##### 



Exhibit 13


GREENVILLE FEDERAL FINANCIAL CORPORATION

Greenville Logo

2006 Annual Report





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TABLE OF CONTENTS
 PagePresidents Letter to Stockholders and Customers
    
    
    1Business of Greenville Federal Financial Corporation
    
    
    2Selected Financial and Other Data
    
    
    3Managements Discussion and Analysis of Financial Condition
and Results of Operations
    
    
    5Financial Statements:Report of Independent Registered Public Accounting Firm
    
    
    19Consolidated Statements of Financial Condition
    
    
    20Consolidated Statements of Earnings
    
    
    21Consolidated Statements of Comprehensive Income
    
    
    22Consolidated Statements of Stockholders Equity
    
    
    23Consolidated Statements of Cash Flows
    
    
    24Notes to Consolidated Financial Statements
    
    
    26Directors and Officers
    
    
    49Investor and Corporate Information
    
    
    50Office Locations
    
    
    51




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LETTER FROM THE PRESIDENT AND CHIEF EXECUTIVE OFFICER
         /s/ David M. KeplerDavid M. KeplerPresident and Chief Executive Officer
 - 1 -




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##### 



Greenville Federal Financial Corporation
 BUSINESS OF GREENVILLE FEDERAL FINANCIAL CORPORATION
      - 2 -




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##### 



Greenville Federal Financial Corporation
 SELECTED FINANCIAL AND OTHER DATA
  At June 30,2006
    
    
    2005(In thousands)SELECTED FINANCIAL CONDITION DATA:Total assets
    
    $
    130,708
    
    
    $
    126,048Cash and cash equivalents
    
    
    3,254
    
    
    
    3,716Investment securities available for sale
    
    
    16,204
    
    
    
    15,717Investment securities held to maturity
    
    
    17,041
    
    
    
    18,050Mortgage-backed securities held to maturity
    
    
    2,172
    
    
    
    1,737Loans receivable
    
    
    83,452
    
    
    
    78,189Deposits
    
    
    78,782
    
    
    
    78,898Advances from the Federal Home Loan Bank
    
    
    28,177
    
    
    
    32,243Stockholders equity
    
    
    22,582
    
    
    
    13,659Allowance for loan losses
    
    
    579
    
    
    
    590Nonperforming loans
    
    
    529
    
    
    
    311
 For the year ended June 30,2006
    
    
    2005(In thousands)SELECTED OPERATIONS DATA:Total interest income
    
    $
    6,974
    
    
    $
    6,245Total interest expense
    
    
    3,290
    
    
    
    2,977Net interest income
    
    
    3,684
    
    
    
    3,268Provision for losses on loans
    
    
    25
    
    
    
    216Net interest income after provision for losses on loans
    
    
    3,659
    
    
    
    3,052Total other income
    
    
    838
    
    
    
    1,092Total general, administrative and other expense
    
    
    3,750
    
    
    
    4,105Earnings before income taxes (credits)
    
    
    747
    
    
    
    39Federal income taxes (credits)
    
    
    212
    
    
    
    (32
    )Net earnings
    
    $
    535
    
    
    $
    71
 - 3 -




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Greenville Federal Financial Corporation
 SELECTED FINANCIAL AND OTHER DATA (CONTINUED)
 June 30,2006
    
    
    2005PERFORMANCE RATIOS:Return on average assets
    
    
    0.41
    %
    
    
    0.06
    %Return on average equity
    
    
    3.06
    
    
    
    0.53Average equity to average assets
    
    
    13.41
    
    
    
    10.85Equity to assets at the end of the period
    
    
    17.28
    
    
    
    10.84Interest rate spread (1)
    
    
    2.66
    
    
    
    2.59Net interest margin (2)
    
    
    3.03
    
    
    
    2.82Average interest-earning assets to average
interest-bearing liabilities
    
    
    113.39
    
    
    
    109.06Total general, administrative and other
expenses to average total assets
    
    
    2.88
    
    
    
    3.30Efficiency ratio (3)
    
    
    82.93
    
    
    
    94.15ASSET QUALITY RATIOS:Nonperforming loans as a percent of total loans
    
    
    0.61
    
    
    
    0.39Nonperforming assets as a percent of total assets
    
    
    0.40
    
    
    
    0.31Allowance for loan losses as a percent of total loans
    
    
    0.67
    
    
    
    0.74Allowance for loan losses as a percent of
nonperforming assets
    
    
    109.45
    
    
    
    150.51REGULATORY CAPITAL RATIOS:Tangible capital
    
    
    13.91
    
    
    
    10.93Core capital
    
    
    13.91
    
    
    
    10.93Risk-based capital
    
    
    27.16
    
    
    
    21.61Number of banking offices
    
    
    2
    
    
    
    2
 
 (1)
    
    Interest rate spread represents the difference between the weighted-average yield on
interest-earning assets and the weighted-average cost of interest-bearing liabilities for the
period.(2)
    
    Net interest margin represents net interest income as a percent of average
interest-earning assets for the period.(3)
    
    The efficiency ratio represents general, administrative and other expense as a
percent of the total of net interest income and other income. - 4 -




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Greenville Federal Financial Corporation
 MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  General
  Forward-looking statements
  
    
    our estimates of future income and expenses;
    
    our business plans, prospects and operating strategies;
    
    the quality of our assets, including loans and investments; and
    
    other goals, intentions and expectations.
 - 5 -




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Forward-looking statements
  
    
    general economic conditions, either in our market area or nationally, that are
significantly different from what we expect;
    
    increasing foreclosures in our market area;
    
    increasing difficulty in obtaining deposits;
    
    inflation and changes in the interest rate environment that reduce our interest
margins or reduce the market value of our assets;
    
    increased competition among financial institutions within our market area;
    
    adverse changes in the securities markets;
    
    changes in consumer spending, borrowing and savings habits;
    
    legislative or regulatory changes that affect our business;
    
    our ability, either due to our resources or outside factors, that affect our success
in entering into or growing in new markets and cross-selling in our existing market;
    
    changes in accounting policies and practices, as may be adopted by the governmental
agencies that regulate our business and the Financial Accounting Standards Board; and
    
    unexpected costs for compensation and benefits.
  Critical accounting policies
    - 6 -




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Critical accounting policies
   - 7 -




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##### 



Comparison of financial condition at June 30, 2006, and June 30, 2005
      - 8 -




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##### 



Comparison of financial condition at June 30, 2006, and June 30, 2005
    Comparison of results of operations for the fiscal years ended June 30, 2006, and June 30, 2005
 General.
 Interest income.
  - 9 -




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Comparison of results of operations for the fiscal years ended June 30, 2006, and June 30, 2005
 Interest expense .
 Net interest income
 Provision for losses on loans
 Other income .
 - 10 -




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Comparison of results of operations for the fiscal years ended June 30, 2006, and June 30, 2005
 General, administrative and other expense .
 Federal income taxes
 - 11 -




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##### 



Average balance sheets
  Year ended June 30,2006
    
    
    
    
    
    
    
    
    
    
    2005Interest
    
    
    
    
    
    
    
    
    
    
    InterestAverage
    
    
    income/
    
    
    Yield/
    
    
    Average
    
    
    income/
    
    
    Yield/balance
    
    
    expense
    
    
    rate
    
    
    balance
    
    
    expense
    
    
    rate(Dollars in thousands)Loans receivable
    
    $
    81,016
    
    
    $
    5,387
    
    
    
