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, 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 .
                                                              ---    ---

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


                Class                                Outstanding August 1, 2005
-------------------------------------                --------------------------
Common Stock, par value $.10 per share                        3,920,060 *

* As of August 1, 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 June 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                                                            19



<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

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

                                                                 June 30,       December 31,
      Assets                                                       2005             2004
                                                              -------------    -------------
<S>                                                           <C>              <C>
Cash and due from banks                                       $     891,698    $   1,536,987
Federal funds sold                                                1,400,000          100,000
                                                              -------------    -------------
   Total cash and cash equivalents                                2,291,698        1,636,987
Interest-bearing time deposits                                      500,000          500,000
Securities available for sale                                    13,759,846       14,333,810
Securities held to maturity, at amortized cost (fair value
   of $402,297 and $464,575, respectively)                          412,693          472,418
Federal Home Loan Bank stock                                      6,080,900        7,771,300
Loans, net of allowance for loan losses
   of $428,419 and $428,419, respectively                       114,133,822      112,160,553
Property and equipment                                              850,764          865,367
Accrued interest receivable                                         443,907          414,067
Other assets                                                         89,808           39,523
                                                              -------------    -------------
      Total assets                                            $ 138,563,438    $ 138,194,025
                                                              =============    =============

      Liabilities and Stockholders' Equity
Deposits:
    Savings                                                   $  25,455,525    $  28,107,164
    Time, $100,000 and over                                      12,066,895       11,271,212
    Time, under $100,000                                         63,223,990       58,875,951
                                                              -------------    -------------
      Total deposits                                            100,746,410       98,254,327
Advances from FHLB                                                       --        2,900,000
Accrued interest payable                                              3,534            6,852
Other liabilities                                                   468,942          437,200
                                                              -------------    -------------
      Total liabilities                                         101,218,886      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                                       16,531,410       16,522,464
Retained earnings - substantially restricted                     21,295,362       20,533,533
Accumulated other comprehensive loss, net                           (57,267)         (13,274)
Unearned employee stock ownership plan shares                      (816,959)        (839,083)
                                                              -------------    -------------
      Total stockholders' equity                                 37,344,552       36,595,646
                                                              -------------    -------------
      Total liabilities and stockholders' equity              $ 138,563,438    $ 138,194,025
                                                              =============    =============
</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,
                                                  -------------------------    -------------------------
                                                      2005          2004           2005          2004
                                                  -----------   -----------    -----------   -----------
<S>                                               <C>           <C>            <C>           <C>
Interest income:
Interest and fees on loans                        $ 1,672,124   $ 1,593,548    $ 3,323,066   $ 3,139,672

Securities:
   Taxable interest income                            154,513        86,188        313,255       190,886
   Nontaxable income                                       --           683             --         1,365
   Dividends                                          102,966        81,366        209,688       180,929
Interest-bearing deposits                              14,746        16,493         27,766        28,112
                                                  -----------   -----------    -----------   -----------
      Total interest income                         1,944,349     1,778,278      3,873,775     3,540,964
                                                  -----------   -----------    -----------   -----------
Interest expense:
   Deposits                                           693,716       628,167      1,345,846     1,259,405
   Advances from Federal Home Loan Bank                    --         4,552         13,939        15,479
                                                  -----------   -----------    -----------   -----------
      Total interest expense                          693,716       632,719      1,359,785     1,274,884
                                                  -----------   -----------    -----------   -----------
      Net interest income                           1,250,633     1,145,559      2,513,990     2,266,080
Provision for loan losses                                  --            --             --            --
                                                  -----------   -----------    -----------   -----------
      Net interest income after
          provision for loan losses                 1,250,633     1,145,559      2,513,990     2,266,080
                                                  -----------   -----------    -----------   -----------
Noninterest income - other                              4,476           (75)         8,067         3,385
                                                  -----------   -----------    -----------   -----------
Noninterest expense:
   Compensation and employee benefits                 216,834       203,237        438,988       411,766
   Occupancy expense                                   27,120        26,900         53,775        49,836
   Data processing services                            16,204        14,633         34,597        31,858
   Advertising                                         11,094         6,152         17,891        11,960
   Director fees                                       52,500        53,400         84,150        84,850
   Professional services                               74,341        32,071        117,781        50,166
   Other                                               48,827        47,546        111,526        89,422
                                                  -----------   -----------    -----------   -----------
      Total noninterest expense                       446,920       383,939        858,708       729,858
                                                  -----------   -----------    -----------   -----------
      Income before income taxes                      808,189       761,545      1,663,349     1,539,607
Income taxes                                          317,700       293,925        632,700       590,825
                                                  -----------   -----------    -----------   -----------
      Net income                                  $   490,489   $   467,620    $ 1,030,649   $   948,782
                                                  ===========   ===========    ===========   ===========

