              $     1,593,548        1,519,381       3,139,672        3,064,017
Securities:
   Taxable interest income                                       86,188          149,819         190,886          255,284
   Nontaxable income                                                683            1,313           1,365            6,417
   Dividends                                                     81,366           80,722         180,929          133,373
Interest bearing deposits                                        16,493            8,694          28,112           28,030
                                                          --------------   --------------  --------------   --------------
      Total interest income                                   1,778,278        1,759,929       3,540,964        3,487,121
                                                          --------------   --------------  --------------   --------------
Interest expense:
   Deposits                                                     628,167          711,300       1,259,405        1,475,285
   Advances from Federal Home Loan Bank                           4,552                -          15,479                -
                                                          --------------   --------------  --------------   --------------
      Total interest expense                                    632,719          711,300       1,274,884        1,475,285
                                                          --------------   --------------  --------------   --------------
      Net interest income                                     1,145,559        1,048,629       2,266,080        2,011,836
Provision for loan losses                                             -           10,000               -           10,000
                                                          --------------   --------------  --------------   --------------
      Net interest income after
          provision for loan losses                           1,145,559        1,038,629       2,266,080        2,001,836
                                                          --------------   --------------  --------------   --------------
Noninterest income:
   Loss on sale of securities available for sale                      -                -               -          (45,777)
   Other                                                            (75)             855           3,385            3,584
                                                          --------------   --------------  --------------   --------------
      Total noninterest income                                      (75)             855           3,385          (42,193)
                                                          --------------   --------------  --------------   --------------
Noninterest expense:
   Compensation and employee benefits                           203,237          186,444         411,766          361,339
   Occupancy expense                                             26,900           22,475          49,836           48,333
   Data processing services                                      14,633           15,392          31,858           30,743
   Advertising                                                    6,152            8,890          11,960           18,247
   Director fees                                                 53,400           36,200          84,850           63,650
   Professional services                                         32,071           11,349          50,166           22,613
   Other                                                         47,546           53,445          89,422           82,077
                                                          --------------   --------------  --------------   --------------
      Total noninterest expense                                 383,939          334,195         729,858          627,002
                                                          --------------   --------------  --------------   --------------
      Income before income taxes                                761,545          705,289       1,539,607        1,332,641
Income taxes                                                    293,925          269,300         590,825          531,900
                                                          --------------  --------------   --------------   --------------
      Net income                                        $       467,620          435,989         948,782          800,741
                                                          ==============   ==============  ==============   ==============
Basic and diluted income per share                      $             *                *               *                *
                                                          ==============   ==============  ==============   ==============
Dividends per share                                     $             -                -               -                -
                                                          ==============   ==============  ==============   ==============

See accompanying notes to consolidated financial statements.

* Not meaningful since initial public offering completed on June 28, 2004.

</TABLE>


                                       4


<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

                 Consolidated Statements of Comprehensive Income
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                     Three Months Ended              Six Months Ended
                                                          June 30,                       June 30,
                                               ---------------------------    --------------------------
                                                  2004           2003            2004           2003
                                               ------------   ------------    -----------    -----------

<S>                                          <C>                  <C>            <C>            <C>
Net income                                   $     467,620        435,989        948,782        800,741
Other comprehensive income:
   Reclassification adjustment for loss
        included in income, net of tax                   -              -              -         27,924
   Unrealized gains (losses) on securities
        arising during the period                 (117,568)        30,325        (74,281)        15,029
                                               ------------   ------------    -----------    -----------
Comprehensive income                         $     350,052        466,314        874,501        843,694
                                               ============   ============    ===========    ===========
</TABLE>
See accompanying notes to consolidated financial statements.























