##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-KSB
  þ
    
    ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended June 30, 2006
 OR
 o
    
    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number: 000-51668
 GREENVILLE FEDERAL FINANCIAL CORPORATION
  Ohio
    
    20-3742295(State or other jurisdiction of incorporation of organization)
    
    (I.R.S. Employer Identification Number)
 (Address of principal executive offices) (Zip Code)
 (937) 548-4158
  None
    
    None(Title of each class)
    
    (Name of each exchange
on which registered)
  Common Stock, par value $.01 per share
  þ o
 þ
  o þ
    DOCUMENTS INCORPORATED BY REFERENCE
   o þ




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TABLE OF CONTENTS  PART IItem 1. Description of BusinessItem 2. Description of PropertyItem 3. Legal ProceedingsItem 4. Submission of Matters to a Vote of Security HoldersPART IIItem 5. Market for Common Equity, Related Stockholder Matters and Small Business Issuer Purchases of Equity SecuritiesItem 6. Managements Discussion and Analysis or Plan of OperationItem 7. Financial StatementsItem 8. Changes in and Disagreements with Accountants on Accounting and Financial DisclosureItem 8A. Controls and ProceduresItem 8B. Other InformationPART IIIItem 9. Directors, Executive Officers, Promoters and Control Persons; Compliance with Section 16(a) of the Exchange ActItem 10. Executive CompensationItem 11. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder MattersItem 12. Certain Relationships and Related TransactionsItem 13. ExhibitsItem 14. Principal Accountant Fees and ServicesSIGNATURESINDEX TO EXHIBITSEX-13EX-21EX-31.1EX-31.2EX-32.1EX-32.2    Table of Contents  
 PART I
 
 Item 1. Description of Business
 General
    www.greenvillefederal.com.
 Lending activities
 General.
 2




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Loan portfolio composition.
 At June 30,2006
    
    
    2005Percent
    
    
    
    
    
    
    PercentAmount
    
    
    of total loans
    
    
    Amount
    
    
    of total loans(Dollars in thousands)Residential real estate loans:One- to four-family
    
    $
    68,604
    
    
    
    79.72
    %
    
    $
    65,060
    
    
    
    81.62
    %Multifamily
    
    
    3,936
    
    
    
    4.57
    
    
    
    3,872
    
    
    
    4.86Construction
    
    
    1,984
    
    
    
    2.31
    
    
    
    1,336
    
    
    
    1.68Nonresidential real estate
    
    
    4,181
    
    
    
    4.86
    
    
    
    3,818
    
    
    
    4.79Commercial
    
    
    4,258
    
    
    
    4.95
    
    
    
    3,092
    
    
    
    3.88Consumer and other
    
    
    3,089
    
    
    
    3.59
    
    
    
    2,524
    
    
    
    3.17Total loans
    
    
    86,052
    
    
    
    100.00
    %
    
    
    79,702
    
    
    
    100.00
    %Less:Unearned interest
    
    
    14
    
    
    
    
    
    
    
    11Deferred loan origination
fees, net
    
    
    403
    
    
    
    
    
    
    
    320Allowance for loan losses
    
    
    579
    
    
    
    
    
    
    
    590Undisbursed portion of loans
in process
    
    
    1,604
    
    
    
    
    
    
    
    592Loans receivable, net
    
    $
    83,452
    
    
    
    
    
    
    $
    78,189
 Loan maturity schedule.
 3




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Due during the year ending
    
    
    Due 4-5
    
    
    Due 6-10
    
    
    Due 11-20
    
    
    Due more thanJune 30,
    
    
    years after
    
    
    years after
    
    
    years after
    
    
    20 years after2007
    
    
    2008
    
    
    2009
    
    
    6/30/06
    
    
    6/30/06
    
    
    6/30/06
    
    
    6/30/06
    
    
    Total(In thousands)Fixed-rate loansResidential real estate loans:One- to four-family (first
mortgage) (1)
    
