##### 



Exhibit 13

GREENVILLE FEDERAL FINANCIAL CORPORATION

Greenville Logo

2007 Annual Report





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Greenville Federal Financial Corporation
June 30, 2007 and 2006
 ContentsLetter from the President and Chief Executive Officer
    
    
    1Business of Greenville Federal Financial Corporation
    
    
    2Selected Financial and Other Data
    
    
    3Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    5Financial StatementsReport of Independent Registered Public Accounting Firm
    
    
    19Consolidated Balance Sheets
    
    
    20Consolidated Statements of Income
    
    
    21Consolidated Statements of Comprehensive Income
    
    
    22Consolidated Statements of Stockholders Equity
    
    
    23Consolidated Statements of Cash Flows
    
    
    24Notes to Consolidated Financial Statements
    
    
    26Directors and Officers
    
    
    52Investors and Corporate Information
    
    
    53Office Locations
    
    
    54




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Letter from the President 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 30,2007
    
    2006(In thousands)SELECTED FINANCIAL CONDITION DATA:Total assets
    
    $
    129,708
    
    
    $
    130,708Cash and cash equivalents
    
    
    3,527
    
    
    
    3,254Investment securities available for sale
    
    
    17,013
    
    
    
    16,204Investment securities held to maturity
    
    
    11,031
    
    
    
    17,041Mortgage-backed securities held to maturity
    
    
    1,684
    
    
    
    2,172Loans receivable
    
    
    87,413
    
    
    
    83,452Deposits
    
    
    79,633
    
    
    
    78,782Advances from the Federal Home Loan Bank
    
    
    26,125
    
    
    
    28,177Stockholders equity
    
    
    22,744
    
    
    
    22,582Allowance for loan losses
    
    
    579
    
    
    
    579Nonperforming loans
    
    
    471
    
    
    
    529
 For the year ended June 30,2007
    
    
    2006(In thousands, except per share data)SELECTED OPERATIONS DATA:Total interest income
    
    $
    7,471
    
    
    $
    6,974Total interest expense
    
    
    3,592
    
    
    
    3,290Net interest income
    
    
    3,879
    
    
    
    3,684Provision for loan losses
    
    
    20
    
    
    
    25Net interest income after provision for loan losses
    
    
    3,859
    
    
    
    3,659Total other income
    
    
    825
    
    
    
    838Total general, administrative and other expense
    
    
    3,786
    
    
    
    3,750Income before income taxes
    
    
    898
    
    
    
    747Federal income taxes
    
    
    257
    
    
    
    212Net income
    
    $
    641
    
    
    $
    535Earnings per share  basic and diluted
    
    $
    0.29
    
    
    $
    0.31
 3




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Greenville Federal Financial Corporation
 Selected Financial and Other Data
 June 30,2007
    
    2006Performance Ratios:Return on average assets
    
    
    0.49
    %
    
    
    0.41
    %Return on average equity
    
    
    2.84
    
    
    
    3.06Average equity to average assets
    
    
    17.41
    
    
    
    13.41Equity to assets at the end of the period
    
    
    17.53
    
    
    
    17.28Interest rate spread 1
    
    
    2.64
    
    
    
    2.66Net interest margin 2
    
    
    3.20
    
    
    
    3.03Average interest-earning assets to average
interest-bearing liabilities
    
    
    118.81
    
    
    
    113.39Total general, administrative and other
expenses to average total assets
    
    
    2.92
    
    
    
    2.88Efficiency ratio 3
    
    
    80.48
    
    
    
    82.93Dividend payout ratio 4
    
    
    96.55
    
    
    
    22.58Asset Quality Ratios:Nonperforming loans as a percent of total loans
    
    
    0.53
    
    
    
    0.61Nonperforming assets as a percent of total assets
    
    
    0.55
    
    
    
    0.40Allowance for loan losses as a percent of total loans
    
    
    0.65
    
    
    
    0.67Allowance for loan losses as a percent of
nonperforming loans
    
    
    122.93
    
    
    
    109.45Regulatory Capital Ratios:Tangible capital
    
    
    10.71
    
    
    
    13.68Core capital
    
    
    10.71
    
    
    
    13.68Risk-based capital
    
    
    20.44
    
    
    
    26.17Number 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 expenses as a percent of the total of net interest
income and other income.4
    
    The dividend payout ratio represents dividends declared per share divided by earnings per share. The ratio has not
been adjusted for dividends waived by Greenville Federal MHC. 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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Greenville Federal Financial Corporation
 Managements Discussion and Analysis of Financial Condition and
 Results of Operations
  
    
    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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Greenville Federal Financial Corporation
 Managements Discussion and Analysis of Financial Condition and
 Results of Operations
    Comparison of financial condition at June 30, 2007, and June 30, 2006
   7




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Greenville Federal Financial Corporation
 Managements Discussion and Analysis of Financial Condition and
 Results of Operations
     8




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Greenville Federal Financial Corporation
 Managements Discussion and Analysis of Financial Condition and
 Results of Operations
     Comparison of results of operations for the fiscal years ended June 30, 2007 and
June 30, 2006
 General.
 Interest income.
  9




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Greenville Federal Financial Corporation
 Managements Discussion and Analysis of Financial Condition and
 Results of Operations
  Interest expense .
 Net interest income
 Provision for loan losses
 10




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Greenville Federal Financial Corporation
 Managements Discussion and Analysis of Financial Condition and
 Results of Operations
 Other income .
 General, administrative and other expense .
 Federal income taxes
 11




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Greenville Federal Financial Corporation
 Managements Discussion and Analysis of Financial Condition and
 Results of Operations
 Average balance sheets
  2007
    
    
    
    
    
    
    
    
    
    
    2006Interest
    
    
    
    
    
    
    
    
    
    
    InterestAverage
    
    
    income/
    
    
    Yield
    
    
    Average
    
    
    income/
    
    
    Yieldbalances
    
    
    expense
    
    
    rates
    
    
    balances
    
    
    expense
    
    
    rates(Dollars in thousands)Loans receivable
    
    $
    85,263
    
    
    $
    5,818
    
    
    
    6.82
    %
    
    $
    81,016
    
    
    $
    5,387
    
    
    
    6.65
    %Mortgage-backed securities
    
    
    1,966
    
    
    
    106
    
    
    
    5.39
    
    
    
    1,485
    
    
    
    67
    
    
    
    4.51Investment securities
    
    
    30,606
    
    
    
    1,345
    
    
    
    4.39
    
    
    
    33,372
    
    
    
    1,234
    
    
    
    3.70Other interest-bearing deposits
    
    
    3,205
    
    
    
    202
    
    
    
    6.30
    
    
    
    5,828
    
    
    
    286
    
    
    
    4.91Total interest-earning assets
    
    
    121,040
    
    
    
    7,471
    
    
    
    6.17
    
    
    
    121,701
    
    
    
    6,974
    
    
    
    5.73Non-interest-earning assets
    
    
    8,729
    
    
    
    
    
    
    
    
    
    
    