                                       5

<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

                      Consolidated Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                             Six Months Ended
                                                                                                 June 30,
                                                                                  --------------------------------------
                                                                                        2004                 2003
                                                                                  -----------------    -----------------
Cash flows from operating activities:
<S>                                                                             <C>                             <C>
   Net income                                                                   $          948,782              800,741
   Adjustments to reconcile net income to net
      cash provided by operating activities:
      Amortization of:
         Deferred loan origination (fees) costs, net                                       (12,867)             124,348
         Premiums and discounts on securities                                                9,615               26,194
      Provision for loan losses                                                                  -               10,000
      Loss on sale of securities available for sale                                              -               45,777
      Depreciation and amortization                                                         23,449               27,562
      FHLB stock dividends                                                                (180,800)            (191,900)
      Change in assets and liabilities:
        Decrease (increase) in accrued interest receivable                                  (2,754)              12,500
        Decrease (increase) in other assets                                                  5,137               45,604
        Increase (decrease) in accrued interest payable                                     (8,829)              (2,759)
        Increase (decrease) in other liabilities                                           193,691              129,139
                                                                                  -----------------    -----------------
                   Net cash flows from operating activities                                975,424            1,027,206
                                                                                  -----------------    -----------------
Cash flows from investing activities:
   Available for sale securities:
      Purchases                                                                                  -           (8,294,234)
      Proceeds from sale                                                                         -            1,287,450
      Proceeds from call and maturities                                                  2,200,000            4,900,000
   Held to maturity securities:
      Purchases                                                                                  -             (770,218)
      Proceeds from paydowns                                                               114,918               43,596
   Purchase of Federal Home Loan Bank Stock                                                      -           (1,000,000)
   Loan originations, net of principal collected                                        (2,104,350)          (2,992,114)
   Purchase of property and equipment                                                      (12,081)             (11,736)
                                                                                  -----------------    -----------------
           Net cash flows from investing activities                             $          198,487           (6,837,256)
                                                                                  -----------------    -----------------
                                                                                                             (Continued)
</TABLE>









                                       6

<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

                      Consolidated Statements of Cash Flows
                                   (Unaudited)

(Continued)
<TABLE>
<CAPTION>
                                                                                              Six Months Ended
                                                                                                  June 30,
                                                                                  ----------------------------------------
                                                                                        2004                  2003
                                                                                  ------------------    ------------------

Cash flows from financing activities:
<S>                                                                             <C>                               <C>
   Net increase (decrease) in savings accounts                                  $         2,237,131               780,534
   Net increase (decrease) in time accounts                                              (2,183,139)            1,661,875
   Repayment of advances from FHLB                                                       (3,000,000)                    -
   Proceeds from issuance of common stock                                                16,019,927                     -
                                                                                  ------------------    ------------------
         Cash flows from financing activities                                            13,073,919             2,442,409
                                                                                  ------------------    ------------------
Net increase (decrease) in cash and cash equivalents                                     14,247,830            (3,367,641)
Cash and cash equivalents at beginning of period                                          2,143,860             4,269,844
                                                                                  ------------------    ------------------
Cash and cash equivalents at end of period                                      $        16,391,690               902,203
                                                                                  ==================    ==================


Supplemental schedule of noncash investing and financing activities:
Real estate acquired in settlement of loan                                      $            18,377                     -

Supplemental disclosures of cash flow information:
Cash paid (received) during the period for:
   Interest                                                                     $         1,283,713             1,478,044
   Income taxes, net of refunds                                                 $           508,438               422,435

</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  periods.  The results of  operations  for the
     interim periods 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, 2003 contained in
     the Prospectus.

     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  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 $16,019,927 after deduction of conversion costs of $738,333, and
     unearned compensation related to shares issued to the ESOP.

     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 Savings Association Insurance Fund (SAIF), which is administered by the
     Federal Deposit Insurance Corporation (FDIC).

(2)  Earnings per share for the three and six months ended June 30, 2004 has not
     been presented and is not considered  meaningful,  since the initial public
     offering was consummated on June 28, 2004.







                                       8

<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.


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

General
-------

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.

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.


                                       9

<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 provide 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 June  30,  2004 to  originate  adjustable  and  fixed-rate  loans  for
portfolio were approximately $853,000 and $2,806,000, respectively.  Commitments
on behalf of borrowers  for unused lines of credit for  construction  adjustable
and fixed-rate loans were approximately $1,228,000 and $1,321,000, respectively.
Interest rates on these fixed-rate  commitments  generally ranged from 5.375% to
6.375%.