    $
    61
    
    
    $
    22
    
    
    $
    377
    
    
    $
    334
    
    
    $
    3,301
    
    
    $
    14,892
    
    
    $
    30,868
    
    
    $
    49,855Home equity (second
mortgage)
    
    
    312
    
    
    
    70
    
    
    
    44
    
    
    
    224
    
    
    
    814
    
    
    
    1,049
    
    
    
    
    
    
    
    2,513Multifamily and
nonresidential real estate
loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,214
    
    
    
    44
    
    
    
    1,258Total real estate loans
    
    
    373
    
    
    
    92
    
    
    
    421
    
    
    
    558
    
    
    
    4,115
    
    
    
    17,155
    
    
    
    30,912
    
    
    
    53,626Commercial loans
    
    
    1,716
    
    
    
    
    
    
    
    168
    
    
    
    561
    
    
    
    621
    
    
    
    129
    
    
    
    
    
    
    
    3,195Consumer and other loans
    
    
    289
    
    
    
    310
    
    
    
    553
    
    
    
    1,792
    
    
    
    145
    
    
    
    
    
    
    
    
    
    
    
    3,089Total fixed-rate loans
    
    
    2,378
    
    
    
    402
    
    
    
    1,142
    
    
    
    2,911
    
    
    
    4,881
    
    
    
    17,284
    
    
    
    30,912
    
    
    
    59,910Adjustable-rate loansResidential real estate loans:One- to four-family (first
mortgage) (1)
    
    
    
    
    
    
    5
    
    
    
    9
    
    
    
    45
    
    
    
    321
    
    
    
    1,990
    
    
    
    12,469
    
    
    
    14,839Home equity (second
mortgage)
    
    
    504
    
    
    
    879
    
    
    
    858
    
    
    
    1,121
    
    
    
    19
    
    
    
    
    
    
    
    
    
    
    
    3,381Multifamily and
nonresidential real estate
loans
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    24
    
    
    
    85
    
    
    
    851
    
    
    
    5,897
    
    
    
    6,859Total real estate loans
    
    
    504
    
    
    
    884
    
    
    
    869
    
    
    
    1,190
    
    
    
    425
    
    
    
    2,841
    
    
    
    18,366
    
    
    
    25,079Commercial loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    23
    
    
    
    1,040
    
    
    
    1,063Consumer and other loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total adjustable-rate loans
    
    
    504
    
    
    
    884
    
    
    
    869
    
    
    
    1,190
    
    
    
    425
    
    
    
    2,864
    
    
    
    19,406
    
    
    
    26,142Total loans
    
    $
    2,882
    
    
    $
    1,286
    
    
    $
    2,011
    
    
    $
    4,101
    
    
    $
    5,306
    
    
    $
    20,148
    
    
    $
    50,318
    
    
    $
    86,052
 
 (1)
    
    Includes construction loans. One- to four-family residential real estate loans.
  4




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Multifamily residential real estate loans.
  5




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Construction loans.
   Nonresidential real estate loans.
  6




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Consumer loans.
   Commercial loans.
   7




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Loan solicitation and processing.
        8




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Loan purchases and sales.
  Year endedJune 30,2006
    
    
    2005(In thousands)Loan originations:One- to four-family residential
    
    $
    13,346
    
    
    $
    15,716Multifamily residential
    
    
    2,551
    
    
    
    942Nonresidential
    
    
    202
    
    
    
    801Land
    
    
    
    
    
    
    Commercial
    
    
    3,951
    
    
    
    3,360Consumer
    
    
    3,775
    
    
    
    4,383Total loans originated
    
    
    23,825
    
    
    
    25,202Loans purchased
    
    
    
    
    
    
    Total loans originated and purchased
    
    
    23,825
    
    
    
    25,557Principal repayments
    
    
    (18,594
    )
    
    
    (19,430
    )Loan originations, net
    
    
    5,231
    
    
    
    5,772Loans sold
    
    
    
    
    