    8,706Total assets
    
    $
    129,769
    
    
    
    
    
    
    
    
    
    
    $
    130,407Interest-bearing deposits:Savings deposits
    
    $
    20,272
    
    
    
    209
    
    
    
    1.03
    
    
    $
    22,589
    
    
    
    172
    
    
    
    0.76Time deposits
    
    
    49,466
    
    
    
    2,042
    
    
    
    4.13
    
    
    
    49,244
    
    
    
    1,670
    
    
    
    3.39Total interest-bearing deposits
    
    
    74,567
    
    
    
    2,279
    
    
    
    3.06
    
    
    
    76,709
    
    
    
    1,870
    
    
    
    2.44Borrowings
    
    
    27,312
    
    
    
    1,313
    
    
    
    4.81
    
    
    
    30,621
    
    
    
    1,420
    
    
    
    4.64Total interest-bearing liabilities
    
    
    101,879
    
    
    
    3,592
    
    
    
    3.53
    
    
    
    107,330
    
    
    
    3,290
    
    
    
    3.07Non-interest-bearing demand deposits
    
    
    4,178
    
    
    
    
    
    
    
    
    
    
    
    4,119Non-interest-bearing liabilities
    
    
    1,116
    
    
    
    
    
    
    
    
    
    
    
    1,476Total liabilities
    
    
    107,173
    
    
    
    
    
    
    
    
    
    
    
    112,925Stockholders equity
    
    
    22,596
    
    
    
    
    
    
    
    
    
    
    
    17,482Total liabilities and
stockholders equity
    
    $
    129,769
    
    
    
    
    
    
    
    
    
    
    $
    130,407Net interest income
    
    
    
    
    
    $
    3,879
    
    
    
    
    
    
    
    
    
    
    $
    3,684Interest rate spread
    
    
    
    
    
    
    
    
    
    
    2.64
    %
    
    
    
    
    
    
    
    
    
    
    2.66
    %Net interest margin (net
interest income as a
percent of average
interest-earning assets)
    
    
    
    
    
    
    
    
    
    
    3.20
    %
    
    
    
    
    
    
    
    
    
    
    3.03
    %Average interest-earning
assets to average interest-
bearing liabilities
    
    
    
    
    
    
    
    
    
    
    118.81
    %
    
    
    
    
    
    
    
    
    
    
    113.39
    %
 12




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Greenville Federal Financial Corporation
 Managements Discussion and Analysis of Financial Condition and
 Results of Operations
 Yields earned and rates paid
  At June 30,
    
    Year ended June 30,2007
    
    2007
    
    2006Weighted-average yield on loan portfolio
    
    
    6.76
    %
    
    
    6.82
    %
    
    
    6.65
    %Weighted-average yield on mortgage-backed securities
    
    
    5.52
    
    
    
    5.39
    
    
    
    4.51Weighted-average yield on investment securities
    
    
    4.71
    
    
    
    4.39
    
    
    
    3.70Weighted-average yield on interest-bearing deposits
    
    
    5.88
    
    
    
    6.30
    
    
    
    4.91Weighted-average yield on all interest-earning assets
    
    
    6.24
    
    
    
    6.17
    
    
    
    5.73Weighted-average interest rate on deposits
    
    
    3.30
    
    
    
    3.06
    
    
    
    2.44Weighted-average interest rate on Federal Home
Loan Bank advances
    
    
    4.78
    
    
    
    4.81
    
    
    
    4.64Weighted-average interest rate paid on all interest-
bearing liabilities
    
    
    3.67
    
    
    
    3.53
    
    
    
    3.07Interest rate spread (spread between weighted-average
interest rate on all interest-earning assets and all
interest-bearing liabilities)
    
    
    2.57
    
    
    
    2.64
    
    
    
    2.66Net interest margin (net interest income as a percentage
of average interest-earning assets)
    
    
    N/A
    
    
    
    3.20
    
    
    
    3.03
 13




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Greenville Federal Financial Corporation
 Managements Discussion and Analysis of Financial Condition and
 Results of Operations
  Year ended June 30,2007 vs. 2006Increase(decrease)due toVolume
    
    
    Rate
    
    
    Total(In thousands)Interest income attributable to:Loans receivable
    
    $
    287
    
    
    $
    144
    
    
    $
    431Mortgage-backed securities
    
    
    32
    
    
    
    7
    
    
    
    39Investment securities
    
    
    (108
    )
    
    
    219
    
    
    
    111Interest-earning deposits
    
    
    67
    
    
    
    (151
    )
    
    
    (84
    )Total interest income
    
    
    278
    
    
    
    219
    
    
    
    497Interest expense attributable to:Savings deposits
    
    
    (19
    )
    
    
    56
    
    
    
    37Time deposits
    
    
    8
    
    
    
    364
    
    
    
    372Federal Home Loan Bank advances
    
    
    (158
    )
    
    
    51
    
    
    
    (107
    )Total interest expense
    
    
    (169
    )
    
    
    471
    
    
    
    302Increase (decrease) in net interest income
    
    $
    447
    
    
    $
    (252
    )
    
    $
    195
 Asset and liability management
    14




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Greenville Federal Financial Corporation
 Managements Discussion and Analysis of Financial Condition and
 Results of Operations
  June 30, 2007Net 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
    
    $
    13,224
    
    
    $
    (5,974
    )
    
    
    (31
    )%
    
    
    10.49
    %
    
    
    (382) bp+200
    
    
    15,424
    
    
    
    (3,774
    )
    
    
    (20
    )
    
    
    11.96
    
    
    
    (235
    )+100
    
    
    17,523
    
    
    
    (1,675
    )
    
    
    (9
    )
    
    
    13.30
    
    
    
    (101
    )0
    
    
    19,198
    
    
    
    
    
    
    
    
    
    
    
    14.31
    
    
    
    -100
    
    
    20,294
    
    
    
    1,096
    
    
    
    6
    
    
    
    14.91
    
    
    
    60-200
    
    
    20,695
    
    
    
    1,497
    
    
    
    8
    
    
    
    15.07
    
    
    
    76
 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
 
 (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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Greenville Federal Financial Corporation
 Managements Discussion and Analysis of Financial Condition and
 Results of Operations
    Liquidity and capital resources
  Year ended June 30,2007
    
    
    2006(In thousands)Net income
    
    $
    641
    
    
    $
    535Adjustments to reconcile net income to net
cash from operating activities
    
    
    (32
    )
    
    
    78Net cash provided by operating activities
    
    
    609
    
    
    
    613Net cash provided by (used in) investing activities
    
    
    1,383
    
    
    
    (5,321
    )Net cash provided by (used in) financing activities
    
    
    (1,719
    )
    
    
    4,246Net increase (decrease) in cash and cash equivalents
    
    
    273
    
    
    
    (462
    )Cash and cash equivalents at beginning of year
    
    
    3,254
    
    
    
    3,716Cash and cash equivalents at end of year
    
    $
    3,527
    
    
    $
    3,254
 16




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Greenville Federal Financial Corporation
 Managements Discussion and Analysis of Financial Condition and
 Results of Operations
    Payments due by periodMore1 year or
    