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

Total  assets  increased  from  $121.0  million at  December  31, 2003 to $135.1
million at June 30, 2004.  Proceeds  from sale of common stock of $16.0  million
were  temporarily  invested in federal funds sold and other cash  equivalents at
June 30, 2004.  Subsequently,  the  Association  and Company  have  purchased or
committed to purchase $10.5 million in federal agency  obligations and corporate
debt  securities.  The  Association  and the Company  plan to use the  remaining
proceeds to fund loans and purchase certain securities. Securities available for
sale  decreased  from $9.9  million at December 31, 2003 to $7.5 million at June
30, 2004. The decline in securities  available for sale is due to maturities and
calls of  certain  securities.  Loans,  net  increased  from  $101.1  million at
December  31,  2003 to $103.2  million at June 30,  2004 as a result of new loan
originations, partially offset by loan collections. Advances from FHLB decreased
from $4.0  million at December  31, 2003 to $1.0  million at June 30,  2004,  as
certain advances from FHLB of Chicago were repaid.  Other liabilities  increased
from  $308,000 at December  31, 2003 to $501,000 at June 30, 2004 as a result of
the timing of payment of Federal  income  taxes and  certain  accrued  expenses.
Stockholders'  equity increased from $18.8 million at December 31, 2003 to $35.6
million at June 30, 2004,  primarily  as a result of the  proceeds  from sale of
common stock and net income for the six months ended June 30, 2004.

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.


                                       10


<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 June 30,
2004 are as follows:

<TABLE>
<CAPTION>

                                                                                       Minimum    Required
                                                                        ------------------------------------------------
                                                                              for Capital             to be "Well
                                                       Actual                  Adequacy               Capitalized"
                                               -----------------------  ------------------------ -----------------------
                                                 Amount       Ratio        Amount       Ratio       Amount      Ratio
                                               ------------ ----------  ------------ ----------- ------------ ----------
                                                                        (Dollars in Thousands)
<S>                                           <C>            <C>        <C>          <C>         <C>          <C>
Stockholders' equity                          $     26,857
Unrealized loss on securities AFS, net                  66
                                               ------------
Tangible capital                              $     26,923      19.9%  $     2,028        1.5%         N/A
General valuation allowance                            428
                                               ------------

Total capital to risk-weighted assets         $     27,351      41.5%  $     5,268        8.0%  $     6,585      10.0%
                                               ============

Tier 1 capital to risk-weighted assets        $     26,923      40.9%  $       N/A              $     3,950       6.0%

Tier 1 capital to total assets                $     26,923      19.9%  $     5,407        4.0%  $     6,759       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.




                                       11

<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>
                                                                               June 30,         December 31,
                                                                                 2004                   2003
                                                                           ------------------   ---------------------

<S>                                                                      <C>                                 <C>
Nonaccrual loans                                                         $           118,562                 140,453
Accruing loans past due 90 days or more                                                    -                       -
                                                                           ------------------   ---------------------
  Total nonperforming loans                                              $           118,562                 140,453
                                                                           ==================   =====================

Allowance for losses on nonperforming loans                              $            11,856                  14,045
                                                                           ==================   =====================

Nonperforming loans with no allowance for loan losses                    $                 -                       -
                                                                           ==================   =====================
</TABLE>


At June 30, 2004,  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 from $181,500 at December 31, 2003 to $214,815 at June 30, 2004. Loans
classified as doubtful amounted to $280 at December 31, 2003 compared to none at
June 30, 2004.

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

<TABLE>
<CAPTION>

<S>                                                                      <C>
Balance at December 31, 2003                                             $           428,700
   Charge-offs                                                                          (281)
   Recoveries                                                                              -
   Provision charged to expense                                                            -
                                                                           ------------------
Balance at June 30, 2004                                                 $           428,419
                                                                           ==================
</TABLE>




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

Net income  increased  from $436,000 for the three months ended June 30, 2003 to
$468,000 for the three months ended June 30,  2004.  Net income  increased  from
$801,000  for the six months  ended June 30, 2003 to $949,000 for the six months
ended June 30,  2004.  The  increase  in net  income  resulted  from  higher net



                                       12

<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.


interest income,  which more than offset higher  noninterest  expense and income
taxes.

Net interest income increased from $1.05 million for the three months ended June
30, 2003 to $1.15 million for the three months ended June 30, 2004. Net interest
income  increased  for the six month periods from $2.01 million in 2003 to $2.27
million in 2004.  The increase  was due to a higher  interest  rate spread.  The
interest rate spread was 3.09 % for the six months ended June 30, 2003 and 3.33%
for the

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


six months ended June 30,  2004.  The average  rate on  interest-earning  assets
decreased  by 33  basis  points,  while  the  average  rate on  interest-bearing
liabilities  decreased by 57 basis points.  The improvement in the interest rate
spread is attributable to the repricing of deposit rates, which more than offset
the effect of lower rates earned on loans.