    6.65
    %
    
    $
    75,323
    
    
    $
    4,977
    
    
    
    6.61
    %Mortgage-backed securities
    
    
    1,485
    
    
    
    67
    
    
    
    4.51
    
    
    
    2,126
    
    
    
    87
    
    
    
    4.09Investment securities
    
    
    33,372
    
    
    
    1,234
    
    
    
    3.70
    
    
    
    34,134
    
    
    
    1,055
    
    
    
    3.09Other interest-bearing deposits
    
    
    5,828
    
    
    
    286
    
    
    
    4.91
    
    
    
    4,116
    
    
    
    126
    
    
    
    3.06Total interest-earning assets
    
    
    121,701
    
    
    
    6,974
    
    
    
    5.73
    
    
    
    115,699
    
    
    
    6,245
    
    
    
    5.40Non-interest-earning assets
    
    
    8,706
    
    
    
    
    
    
    
    
    
    
    
    8,521Total assets
    
    $
    130,407
    
    
    
    
    
    
    
    
    
    
    $
    124,220Interest-bearing deposits:Demand deposits
    
    $
    4,876
    
    
    
    28
    
    
    
    0.57
    
    
    $
    5,404
    
    
    
    32
    
    
    
    0.59Savings deposits
    
    
    22,589
    
    
    
    172
    
    
    
    0.76
    
    
    
    24,741
    
    
    
    179
    
    
    
    0.72Time deposits
    
    
    49,244
    
    
    
    1,670
    
    
    
    3.39
    
    
    
    47,653
    
    
    
    1,361
    
    
    
    2.86Total interest-bearing deposits
    
    
    76,709
    
    
    
    1,870
    
    
    
    2.44
    
    
    
    77,798
    
    
    
    1,572
    
    
    
    2.02Borrowings
    
    
    30,621
    
    
    
    1,420
    
    
    
    4.64
    
    
    
    28,290
    
    
    
    1,405
    
    
    
    4.97Total interest-bearing liabilities
    
    
    107,330
    
    
    
    3,290
    
    
    
    3.07
    
    
    
    106,088
    
    
    
    2,977
    
    
    
    2.81Non-interest-bearing demand deposits
    
    
    4,119
    
    
    
    
    
    
    
    
    
    
    
    3,429Non-interest-bearing liabilities
    
    
    1,476
    
    
    
    
    
    
    
    
    
    
    
    1,228Total liabilities
    
    
    112,925
    
    
    
    
    
    
    
    
    
    
    
    110,745Stockholders equity
    
    
    17,482
    
    
    
    
    
    
    
    
    
    
    
    13,475Total liabilities and
stockholders equity
    
    $
    130,407
    
    
    
    
    
    
    
    
    
    
    $
    124,220Net interest income
    
    
    
    
    
    $
    3,684
    
    
    
    
    
    
    
    
    
    
    $
    3,268Interest rate spread
    
    
    
    
    
    
    
    
    
    
    2.66
    %
    
    
    
    
    
    
    
    
    
    
    2.59
    %Net interest margin (net
interest income as a
percent of average
interest-earning assets)
    
    
    
    
    
    
    
    
    
    
    3.03
    %
    
    
    
    
    
    
    
    
    
    
    2.82
    %Average interest-earning
assets to average interest-
bearing liabilities
    
    
    
    
    
    
    
    
    
    
    113.39
    %
    
    
    
    
    
    
    
    
    
    
    109.06
    %
 - 12 -




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##### 



Yields earned and rates paid
  At June 30,

    
    Year ended June 30,2006
    
    
    2006
    
    
    2005Weighted-average yield on loan portfolio
    
    
    6.61
    %
    
    
    6.65
    %
    
    
    6.61
    %Weighted-average yield on mortgage-backed securities
    
    
    5.16
    
    
    
    4.51
    
    
    
    4.09Weighted-average yield on investment securities
    
    
    3.99
    
    
    
    3.70
    
    
    
    3.09Weighted-average yield on interest-bearing deposits
    
    
    5.46
    
    
    
    4.91
    
    
    
    3.06Weighted-average yield on all interest-earning assets
    
    
    5.85
    
    
    
    5.73
    
    
    
    5.40Weighted-average interest rate on deposits
    
    
    2.82
    
    
    
    2.44
    
    
    
    2.02Weighted-average interest rate on Federal Home
Loan Bank advances
    
    
    4.81
    
    
    
    4.64
    
    
    
    4.97Weighted-average interest rate paid on all interest-
bearing liabilities
    
    
    3.35
    
    
    
    3.07
    
    
    
    2.81Interest rate spread (spread between weighted-average
interest rate on all interest-earning assets and all
interest-earning liabilities)
    
    
    2.50
    
    
    
    2.66
    
    
    
    2.59Net interest margin (net interest income as a percentage
of average interest-earning assets)
    
    
    N/A
    
    
    
    3.03
    
    
    
    2.82
 - 13 -




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Yields earned and rates paid
  Year ended June 30,2006 vs. 2005Increase(decrease)due toVolume
    
    
    Rate
    
    
    Total(In thousands)Interest income attributable to:Loans receivable
    
    $
    32
    
    
    $
    378
    
    
    $
    410Mortgage-backed securities
    
    
    8
    
    
    
    (28
    )
    
    
    (20
    )Investment securities
    
    
    203
    
    
    
    (24
    )
    
    
    179interest-earning deposits
    
    
    95
    
    
    
    65
    
    
    
    160Total interest income
    
    
    338
    
    
    
    391
    
    
    
    729Interest expense attributable to:Interest-bearing demand deposits
    
    
    (1
    )
    
    
    (3
    )
    
    
    (4
    )Savings deposits
    
    
    9
    
    
    
    (16
    )
    
    
    (7
    )Time deposits
    
    
    262
    
    
    
    47
    
    
    
    309Federal Home Loan Bank advances
    
    
    (96
    )
    
    
    111
    
    
    
    15Total interest expense
    
    
    174
    
    
    
    139
    
    
    
    313Increase in net interest income
    
    $
    164
    
    
    $
    252
    
    
    $
    416
 Asset and liability management
    - 14 -




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Asset and liability management
  June 30, 2006Net portfolio value(2)Net portfolio value asEstimated increase (decrease)
    
    a percentage ofChange in
    
    
    
    
    

in NPV
    

present value of assets(3)Interest rates
    
    Estimated
    
    
    
    
    
    
    
    
    
    
    
    
    
    Change in(basis points)(1)
    
    NPV
    
    Amount
    
    Percent
    
    NPV ratio(4)
    
    basis points(Dollars in thousands)+300
    
    $
    18,525
    
    
    $
    (4,993
    )
    
    
    (21
    )%
    
    
    14.61
    %
    
    
    (283
    )bp+200
    
    
    20,252
    
    
    
    (3,266
    )
    
    
    (14
    )
    
    
    15.63
    
    
    
    (181
    )+100
    
    
    21,988
    
    
    
    (1,530
    )
    
    
    (7
    )
    
    
    16.62
    
    
    
    (82
    )0
    
    
    23,518
    
    
    
    
    
    
    
    
    
    
    
    17.44
    
    
    
    -100
    
    
    24,324
    
    
    
    806
    
    
    
    3
    
    
    
    17.79
    
    
    
    35-200
    
    
    24,083
    
    
    