    
    Transfers from loans to real estate acquired
through foreclosure
    
    
    (54
    )
    
    
    (391
    )Increase (decrease) due to other items, net (1)
    
    
    86
    
    
    
    211Net increase in net loan portfolio
    
    $
    5,263
    
    
    $
    5,592
 
 (1)
    
    Consists of deferred fees, costs and the allowance for loan losses.   9




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Delinquent loans, nonperforming assets and classified assets.
      At June 30,2006
    
    
    2005Percent
    
    
    
    
    
    
    
    
    
    
    PercentNumber
    
    
    Amount
    
    
    of total loans
    
    
    Number
    
    
    Amount
    
    
    of total loans(Dollars in thousands)Loans delinquent for (1):30 - 59 days
    
    
    16
    
    
    $
    668
    
    
    
    0.78
    %
    
    
    21
    
    
    $
    1,187
    
    
    
    1.49
    %60 - 89 days
    
    
    6
    
    
    
    361
    
    
    
    0.42
    
    
    
    8
    
    
    
    392
    
    
    
    0.4990 days and over
    
    
    5
    
    
    
    529
    
    
    
    0.61
    
    
    
    7
    
    
    
    311
    
    
    
    0.39Total delinquent loans
    
    
    27
    
    
    $
    1,558
    
    
    
    1.81
    %
    
    
    36
    
    
    $
    1,890
    
    
    
    2.37
    %
 
 (1)
    
    The number of days a loan is delinquent is measured from the day the payment was due under
the terms of the loan agreement. 10




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At June 30,2006
    
    
    2005(Dollars in thousands)Accruing loans greater than 90 days delinquent:Real estate:Residential
    
    $
    43
    
    
    $
    111Nonresidential
    
    
    
    
    
    
    Consumer
    
    
    
    
    
    
    Total accruing loans greater than 90 days
delinquent
    
    
    43
    
    
    
    111Nonaccrual loans:Real estate:Residential
    
    
    484
    
    
    
    196Nonresidential
    
    
    
    
    
    
    Consumer
    
    
    2
    
    
    
    4Total nonaccrual loans
    
    
    486
    
    
    
    200Total nonperforming loans
    
    
    529
    
    
    
    311Real estate owned
    
    
    
    
    
    
    81Total nonperforming assets
    
    $
    529
    
    
    $
    392Total nonperforming loans as a percentage of
total loans
    
    
    0.61
    %
    
    
    0.39
    %Total nonperforming assets as a percentage of
total assets
    
    
    0.40
    %
    
    
    0.31
    %Allowance for loan losses as a percentage of
nonperforming loans
    
    
    109.45
    %
    
    
    189.71
    %
    11




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At June 30,2006
    
    
    2005(In thousands)Classified assets:Substandard
    
    $
    984
    
    
    $
    809Doubtful
    
    
    
    
    
    
    Loss
    
    
    3
    
    
    
    4Total classified assets
    
    $
    987
    
    
    $
    813
   Allowance for loan losses.
   12




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Year ended June 30,2006
    
    
    2005(Dollars in thousands)Total gross loans outstanding
    
    $
    86,052
    
    
    $
    79,702Average net loans outstanding
    
    $
    81,016
    
    
    $
    75,323Allowance for loan lossesBalance at beginning of year
    
    $
    590
    
    
    $
    456Charge-offsReal estate:Residential
    
    
    
    
    
    
    (48
    )Nonresidential
    
    
    
    
    
    
    Consumer
    
    
    (36
    )
    
    
    (54
    )Total charge-offs
    
    
    (36
    )
    
    
    (102
    )RecoveriesReal estate:Residential
    
    
    
    
    
    
    6Nonresidential
    
    
    
    
    
    
    Consumer
    
    
    
    
    
    
    14Total recoveries
    
    
    
    
    
    
    20Net charge-offs
    
    
    (36
    )
    
    
    (82
    )Provision for losses on loans
    
    
    25
    
    
    