Interest income on loans increased from $1.52 million for the three months ended
June 30,  2003 to $1.59  million  for the  three  months  ended  June 30,  2004.
Interest  income on loans  increased from $3.06 million for the six months ended
June 30, 2003 to $3.14 million for the six months ended June 30, 2004.  Interest
income on loans  increased as a result of a higher  average  balance,  partially
offset by a lower average yield. The average yield on loans decreased from 6.62%
for the six months  ended June 30,  2003 to 6.09% for the six months  ended June
30, 2004. The average  balance of loans was $92.5 million and $103.2 million for
the six months ended June 30, 2003 and 2004,  respectively.  The higher  average
balance  for  loans  reflects  an  increase  in  loan  originations,  due to the
relatively  low  interest  rate  environment.   Interest  income  on  securities
decreased as a result of a lower average  balance,  partially offset by a higher
average yield.  The average  balance of securities for the six months ended June
30, 2003 and 2004 was $18.2 million and $14.5 million, respectively. The average
yield on  securities  for the six months  ended June 30, 2003 and 2004 was 4.32%
and 5.14%, respectively.

Interest  expense on deposits  declined from $711,000 for the three months ended
June 30, 2003 to $628,000 for the comparable period in 2004. Interest expense on
deposits  decreased from $1.48 million for the six months ended June 30, 2003 to
$1.26 million for the comparable  period in 2004.  Interest  expense on deposits
decreased  as a result of a lower  average  rate,  partially  offset by a higher
average balance.  The average rate on deposits  decreased from 3.03% for the six
months  ended  June 30,  2003 to 2.49% for the  comparable  period in 2004.  The
average  balance of deposits  was $97.4  million and $101.2  million for the six
months ended June 30, 2003 and 2004, respectively.  Interest expense on advances
from the FHLB increased due to a higher average balance.

The  provision  for loan  losses  decreased  from  $10,000 for the three and six
months  ended June 30,  2003 to none for the  comparable  periods  in 2004.  The
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


                                       13
<PAGE>


                     FIRST FEDERAL FINANCIAL SERVICES, INC.


allowances based on their evaluation of available  information.  There can be no
assurance that the OTS will not require further increases to the allowances.

Noninterest  income  increased  from a loss of $42,000 for the six months  ended
June 30, 2003 to income of $3,000 for the  comparable  period in 2004.  The 2003
period  included  losses on sales of  securities  available for sale of $46,000.
Other noninterest income consists of rental income, net of expenses.

Noninterest  expense increased from $334,000 for the three months ended June 30,
2003 to $384,000 for the three months ended June 30, 2004.  Noninterest  expense
increased  from  $627,000 for the six months ended June 30, 2003 to $730,000 for
the comparable period in 2004. Compensation and


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


employee  benefits  increased  from $186,000 for the three months ended June 30,
2003 to $203,000 for the comparable  period in 2004.  Compensation  and employee
benefits  increased  from  $361,000  for the six months  ended June 30,  2003 to
$412,000 for the comparable  period in 2004.  Compensation and employee benefits
increased due to salary  increases and higher benefit costs  associated with the
retirement  plan  and  employee  bonus  plan,   which   distributes  5%  of  the
Association's  pre-tax income to its employees based upon each employee's  years
of service and salary  level.  The Company  expects  compensation  and  employee
benefit  expenses  to  increase  in the  future due to  expenses  related to the
Employee Stock Ownership Plan approved as part of the stock conversion. Pursuant
to  Statement  of Position  93-6,  "Employers'  Accounting  for  Employee  Stock
Ownership Plans," the Company will recognize  compensation  expense equal to the
fair market value of shares committed to be released during the period. Director
fees  increased from $36,000 for the three months ended June 30, 2003 to $53,000
for the comparable period in 2004.  Director fees increased from $64,000 for the
six months  ended June 30,  2003 to $85,000 for the  comparable  period in 2004.
Director fees increased as a result of additional  director meetings held due to
the stock  conversion  and the addition of one director.  Professional  services
increased  from  $11,000 for the three months ended June 30, 2003 to $32,000 for
the comparable period in 2004.  Professional services increased from $23,000 for
the six months ended June 30, 2003 to $50,000 for the comparable period in 2004.
Professional  services increased as a result of higher audit fees incurred.  The
Company also expects other noninterest  expense to increase in the future due to
the additional costs of operating as a public entity.