    
    Over 1-3
    
    
    Over 3-5
    
    
    thanless
    
    
    years
    
    
    years
    
    
    5 years
    
    
    Total(In thousands)Contractual obligations:Advances from the Federal Home Loan Bank
    
    $
    14,158
    
    
    $
    5,163
    
    
    $
    5,910
    
    
    $
    894
    
    
    $
    26,125Certificate of deposit maturities
    
    
    38,758
    
    
    
    9,393
    
    
    
    3,074
    
    
    
    
    
    
    
    51,225Amount of commitments expiration per period:Commitments to originate one- to four-family
loans
    
    
    1,608
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,608Letters of credit
    
    
    
    
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    20Home equity and commercial lines of credit
    
    
    3,020
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,020Undisbursed loans in process
    
    
    862
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    862Data processing contracts
    
    
    520
    
    
    
    594
    
    
    
    46
    
    
    
    
    
    
    
    1,160Lease obligations
    
    
    50
    
    
    
    104
    
    
    
    17
    
    
    
    
    
    
    
    171Charitable contributions pledged
    
    
    10
    
    
    
    10
    
    
    
    
    
    
    
    
    
    
    
    20Total contractual obligations
    
    $
    58,986
    
    
    $
    15,284
    
    
    $
    9,047
    
    
    $
    894
    
    
    $
    84,211
  17




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##### 



Greenville Federal Financial Corporation
 Managements Discussion and Analysis of Financial Condition and
 Results of Operations
   June 30, 2007Excess of regulatorycapital over currentRegulatory capital
    
    Current requirement
    
    requirementAmount
    
    Percent
    
    Amount
    
    Percent
    
    Amount
    
    Percent(Dollars in thousands)Tangible capital
    
    $
    13,881
    
    
    
    10.7
    %
    
    $
    1,946
    
    
    
    1.5
    %
    
    $
    11,935
    
    
    
    9.2
    %Core capital
    
    $
    13,881
    
    
    
    10.7
    %
    
    $
    5,189
    
    
    
    4.0
    %
    
    $
    8,692
    
    
    
    6.7
    %Risk-based capital
    
    $
    14,437
    
    
    
    20.4
    %
    
    $
    5,655
    
    
    
    8.0
    %
    
    $
    8,782
    
    
    
    12.4
    %
 Impact of Inflation and Changing Prices
   18




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##### 



Report of Independent Registered Public Accounting Firm
 
    (BKD) 
 
 19




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##### 



Greenville Federal Financial Corporation
 Consolidated Balance Sheets
 June 30, 2007 and 2006
 (In thousands, except share data)
 2007
    
    
    2006AssetsCash and due from banks
    
    $
    2,030
    
    
    $
    2,225Interest-bearing deposits in other financial institutions
    
    
    1,497
    
    
    
    1,029Cash and cash equivalents
    
    
    3,527
    
    
    
    3,254Investment securities designated as available for sale  at market
    
    
    17,013
    
    
    
    16,204Investment securities designated as held to maturity  at
amortized cost
    
    
    11,031
    
    
    
    17,041Mortgage-backed securities designed as held to maturity  at
amortized cost
    
    
    1,684
    
    
    
    2,172Loans receivable  net of allowance for loans losses of $579 at
June 30, 2007 and 2006
    
    
    87,413
    
    
    
    83,452Office premises and equipment  at depreciated cost
    
    
    2,022
    
    
    
    2,069Real estate acquired through foreclosure
    
    
    247
    
    
    
    Stock in Federal Home Loan Bank  at cost
    
    
    1,925
    
    
    
    1,869Cash surrender value of life insurance
    
    
    3,849
    
    
    
    3,705Accrued interest receivable on loans
    
    
    442
    
    
    
    418Accrued interest receivable on mortgage-backed securities
    
    
    9
    
    
    
    11Accrued interest receivable on investment securities and other
    
    
    99
    
    
    
    146Prepaid expenses and other asset
    
    
    447
    
    
    
    367Total assets
    
    $
    129,708
    
    
    $
    130,708Liabilities and Stockholders EquityDeposits
    
    $
    79,633
    
    
    $
    78,782Advances from the Federal Home Loan Bank
    
    
    26,125
    
    
    
    28,177Advances by borrowers for taxes and insurance
    
    
    382
    
    
    
    355Accrued interest payable
    
    
    333
    
    
    
    271Other liabilities
    
    
    387
    
    
    
    500Deferred federal income taxes
    
    
    104
    
    
    
    41Total liabilities
    
    
    106,964
    
    
    
    108,126Commitments 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
    
    
    
    23Additional paid-in capital
    
    
    9,145
    
    
    
    9,400Retained earnings  restricted
    
    
    14,636
    
    
    
    14,285Shares acquired by Employee Stock Ownership Plan
    
    
    (721
    )
    
    
    (811
    )Accumulated comprehensive loss  unrealized losses on
securities designated as available for sale, net of related
tax benefits
    
    
    (339
    )
    
    
    (315
    )Total stockholders equity
    
    
    22,744
    
    
    
    22,582Total liabilities and stockholders equity
    
    $
    129,708
    
    
    $
    130,708
 See Notes to Consolidated Financial Statements
 20




---



##### 



Greenville Federal Financial Corporation
 Consolidated Statements of Income
 For the years ended June 30, 2007 and 2006
 (In thousands, except share data)
 2007
    
    
    2006Interest IncomeLoans
    
    $
    5,818
    
    
    $
    5,387Mortgage-backed securities
    
    
    106
    
    
    
    67Investment securities
    
    
    1,345
    
    
    
    1,234Interest-bearing deposits and other
    
    
    202
    
    
    
    286Total interest income
    
    
    7,471
    
    
    
    6,974Interest ExpenseDeposits
    
    
    2,279
    
    
    
    1,870Borrowings
    
    
    1,313
    
    
    
    1,420Total interest expense
    
    
    3,592
    
    
    
    3,290Net Interest Income
    
    
    3,879
    
    
    
    3,684Provision for Loan Losses
    
    
    20
    
    
    
    25Net Interest Income After Provision for Loan Losses
    
    
    3,859
    
    
    
    3,659Other IncomeCustomer service charges
    
    
    553
    
    
    
    529Gain on sale of real estate acquired through foreclosure
    
    
    5
    
    
    
    31Gain on redemption of investment security
    
    
    
    
    
    
    35Other operating
    
    
    267
    
    
    
    243Total other income
    
    
    825
    
    
    
    838General, Administrative and Other ExpenseEmployee compensation and other benefits
    
    
    2,048
    
    
    
    2,087Occupancy and equipment
    
    
    393
    
    
    
    434Franchise taxes
    
    
    212
    
    
    
    185Data processing
    
    
    464
    
    
    
    414Advertising
    
    
    69
    
    
    
    75Other operating
    
    
    600
    
    
    
    555Total general, administrative and other expense
    
    
    3,786
    
    
    