    216Balance at end of year
    
    $
    579
    
    
    $
    590Ratio of allowance for loan losses as a
percent of total loans outstanding
    
    
    0.67
    %
    
    
    0.74
    %Ratio of net charge-offs to average loans
outstanding during the period
    
    
    0.04
    %
    
    
    0.11
    %
  13




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At June 30, 2006Amount
    
    
    Percent of total allowance
    
    
    Percent of gross loans(Dollars in thousands)One- to four-family real estate
    
    $
    473
    
    
    
    81.6
    %
    
    
    82.0
    %Multifamily real estate
    
    
    8
    
    
    
    1.4
    
    
    
    4.6Nonresidential real estate
    
    
    16
    
    
    
    2.8
    
    
    
    4.9Commercial
    
    
    48
    
    
    
    8.3
    
    
    
    4.9Consumer
    
    
    34
    
    
    
    5.9
    
    
    
    3.6$
    579
    
    
    
    100.0
    %
    
    
    100.0
    %
 At June 30, 2005Amount
    
    
    Percent of total allowance
    
    
    Percent of gross loans(Dollars in thousands)One- to four-family real estate
    
    $
    478
    
    
    
    81.0
    %
    
    
    83.3
    %Multifamily real estate
    
    
    28
    
    
    
    4.7
    
    
    
    4.8Nonresidential real estate
    
    
    28
    
    
    
    4.7
    
    
    
    4.8Commercial
    
    
    31
    
    
    
    5.3
    
    
    
    3.9Consumer
    
    
    25
    
    
    
    4.3
    
    
    
    3.2$
    590
    
    
    
    100.0
    %
    
    
    100.0
    %
 Mortgage-backed securities
   14




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At June 30,2006
    
    
    2005Carrying
    
    
    Market
    
    
    Carrying
    
    
    Marketvalue
    
    
    value
    
    
    value
    
    
    value(In thousands)Fannie Mae certificates
    
    $
    1,807
    
    
    $
    1,797
    
    
    $
    1,181
    
    
    $
    1,189Ginnie Mae certificates
    
    
    21
    
    
    
    21
    
    
    
    27
    
    
    
    28Freddie Mac certificates
    
    
    344
    
    
    
    346
    
    
    
    529
    
    
    
    538Total mortgage-
backed securities
    
    $
    2,172
    
    
    $
    2,164
    
    
    $
    1,737
    
    
    $
    1,755
 15




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At June 30, 2006Total mortgage-backedOne year or less
    
    
    After one to five years
    
    
    After five to ten years
    
    
    After ten years
    
    
    portfolioCarrying
    
    
    Average
    
    
    Carrying
    
    
    Average
    
    
    Carrying
    
    
    Average
    
    
    Carrying
    
    
    Average
    
    
    Carrying
    
    
    Market
    
    
    AverageValue
    
    
    yield
    
    
    value
    
    
    yield
    
    
    value
    
    
    yield
    
    
    value
    
    
    yield
    
    
    value
    
    
    value
    
    
    yield(Dollars in thousands)Fannie Mae certificates
    
    $
    
    
    
    
    
    %
    
    $
    
    
    
    
    
    %
    
    $
    
    
    
    
    
    %
    
    $
    1,807
    
    
    
    4.93
    %
    
    $
    1,807
    
    
    $
    1,797
    
    
    
    4.93
    %Ginnie Mae certificates
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    9.00
    
    
    
    
    
    
    
    
    
    
    
    17
    
    
    
    5.13
    
    
    
    21
    
    
    
    21
    
    
    
    5.84Freddie Mac certificates
    
    
    
    
    
    
    
    
    
    
    27
    
    
    
    7.46
    
    
    
    20
    
    
    
    5.95
    
    
    
    297
    
    
    
    5.31
    
    
    
    344
    
    
    
    346
    
    
    
    5.54Total
    
    $
    
    
    
    
    
    %
    
    $
    31
    
    
    
    7.65
    %
    
    $
    20
    
    
    