    565
    
    
    
    2
    
    
    
    17.50
    
    
    
    6
 June 30, 2005Net portfolio value(2)Net portfolio value asEstimated increase (decrease)
    
    a percentage ofChange in
    
    
    
    
    

in NPV
    

present value of assets(3)Interest rates
    
    Estimated
    
    
    
    
    
    
    
    
    
    
    
    
    
    Change in(basis points)(1)
    
    NPV
    
    Amount
    
    Percent
    
    NPV ratio(4)
    
    basis points(Dollars in thousands)+300
    
    $
    15,324
    
    
    $
    (3,546
    )
    
    
    (19
    )%
    
    
    12.30
    %
    
    
    (203
)bp+200
    
    
    16,839
    
    
    
    (2,031
    )
    
    
    (11
    )
    
    
    13.23
    
    
    
    (110
    )+100
    
    
    18,170
    
    
    
    (700
    )
    
    
    (4
    )
    
    
    14.01
    
    
    
    (32
    )0
    
    
    18,870
    
    
    
    
    
    
    
    
    
    
    
    14.33
    
    
    
    -100
    
    
    18,314
    
    
    
    (556
    )
    
    
    (3
    )
    
    
    13.83
    
    
    
    (50
    )-200
    
    
    17,304
    
    
    
    (1,566
    )
    
    
    (8
    )
    
    
    13.04
    
    
    
    (129
    )
 
 (1)
    
    One hundred basis points equals one percent. Assumes an instantaneous uniform
change in interest rates at all maturities.(2)
    
    Net portfolio value represents the discounted present value of the difference
between incoming cash flows on interest-earning and other assets and outgoing cash flows on
interest-bearing liabilities.(3)
    
    Present value of assets represents the discounted present value of incoming cash
flows on interest-earning assets.(4)
    
    NPV ratio represents the net portfolio value divided by the present value of assets. - 15 -




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Asset and liability management
    Liquidity and capital resources
  Year ended June 30,2006
    
    
    2005(In thousands)Net earnings
    
    $
    535
    
    
    $
    71Adjustments to reconcile net earnings to net
cash from operating activities
    
    
    78
    
    
    
    (345
    )Net cash provided by (used in) operating activities
    
    
    613
    
    
    
    (274
    )Net cash provided by (used in) investing activities
    
    
    (5,321
    )
    
    
    (3,765
    )Net cash provided by (used in) financing activities
    
    
    4,246
    
    
    
    (147
    )Net decrease in cash and cash equivalents
    
    
    (462
    )
    
    
    (4,186
    )Cash and cash equivalents at beginning of year
    
    
    3,716
    
    
    
    7,902Cash and cash equivalents at end of year
    
    $
    3,254
    
    
    $
    3,716
  - 16 -




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Liquidity and capital resources
   Payments due by periodMoreOver 1-3
    
    
    Over 3-5
    
    
    than1 year or less
    
    
    years
    
    
    years
    
    
    5 years
    
    
    Total(In thousands)Contractual obligations:Advances from the Federal Home Loan Bank
    
    $
    6,927
    
    
    $
    12,055
    
    
    $
    7,473
    
    
    $
    1,722
    
    
    $
    28,177Certificate of deposit maturities
    
    
    29,013
    
    
    
    14,417
    
    
    
    5,077
    
    
    
    
    
    
    
    48,507Amount of commitments expiration per period:Commitments to originate one- to four-family
loans
    
    
    1,395
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,395Letters of credit
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20Home equity and commercial lines of credit
    
    
    3,274
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,274Undisbursed loans in process
    
    
    1,604
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,604Lease obligations
    
    
    48
    
    
    
    16
    
    
    
    
    
    
    
    
    
    
    
    64Charitable contributions pledged
    
    
    10
    
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    30Total contractual obligations
    
    $
    42,291
    
    
    $
    26,508
    
    
    $
    12,550
    
    
    $
    1,722
    
    
    $
    83,071
    June 30, 2006Excess ofregulatory capitalRegulatory
    
    Current
    
    over currentcapital
    
    requirement
    
    requirementAmount
    
    Percent
    
    Amount
    
    Percent
    
    Amount
    
    Percent(Dollars in thousands)Tangible capital
    
    $
    18,226
    
    
    
    13.9
    %
    
    $
    1,965
    
    
    
    1.5
    %
    
    $
    16,261
    
    
    
    12.4
    %Core capital
    
    $
    18,226
    
    
    
    13.9
    %
    
    $
    5,240
    
    
    
    4.0
    %
    
    $
    12,986
    
    
    
    9.9
    %Risk-based capital
    
    $
    18,797
    
    
    
    27.2
    %
    
    $
    5,537
    
    
    
    8.0
    %
    
    $
    13,260
    
    
    
    19.2
    %
 - 17 -




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##### 



Impact of Inflation and Changing Prices
   - 18 -




---



##### 



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
     
 - 19 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 
 2006
    
    
    2005ASSETSCash and due from banks
    
    $
    2,225
    
    
    $
    2,119Interest-bearing deposits in other financial institutions
    
    
    1,029
    
    
    
    1,597Cash and cash equivalents
    
    
    3,254
    
    
    
    3,716Investment securities designated as available for sale  at market
    
    
    16,204
    
    
    
    15,717Investment securities designated as held to maturity  at
amortized cost, approximate market value of $16,596
and $17,852 at June 30, 2006 and 2005, respectively
    
    
    17,041
    
    
    
    18,050Mortgage-backed securities designated as held to maturity  at amortized cost, approximate market value of $2,164
and $1,755 at June 30, 2006 and 2005, respectively
    
    
    2,172
    
    
    
    1,737Loans receivable  net
    
    
    83,452
    
    
    
    78,189Office premises and equipment  at depreciated cost
    
    
    2,069
    
    
    
    2,133Real estate acquired through foreclosure
    
    
    
    
    
    
    81Stock in Federal Home Loan Bank  at cost
    
    
    1,869
    
    
    
    1,769Cash surrender value of life insurance
    
    
    3,705
    
    
    
    3,571Accrued interest receivable on loans
    
    
    418
    
    
    
    418Accrued interest receivable on mortgage-backed securities
    
    
    11
    
    
    
    8Accrued interest receivable on investment securities and other
    
    
    146
    
    
    
    146Prepaid expenses and other assets
    
    
    367
    
    
    
    513Total assets
    
    $
    130,708
    
    
    $
    126,048LIABILITIES AND STOCKHOLDERS EQUITYDeposits
    
    $
    78,782
    
    
    $
    78,898Advances from the Federal Home Loan Bank
    
    
    28,177
    
    
    
    32,243Advances by borrowers for taxes and insurance
    
    
    355
    
    
    
    333Accrued interest payable
    
    
    271
    
    
    
    205Other liabilities
    
    
    440
    
    
    
    589Accrued federal income taxes
    
    
    60
    
    
    
    23Deferred federal income taxes
    
    
    41
    
    
    
    98Total liabilities
    
    
    108,126
    
    
    
    112,389Commitments and contingencies
    
    
    
    
    
    
    Stockholders equityPreferred stock  authorized 1,000,000 shares, $.01 par value; no shares issued
    
    
    
    
    
    
    Common stock  authorized 8,000,000 shares, $.01 par value; 2,298,411 shares
issued and outstanding
    
    
    23
    
    
    
    Additional paid-in capital
    
    
    9,400
    
    
    
