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 September 30, 2005
                               ------------------

                                       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 .
                                                               ---     ---
State 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 October 27, 2005
--------------------------------------              ----------------------------
Common Stock, par value $.10 per share                      3,920,060 *

* As of October 27, 2005, 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 SEPTEMBER 30, 2005

                                      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                       10

     Controls and Procedures                                               16

PART II - Other Information                                                17

Certifications                                                             18


<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

                           Consolidated Balance Sheets
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                              September 30,     December 31,
      Assets                                                       2005             2004
                                                              -------------    -------------
<S>                                                           <C>              <C>
Cash and due from banks                                       $     845,173    $   1,536,987
Federal funds sold                                                1,400,000          100,000
                                                              -------------    -------------
   Total cash and cash equivalents                                2,245,173        1,636,987
Interest-bearing time deposits                                      500,000          500,000
Securities available for sale                                    14,129,987       14,333,810
Securities held to maturity, at amortized cost (fair value
   of $362,804 and $464,575, respectively)                          375,106          472,418
Federal Home Loan Bank stock                                      6,156,100        7,771,300
Loans, net of allowance for loan losses
   of $428,419 and $428,419, respectively                       114,602,590      112,160,553
Property and equipment                                              863,977          865,367
Accrued interest receivable                                         437,291          414,067
Other assets                                                        177,283           39,523
                                                              -------------    -------------
      Total assets                                            $ 139,487,507    $ 138,194,025
                                                              =============    =============

      Liabilities and Stockholders' Equity
Deposits:
    Savings                                                   $  24,427,248    $  28,107,164
    Time, $100,000 and over                                      12,431,059       11,271,212
    Time, under $100,000                                         64,609,547       58,875,951
                                                              -------------    -------------
      Total deposits                                            101,467,854       98,254,327
Advances from FHLB                                                       --        2,900,000
Accrued interest payable                                              4,114            6,852
Dividends payable                                                   199,814               --
Other liabilities                                                   453,444          437,200
                                                              -------------    -------------
      Total liabilities                                         102,125,226      101,598,379
                                                              -------------    -------------
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                                       16,535,611       16,522,464
Retained earnings - substantially restricted                     21,378,089       20,533,533
Accumulated other comprehensive loss, net                          (137,266)         (13,274)
Unearned employee stock ownership plan shares                      (806,159)        (839,083)
                                                              -------------    -------------
      Total stockholders' equity                                 37,362,281       36,595,646
                                                              -------------    -------------
      Total liabilities and stockholders' equity              $ 139,487,507    $ 138,194,025
                                                              =============    =============
</TABLE>

See accompanying notes to consolidated financial statements.

                                       3
<PAGE>
<TABLE>
<CAPTION>

                               FIRST FEDERAL FINANCIAL SERVICES, INC.

                                 Consolidated Statements of Income
                                            (Unaudited)


                                                     Three Months Ended        Nine Months Ended
                                                        September 30,            September 30,
                                                  -----------------------   -----------------------
                                                     2005         2004         2005         2004
                                                  ----------   ----------   ----------   ----------
<S>                                               <C>          <C>          <C>          <C>
Interest income:
Interest and fees on loans                        $1,680,555   $1,567,562   $5,003,621   $4,707,234
Securities:
   Taxable interest income                           151,199      142,431      464,454      333,317
   Nontaxable income                                      --          682           --        2,047
   Dividends                                          75,211       82,707      284,899      263,636
Interest-bearing deposits                             23,422       23,354       51,188       51,466
                                                  ----------   ----------   ----------   ----------
      Total interest income                        1,930,387    1,816,736    5,804,162    5,357,700
                                                  ----------   ----------   ----------   ----------
Interest expense:
   Deposits                                          781,361      606,185    2,127,207    1,865,590
   Advances from Federal Home Loan Bank                   --        3,169       13,939       18,648
                                                  ----------   ----------   ----------   ----------
      Total interest expense                         781,361      609,354    2,141,146    1,884,238
                                                  ----------   ----------   ----------   ----------
      Net interest income                          1,149,026    1,207,382    3,663,016    3,473,462
Provision for loan losses                                 --           --           --           --
                                                  ----------   ----------   ----------   ----------
      Net interest income after
          provision for loan losses                1,149,026    1,207,382    3,663,016    3,473,462
                                                  ----------   ----------   ----------   ----------
Noninterest income - other                             2,315        8,392       10,382       11,777
                                                  ----------   ----------   ----------   ----------
Noninterest expense:
   Compensation and employee benefits                227,412      233,373      666,400      645,139
   Occupancy expense                                  30,330       28,211       84,105       78,047
   Data processing services                           16,217       16,810       50,814       48,668
   Advertising                                        13,558        9,467       31,449       21,427
   Director fees                                      32,700       33,050      116,850      117,900
   Professional services                              53,981       45,571      171,762       95,737
   Loss on sale of foreclosed real estate                 --          316           --          316
   Other                                              49,889       44,823      161,415      134,245
                                                  ----------   ----------   ----------   ----------
      Total noninterest expense                      424,087      411,621    1,282,795    1,141,479
                                                  ----------   ----------   ----------   ----------
      Income before income taxes                     727,254      804,153    2,390,603    2,343,760
Income taxes                                         276,700      310,413      909,400      901,238
                                                  ----------   ----------   ----------   ----------
      Net income                                  $  450,554   $  493,740   $1,481,203   $1,442,522
                                                  ==========   ==========   ==========   ==========