    3,750Income Before Income Tax
    
    
    898
    
    
    
    747Federal Income TaxesCurrent
    
    
    181
    
    
    
    213Deferred
    
    
    76
    
    
    
    (1
    )Total federal income taxes
    
    
    257
    
    
    
    212Net Income
    
    $
    641
    
    
    $
    535Earnings Per Share  Basic and Diluted
    
    $
    0.29
    
    
    $
    0.31
 See Notes to Consolidated Financial Statements
 21




---



##### 



Greenville Federal Financial Corporation
 Consolidated Statements of Comprehensive Income (Loss)
 For the years ended June 30, 2007 and 2006
 (In thousands)
 2007
    
    
    2006Net Income
    
    $
    641
    
    
    $
    535Other Comprehensive Loss, Net of Related Tax Benefits:Unrealized holding losses on securities during the
year, net of tax benefits of $13 and $56 for the
years ended June 30, 2007 and 2006, respectively
    
    
    (24
    )
    
    
    (108
    )Comprehensive Income
    
    $
    617
    
    
    $
    427Accumulated Comprehensive Loss
    
    $
    (339
    )
    
    $
    (315
    )
 See Notes to Consolidated Financial Statements
 22




---



##### 



Greenville Federal Financial Corporation
 Consolidated Statements of Stockholders Equity
 For the years ended June 30, 2007 and 2006
 (In thousands, except share data)
 Shares
    
    
    UnrealizedAcquired
    
    
    Losses onby Employee
    
    
    SecuritiesAdditional
    
    
    
    
    
    
    Stock
    
    
    DesignatedCommon
    
    
    Paid-in
    
    
    Retained
    
    
    Ownership
    
    
    as AvailableStock
    
    
    Capital
    
    
    Earnings
    
    
    Plan
    
    
    for Sale
    
    
    TotalBalance, July 1, 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 income 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, June 30, 2006
    
    
    23
    
    
    
    9,400
    
    
    
    14,285
    
    
    
    (811
    )
    
    
    (315
    )
    
    
    22,582Unrealized losses on securities
designated as available for sale,
net of related tax benefits
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (24
    )
    
    
    (24
    )Net income for the year ended June
30, 2007
    
    
    
    
    
    
    
    
    
    
    641
    
    
    
    
    
    
    
    
    
    
    
    641Cash dividends paid of $.28 per
share
    
    
    
    
    
    
    
    
    
    
    (290
    )
    
    
    
    
    
    
    
    
    
    
    (290
    )Amortization of ESOP expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    90
    
    
    
    
    
    
    
    90Shares acquired by 2006 equity
plan trust
    
    
    
    
    
    
    (255
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (255
    )Balance, June 30, 2007
    
    $
    23
    
    
    $
    9,145
    
    
    $
    14,636
    
    
    $
    (721
    )
    
    $
    (339
    )
    
    $
    22,744
 See Notes to Consolidated Financial Statements
 23




---



##### 



Greenville Federal Financial Corporation
 Consolidated Statements of Cash Flows
 For the years ended June 30, 2007 and 2006
 (In thousands)
 2007
    
    
    2006Cash Flows from Operating ActivitiesNet income for the year
    
    $
    641
    
    
    $
    535Adjustments to reconcile net income to net cash provided by
operating activities:Accretion and amortization of premiums and discounts on
investment and mortgage-backed securities  net
    
    
    (2
    )
    
    
    1Amortization of deferred loan origination fees
    
    
    (48
    )
    
    
    (50
    )Depreciation and amortization
    
    
    143
    
    
    
    177Amortization of mortgage servicing rights
    
    
    37
    
    
    
    22Amortization of ESOP expense
    
    
    90
    
    
    
    90Provision for loan losses
    
    
    20
    
    
    
    25Gain on sale of real estate acquired through foreclosure
    
    
    (5
    )
    
    
    (31
    )Gain on redemption of investment security
    
    
    
    
    
    
    (35
    )Federal Home Loan Bank stock dividends
    
    
    (56
    )
    
    
    (100
    )Increase in cash surrender value of life insurance
    
    
    (144
    )
    
    
    (134
    )Increase (decrease) in cash due to changes in:Accrued interest receivable on loans
    
    
    (24
    )
    
    
    Accrued interest receivable on mortgage-backed securities
    
    
    2
    
    
    
    (3
    )Accrued interest receivable on investment securities and other
    
    
    47
    
    
    
    Prepaid expenses and other assets
    
    
    (51
    )
    
    
    146Accrued interest payable
    
    
    62
    
    
    
    66Other liabilities
    
    
    (53
    )
    
    
    (132
    )Federal income taxesCurrent
    
    
    (126
    )
    
    
    37Deferred
    
    
    76
    
    
    
    (1
    )Net cash provided by operating activities
    
    
    609
    
    
    
    613Cash Flows Provided by (Used in) Investing ActivitiesPurchases of investment securities designated as available for sale
    
    
    (846
    )
    
    
    (650
    )Proceeds from redemption of investment securities
    
    
    
    
    
    
    35Proceeds from maturity of investment securities designated as held
to maturity
    
    
    6,010
    
    
    
    1,009Purchases of mortgage-backed securities designated as held to
maturity
    
    
    
    
    
    
    (975
    )Proceeds from repayment of mortgage-backed securities
    
    
    490
    
    
    
    539Loan principal repayments
    
    
    14,818
    
    
    
    18,594Loan disbursements
    
    
    (19,562
    )
    
    
    (23,825
    )Purchase of office premises and equipment
    
    
    (96
    )
    
    
    (113
    )Proceeds from sale of real estate acquired through foreclosure
    
    
    569
    
    
    
    68Additions to real estate acquired through foreclosure
    
    
    
    
    
    
    (3
    )Net cash provided by (used in) investing activities
    
    
    1,383
    
    
    
    (5,321
    )Net cash provided by (used in) operating and investing
activities (subtotal carried forward)
    
    
    1,992
    
    
    
    (4,708
    )
 See Notes to Consolidated Financial Statements
 24




---



##### 



Greenville Federal Financial Corporation
Consolidated Statements of Cash Flows
For the years ended June 30, 2007 and 2006
(In thousands)
 2007
    
    
    2006Net cash provided by (used in) operating and
investing activities (subtotal brought forward)
    
    $
    1,992
    
    
    $
    (4,708
    )Cash Flows Provided by (Used in) Financing ActivitiesNet increase (decrease) in deposit accounts
    
    
    851
    
    
    
    (116
    )Proceeds from Federal Home Loan Bank advances
    
    
    36,000
    
    
    
    10,000Repayment of Federal Home Loan Bank advances
    
    
    (38,052
    )
    
    
    (14,066
    )Advances by borrowers for taxes and insurance
    
    
    27
    
    
    
    22Proceeds from issuance of common stock, net
    
    
    
    
    
    
    8,472Shares acquired by 2006 equity plan
    
    
    (255
    )
    
    
    Dividends paid on common stock
    
    
    (290
    )
    