    Retained earnings  restricted
    
    
    14,285
    
    
    
    13,866Shares acquired by Employee Stock Ownership Plan
    
    
    (811
    )
    
    
    Accumulated comprehensive loss  unrealized losses on securities
designated as available for sale, net of related tax benefits
    
    
    (315
    )
    
    
    (207
    )Total stockholders equity
    
    
    22,582
    
    
    
    13,659Total liabilities and stockholders equity
    
    $
    130,708
    
    
    $
    126,048
  - 20 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF EARNINGS
 
 2006
    
    
    2005Interest incomeLoans
    
    $
    5,387
    
    
    $
    4,977Mortgage-backed securities
    
    
    67
    
    
    
    87Investment securities
    
    
    1,234
    
    
    
    1,055Interest-bearing deposits and other
    
    
    286
    
    
    
    126Total interest income
    
    
    6,974
    
    
    
    6,245Interest expenseDeposits
    
    
    1,870
    
    
    
    1,572Borrowings
    
    
    1,420
    
    
    
    1,405Total interest expense
    
    
    3,290
    
    
    
    2,977Net interest income
    
    
    3,684
    
    
    
    3,268Provision for losses on loans
    
    
    25
    
    
    
    216Net interest income after provision for
losses on loans
    
    
    3,659
    
    
    
    3,052Other incomeCustomer service charges
    
    
    529
    
    
    
    492Gain on sale of real estate acquired through foreclosure
    
    
    31
    
    
    
    24Gain on redemption of investment security
    
    
    35
    
    
    
    329Other operating
    
    
    243
    
    
    
    247Total other income
    
    
    838
    
    
    
    1,092General, administrative and other expenseEmployee compensation and benefits
    
    
    2,087
    
    
    
    2,181Multi-employer pension plan termination costs
    
    
    
    
    
    
    312Occupancy and equipment
    
    
    434
    
    
    
    466Franchise taxes
    
    
    185
    
    
    
    184Data processing
    
    
    414
    
    
    
    395Advertising
    
    
    75
    
    
    
    89Charitable contributions
    
    
    13
    
    
    
    63Other operating
    
    
    542
    
    
    
    415Total general, administrative and other expense
    
    
    3,750
    
    
    
    4,105Earnings before federal income taxes (credits)
    
    
    747
    
    
    
    39Federal income taxes (credits)Current
    
    
    213
    
    
    
    28Deferred
    
    
    (1
    )
    
    
    (60
    )Total federal income taxes (credits)
    
    
    212
    
    
    
    (32
    )NET EARNINGS
    
    $
    535
    
    
    $
    71
  - 21 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
 2006
    
    
    2005Net earnings
    
    $
    535
    
    
    $
    71Other comprehensive loss, net of related tax benefits:Unrealized holding losses on securities during the year,
net of tax benefits of $56 and $44 for the years ended
June 30, 2006 and 2005, respectively
    
    
    (108
    )
    
    
    (85
    )Comprehensive income (loss)
    
    $
    427
    
    
    $
    (14
    )Accumulated comprehensive loss
    
    $
    (315
    )
    
    $
    (207
    )
  - 22 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY
 
 Shares
    
    
    Unrealizedacquired
    
    
    losses onby employee
    
    
    securitiesAdditional
    
    
    
    
    
    
    stock
    
    
    designated asCommon
    
    
    paid-in
    
    
    Retained
    
    
    ownership
    
    
    availablestock
    
    
    capital
    
    
    earnings
    
    
    plan
    
    
    for sale
    
    
    TotalBalance at July 1, 2004
    
    $
    
    
    
    $
    
    
    
    $
    13,795
    
    
    $
    
    
    
    $
    (122
    )
    
    $
    13,673Unrealized losses on securities
designated as available for
sale, net of related tax benefits
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (85
    )
    
    
    (85
    )Net earnings for the year
ended June 30, 2005
    
    
    
    
    
    
    
    
    
    
    71
    
    
    
    
    
    
    
    
    
    
    
    71Balance at June 30, 2005
    
    
    
    
    
    
    
    
    
    
    13,866
    
    
    
    
    
    
    
    (207
    )
    
    
    13,659Proceeds from issuance of
common stock  net
    
    
    23
    
    
    
    9,400
    
    
    
    (50
    )
    
    
    (901
    )
    
    
    
    
    
    
    8,472Unrealized losses on securities
designated as available for
sale, net of related tax benefits
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (108
    )
    
    
    (108
    )Net earnings for the year
ended June 30, 2006
    
    
    
    
    
    
    
    
    
    
    535
    
    
    
    
    
    
    
    
    
    
    
    535Cash dividends paid of $.07
per share
    
    
    
    
    
    
    
    
    
    
    (66
    )
    
    
    
    
    
    
    
    
    
    
    (66
    )Amortization of Employee
Stock Ownership Plan (ESOP)
expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    90
    
    
    
    
    
    
    
    90Balance at June 30, 2006
    
    $
    23
    
    
    $
    9,400
    
    
    $
    14,285
    
    
    $
    (811
    )
    
    $
    (315
    )
    
    $
    22,582
  - 23 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 2006
    
    
    2005Cash flows from operating activities:Net earnings for the year
    
    $
    535
    
    
    $
    71Adjustments to reconcile net earnings to net cash
provided by (used in) operating activities:Accretion and amortization of premiums and discounts on
investment and mortgage-backed securities  net
    
    
    1
    
    
    
    Amortization of deferred loan origination fees
    
    
    (50
    )
    
    
    (81
    )Depreciation and amortization
    
    
    177
    
    
    
    208Amortization of mortgage servicing rights
    
    
    22
    
    
    
    9Amortization of ESOP expense
    
    
    90
    
    
    
    Provision for losses on loans
    
    
    25
    
    
    
    216Gain on sale of real estate acquired through foreclosure
    
    
    (31
    )
    
    
    (24
    )Gain on redemption of investment security
    
    
    (35
    )
    
    
    (329
    )Federal Home Loan Bank stock dividends
    
    
    (100
    )
    
    
    (76
    )Increase in cash surrender value of life insurance
    
    
    (134
    )
    
    
    (136
    )Increase (decrease) in cash due to changes in:Accrued interest receivable on loans
    
    
    
    
    
    
    (1
    )Accrued interest receivable on mortgage-backed securities
    
    
    (3
    )
    
    
    5Prepaid expenses and other assets
    
    
    146
    
    
    
    (120
    )Accrued interest payable
    
    
    66
    
    
    
    44Other liabilities
    
    
    (132
    )
    
    
    (101
    )Federal income taxes
Current
    
    
    37
    
    
    
    101Deferred
    
    
    (1
    )
    
    
    (60
    )Net cash provided by (used in) operating activities
    
    
    613
    
    
    
    (274
    )Cash flows used in investing activities:Purchases of investment securities designated as available for sale
    
    
    (650
    )
    
    
    (440
    )Purchases of investment securities designated as held to maturity
    
    
    
    
    
    
    (2,050
    )Proceeds from redemption of investment securities
    
    
    35
    
    
    
    344Proceeds from maturity of investment securities designated
as held to maturity
    
    
    1,009
    
    
    
    3,000Purchases of mortgage-backed securities designated as held to maturity
    
    
    (975
    )
    
    
    Proceeds from repayment of mortgage-backed securities
    
    
    539
    
    
    