Basic and diluted income per share (see Note 3)   $      0.13   $         *    $      0.27   $         *
                                                  ===========   ===========    ===========   ===========
Dividends per share                               $      0.09   $         *    $      0.16   $         *
                                                  ===========   ===========    ===========   ===========
</TABLE>

See accompanying notes to consolidated financial statements.
*  Not applicable since initial public offering completed on June 28, 2004.


                                       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,
                                                -------------------------    --------------------------
                                                  2005           2004            2005           2004
                                                -----------   -----------    -----------    -----------
<S>                                             <C>           <C>            <C>            <C>
Net income                                      $   490,489   $   467,620    $ 1,030,649    $   948,782
Other comprehensive income:
   Unrealized gains (losses) on securities
        arising during the period, net of tax        77,212      (117,568)       (43,993)       (74,281)
                                                -----------   -----------    -----------    -----------
Comprehensive income                            $   567,701   $   350,052    $   986,656    $   874,501
                                                ===========   ===========    ===========    ===========
</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,
                                                             --------------------------
                                                                 2005           2004
                                                             -----------    -----------
<S>                                                          <C>            <C>
Cash flows from operating activities:
   Net income                                                $ 1,030,649    $   948,782
   Adjustments to reconcile net income to net
      cash provided by operating activities:
      Amortization of:
         Deferred loan origination (fees) costs, net             (11,699)       (12,867)
         Premiums and discounts on securities                      3,227          9,615
      Provision for loan losses                                       --             --
      Depreciation and amortization                               24,481         23,449
      FHLB stock dividends                                      (209,600)      (180,800)
      ESOP expense                                                31,070             --
      Change in assets and liabilities:
        Decrease (increase) in accrued interest receivable       (29,840)        (2,754)
        Decrease (increase) in other assets                      (50,285)         5,137
        Increase (decrease) in accrued interest payable           (3,318)        (8,829)
        Increase (decrease) in other liabilities                  59,655        193,691
                                                             -----------    -----------
           Net cash flows from operating activities              844,340        975,424
                                                             -----------    -----------
Cash flows from investing activities:
   Available for sale securities:
      Purchases                                                       --             --
      Proceeds from sale                                              --             --
      Proceeds from call and maturities                          500,000      2,200,000
  Held to maturity securities:
      Purchases                                                       --             --
      Proceeds from paydowns                                      58,556        114,918
  Redemption of Federal Home Loan Bank Stock                   1,900,000             --
  Loan originations, net of principal collected               (1,961,570)    (2,104,350)
  Purchase of property and equipment                              (9,878)       (12,081)
                                                             -----------    -----------
           Net cash flows from investing activities          $   487,108    $   198,487
                                                             -----------    -----------
                                                                             (Continued)
</TABLE>


                                       6
<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

                 Consolidated Statements of Comprehensive Income
                                   (Unaudited)