Income taxes increased from $269,000 for the three months ended June 30, 2003 to
$294,000 for the comparable period in 2004. Income taxes increased from $532,000
for the six months ended June 30, 2003 to $591,000 for the comparable  period in
2004. Income taxes increased due to higher pretax income. The effective tax rate
was  38.2%  for the  three  months  ended  June 30,  2003  versus  38.6% for the
comparable  period in 2004.  The effective tax rate was 39.9% for the six months
ended June 30, 2003 versus 38.4% for the comparable period in 2004.




                                       14

<PAGE>

                      FIRST FEDERAL FINANCIAL SERVICES INC.

                             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.











                                       15

<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 - Changes in Securities and Use of Proceeds.

     (a)  Not applicable.
     (b)  Not applicable.
     (c)  Not applicable.
     (d)  Proceeds  from sale of  common  stock  were  temporarily  invested  in
          federal  funds  sold and  other  cash  equivalents  at June 30,  2004.
          Subsequently,  the Association and Company have purchased or committed
          to purchase $10.5 million in federal agency  obligations and corporate
          debt securities.
     (e)  Not applicable.

Item 3 - Defaults upon Senior Securities.

     Not applicable.

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

     None

Item 5 - Other Information.

     None

Item 6 - Exhibits and Reports on Form 8-K.

     (a)  Exhibit 31.1:  Certification  of Chief Executive  Officer  pursuant to
          Section 302 of the Sarbanes-Oxley Act of 2002.
     (b)  Exhibit 31.2:  Certification  of Chief Financial  Officer  pursuant to
          Section 302 of the Sarbanes-Oxley Act of 2002.
     (c)  Exhibit   32:   Certification   pursuant   to   Section   906  of  the
          Sarbanes-Oxley Act of 2002.
     (d)  Reports  on Form  8-K:  On June 28,  2004 the  Company  issued a press
          release reporting that it had completed its initial stock offering.


                                   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: August 11, 2004     BY: /s/ Larry W. Mosby
      ---------------         ------------------
                              Larry Mosby, President and Chief Executive Officer



                          BY: /s/ Donald Engelke
                              ------------------
                              Donald Engelke, Vice President and Chief Financial
                              Officer


                                       16

<PAGE>


                     FIRST FEDERAL FINANCIAL SERVICES, INC.

                                                                    Exhibit 31.1

                    Certification of Chief Executive Officer
            Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I  Larry W. Mosby, President and Chief Executive Officer, certify that:

1.   I have  reviewed  this  quarterly  report on Form  10-QSB of First  Federal
     Financial Services, Inc.;

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the small business issuer as of, and for, the periods presented in
     this quarterly report;

4.   The small business issuer's other certifying officers and I are responsible
     for  establishing  and maintaining  disclosure  controls and procedures (as
     defined  in  Exchange  Act Rules  13a-15(e)  and  15d-15(e))  for the small
     business issuer and have:

     (a)  designed  such  disclosure  controls  and  procedures,  or caused such
          disclosure   controls  and   procedures  to  be  designed   under  our
          supervision, to ensure that material information relating to the small
          business  issuer,  including its  consolidated  subsidiaries,  is made
          known to us by others within those entities,  particularly  during the
          period in which this quarterly report is being prepared;

     (b)  evaluated the effectiveness of the small business issuer's  disclosure
          controls and  procedures  and presented in this  quarterly  report our
          conclusions  about the  effectiveness  of the disclosure  controls and
          procedures,  as of the end of the  period  covered  by this  quarterly
          report based on such evaluation; and

     (c)  disclosed  in this  report any change in the small  business  issuer's
          internal  control over financial  reporting  that occurred  during the
          small business issuer's most recent fiscal quarter (the small business
          issuer's  fourth fiscal  quarter in case of an annual report) that has
          materially affected, or is reasonably likely to materially affect, the
          small business issuer's internal control over financial reporting; and

5.   The small business issuer's other certifying officers and I have disclosed,
     based on our most recent  evaluation  of internal  control  over  financial
     reporting,  to the small business issuer's auditors and the audit committee
     of the small business issuer's board of directors:

     (a)  all significant  deficiencies and material weaknesses in the design or
          operation  of internal  control  over  financial  reporting  which are
          reasonably  likely to  adversely  affect the small  business  issuer's
          ability   to  record,   process,   summarize   and  report   financial
          information; and

     (b)  any fraud, whether or not material,  that involves management or other
          employees who have a significant  role in the small business  issuer's
          internal control over financial reporting.