    853Loan principal repayments
    
    
    18,594
    
    
    
    19,430Loan disbursements
    
    
    (23,825
    )
    
    
    (25,202
    )Purchase of office premises and equipment
    
    
    (113
    )
    
    
    (65
    )Proceeds from sale of real estate acquired through foreclosure
    
    
    68
    
    
    
    68Additions to real estate acquired through foreclosure
    
    
    (3
    )
    
    
    Decrease in certificates of deposit in other financial institutions
    
    
    
    
    
    
    297Net cash used in investing activities
    
    
    (5,321
    )
    
    
    (3,765
    )Net cash used in operating and investing activities
(subtotal carried forward)
    
    
    (4,708
    )
    
    
    (4,039
    )
 - 24 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
 
 2006
    
    
    2005Net cash used in operating and investing activities
(subtotal brought forward)
    
    $
    (4,708
    )
    
    $
    (4,039
    )Cash flows provided by (used in) financing activities:Net decrease in deposit accounts
    
    
    (116
    )
    
    
    (5,059
    )Proceeds from Federal Home Loan Bank advances
    
    
    10,000
    
    
    
    9,000Repayment of Federal Home Loan Bank advances
    
    
    (14,066
    )
    
    
    (4,104
    )Advances by borrowers for taxes and insurance
    
    
    22
    
    
    
    16Proceeds from issuance of common stock, net
    
    
    8,472
    
    
    
    Dividends paid on comon stock
    
    
    (66
    )
    
    
    Net cash provided by (used in) financing activities
    
    
    4,246
    
    
    
    (147
    )Net decrease in cash and cash equivalents
    
    
    (462
    )
    
    
    (4,186
    )Cash and cash equivalents at beginning of year
    
    
    3,716
    
    
    
    7,902Cash and cash equivalents at end of year
    
    $
    3,254
    
    
    $
    3,716Supplemental disclosure of cash flow information:Cash paid during the year for:Interest on deposits and borrowings
    
    $
    3,224
    
    
    $
    2,933Federal income taxes
    
    $
    175
    
    
    $
    Supplemental disclosure of noncash investing activities:Transfers from loans to real estate acquired through foreclosure
    
    $
    54
    
    
    $
    391Loans originated upon sale of real estate acquired through
foreclosure
    
    $
    83
    
    
    $
    355Unrealized losses on securities designated as available for
sale, net of related tax benefits
    
    $
    (108
    )
    
    $
    (85
    )
  - 25 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  NOTE A  SUMMARY OF ACCOUNTING POLICIES
     Principles of Consolidation
  - 26 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE A  SUMMARY OF ACCOUNTING POLICIES
 Investment and Mortgage-Backed Securities
   Loans Receivable
     - 27 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE A  SUMMARY OF ACCOUNTING POLICIES
 Loans Receivable
  2006
    
    
    2005(In thousands)Balance at beginning of year
    
    $
    208
    
    
    $
    239Recognition of mortgage servicing rights on sale of loans
    
    
    
    
    
    
    Amortization of mortgage servicing rights
    
    
    (23
    )
    
    
    (31
    )Balance at end of year
    
    $
    185
    
    
    $
    208Valuation allowance for impairment at beginning of year
    
    $
    (3
    )
    
    $
    (24
    )Valuation allowance recovered
    
    
    3
    
    
    
    21Valuation allowance for impairment at end of year
    
    $
    
    
    
    $
    (3
    )Net carrying value of mortgage servicing rights
at end of year
    
    $
    185
    
    
    $
    205
  Loan Origination Fees and Costs
  - 28 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE A  SUMMARY OF ACCOUNTING POLICIES
 Allowance for Loan Losses
     Office Premises and Equipment
  - 29 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE A  SUMMARY OF ACCOUNTING POLICIES
 Real Estate Acquired through Foreclosure
  Investment in Federal Home Loan Bank Stock
  Federal Income Taxes
   Cash and Cash Equivalents
  - 30 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE A  SUMMARY OF ACCOUNTING POLICIES
 Fair Value of Financial Instruments
    Cash and cash equivalents
 Investment and mortgage-backed securities
 Loans receivable
 Federal Home Loan Bank stock
 Deposits
 Federal Home Loan Bank advances
 Commitments to extend credit
 - 31 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE A  SUMMARY OF ACCOUNTING POLICIES
 Fair Value of Financial Instruments
  2006
    
    
    2005Carrying
    
    
    Fair
    
    
    Carrying
    
    
    Fairvalue
    
    
    value
    
    
    value
    
    
    value(In thousands)Financial assetsCash and cash equivalents
    
    $
    3,254
    
    
    $
    3,254
    
    
    $
    3,716
    
    
    $
    3,716Investment securities available for sale
    
    
    16,204
    
    
    
    16,204
    
    
    
    15,717
    
    
    
    15,717Investment securities held to maturity
    
    
    17,041
    
    
    
    16,596
    
    
    
    18,050
    
    
    
    17,852Mortgage-backed securities
    
    
    2,172
    
    
    
    2,164
    
    
    
    1,737
    
    
    
    1,755Loans receivable
    
    
    83,452
    
    
    
    82,362
    
    
    
    78,189
    
    
    
    80,666Federal Home Loan Bank stock
    
    
    1,869
    
    
    
    1,869
    
    
    
    1,769
    
    
    
    1,769$
    123,992
    
    
    $
    122,449
    
    
    $
    119,178
    
    
    $
    121,475Financial liabilitiesDeposits
    
    $
    78,782
    
    
    $
    78,967
    
    
    $
    78,898
    
    
    $
    79,285Advances from the Federal Home Loan Bank
    
    
    28,177
    
    
    
    27,078
    
    
    
    32,243
    
    
    
    31,290Advances by borrowers for taxes and insurance
    
    
    355
    
    
    
    355
    
    
    
    333
    
    
    
    333$
    107,314
    
    
    $
    106,400
    
    
    $
    111,474
    
    
    $
    110,908
 Cash Surrender Value of Life Insurance
  Advertising
  Earnings Per Share
  Reclassifications
  - 32 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE A  SUMMARY OF ACCOUNTING POLICIES
 Recent Accounting Developments
      
    
    Separately recognize financial assets as servicing assets or servicing
liabilities, each time it undertakes an obligation to service a financial asset
by entering into certain kinds of servicing contracts;
 - 33 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE A  SUMMARY OF ACCOUNTING POLICIES
 Recent Accounting Developments
 
    
    Initially measure all separately recognized servicing assets and liabilities
at fair value, if practicable; and
    
    Separately present servicing assets and liabilities subsequently measured at
fair value in the statement of financial condition and additional disclosures
for all separately recognized servicing assets and servicing liabilities.
   NOTE B  INVESTMENT AND MORTGAGE-BACKED SECURITIES
  June 30, 2006Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    faircost
    
    
    gains
    
    
    losses
    
    
    value(In thousands)Available for sale:Asset management fund
    
    $
    16,681
    
    
    $
    
    
    
    $
    (477
    )
    
    $
    16,204Held to maturity:Municipal obligations
    
    $
    41
    
    
    $
    
    
    
    $
    
    
    
    $
    41Federal Home Loan Mortgage
Corporation bonds
    
    
    2,000
    
    
    
    
    
    
    
    (54
    )
    
    
    1,946Federal National Mortgage
Association bonds
    
    
    6,000
    
    
    
    
    
    
    
    (132
    )
    