    
    (66
    )Net cash provided by (used in) financing activities
    
    
    (1,719
    )
    
    
    4,246Increase (Decrease) in Cash and Cash Equivalents
    
    
    273
    
    
    
    (462
    )Cash and Cash Equivalents, Beginning of Year
    
    
    3,254
    
    
    
    3,716Cash and Cash Equivalents, End of Year
    
    $
    3,527
    
    
    $
    3,254Supplemental Disclosure of Cash Flow InformationCash paid during the year for:Interest on deposits and borrowings
    
    $
    3,530
    
    
    $
    3,224Federal income taxes
    
    $
    308
    
    
    $
    175Supplemental Disclosure of Noncash Investing ActivitiesTransfers from loans to real estate acquired through foreclosure
    
    $
    811
    
    
    $
    54Loans originated upon sale of real estate acquired through
foreclosure
    
    $
    
    
    
    $
    83Unrealized losses on securities designated as available for
sale, net of related tax benefits
    
    $
    (24
    )
    
    $
    (108
    )
 See Notes to Consolidated Financial Statements
 25




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2007 and 2006
 Note 1: Summary of Accounting Policies
     Principles of Consolidation
  26




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2007 and 2006
 Loans Receivable
   Securities
    Loan Origination Fees and Costs
  27




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2007 and 2006
 Allowance for Loan Losses
     Office Premises and Equipment
  28




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2007 and 2006
 Real Estate Acquired through Foreclosure
  Investment in Federal Home Loan Bank Stock
  Mortgage Servicing Rights
  Income Taxes
  Cash and Cash Equivalents
  29




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2007 and 2006
 Fair Value of Financial Instruments
    Cash and cash equivalents
 Investment and mortgage-backed securities
 Loans receivable
 Federal Home Loan Bank stock
 Accrued Interest Receivable
 Deposits
 Federal Home Loan Bank advances
 Accrued Interest Payable
 Commitments to extend credit
 30




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2007 and 2006
  2007
    
    
    2006Carrying
    
    
    Fair
    
    
    Carrying
    
    
    FairValue
    
    
    Value
    
    
    Value
    
    
    Value(In thousands)Financial AssetsCash and cash equivalents
    
    $
    3,527
    
    
    $
    3,527
    
    
    $
    3,254
    
    
    $
    3,254Investment securities available
for sale
    
    
    17,013
    
    
    
    17,013
    
    
    
    16,204
    
    
    
    16,204Investment securities held to
maturity
    
    
    11,031
    
    
    
    10,859
    
    
    
    17,041
    
    
    
    16,596Mortgage-backed securities
    
    
    1,684
    
    
    
    1,692
    
    
    
    2,172
    
    
    
    2,164Loans receivable
    
    
    87,413
    
    
    
    86,582
    
    
    
    83,452
    
    
    
    82,362Federal Home Loan Bank stock
    
    
    1,925
    
    
    
    1,925
    
    
    
    1,869
    
    
    
    1,869Accrued interest receivable
    
    
    550
    
    
    
    550
    
    
    
    575
    
    
    
    575$
    123,143
    
    
    $
    122,148
    
    
    $
    124,567
    
    
    $
    123,024Financial LiabilitiesDeposits
    
    $
    79,633
    
    
    $
    79,650
    
    
    $
    78,782
    
    
    $
    78,967Advances from the Federal Home
Loan Bank
    
    
    26,125
    
    
    
    25,625
    
    
    
    28,177
    
    
    
    27,078Advances by borrowers for taxes
and insurance
    
    
    382
    
    
    
    382
    
    
    
    355
    
    
    
    355Accrued interest payable
    
    
    333
    
    
    
    333
    
    
    
    271
    
    
    
    271$
    106,473
    
    
    $
    105,990
    
    
    $
    107,585
    
    
    $
    106,671
 Cash Surrender Value of Life Insurance
  Advertising
  Earnings Per Share
  31




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2007 and 2006
   Reclassifications
  Recent Accounting Developments
    
 32




---



##### 



Greenville Federal Financial Corporation  Notes to Consolidated Financial Statements  June 30, 2007 and 2006
     
 33




---



##### 



Greenville Federal Financial Corporation  Notes to Consolidated Financial Statements  June 30, 2007 and 2006
    Note 2: Investment and Mortgage-backed Securities
  June 30, 2007Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    Value(In thousands)Available for Sale:Asset management fund
    
    $
    17,527
    
    
    $
    
    
    
    $
    (514
    )
    
    $
    17,013Held to Maturity:Municipal obligations
    
    $
    31
    
    
    $
    
    
    
    $
    
    
    
    $
    31Federal Home Loan
Mortgage Corporation
bonds
    
    
    2,000
    
    
    
    
    
    
    
    (24
    )
    
    
    1,976Federal National
Mortgage Association
bonds
    
    
    3,000
    
    
    
    
    
    
    
    (36
    )
    
    
    2,964Federal Home Loan
Bank bonds
    
    
    6,000
    
    
    
    
    
    
    
    (112
    )
    
    
    5,888$
    11,031
    
    
    $
    
    
    
    $
    (172
    )
    
    $
    10,859
 34




---



##### 



Greenville Federal Financial Corporation  Notes to Consolidated Financial Statements  June 30, 2007 and 2006
 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
  June 30,2007
    
    
    2006Estimated
    
    
    
    
    
    
    EstimatedAmortized
    
    
    Fair
    
    
    Amortized
    
    
    FairCost
    
    
    Value
    
    
    Cost
    
    
    ValueHeld to Maturity:Due within one year
    
    $
    2,000
    
    
    $
    1,991
    
    
    $
    6,000
    
    
    $
    5,924Due after one year through
three years
    
    
    9,031
    
    
    
    8,868
    
    
    
    11,000
    
    
    
    10,631Due after three years
through five years
    
    
    
    
    
    
    
    
    
    
    41
    
    
    
    41Total held to maturity
    
    $
    11,031
    
    
    $
    10,859
    
    
    $
    17,041
    
    
    $
    16,596
 35




---



##### 



Greenville Federal Financial Corporation  Notes to Consolidated Financial Statements  June 30, 2007 and 2006
  June 30, 2007Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    Value(In thousands)Federal
Home Loan
Mortgage Corporation
participation
certificates
    
    $
    232
    
    
    $
    1
    
    
    $
    
    
    
    $
    233Federal
National Mortgage
Association participation
certificates
    
    
    1,436
    
    
    
    8
    
    
    
    (1
    )
    
    
    1,443Government National
Mortgage Association
participation
certificates
    
    
    16
    
    
    
    
    
    
    
    
    
    
    
    16Total
mortgage-backed
securities
    
    $
    1,684
    
    
    $
    9
    
    
    $
    (1
    )
    
    $
    1,692
 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
  36




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2007 and 2006
 June 30,2007
    
    
    2006Estimated
    
    
    
    
    
    
    EstimatedAmortized
    
    
    Fair
    
    
    Amortized
    
    
    FairCost
    
    
    Value
    
    
    Cost
    
    
    ValueDue in less than one year
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Due in one to five years
    