(Continued)
<TABLE>
<CAPTION>
                                                                              Six Months Ended
                                                                                  June 30,
                                                                       ----------------------------
                                                                           2005            2004
                                                                       ------------    ------------
<S>                                                                    <C>             <C>
Cash flows from financing activities:
   Net increase (decrease) in savings accounts                         $ (2,651,639)   $  2,237,131
   Net increase (decrease) in time accounts                               5,143,722      (2,183,139)
   Proceeds from advances from FHLB                                              --              --
   Repayment of advances from FHLB                                       (2,900,000)     (3,000,000)
   Proceeds from issuance of common stock                                        --      16,019,927
   Cash dividends                                                          (268,820)             --
                                                                       ------------    ------------
         Net cash flows from financing activities                          (676,737)     13,073,919
                                                                       ------------    ------------
Net increase (decrease) in cash and cash equivalents                        654,711      14,247,830
Cash and cash equivalents at beginning of period                          1,636,987       2,143,860
                                                                       ------------    ------------
Cash and cash equivalents at end of period                             $  2,291,698    $ 16,391,690
                                                                       ============    ============


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                                                          $  1,363,103    $  1,283,713
     Income taxes, net of refunds                                      $    598,411    $    508,438

</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 June 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                $3,859,916   $   37,524   $1,475,400   $   24,256   $5,335,316   $   61,780
  Corporate                       1,493,625       11,774    1,551,251       45,749    3,044,876       57,523
                                 ----------   ----------   ----------   ----------   ----------   ----------
                                 $5,353,541   $   49,298   $3,026,651   $   70,005   $8,380,192   $  119,303
                                 ==========   ==========   ==========   ==========   ==========   ==========

Securities held to maturity:
  Mortgage-backed securities     $       --   $       --   $  373,480   $   10,396   $  373,480   $   10,396
                                 ==========   ==========   ==========   ==========   ==========   ==========
</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          Six Months Ended
                                                                June 30,                  June 30,
                                                      ------------------------   ------------------------
                                                          2005         2004         2005           2004
                                                      -----------    ---------   -----------    ---------
<S>                                                   <C>            <C>         <C>            <C>
Net income available to common stockholders           $   490,489    $       *   $ 1,030,649    $       *
                                                      ===========    =========   ===========    =========

Basic potential common shares:
   Weighted average shares outstanding                  3,920,060            *     3,920,060            *
   Weighted average unallocated Employee Stock
      Ownership Plan shares                               (82,241)           *       (82,794)           *
                                                      -----------    ---------   -----------    ---------
          Basic weighted average shares outstanding     3,837,819            *     3,837,266            *

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

Dilutive weighted average shares outstanding            3,837,819            *     3,837,266            *
                                                      ===========    =========   ===========    =========

Basic and diluted income per share                    $      0.13    $       *   $      0.27    $       *
                                                      ===========    =========   ===========    =========
</TABLE>



      *     Income per share for the three and six months ended June 30, 2004 is
            not applicable  since the initial  public  offering was completed on
            June 28, 2004.

(4)   Subsequent  to June 30,  2005 the Board of  Directors  declared a $.10 per
      share cash dividend  payable August 18, 2005 to  stockholders of record on
      August 4, 2005. First Federal Financial  Services,  MHC waived its receipt
      of  dividends.  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 $.13 and $.27 for the three and
six months ended June 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 ("OTS"), the Association's primary regulator,  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 June 30,  2005,  to  originate  fixed-rate  loans for  portfolio  were
approximately $1,515,000. Commitments on behalf of borrowers for unused lines of
credit for  construction  adjustable  and  fixed-rate  loans were  approximately
$840,000  and  $284,000,  respectively.   Interest  rates  on  these  fixed-rate
commitments ranged from 5.00% to 6.375%.

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

Total  assets  increased  from  $138.2  million at  December  31, 2004 to $138.6
million at June 30, 2005.  Federal Home Loan Bank (FHLB)  stock  decreased  from
$7.8 million at December  31, 2004 to $6.1 million at June 30, 2005.  FHLB stock
of $1.9  million was redeemed  during the six months ended June 30, 2005.  Loans
increased from $112.2 million at December 31, 2004 to $114.1 million at June 30,
2005 as a result of new loan originations, partially offset by loan collections.