    
    5,868Federal Home Loan Bank bonds
    
    
    9,000
    
    
    
    
    
    
    
    (259
    )
    
    
    8,741$
    17,041
    
    
    $
    
    
    
    $
    (445
    )
    
    $
    16,596
 - 34 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE B  INVESTMENT AND MORTGAGE-BACKED SECURITIES
 June 30, 2005Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    faircost
    
    
    gains
    
    
    losses
    
    
    value(In thousands)Available for sale:Asset management fund
    
    $
    16,030
    
    
    $
    
    
    
    $
    (313
    )
    
    $
    15,717Held to maturity:Municipal obligations
    
    $
    50
    
    
    $
    
    
    
    $
    
    
    
    $
    50Federal Home Loan Mortgage
Corporation bonds
    
    
    2,000
    
    
    
    
    
    
    
    (6
    )
    
    
    1,994Federal National Mortgage
Association bonds
    
    
    7,000
    
    
    
    
    
    
    
    (77
    )
    
    
    6,923Federal Home Loan Bank bonds
    
    
    9,000
    
    
    
    
    
    
    
    (115
    )
    
    
    8,885$
    18,050
    
    
    $
    
    
    
    $
    (198
    )
    
    $
    17,852
  June 30,2006
    
    
    2005Estimated
    
    
    
    
    
    
    EstimatedAmortized
    
    
    fair
    
    
    Amortized
    
    
    faircost
    
    
    value
    
    
    cost
    
    
    value(In thousands)Held to maturity:Due within one year
    
    $
    6,000
    
    
    $
    5,924
    
    
    $
    1,009
    
    
    $
    1,002Due after one year through three years
    
    
    11,000
    
    
    
    10,631
    
    
    
    8,020
    
    
    
    7,902Due after three years through five years
    
    
    41
    
    
    
    41
    
    
    
    9,021
    
    
    
    8,948Total held to maturity
    
    $
    17,041
    
    
    $
    16,596
    
    
    $
    18,050
    
    
    $
    17,852
 - 35 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE B  INVESTMENT AND MORTGAGE-BACKED SECURITIES
  June 30, 2006Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    faircost
    
    
    gains
    
    
    losses
    
    
    value(In thousands)Federal Home Loan Mortgage Corporation
participation certificates
    
    $
    344
    
    
    $
    2
    
    
    $
    (1
    )
    
    $
    346Federal National Mortgage Association
participation certificates
    
    
    1,807
    
    
    
    1
    
    
    
    (10
    )
    
    
    1,797Government National Mortgage Association
participation certificates
    
    
    21
    
    
    
    
    
    
    
    
    
    
    
    21Total mortgage-backed securities
    
    $
    2,172
    
    
    $
    3
    
    
    $
    (11
    )
    
    $
    2,164
 June 30, 2005Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    faircost
    
    
    gains
    
    
    losses
    
    
    
    value(In thousands)Federal Home Loan Mortgage Corporation
participation certificates
    
    $
    529
    
    
    $
    9
    
    
    $
    
    
    
    $
    538Federal National Mortgage Association
participation certificates
    
    
    1,181
    
    
    
    9
    
    
    
    (1
    )
    
    
    1,189Government National Mortgage Association
participation certificates
    
    
    27
    
    
    
    1
    
    
    
    
    
    
    
    28Total mortgage-backed securities
    
    $
    1,737
    
    
    $
    19
    
    
    $
    (1
    )
    
    $
    1,755
  June 30,2006
    
    
    2005Estimated
    
    
    
    
    
    
    EstimatedAmortized
    
    
    fair
    
    
    Amortized
    
    
    faircost
    
    
    value
    
    
    cost
    
    
    value(In thousands)Due in less than three years
    
    $
    29
    
    
    $
    30
    
    
    $
    
    
    
    $
    Due in three to five years
    
    
    2
    
    
    
    2
    
    
    
    57
    
    
    
    59Due in five to ten years
    
    
    20
    
    
    
    20
    
    
    
    3
    
    
    
    4Due after ten years
    
    
    2,121
    
    
    
    2,112
    
    
    
    1,677
    
    
    
    1,692$
    2,172
    
    
    $
    2,164
    
    
    $
    1,737
    
    
    $
    1,755
 - 36 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE B  INVESTMENT AND MORTGAGE-BACKED SECURITIES
  June 30, 2006Less than 12 months
    
    
    12 months or longer
    
    
    
    
    
    
    TotalDescription of
    
    Number of
    
    
    Fair
    
    
    Unrealized
    
    
    Number of
    
    
    Fair
    
    
    Unrealized
    
    
    Number of
    
    
    Fair
    
    
    Unrealizedsecurities
    
    investments
    
    
    value
    
    
    losses
    
    
    investments
    
    
    value
    
    
    losses
    
    
    investments
    
    
    value
    
    
    losses(Dollars in thousands)Investment securities
held to maturity
    
    
    
    
    
    $
    
    
    
    $
    
    
    
    
    17
    
    
    $
    16,555
    
    
    $
    (445
    )
    
    
    17
    
    
    $
    16,555
    
    
    $
    (445
    )Investment securities
available for sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    16,681
    
    
    
    (477
    )
    
    
    1
    
    
    
    16,681
    
    
    
    (477
    )Mortgage-backed
securities
    
    
    12
    
    
    
    1,825
    
    
    
    (11
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12
    
    
    
    1,825
    
    
    
    (11
    )Total temporarily
impaired securities
    
    
    12
    
    
    $
    1,825
    
    
    $
    (11
    )
    
    
    18
    
    
    $
    33,236
    
    
    $
    (922
    )
    
    
    30
    
    
    $
    35,061
    
    
    $
    (933
    )
 June 30, 2005Less than 12 months
    
    
    12 months or longer
    
    
    
    
    
    
    TotalDescription of
    
    Number of
    
    
    Fair
    
    
    Unrealized
    
    
    Number of
    
    
    Fair
    
    
    Unrealized
    
    
    Number of
    
    
    Fair
    
    
    Unrealizedsecurities
    
    investments
    
    
    value
    
    
    losses
    
    
    investments
    
    
    value
    
    
    losses
    
    
    investments
    
    
    value
    
    
    losses(Dollars in thousands)Investment securities
held to maturity
    
    
    9
    
    
    $
    8,940
    
    
    $
    (61
    )
    
    
    8
    
    
    $
    7,862
    
    
    $
    (137
    )
    
    
    17
    
    
    $
    16,802
    
    
    $
    (198
    )Investment securities
available for sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    15,717
    
    
    
    (313
    )
    
    
    1
    
    
    
    15,717
    
    
    
    (313
    )Mortgage-backed
securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    66
    
    
    
    (1
    )
    
    
    1
    
    
    
    66
    
    
    
    (1
    )Total temporarily
impaired securities
    
    
    9
    
    
    $
    8,940
    
    
    $
    (61
    )
    
    
    10
    
    
    $
    23,645
    
    
    $
    (451
    )
    
    
    19
    
    
    $
    32,585
    
    
    $
    (512
    )
   - 37 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE C  LOANS RECEIVABLE
  2006
    
    
    2005(In thousands)Residential real estateOne- to four-family
    
    $
    68,604
    
    
    $
    65,060Multi-family
    
    
    3,936
    
    
    
    3,872Construction
    
    
    1,984
    
    
    
    1,336Nonresidential real estate
    
    
    4,181
    
    
    