    
    16
    
    
    
    17
    
    
    
    31
    
    
    
    32Due in five to ten years
    
    
    165
    
    
    
    165
    
    
    
    20
    
    
    
    20Due after ten years
    
    
    1,503
    
    
    
    1,510
    
    
    
    2,121
    
    
    
    2,112$
    1,684
    
    
    $
    1,692
    
    
    $
    2,172
    
    
    $
    2,164
  June 30, 2007Less than 12 months
    
    
    12 months or longer
    
    
    TotalDescription of
    
    Number of
    
    
    
    
    
    
    Unrealized
    
    
    Number of
    
    
    
    
    
    
    Unrealized
    
    
    Number of
    
    
    
    
    
    
    Unrealizedsecurities
    
    investments
    
    
    Fair value
    
    
    losses
    
    
    investments
    
    
    Fair value
    
    
    losses
    
    
    investments
    
    
    Fair value
    
    
    losses(Dollars in thousands)Investment
securities
available for sale
    
    
    
    
    
    $
    
    
    
    $
    
    
    
    
    1
    
    
    $
    17,013
    
    
    $
    514
    
    
    
    1
    
    
    $
    17,013
    
    
    $
    514Investment
securities
held to maturity
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11
    
    
    
    10,828
    
    
    
    172
    
    
    
    11
    
    
    
    10,828
    
    
    
    172Mortgage-backed
securities
    
    
    5
    
    
    
    1,003
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5
    
    
    
    1,003
    
    
    
    1Total temporarily
impaired securities
    
    
    5
    
    
    $
    1,003
    
    
    $
    1
    
    
    
    12
    
    
    $
    27,841
    
    
    $
    686
    
    
    
    17
    
    
    $
    28,844
    
    
    $
    687
 June 30, 2006Less than 12 months
    
    
    12 months or longer
    
    
    TotalDescription of
    
    Number of
    
    
    
    
    
    
    Unrealized
    
    
    Number of
    
    
    
    
    
    
    Unrealized
    
    
    Number of
    
    
    
    
    
    
    Unrealizedsecurities
    
    investments
    
    
    Fair value
    
    
    losses
    
    
    investments
    
    
    Fair value
    
    
    losses
    
    
    investments
    
    
    Fair value
    
    
    losses(Dollars in thousands)Investment
securities
available for sale
    
    
    
    
    
    $
    
    
    
    $
    
    
    
    
    1
    
    
    $
    16,204
    
    
    $
    477
    
    
    
    1
    
    
    $
    16,204
    
    
    $
    477Investment
securities
held to maturity
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17
    
    
    
    16,555
    
    
    
    445
    
    
    
    17
    
    
    
    16,555
    
    
    
    445Mortgage-backed
Securities
    
    
    12
    
    
    
    1,825
    
    
    
    11
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12
    
    
    
    1,825
    
    
    
    11Total temporarily
impaired securities
    
    
    12
    
    
    $
    1,825
    
    
    $
    11
    
    
    
    18
    
    
    $
    32,759
    
    
    $
    922
    
    
    
    30
    
    
    $
    34,584
    
    
    $
    933
 37




---



##### 



Greenville Federal Financial Corporation  Notes to Consolidated Financial Statements  June 30, 2007 and 2006
     Note 3: Loans Receivable
  2007
    
    
    2006(In thousands)Residential real estateOne-to-four family
    
    $
    72,089
    
    
    $
    68,604Multi-family
    
    
    3,864
    
    
    
    3,936Construction
    
    
    701
    
    
    
    1,984Nonresidential real estate
    
    
    5,242
    
    
    
    4,181Nonresidential real estate construction
    
    
    750
    
    
    
    Commercial
    
    
    3,467
    
    
    
    4,258Consumer and other
    
    
    3,121
    
    
    
    3,089Total loans
    
    
    89,234
    
    
    
    86,052LessUnearned interest
    
    
    9
    
    
    
    14Deferred loan origination fees, net
    
    
    371
    
    
    
    403Allowance for loan losses
    
    
    579
    
    
    
    579Undisbursed portion of loans in process
    
    
    862
    
    
    
    1,604Net loans
    
    $
    87,413
    
    
    $
    83,452
 38




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##### 



Greenville Federal Financial Corporation  Notes to Consolidated Financial Statements  June 30, 2007 and 2006
   Note 4: Allowance for Loan Losses
  2007
    
    
    2006(In thousands)Balance, beginning of year
    
    $
    579
    
    
    $
    590Provision for loan losses
    
    
    20
    
    
    
    25Charge-offs of loans
    
    
    (20
    )
    
    
    (36
    )Balance, end of year
    
    $
    579
    
    
    $
    579
  39




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##### 



Greenville Federal Financial Corporation  Notes to Consolidated Financial Statements  June 30, 2007 and 2006
 Note 5: Office Premises and Equipment
  2007
    
    
    2006(In thousands)Land
    
    $
    572
    
    
    $
    572Leasehold improvements
    
    
    204
    
    
    
    204Buildings and improvements
    
    
    1,721
    
    
    
    1,716Furniture and equipment
    
    
    1,518
    
    
    
    1,493Vehicles
    
    
    13
    
    
    
    134,028
    
    
    
    3,998Less accumulated depreciation and amortization
    
    
    (2,006
    )
    
    
    (1,929
    )Net premises and equipment
    
    $
    2,022
    
    
    $
    2,069
 Note 6: Mortgage Servicing Rights
  2007
    
    
    2006(In thousands)Balance at beginning of year
    
    $
    185
    
    
    $
    208Recognition of mortgage servicing rights on sale of loans
    
    
    
    
    
    
    Amortization of mortgage servicing rights
    
    
    (37
    )
    
    
    (23
    )Balance at end of year
    
    $
    148
    
    
    $
    185Valuation allowance for impairment at beginning of year
    
    $
    
    
    
    $
    (3
    )Valuation allowance recovered
    
    
    
    
    
    
    3Valuation allowance for impairment at end of year
    
    $
    
    
    
    $
    Net carrying value of mortgage servicing rights at end
of year
    
    $
    148
    
    
    $
    185
 40




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##### 



Greenville Federal Financial Corporation  Notes to Consolidated Financial Statements  June 30, 2007 and 2006
  Note 7: Deposits
  Deposit type and weighted average
    
    2007
    
    
    2006interest rate
    
    Amount
    
    
    %
    
    
    Amount
    
    
    %(Dollars in thousands)Non-interest-bearing checking
    
    $
    4,248
    
    
    
    5.3
    %
    
    $
    4,153
    
    
    
    5.3
    %NOW accounts2007  0.56%
    
    
    4,844
    
    
    
    6.12006  0.56%
    
    
    
    
    
    
    
    
    
    
    4,859
    
    
    
    6.2Money market accounts2007  0.60%
    
    
    498
    
    
    
    0.62006  0.60%
    
    
    
    
    
    
    
    
    
    
    602
    
    
    
    0.7Savings accounts2007  1.08%
    
    
    18,818
    
    
    
