Item 1.01 Entry into a Material Definitive Agreement.

On October 29, 2008, FFD Financial Corporation (the "Company") entered into a Commercial Loan Agreement (the "Line of Credit") with The Home Loan Savings Bank ("Home Loan") permitting borrowings by the Company of up to $1 million in the aggregate. The Line of Credit replaces the $2.5 million line of credit previously entered into between the Company with The Huntington National Bank, which expired by its terms on October 31, 2008

The obligations of the Company under the Line of Credit are secured by a pledge of 10% of the Company's shares of stock in First Federal Community Bank ("First Federal"), its wholly-owned subsidiary, pursuant to a Commercial Security Agreement (the "Pledge Agreement"). The Line of Credit has no expiration date and is payable on demand.

Borrowings under the Line of Credit may be used for general business purposes and will bear interest at a per annum rate of the Wall Street Journal U.S. Prime Rate plus 0.5%, with a minimum rate of 5.0% and a maximum rate of 24.0%. The Line of Credit contains customary covenants, including, covenants limiting liens and certain asset sales and debt service financial covenants.

In the event of a default by the Company under the Line of Credit, Home Loan may terminate the commitments made under the Line of Credit, declare the amount outstanding, payable immediately, enforce any and all rights created under the Line of Credit documents, including all rights under the Pledge Agreement, and exercise all other rights available under the law.

The Company currently has no borrowings outstanding under the Line of Credit; however, per the terms of the Line of Credit, the Company may draw funds at any time.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.

See discussion under Item 1.01 above.