    3,818Commercial
    
    
    4,258
    
    
    
    3,092Consumer and other
    
    
    3,089
    
    
    
    2,52486,052
    
    
    
    79,702Less:Unearned interest
    
    
    14
    
    
    
    11Deferred loan origination fees, net
    
    
    403
    
    
    
    320Allowance for loan losses
    
    
    579
    
    
    
    590Undisbursed portion of loans in process
    
    
    1,604
    
    
    
    592$
    83,452
    
    
    $
    78,189
    - 38 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE D  ALLOWANCE FOR LOAN LOSSES
  2006
    
    
    2005(In thousands)Balance at beginning of year
    
    $
    590
    
    
    $
    456Provision for losses on loans
    
    
    25
    
    
    
    216Charge-offs of loans
    
    
    (36
    )
    
    
    (102
    )Recoveries
    
    
    
    
    
    
    20Balance at end of year
    
    $
    579
    
    
    $
    590
   NOTE E  OFFICE PREMISES AND EQUIPMENT
  2006
    
    
    2005(In thousands)Land
    
    $
    572
    
    
    $
    572Leasehold improvements
    
    
    204
    
    
    
    204Buildings and improvements
    
    
    1,716
    
    
    
    1,716Furniture and equipment
    
    
    1,493
    
    
    
    1,479Vehicles
    
    
    13
    
    
    
    203,998
    
    
    
    3,991Less accumulated depreciation and amortization
    
    
    (1,929
    )
    
    
    (1,858
    )$
    2,069
    
    
    $
    2,133
 - 39 -




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##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE F  DEPOSITS
  2006
    
    
    2005Deposit type and weighted-
    
    Amount
    
    
    %
    
    
    Amount
    
    
    %average interest rate
    
    
    
    
    
    (Dollars in thousands)Non-interest-bearing checking
    
    $
    4,153
    
    
    
    5.3
    %
    
    $
    3,553
    
    
    
    4.5
    %NOW accounts2006 - 0.56%
    
    
    4,859
    
    
    
    6.22005 - 0.56%
    
    
    
    
    
    
    
    
    
    
    5,172
    
    
    
    6.6Money market accounts2006 - 0.60%
    
    
    602
    
    
    
    0.72005 - 0.60%
    
    
    
    
    
    
    
    
    
    
    958
    
    
    
    1.2Savings accounts2006 - 1.04%
    
    
    20,661
    
    
    
    26.22005 - 0.73%
    
    
    
    
    
    
    
    
    
    
    22,435
    
    
    
    28.4Total demand, transaction and
savings deposits
    
    
    30,275
    
    
    
    38.4
    
    
    
    32,118
    
    
    
    40.7Certificates of depositOriginal maturities of:Less than twelve months2006 - 4.01%
    
    
    19,045
    
    
    
    24.22005 - 2.04%
    
    
    
    
    
    
    
    
    
    
    18,033
    
    
    
    22.9Twelve months to thirty-six months2006 - 3.44%
    
    
    15,934
    
    
    
    20.22005 - 2.58%
    
    
    
    
    
    
    
    
    
    
    14,190
    
    
    
    18.0Thirty-six months and greater2006 - 3.95%
    
    
    13,528
    
    
    
    17.22005 - 4.11%
    
    
    
    
    
    
    
    
    
    
    14,557
    
    
    
    18.4Total certificates of deposit
    
    
    48,507
    
    
    
    61.6
    
    
    
    46,780
    
    
    
    59.3Total deposit accounts
    
    $
    78,782
    
    
    
    100.0
    %
    
    $
    78,898
    
    
    
    100.0
    %
   - 40 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE F  DEPOSITS
  2006
    
    
    2005(In thousands)Demand, transaction and savings accounts
    
    $
    204
    
    
    $
    211Certificate of deposit accounts
    
    
    1,666
    
    
    
    1,361$
    1,870
    
    
    $
    1,572
  2006
    
    
    2005(In thousands)Due within three months
    
    $
    12,879
    
    
    $
    10,927Due after three months to six months
    
    
    8,764
    
    
    
    8,075Due after six months to one year
    
    
    7,370
    
    
    
    8,037Due after one year to three years
    
    
    14,417
    
    
    
    13,917Due after three years
    
    
    5,077
    
    
    
    5,824$
    48,507
    
    
    $
    46,780
 NOTE G  ADVANCES FROM THE FEDERAL HOME LOAN BANK
  Maturing in fiscal year ending
    
    2006
    
    
    2005June 30,
    
    (Dollars in thousands)2006
    
    $
    
    
    
    $
    7,4852007
    
    
    6,927
    
    
    
    6,5082008
    
    
    9,283
    
    
    
    9,2832009
    
    
    2,772
    
    
    
    2,7722010
    
    
    2,391
    
    
    
    2,3912011
    
    
    5,082
    
    
    
    2,082Thereafter
    
    
    1,722
    
    
    
    1,722$
    28,177
    
    
    $
    32,243Weighted-average interest rate
    
    
    4.81
    %
    
    
    4.77
    %
 - 41 -




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##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE H  FEDERAL INCOME TAXES (CREDITS)
  2006
    
    
    2005(In thousands)Federal income taxes computed
at the 34% statutory rate
    
    $
    254
    
    
    $
    13Increase (decrease) in taxes resulting from:Increase in cash surrender value of life insurance
    
    
    (41
    )
    
    
    (51
    )Other
    
    
    (1
    )
    
    
    6Federal income tax provision (credits) per
consolidated financial statements
    
    $
    212
    
    
    $
    (32
    )Effective rate of tax (benefit)
    
    
    28.4
    %
    
    
    N/M
    (1)
 
 (1)
    
    N/M = Not meaningful.  2006
    
    
    2005(In thousands)Taxes (payable) refundable on temporary
differences at statutory rate:Deferred tax assets:General loan loss allowance
    
    $
    194
    
    
    $
    184Deferred loan origination fees
    
    
    85
    
    
    
    49Charitable contributions
    
    
    10
    
    
    
    24Unrealized losses on securities available for sale
    
    
    162
    
    
    
    106Other
    
    
    4
    
    
    
    3Deferred tax assets
    
    
    455
    
    
    
    366Deferred tax liabilities:Federal Home Loan Bank stock dividends
    
    
    (378
    )
    
    
    (344
    )Difference between book and tax depreciation
    
    
    (23
    )
    
    
    (20
    )Mortgage servicing rights
    
    
    (63
    )
    
    
    (70
    )Prepaid expenses and other
    
    
    (32
    )
    
    
    (30
    )Deferred tax liabilities
    
    
    (496
    )
    
    
    (464
    )Net deferred tax liability
    
    $
    (41
    )
    
    $
    (98
    )
 - 42 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE H  FEDERAL INCOME TAXES (CREDITS)
   NOTE I  COMMITMENTS AND CONTINGENCIES
     - 43 -




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##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE J  LEASE COMMITMENTS
   NOTE K  BENEFIT PLANS
    - 44 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE L  REGULATORY CAPITAL
     As of June 30, 2006To be well-capitalized underFor capital
    
    
    prompt correctiveActual
    
    
    adequacy purposes
    
    
    action provisionsAmount
    
    
    Ratio
    
    
    Amount
    
    
    Ratio
    
    
    Amount
    
    
    Ratio(Dollars in thousands)Tangible capital
    
    $
    18,226
    
    
    