Deposits  increased from $98.3 million at December 31, 2004 to $100.8 million at
June 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
$469,000  at June 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 $37.3
million at June 30,  2005,  as a result of net  income for the six months  ended
June 30,  2005,  partially  offset by cash  dividends  paid 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 June 30,
2005 were 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                       $ 28,882
Unrealized loss on securities AFS, net           46
                                           --------
Tangible capital                           $ 28,928    21.9%  $  1,986     1.5%      N/A       --
General valuation allowance                     429
                                           --------

Total capital to risk-weighted assets      $ 29,357    41.6%  $  5,645     8.0%  $   7,057   10.0%
                                           ========

Tier 1 capital to risk-weighted assets     $ 28,928    41.0%  $    N/A      --   $   4,234    6.0%

Tier 1 capital to total assets             $ 28,928    21.9%  $  5,295     4.0%  $   6,619    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.

                                                        June 30,    December 31,
                                                          2005          2004
                                                      ------------  ------------

Nonaccrual loans                                      $     49,171  $         --
Accruing loans past due 90 days or more                      1,602         2,728
                                                      ------------  ------------
  Total nonperforming loans                           $     50,773  $      2,728
                                                      ============  ============

Allowance for losses on nonperforming loans           $      6,519  $         --
                                                      ============  ============

Nonperforming loans with no allowance for loan losses $         --  $      2,728
                                                      ============  ============

At June 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
decreased from $89,352 at December 31, 2004 to $53,734 at June 30, 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 June 30, 2005                              $    428,419
                                                      ============

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

Net income  increased  from $468,000 for the three months ended June 30, 2004 to
$490,000 for the three months ended June 30,  2005.  Net income  increased  from
$949,000  for the six months  ended June 30,  2004 to $1.03  million for the six
months ended June 30, 2005. The increase in net income  resulted from higher net
interest income,  which more than offset higher  noninterest  expense and income
taxes.

Net interest income  increased from $1.2 million for the three months ended June
30, 2004 to $1.3 million for the three months ended June 30, 2005.  Net interest
income  increased  from $2.3  million for the six months  ended June 30, 2004 to
$2.5  million for the six months  ended June 30,  2005.  The increase 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.


                                       13
<PAGE>


                     FIRST FEDERAL FINANCIAL SERVICES, INC.

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

The ratio of interest-earning  assets to interest-bearing  liabilities rose from
117.92% for the six months ended June 30, 2004 to 135.74% for the same period in
2005.  The interest rate spread was 3.33% for the six months ended June 30, 2004
and  2.97%  for  the six  months  ended  June  30,  2005.  The  average  rate on
interest-earning  assets decreased by 11 basis points, while the average rate on
interest-bearing  liabilities  increased by 25 basis points.  The decline in the
interest rate spread was attributable to higher rates paid on customer  deposits
and the effect of lower rates earned on loans and securities.

Interest  income on loans increased from $1.6 million for the three months ended
June 30, 2004 to $1.7 million for the three months ended June 30, 2005. Interest
income on loans  increased  from $3.1  million for the six months ended June 30,
2004 to $3.3 million for the six months ended June 30, 2005.  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 6.09% for the six
months ended June 30, 2004 to 5.88% for the six months ended June 30, 2005.  The
average  balance of loans was $103.2  million  and  $113.1  million  for the six
months ended June 30, 2004 and 2005, respectively. Interest income on securities
increased from $168,000 for the three months ended June 30, 2004 to $257,000 for
the  comparable  period in 2005.  Interest  income on securities  increased from
$373,000 for the six months  ended June 30, 2004 to $523,000 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 5.14% for the six months ended June 30, 2004 to 4.90% for the six
months ended June 30, 2005. The average  balance of securities was $14.5 million
and $21.3 million for the six months ended June 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  slightly  from  $628,000 for the three
months  ended  June 30,  2004 to  $694,000  for the  comparable  period in 2005.
Interest expense on deposits  increased  slightly from $1.26 million for the six
months ended June 30, 2004 to $1.35 million for the  comparable  period in 2005.
The effect of a higher average rate on deposits was partially  offset by a lower
average balance.  The average rate on deposits  increased from 2.49% for the six
months ended June 30, 2004 to 2.72% for the six months ended June 30, 2005.