Basic and diluted income per share (see Note 3)   $     0.12   $     0.13   $     0.39   $     0.39
                                                  ==========   ==========   ==========   ==========
Dividends declared per share                      $     0.21   $       --   $     0.37   $       --
                                                  ==========   ==========   ==========   ==========
</TABLE>

See accompanying notes to consolidated financial statements.

                                                  4
<PAGE>
<TABLE>
<CAPTION>

                               FIRST FEDERAL FINANCIAL SERVICES, INC.

                          Consolidated Statements of Comprehensive Income
                                            (Unaudited)

                                                    Three Months Ended            Nine Months Ended
                                                       September 30,                September 30,
                                                --------------------------   --------------------------
                                                  2005           2004            2005           2004
                                                -----------    -----------   -----------    -----------
<S>                                             <C>            <C>           <C>            <C>
Net income                                      $   450,554    $   493,740   $ 1,481,203    $ 1,442,522
Other comprehensive income:
   Unrealized gains (losses) on securities
        arising during the period, net of tax       (79,999)       106,484      (123,992)        32,203
                                                -----------    -----------   -----------    -----------
Comprehensive income                            $   370,555    $   600,224   $ 1,357,211    $ 1,474,725
                                                ===========    ===========   ===========    ===========
</TABLE>

See accompanying notes to consolidated financial statements.


                                                5
<PAGE>
<TABLE>
<CAPTION>

                               FIRST FEDERAL FINANCIAL SERVICES, INC.

                                Consolidated Statements of Cash Flows
                                           (Unaudited)

                                                                       Nine Months Ended
                                                                         September 30,
                                                                 ----------------------------
                                                                     2005            2004
                                                                 ------------    ------------
<S>                                                              <C>             <C>
Cash flows from operating activities:
   Net income                                                    $  1,481,203    $  1,442,522
   Adjustments to reconcile net income to net
      cash provided by operating activities:
      Amortization of:
         Deferred loan origination (fees) costs, net                  (17,851)        (17,272)
         Premiums and discounts on securities                           7,196          12,926
      Provision for loan losses                                            --              --
      Loss on sale of foreclosed real estate                               --             316
      Depreciation and amortization                                    36,722          35,767
      FHLB stock dividends                                           (284,800)       (263,500)
      ESOP expense                                                     46,071          28,252
      Change in assets and liabilities:
        Decrease (increase) in accrued interest receivable            (23,224)       (118,336)
        Decrease (increase) in other assets                          (137,760)         23,310
        Increase (decrease) in accrued interest payable                (2,738)         (8,773)
        Increase (decrease) in other liabilities                       94,913         110,086
                                                                 ------------    ------------
           Net cash flows from operating activities                 1,199,732       1,245,298
                                                                 ------------    ------------
Cash flows from investing activities:
   Available for sale securities:
      Purchases                                                    (1,004,273)     (8,492,646)
      Proceeds from call and maturities                             1,000,000       2,200,000
  Held to maturity securities:
      Proceeds from paydowns                                           95,551         153,556
  (Purchase) redemption of Federal Home Loan Bank Stock             1,900,000      (2,000,000)
  Loan originations, net of principal collected                    (2,424,186)     (4,799,101)
  Purchase of property and equipment                                  (35,332)        (35,449)
  Proceeds from sale of foreclosed real estate                             --          16,170
                                                                 ------------    ------------
           Net cash flows from investing activities              $   (468,240)   $(12,957,470)
                                                                 ------------    ------------
                                                                                   (Continued)
</TABLE>

                                                   6
<PAGE>
<TABLE>
<CAPTION>

                               FIRST FEDERAL FINANCIAL SERVICES, INC.