    13.9
    %
    
    
    3$1,965
    
    
    
    31.5
    %
    
    
    3$6,550
    
    
    
    3  5.0
    %Core capital
    
    $
    18,226
    
    
    
    13.9
    %
    
    
    3$5,240
    
    
    
    34.0
    %
    
    
    3$7,860
    
    
    
    3  6.0
    %Risk-based capital
    
    $
    18,797
    
    
    
    27.2
    %
    
    
    3$5,537
    
    
    
    38.0
    %
    
    
    3$6,921
    
    
    
    310.0
    %
 - 45 -




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##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE L  REGULATORY CAPITAL
 As of June 30, 2005To be well-capitalized underFor capital
    
    
    prompt correctiveActual
    
    
    adequacy purposes
    
    
    action provisionsAmount
    
    
    Ratio
    
    
    Amount
    
    
    Ratio
    
    
    Amount
    
    
    Ratio(Dollars in thousands)Tangible capital
    
    $
    13,845
    
    
    
    10.9
    %
    
    
    3$1,899
    
    
    
    31.5
    %
    
    
    3$6,331
    
    
    
    3  5.0
    %Core capital
    
    $
    13,845
    
    
    
    10.9
    %
    
    
    3$5,065
    
    
    
    34.0
    %
    
    
    3$7,598
    
    
    
    3  6.0
    %Risk-based capital
    
    $
    14,387
    
    
    
    21.6
    %
    
    
    3$5,327
    
    
    
    38.0
    %
    
    
    3$6,658
    
    
    
    310.0
    %
  Reconciliation of GAAP to Regulatory Capital
 June 30,2006
    
    
    2005(In thousands)GAAP capital
    
    $
    17,930
    
    
    $
    13,659Reconciling items:Unrealized losses on available for sale securities
    
    
    315
    
    
    
    207Mortgage servicing rights excluded
    
    
    (19
    )
    
    
    (21
    )Tangible and core capital
    
    
    18,226
    
    
    
    13,845General valuation allowance
    
    
    571
    
    
    
    542Risk-based capital
    
    $
    18,797
    
    
    $
    14,387
   - 46 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE M  GREENVILLE FEDERAL FINANCIAL CORPORATION CONDENSED FINANCIAL STATEMENTS
  GREENVILLE FEDERAL FINANCIAL CORPORATION
STATEMENT OF FINANCIAL CONDITION
 ASSETSInterest-bearing deposits in Greenville Federal
    
    $
    3,735Demand deposit in Greenville Federal
    
    
    114Loan receivable from ESOP
    
    
    808Investment in Greenville Federal
    
    
    17,930Total assets
    
    $
    22,587LIABILITIES AND STOCKHOLDERS EQUITYAccrued expenses and other liabilities
    
    $
    5Stockholders equityCommon stock and additional paid-in capital
    
    
    9,423Retained earnings
    
    
    14,285Shares acquired by employee stock ownership plan
    
    
    (811
    )Unrealized losses on securities designated
as available for sale, net of tax effects
    
    
    (315
    )Total stockholders equity
    
    
    22,582Total liabilities and stockholders equity
    
    $
    22,587
 GREENVILLE FEDERAL FINANCIAL CORPORATION
STATEMENT OF EARNINGS
 RevenueInterest income
    
    $
    54Equity in earnings of Greenville Federal
    
    
    238Total revenue
    
    
    292General and administrative expenses
    
    
    46Earnings before income taxes
    
    
    246Income taxes
    
    
    1NET EARNINGS
    
    $
    245
 - 47 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  NOTE M  GREENVILLE FEDERAL FINANCIAL CORPORATION CONDENSED FINANCIAL STATEMENTS
 GREENVILLE FEDERAL FINANCIAL CORPORATION
STATEMENT OF CASH FLOWS
 Cash flows from operating activities:Net earnings for the period
    
    $
    245Equity in undistributed earnings of Greenville Federal
    
    
    (238
    )Increase in cash due to changes in:Other liabilities
    
    
    5Net cash provided by operating activities
    
    
    12Cash flows from investing activities:Purchase of investment in Greenville Federal
    
    
    (4,712
    )Disbursement of loan to ESOP
    
    
    (901
    )Principal repayments on loan to ESOP
    
    
    93Net cash used in investing activities
    
    
    (5,520
    )Cash flows from financing activities:Proceeds from issuance of common stock
    
    
    9,423Dividends paid
    
    
    (66
    )Net cash provided by financing activities
    
    
    9,357Net increase in cash and cash equivalents
    
    
    3,849Cash and cash equivalents at beginning of period
    
    
    Cash and cash equivalents at end of period
    
    $
    3,849
 - 48 -




---



##### 



DIRECTORS AND OFFICERS
 Directors of Greenville
    
    ExecutiveFederal Financial
    
    Officers of
    
    ExecutiveCorporation and
    
    Greenville Federal
    
    Officers ofGreenville Federal
    
    Financial Corporation
    
    Greenville FederalDavid M. Kepler
    
    David M. Kepler
    
    David M. KeplerPresident and Chief
    
    President and Chief
    
    President and ChiefExecutive Officer
    
    Executive Officer
    
    Executive OfficerGreenville Federal FinancialCorporation and Greenville
    
    Susan J. Allread
    
    Susan J. AllreadFederal
    
    Chief Financial Officer
    
    Chief Financial Officer,and Secretary
    
    Secretary, Vice PresidentDavid Feltman
    
    
    
    and Compliance OfficerRetired, PresidentHabitat for HumanityGeorge S. Luce, Jr.SalespersonBest Equipment Company, Inc.Richard J. OBrienRetired, PresidentQ.O.B. Electric, Inc.;CaretakerGreenville Union CemeteryEunice F. SteinbrecherChair of the BoardMessiah College;Real Estate Managementand InvestmentJames W. WardCertified Public AccountantFry and CompanyDavid R. WolvertonRetired, President and ChiefExecutive OfficerGreenville Federal
 - 49 -




---



##### 



INVESTOR AND CORPORATE INFORMATION
 Market Price of GFFCs Common Stock and Related Stockholder Matters
    DividendsdeclaredQuarter Ended
    
    High
    
    
    Low
    
    
    per shareMarch 31, 2006
    
    $
    10.25
    
    
    $
    10.00
    
    
    
    June 30, 2006
    
    $
    10.10
    
    
    $
    9.70
    
    
    $
    0.07
   Stockholder and General Inquiries
 
 Registered Independent Auditors
    
    Corporate CounselGrant Thornton LLP
    
    Vorys, Sater, Seymour and Pease LLP4000 Smith Road
    
    Suite 2000, Atrium TwoSuite 500
    
    221 E. Fourth StreetCincinnati, Ohio 45209
    
    Cincinnati, Ohio  45202(513) 762-5000
    
    (513) 723-4000
 Annual Reports
  - 50 -




---



##### 



OFFICE LOCATIONS
 Full Service Banking Locations
 Main Office:
    
    690 Wagner Avenue

Greenville, Ohio 45331
    
    Branch Office:
    
    GF XPRESS
200 Lease Avenue(937) 548-4158
    
    
    
    Greenville, Ohio 45331(937) 548-4158
  - 51 -




---



##### 



GREENVILLE FEDERAL FINANCIAL CORPORATION

690 Wagner AvenueGreenville, Ohio 45331

937-548-4158

www.greenvillefederal.com