There was no  provision  for loan losses for the three and six months ended June
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 $384,000 for the three months ended June 30,
2004 to $447,000 for the three months ended June 30, 2005.  Noninterest  expense
increased  from  $730,000 for the six months ended June 30, 2004 to $859,000 for
the six months ended June 30, 2005. Compensation and employee benefits increased
by $14,000  from  $203,000  for the three months ended June 30, 2004 to $217,000
for the comparable period in 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 $27,000 from $412,000 for the
six months  ended June 30, 2004 to $439,000 for the  comparable  period in 2005.
Compensation  and employee  benefits  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 six
months ended June 30, 2005 was $15,000 and $31,000,  respectively.  There was no
ESOP expense for the comparable  periods in 2004 as the ESOP was  established in
connection  with the Company's  initial stock  offering which closed on June 28,
2004.

Professional services increased from $32,000 for the three months ended June 30,
2004 to  $74,000  for the  comparable  period  in  2005.  Professional  services
increased  from  $50,000 for the six months  ended June 30, 2004 to $118,000 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 six months ended June 30,
2005 increased due primarily to higher charitable contribution expenses.

Income taxes increased from $294,000 for the three months ended June 30, 2004 to
$318,000 for the comparable period in 2005. Income taxes increased from $591,000
for the six months ended June 30, 2004 to $633,000 for the comparable  period in
2005.  The primary  reason for the increase in income taxes was higher  earnings
before income taxes. The effective tax rate was 38.6% for the three months ended
June 30, 2004 versus 39.3% for the comparable  period in 2005. The effective tax
rate was 38.4% for the six  months  ended  June 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.

      (a)   On  April  21,  2005  the  Company   held  its  Annual   Meeting  of
            Stockholders.

      (b)   At the meeting,  Joseph  Helms,  Nina Baird and Donald  Engelke were
            elected as directors,  each to serve a three-year term. In addition,
            Larry Mosby,  Joseph Stevens,  Robert  Richards,  Harry Gallatin and
            Dean Pletcher remain as incumbent directors of the Company.

      (c)   Stockholders voted on the following matters:

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

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

                 Joseph Helms          3,451,654             57,600

                 Nina Baird            3,450,354             58,900

                 Donald Engelke        3,451,654             57,600

            (ii)  The ratification of the appointment of McGladrey & Pullen, LLP
                  as  independent  auditor  for the  Company for the year ending
                  December 31, 2005:

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

                 3,509,254         3,436,054         67,200         6,000

Item 5 - Other Information.

      None

Item 6 - Exhibits.

      (a)   Exhibits.

            31.1: Certification  of Chief Executive  Officer pursuant to Section
                  302 of the Sarbanes-Oxley Act of 2002.

            31.2: Certification  of Chief Financial  Officer pursuant to Section
                  302 of the Sarbanes-Oxley Act of 2002.

            32:   Certification  pursuant to Section  906 of the  Sarbanes-Oxley
                  Act of 2002.


                                       17
<PAGE>

                     FIRST FEDERAL FINANCIAL SERVICES, INC.

                                   SIGNATURES
                                   ----------

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

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

DATE: August 5, 2005          BY: Larry W. Mosby
      --------------              --------------
                                  Larry W. Mosby, President and
                                  Chief Executive Officer

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

                                       18