                                Consolidated Statements of Cash Flows
                                            (Unaudited)

(Continued)
                                                                             Nine Months Ended
                                                                               September 30,
                                                                       ----------------------------
                                                                           2005            2004
                                                                       ------------    ------------
<S>                                                                    <C>             <C>

Cash flows from financing activities:
   Net increase (decrease) in savings accounts                         $ (3,679,916)   $    894,959
   Net increase (decrease) in time accounts                               6,893,443      (2,004,583)
   Repayment of advances from FHLB                                       (2,900,000)     (3,000,000)
   Proceeds from issuance of common stock                                        --      16,011,975
   Cash dividends                                                          (436,833)             --
                                                                       ------------    ------------
         Net cash flows from financing activities                          (123,306)     11,902,351
                                                                       ------------    ------------
Net increase in cash and cash equivalents                                   608,186         190,179
Cash and cash equivalents at beginning of period                          1,636,987       2,143,860
                                                                       ------------    ------------
Cash and cash equivalents at end of period                             $  2,245,173    $  2,334,039
                                                                       ============    ============


Supplemental schedule of noncash investing and financing activities:
  Real estate acquired in settlement of loan                           $         --    $     16,486
  Dividends declared                                                   $    199,814    $         --
Supplemental disclosures of cash flow information:
  Cash paid (received) during the period for:
     Interest                                                          $  2,143,884    $  1,893,011
     Income taxes, net of refunds                                      $    944,411    $    790,165
</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, 2004
      contained in the 2004 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.

      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)   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 September 30, 2005,  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                $ 7,315,022   $    87,980   $ 1,463,625   $    36,125   $ 8,778,647   $   124,105
  Corporate                        2,475,910        26,336     1,520,862        76,138     3,996,772       102,474
                                 -----------   -----------   -----------   -----------   -----------   -----------
                                 $ 9,790,932   $   114,316   $ 2,984,487   $   112,263   $12,775,419   $   226,579
                                 ===========   ===========   ===========   ===========   ===========   ===========

Securities held to maturity:
  Mortgage-backed securities     $        --   $        --   $   336,064   $    12,302   $   336,064   $    12,302
                                 ===========   ===========   ===========   ===========   ===========   ===========
</TABLE>

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

                                       8
<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

                   Notes to Consolidated Financial Statements

(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.

<TABLE>
<CAPTION>
                                                          Three Months Ended             Nine Months Ended
                                                             September 30,                 September 30,
                                                      --------------------------    --------------------------
                                                         2005            2004           2005           2004
                                                      -----------    -----------    -----------    -----------
<S>                                                   <C>            <C>            <C>            <C>
Net income available to common stockholders*          $   450,554    $   493,740    $ 1,481,203    $   493,740
                                                      ===========    ===========    ===========    ===========

Basic potential common shares:
   Weighted average shares outstanding                  3,920,060      3,920,060      3,920,060      1,306,687
   Weighted average unallocated Employee Stock
      Ownership Plan shares                               (81,135)       (87,098)       (82,241)       (29,033)
                                                      -----------    -----------    -----------    -----------
          Basic weighted average shares outstanding     3,838,925      3,832,962      3,837,819      1,277,654

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

Dilutive weighted average shares outstanding            3,838,925      3,832,962      3,837,819      1,277,654
                                                      ===========    ===========    ===========    ===========

Basic and diluted income per share*                   $      0.12    $      0.13    $      0.39    $      0.39
                                                      ===========    ===========    ===========    ===========
</TABLE>

      *     The initial  public  offering was  consummated on June 28, 2004. Net
            income for the six months  ended June 30,  2004,  is not included in
            the  calculation  of basic and diluted income per share for the nine
            months ended September 30, 2004.

(4)   On  September  22, 2005 the Board of  Directors  declared a $.11 per share
      cash  dividend  payable  November  18, 2005 to  stockholders  of record on
      November 4, 2005. First Federal Financial Services, MHC waived its receipt
      of dividends,  except for $15,000.  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.

                                       9
<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 $.12 and $.39 for the three and
nine months ended September 30, 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 Office of Thrift
Supervision,  the Association's  primary regulator ("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.

                                       10
<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 September 30, 2005, to originate  adjustable and  fixed-rate  loans for
portfolio were approximately $150,000 and $2,585,000, respectively.  Commitments
on behalf of borrowers  for unused lines of credit for  construction  adjustable
and fixed-rate  loans were  approximately  $781,000 and $491,000,  respectively.
Interest rates on these fixed-rate commitments ranged from 5.125% to 7.00%.