    23.72006  1.04%
    
    
    
    
    
    
    
    
    
    
    20,661
    
    
    
    26.2Total demand, transaction and
savings deposits
    
    
    28,408
    
    
    
    35.7
    
    
    
    30,275
    
    
    
    38.4Certificates of depositOriginal maturities of:Less than twelve months2007  4.85%
    
    
    28,596
    
    
    
    35.92006  4.01%
    
    
    
    
    
    
    
    
    
    
    19,045
    
    
    
    24.2Twelve months to thirty-six months2007  3.69%
    
    
    12,441
    
    
    
    15.62006  3.44%
    
    
    
    
    
    
    
    
    
    
    15,934
    
    
    
    20.2Thirty-six months and greater2007  3.87%
    
    
    10,188
    
    
    
    12.82006  3.95%
    
    
    
    
    
    
    
    
    
    
    13,528
    
    
    
    17.2Total certificates of deposit
    
    
    51,225
    
    
    
    64.3
    
    
    
    48,507
    
    
    
    61.6Total deposit accounts
    
    $
    79,633
    
    
    
    100.0
    %
    
    $
    78,782
    
    
    
    100.0
    %
 41




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##### 



Greenville Federal Financial Corporation  Notes to Consolidated Financial Statements  June 30, 2007 and 2006
   2007
    
    
    2006(In thousands)Demand, transaction and savings accounts
    
    $
    238
    
    
    $
    204Certificate of deposit accounts
    
    
    2,041
    
    
    
    1,666Balance at end of year
    
    $
    2,279
    
    
    $
    1,870
  2007
    
    
    2006(In thousands)Due within one year
    
    $
    38,758
    
    
    $
    29,013Due after one year to two years
    
    
    5,758
    
    
    
    10,785Due after two years to three years
    
    
    3,635
    
    
    
    3,632Due after three years to four years
    
    
    1,570
    
    
    
    3,385Due after four years to five years
    
    
    1,504
    
    
    
    1,692$
    51,225
    
    
    $
    48,507
 Note 8: Advances from the Federal Home Loan Bank
  Maturing in fiscal year ending June 30,
    
    2007
    
    
    2006(In thousands)2007
    
    $
    
    
    
    $
    6,9272008
    
    
    14,158
    
    
    
    9,2832009
    
    
    2,772
    
    
    
    2,7722010
    
    
    2,391
    
    
    
    2,3912011
    
    
    5,082
    
    
    
    5,082Thereafter
    
    
    1,722
    
    
    
    1,722$
    26,125
    
    
    $
    28,177
 42




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##### 



Greenville Federal Financial Corporation  Notes to Consolidated Financial Statements  June 30, 2007 and 2006
 Note 9: Federal Income Taxes
  2007
    
    
    2006(In thousands)Federal income taxes computed at the 34% statutory rate
    
    $
    305
    
    
    $
    254Increase (decrease) in taxes resulting from:Increase in cash surrender value of life insurance
    
    
    (49
    )
    
    
    (41
    )Other
    
    
    1
    
    
    
    (1
    )Federal income tax provision per consolidated
financial statements
    
    $
    257
    
    
    $
    212Effective rate of tax
    
    
    28.6
    %
    
    
    28.4
    %
  2007
    
    
    2006(In thousands)Taxes (payable) refundable on temporary
differences at statutory rate:Deferred tax assetsGeneral loan loss allowance
    
    $
    189
    
    
    $
    194Deferred loan origination fees
    
    
    53
    
    
    
    85Charitable contributions
    
    
    7
    
    
    
    10Unrealized losses on securities available for sale
    
    
    175
    
    
    
    162Other
    
    
    
    
    
    
    4Total deferred tax assets
    
    
    424
    
    
    
    455Deferred tax liabilitiesFederal Home Loan Bank stock dividends
    
    
    (397
    )
    
    
    (378
    )Difference between book and tax depreciation
    
    
    (41
    )
    
    
    (23
    )Mortgage servicing rights
    
    
    (50
    )
    
    
    (63
    )Prepaid expenses and other
    
    
    (40
    )
    
    
    (32
    )Total deferred tax liabilities
    
    
    (528
    )
    
    
    (496
    )Net deferred tax liability
    
    $
    (104
    )
    
    $
    (41
    )
 43




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##### 



Greenville Federal Financial Corporation  Notes to Consolidated Financial Statements  June 30, 2007 and 2006
   Note 10: Commitments and Contingencies
    44




---



##### 



Greenville Federal Financial Corporation  Notes to Consolidated Financial Statements  June 30, 2007 and 2006
 Note 11: Lease Commitments
  Year ended June 30,
    
    (In thousands)2008
    
    $
    502009
    
    
    522010
    
    
    522011
    
    
    17$
    171
  Note 12: Benefit Plans
   45




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##### 



Greenville Federal Financial Corporation  Notes to Consolidated Financial Statements  June 30, 2007 and 2006
 2007
    
    
    2006Allocated shares
    
    
    18,020
    
    
    
    9,010Unallocated shares
    
    
    72,078
    
    
    
    81,088Total ESOP shares
    
    
    90,098
    
    
    
    90,098Fair value of unallocated
shares at June 30
    
    $
    681,000
    
    
    $
    809,000
   Note 13: Stock Option Plan
   46




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##### 



Greenville Federal Financial Corporation  Notes to Consolidated Financial Statements  June 30, 2007 and 2006
     2007Weighted-Weighted-
    
    
    AverageAverage
    
    
    Remaining
    
    
    AggregateExercise
    
    
    Contractual
    
    
    IntrinsicShares
    
    
    Price
    
    
    Term
    
    
    ValueOutstanding, beginning
of year
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    Granted
    
    
    74,800
    
    
    
    9.45
    
    
    10 years
    
    
    Exercised
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Forfeited or expired
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Outstanding, end of year
    
    
    74,800
    
    
    $
    9.45
    
    
    10 years
    
    $
    Exercisable, end of year
    
    
    
   47




---



##### 



Greenville Federal Financial Corporation  Notes to Consolidated Financial Statements  June 30, 2007 and 2006
 Note 14: Regulatory Capital
     As of June 30, 2007To Be Well CapitalizedFor Capital Adequacy
    
    Under Prompt CorrectiveActual
    
    Purposes
    
    Action ProvisionsAmount
    
    Ratio
    
    Amount
    
    Ratio
    
    Amount
    
    Ratio(Dollars in thousands)Tangible capital
    
    $
    13,881
    
    
    
    10.7
    %
    
    >$
    1,946
    
    
    >
    1.5
    %
    
    >$
    6,486
    
    
    >
    5.0
    %Core capital
    
    $
    13,881
    
    
    
    10.7
    %
    
    >$
    5,189
    
    
    >
    4.0
    %
    
    >$
    7,784
    
    
    >
    6.0
    %Risk-based capital
    
    $
    14,437
    
    
    