Date: August 11, 2004

                                 /s/ Larry W. Mosby
                                 -------------------------------------
                                 Larry W. Mosby
                                 President and Chief Executive Officer


                                       17

<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

                                                                   Exhibit 31.2

                    Certification of Chief Financial Officer
            Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Donald Engelke, Vice President and Chief Financial Officer, certify that:

1.   I have  reviewed  this  quarterly  report on Form  10-QSB of First  Federal
     Financial Services, Inc.;

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the small business issuer as of, and for, the periods presented in
     this quarterly report;

4.   The small business issuer's other certifying officers and I are responsible
     for  establishing  and maintaining  disclosure  controls and procedures (as
     defined  in  Exchange  Act Rules  13a-15(e)  and  15d-15(e))  for the small
     business issuer and have:

     (a)  designed  such  disclosure  controls  and  procedures,  or caused such
          disclosure   controls  and   procedures  to  be  designed   under  our
          supervision, to ensure that material information relating to the small
          business  issuer,  including its  consolidated  subsidiaries,  is made
          known to us by others within those entities,  particularly  during the
          period in which this quarterly report is being prepared;

     (b)  evaluated the effectiveness of the small business issuer's  disclosure
          controls and  procedures  and presented in this  quarterly  report our
          conclusions  about the  effectiveness  of the disclosure  controls and
          procedures,  as of the end of the  period  covered  by this  quarterly
          report based on such evaluation; and

     (c)  disclosed  in this  report any change in the small  business  issuer's
          internal  control over financial  reporting  that occurred  during the
          small business issuer's most recent fiscal quarter (the small business
          issuer's  fourth fiscal  quarter in case of an annual report) that has
          materially affected, or is reasonably likely to materially affect, the
          small business issuer's internal control over financial reporting; and

5.   The small business issuer's other certifying officers and I have disclosed,
     based on our most recent  evaluation  of internal  control  over  financial
     reporting,  to the small business issuer's auditors and the audit committee
     of the small business issuer's board of directors:

     (a)  all significant  deficiencies and material weaknesses in the design or
          operation  of internal  control  over  financial  reporting  which are
          reasonably  likely to  adversely  affect the small  business  issuer's
          ability   to  record,   process,   summarize   and  report   financial
          information; and

     (b)  any fraud, whether or not material,  that involves management or other
          employees who have a significant  role in the small business  issuer's
          internal control over financial reporting.



Date: August 11, 2004
                                      /s/ Donald Engelke
                                      ------------------------------------------
                                      Donald Engelke
                                      Vice President and Chief Financial Officer


                                       18

<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

                                                                      Exhibit 32

      Certification of Chief Executive Officer and Chief Financial Officer
            Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Larry W. Mosby, Chief Executive Officer, and Donald Engelke,  Vice President and
Chief Financial  Officer,  of First Federal Financial  Services,  Inc. (Company)
each  certify in his  capacity as an officer of the Company that he has reviewed
the  Quarterly  Report of the Company on Form 10-QSB for the quarter  ended June
30, 2004 (Report) and that to the best of his knowledge:

     1.   the Report fully  complies with the  requirements  of Section 13(a) of
          the Securities Exchange Act of 1934; and
     2.   the  information  contained  in this Report  fairly  presents,  in all
          material respects,  the financial  condition and results of operations
          of the Company.



                                 By:   /s/ Larry W. Mosby
                                       -----------------------------------------
                                       Larry W. Mosby
                                       President and Chief Executive Officer



                                 By:  /s/ Donald Engelke
                                      -----------------------------------------
                                      Donald Engelke
                                      Vice President and Chief Financial Officer


Date:  August 11, 2004