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

Total  assets  increased  from  $138.2  million at  December  31, 2004 to $139.5
million at  September  30, 2005.  Federal Home Loan Bank (FHLB) stock  decreased
from $7.8 million at December  31, 2004 to $6.2  million at September  30, 2005.
FHLB stock of $1.9 million was redeemed  during the nine months ended  September
30, 2005.  Loans  increased  from $112.2  million at December 31, 2004 to $114.6
million at September  30, 2005 as a result of new loan  originations,  partially
offset by loan  collections.  Other  assets  increased  due  primarily to higher
deductible temporary  differences related to unrealized losses on securities and
timing of certain prepaid items.

Deposits  increased from $98.3 million at December 31, 2004 to $101.5 million at
September 30, 2005. Advances from FHLB of $2.9 million at December 31, 2004 were
repaid.  Other  liabilities  increased  from  $437,000 at  December  31, 2004 to
$453,000 at  September  30, 2005 as a result of the timing of payment of certain
accrual items.

Stockholders'  equity increased from $36.6 million at December 31, 2004 to $37.4
million at  September  30,  2005,  as a result of net income for the nine months
ended  September 30, 2005,  partially  offset by cash dividends paid or declared
and an increase in unrealized losses on securities, net of tax effect.

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.

                                       11
<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 September
30, 2005 were as follows:

<TABLE>
<CAPTION>
                                                                            Minim 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                          $ 29,274
Unrealized loss on securities AFS, net              93
                                              --------
Tangible capital                              $ 29,367   22.1%  $   1,995     1.5%      N/A        --
General valuation allowance                        429
                                              --------

Total capital to risk-weighted assets         $ 29,796   42.2%  $   5,653     8.0%  $    7,067   10.0%
                                              ========

Tier 1 capital to risk-weighted assets        $ 29,367   41.6%  $   N/A        --   $    4,240    6.0%

Tier 1 capital to total assets                $ 29,367   22.1%  $   5,319     4.0%  $    6,649    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,   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.

                                       12
<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>
                                                        September 30,    December 31,
                                                            2005             2004
                                                        -------------   -------------
<S>                                                     <C>             <C>
Nonaccrual loans                                        $     547,779   $          --
Accruing loans past due 90 days or more                         4,805           2,728
                                                        -------------   -------------
  Total nonperforming loans                             $     552,584   $       2,728
                                                        =============   =============

Allowance for losses on nonperforming loans             $      59,208   $          --
                                                        =============   =============

Nonperforming loans with no allowance for loan losses   $          --   $       2,728
                                                        =============   =============
</TABLE>

At  September  30,  2005,  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 $89,352 at December 31, 2004 to $552,584 at September  30, 2005.
The nonaccrual loans were paid current in October 2005.

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

Balance at December 31, 2004                    $   428,419
   Charge-offs                                           --
   Recoveries                                            --
   Provision charged to expense                          --
                                                -----------
Balance at September 30, 2005                   $   428,419
                                                ===========

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

Net income decreased from $494,000 for the three months ended September 30, 2004
to $451,000 for the three months ended September 30, 2005. Net income  increased
from  $1,443,000 for the nine months ended  September 30, 2004 to $1,481,000 for
the nine months ended  September  30,  2005.  The decrease in net income for the
three months ended  September 30, 2005  resulted from lower net interest  income
and higher  noninterest  expense,  partially  offset by lower income taxes.  The
increase in net income for the nine months  ended  September  30, 2005  resulted
from  higher net  interest  income,  which more than offset  higher  noninterest
expense and income taxes.

Net  interest  income  decreased  from $1.2  million for the three  months ended
September  30, 2004 to $1.1  million for the three months  ended  September  30,
2005. Net interest income  increased from $3.5 million for the nine months ended
September 30, 2004 to $3.7 million for the nine months ended September 30, 2005.
The

                                       13
<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

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

decrease  for the three month  period was due to a lower  interest  rate spread,
partially  offset by the growth of the Company's assets primarily as a result of
the initial public  offering.  The increase for the nine month period was due to
growth of the  Company's  assets  primarily  as a result of the  initial  public
offering,  partially  offset  by a lower  interest  rate  spread.  The  ratio of
interest-earning  assets to  interest-bearing  liabilities rose from 123.25% for
the nine months ended September 30, 2004 to 135.84% for the same period in 2005.
The interest rate spread was 3.22% for the nine months ended  September 30, 2004
and 2.82% for the nine months  ended  September  30,  2005.  The average rate on
interest-earning  assets decreased by 3 basis points,  while the average rate on
interest-bearing  liabilities  increased by 37 basis points.  The decline in the
interest rate spread was attributable to higher rates paid on customer  deposits
and, to a lesser extent, lower rates earned on loans and securities.