    20.4
    %
    
    >$
    5,655
    
    
    >
    8.0
    %
    
    >$
    7,069
    
    
    >
    10.0
    %
 48




---



##### 



Greenville Federal Financial Corporation  Notes to Consolidated Financial Statements  June 30, 2007 and 2006
 As of June 30, 2006To Be Well CapitalizedFor Capital Adequacy
    
    Under Prompt CorrectiveActual
    
    Purposes
    
    Action ProvisionsAmount
    
    Ratio
    
    Amount
    
    Ratio
    
    Amount
    
    Ratio(Dollars in thousands)Tangible capital
    
    $
    17,926
    
    
    
    13.7
    %
    
    >$
    1,965
    
    
    >
    1.5
    %
    
    >$
    6,550
    
    
    >
    5.0
    %Core capital
    
    $
    17,926
    
    
    
    13.7
    %
    
    >$
    5,240
    
    
    >
    4.0
    %
    
    >$
    7,860
    
    
    >
    6.0Risk-based capital
    
    $
    18,497
    
    
    
    26.7
    %
    
    >$
    5,537
    
    
    >
    8.0
    %
    
    >$
    6,921
    
    
    >
    10.0
    %
  June 30,2007
    
    
    2006(In thousands)GAAP capital
    
    $
    13,891
    
    
    $
    17,930Reconciling items:Mortgage servicing rights excluded
    
    
    (10
    )
    
    
    (4
    )Tangible and core capital
    
    
    13,881
    
    
    
    17,926General valuation allowance
    
    
    556
    
    
    
    571Risk-based capital
    
    $
    14,437
    
    
    $
    18,497
    49




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##### 



Greenville Federal Financial Corporation  Notes to Consolidated Financial Statements  June 30, 2007 and 2006
 Note 15: Related Party Transactions
   Note 16: Greenville Federal Financial Corporation Condensed Financial Statements
  Greenville Federal Financial Corporation
Balance Sheets
 2007
    
    
    2006AssetsInterest-bearing deposits in Greenville Federal
    
    $
    3,426
    
    
    $
    3,735Demand deposit in Greenville Federal
    
    
    5
    
    
    
    114Loan receivable from ESOP
    
    
    738
    
    
    
    808Dividend receivable from Greenville Federal
    
    
    4,712
    
    
    
    Investment in Greenville Federal
    
    
    13,891
    
    
    
    17,930Total assets
    
    $
    22,772
    
    
    $
    22,587Liabilities and Stockholders EquityAccrued expenses and other liabilities
    
    $
    28
    
    
    $
    5Stockholders equityCommon stock and additional paid-in capital
    
    
    9,168
    
    
    
    9,423Retained earnings
    
    
    14,636
    
    
    
    14,285Shares acquired by employee stock ownership plan trust
    
    
    (721
    )
    
    
    (811
    )Unrealized losses on securities designated
as available for sale, net of tax effects
    
    
    (339
    )
    
    
    (315
    )Total stockholders equity
    
    
    22,744
    
    
    
    22,582Total liabilities and stockholders equity
    
    $
    22,772
    
    
    $
    22,587
 50




---



##### 



Greenville Federal Financial Corporation  Notes to Consolidated Financial Statements  June 30, 2007 and 2006
 Greenville Federal Financial Corporation
Statements of Income
 2007
    
    
    2006RevenueInterest income
    
    $
    193
    
    
    $
    54Equity in earnings of Greenville Federal
    
    
    607
    
    
    
    238Total revenue
    
    
    800
    
    
    
    292General and administrative expenses
    
    
    142
    
    
    
    46Income before income taxes
    
    
    658
    
    
    
    246Income taxes
    
    
    17
    
    
    
    1Net Income
    
    $
    641
    
    
    $
    245
 Greenville Federal Financial Corporation
Statements of Cash Flows
 2007
    
    
    2006Cash flows from operating activities:Net income for the period
    
    $
    641
    
    
    $
    245Equity in undistributed income of Greenville Federal
    
    
    (607
    )
    
    
    (238
    )Increase in cash due to changes in:Other liabilities
    
    
    23
    
    
    
    5Net cash provided by operating activities
    
    
    57
    
    
    
    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
    
    
    70
    
    
    
    93Net cash provided by (used in) investing activities
    
    
    70
    
    
    
    (5,520
    )Cash flows from financing activities:Proceeds from issuance of common stock
    
    
    
    
    
    
    9,423Shares acquired by 2006 equity plan
    
    
    (255
    )
    
    
    Dividends paid
    
    
    (290
    )
    
    
    (66
    )Net cash (used in) provided by financing activities
    
    
    (545
    )
    
    
    9,357Net (decrease) increase in cash and cash equivalents
    
    
    (418
    )
    
    
    3,849Cash and cash equivalents at beginning of period
    
    
    3,849
    
    
    
    Cash and cash equivalents at end of period
    
    $
    3,431
    
    
    $
    3,849
 51




---



##### 



Greenville Federal Financial Corporation
 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,Treasurer, Vice President
    
    Treasurer, Secretary,David Feltman
    
    and Secretary
    
    Vice President andRetired
    
    
    
    Compliance OfficerGeorge 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
 52




---



##### 



Greenville Federal Financial Corporation
 Investor and Corporate Information
 Market Price of GFFCs Common Stock and Related Stockholder Matters
    Dividendsdeclared perQuarter Ended
    
    High
    
    Low
    
    shareJune 30, 2007
    
    $
    10.05
    
    
    $
    9.45
    
    
    $
    0.07March 31, 2007
    
    $
    10.60
    
    
    $
    9.85
    
    
    $
    0.07December 31, 2006
    
    $
    10.34
    
    
    $
    9.60
    
    
    $
    0.07September 30, 2006
    
    $
    9.88
    
    
    $
    9.25
    
    
    $
    0.07
 Dividendsdeclared perQuarter Ended
    
    High
    
    Low
    
    shareJune 30, 2006
    
    $
    10.10
    
    
    $
    9.70
    
    
    $
    0.07March 31, 2006
    
    $
    10.25
    
    
    $
    10.00
    
    
    
    
   53




---



##### 



Greenville Federal Financial Corporation
 Stockholder and General Inquiries
 
 Registered Independent Auditors
    
    Corporate CounselBKD, LLP
    
    Vorys, Sater, Seymour and Pease LLP312 Walnut Street
    
    Suite 2000, Atrium TwoSuite 3000
    
    221 E. Fourth StreetCincinnati, Ohio 45202
    
    Cincinnati, Ohio 45202(513) 621-8300
    
    (513) 723-4000
 Annual Reports
  OFFICE LOCATIONS
 Full Service Banking Locations
 Main Office:
    
    690 Wagner Avenue
    
    Branch Office:
    
    GF XPRESSGreenville, Ohio 45331
    
    
    
    200 Lease Avenue(937) 548-4158
    
    
    
    Greenville, Ohio 45331(937) 548-4158
 www.greenvillefederal.com
 54




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GREENVILLE FEDERAL FINANCIAL CORPORATION

690 Wagner Avenue

Greenville, Ohio 45331


937-548-4158


www.greenvillefederal.com