Interest  income on loans increased from $1.6 million for the three months ended
September  30, 2004 to $1.7  million for the three months  ended  September  30,
2005.  Interest  income on loans increased from $4.7 million for the nine months
ended September 30, 2004 to $5.0 million for the nine months ended September 30,
2005.  Interest  income  on  loans  increased  as a result  of a higher  average
balances,  partially offset by a lower average yield. The average yield on loans
decreased  from 6.03% for the nine months ended  September 30, 2004 to 5.88% for
the nine months  ended  September  30,  2005.  The average  balance of loans was
$104.0 million and $113.5  million for the nine months ended  September 30, 2004
and 2005, respectively. Interest income on securities for the three months ended
September  30,  2005  remained  unchanged  from the  comparable  period in 2004.
Interest income on securities  increased from $599,000 for the nine months ended
September  30,  2004 to $749,000  for the  comparable  period in 2005.  Interest
income on securities rose due to a higher average balance, partially offset by a
lower yield.  The average yield on securities  decreased from 4.81% for the nine
months ended September 30, 2004 to 4.74% for the nine months ended September 30,
2005. The average  balance of securities was $16.6 million and $21.1 million for
the nine months  ended  September  30, 2004 and 2005,  respectively.  The higher
average balance for securities  resulted from the investment of a portion of the
proceeds from sale of common stock. 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 from $606,000 for the three months ended
September  30,  2004 to $781,000  for the  comparable  period in 2005.  Interest
expense on  deposits  increased  from $1.9  million  for the nine  months  ended
September 30, 2004 to $2.1 million for the comparable  period in 2005.  Interest
expense on deposits  increased as a result of a higher average rate. The average
rate on deposits  increased  from 2.49% for the nine months ended  September 30,
2004 to 2.85% for the nine months ended September 30, 2005.

There was no  provision  for loan  losses  for the three and nine  months  ended
September  30,  2005  and  2004.   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 OTS,  which  may  require  the  Company  to record
increases in the allowances  based on its  evaluation of available  information.
There can be no assurance that the OTS will not require further increases to the
allowances.

Noninterest expense increased from $412,000 for the three months ended September
30, 2004 to $424,000 for the three months ended September 30, 2005.  Noninterest
expense increased from $1.1 million for the nine months ended September 30, 2004
to $1.3 million for the nine months ended September 30, 2005.

                                       14
<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

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

Compensation  and employee  benefits  increased by $21,000 from $645,000 for the
nine months ended  September 30, 2004 to $666,000 for the  comparable  period in
2005. Compensation and employee benefits for the nine months ended September 30,
2005  increased due to expenses  related to the Employee Stock  Ownership  Plan.
Pursuant to  Statement of Position  93-6,  "Employers'  Accounting  for Employee
Stock Ownership Plans," the Company recognizes compensation expense equal to the
fair market  value of shares  committed to be released  during the period.  ESOP
expense for the three and nine months ended  September  30, 2005 was $15,000 and
$46,000,  respectively.  ESOP  expense  for the  three  and  nine  months  ended
September 30, 2004 was $28,000.  The ESOP was established in connection with the
Company's initial stock offering which closed on June 28, 2004.

Professional services increased from $96,000 for the nine months ended September
30, 2004 to $172,000 for the comparable  period in 2005.  Professional  services
increased as a result of higher audit and legal fees  incurred and costs related
to the Company's  securities  filings.  Other  noninterest  expense for the nine
months ended  September 30, 2005  increased  due primarily to higher  charitable
contribution expenses.

Income taxes  decreased  from $310,000 for the three months ended  September 30,
2004 to $277,000 for the comparable  period in 2005. Income taxes increased from
$901,000  for the nine months  ended  September  30,  2004 to  $909,000  for the
comparable  period in 2005.  Income  taxes  changed due to the level of earnings
before income taxes. The effective tax rate was 38.6% for the three months ended
September 30, 2004 versus 38.0% for the comparable period in 2005. The effective
tax rate was 38.5% for the nine months ended September 30, 2004 versus 38.0% for
the comparable period in 2005.

                                       15
<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.


                                       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 was 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.

      None.

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.

                                   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: November 10, 2005          BY:    Larry W. Mosby
      -----------------                 --------------
                                        Larry W. Mosby, President and
                                          Chief Executive Officer

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


                                       17