    5.95
    %
    
    $
    2,121
    
    
    
    4.99
    %
    
    $
    2,172
    
    
    $
    2,164
    
    
    
    5.04
    %
 At June 30, 2005Total mortgage-backedOne year or less
    
    
    After one to five years
    
    
    After five to ten years
    
    
    After ten years
    
    
    portfolioCarrying
    
    
    Average
    
    
    Carrying
    
    
    Average
    
    
    Carrying
    
    
    Average
    
    
    Carrying
    
    
    Average
    
    
    Carrying
    
    
    Market
    
    
    Averagevalue
    
    
    yield
    
    
    value
    
    
    yield
    
    
    value
    
    
    yield
    
    
    Value
    
    
    yield
    
    
    value
    
    
    Value
    
    
    yield(Dollars in thousands)Fannie Mae certificates
    
    $
    
    
    
    
    
    %
    
    $
    
    
    
    
    
    %
    
    $
    
    
    
    
    
    %
    
    $
    1,181
    
    
    
    4.28
    %
    
    $
    1,181
    
    
    $
    1,189
    
    
    
    4.28
    %Ginnie Mae certificates
    
    
    
    
    
    
    
    
    
    
    5
    
    
    
    9.00
    
    
    
    
    
    
    
    
    
    
    
    22
    
    
    
    4.13
    
    
    
    27
    
    
    
    28
    
    
    
    5.03Freddie Mac certificates
    
    
    
    
    
    
    
    
    
    
    52
    
    
    
    7.28
    
    
    
    3
    
    
    
    12.36
    
    
    
    474
    
    
    
    4.10
    
    
    
    529
    
    
    
    538
    
    
    
    4.46Total
    
    $
    
    
    
    
    
    %
    
    $
    57
    
    
    
    7.43
    %
    
    $
    3
    
    
    
    12.36
    %
    
    $
    1,677
    
    
    
    4.23
    %
    
    $
    1,737
    
    
    $
    1,755
    
    
    
    4.35
    %
 16




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Investments
   At June 30,2006
    
    
    2005Carrying
    
    
    Percent
    
    
    Market
    
    
    Percent
    
    
    Carrying
    
    
    Percent
    
    
    Market
    
    
    Percentvalue
    
    
    of total
    
    
    value
    
    
    of total
    
    
    value
    
    
    of total
    
    
    value
    
    
    of total(Dollars in thousands)Held to maturity:U.S. Government agency and sponsored
entity securities
    
    $
    17,000
    
    
    
    51.2
    %
    
    $
    16,555
    
    
    
    50.5
    %
    
    $
    18,000
    
    
    
    53.3
    %
    
    $
    17,802
    
    
    
    53.1
    %Municipal obligations
    
    
    41
    
    
    
    0.1
    
    
    
    41
    
    
    
    0.1
    
    
    
    50
    
    
    
    0.1
    
    
    
    50
    
    
    
    0.1Total securities held to maturity
    
    
    17,041
    
    
    
    51.3
    
    
    
    16,596
    
    
    
    50.6
    
    
    
    18,050
    
    
    
    53.4
    
    
    
    17,852
    
    
    
    53.2Available for sale:Asset management fund
    
    
    16,204
    
    
    
    48.7
    
    
    
    16,204
    
    
    
    49.4
    
    
    
    15,717
    
    
    
    46.6
    
    
    
    15,717
    
    
    
    46.8Total investment securities
    
    $
    33,245
    
    
    
    100.0
    %
    
    $
    32,800
    
    
    
    100.0
    %
    
    $
    33,767
    
    
    
    100.0
    %
    
    $
    33,569
    
    
    
    100.0
    %
 17




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At June 30, 2006One year or less
    
    
    After one to five years
    
    
    After five to ten years
    
    
    After ten years
    
    
    Total PortfolioWeighted
    
    
    
    
    
    
    
    
    
    
    WeightedCarrying
    
    
    Average
    
    
    Carrying
    
    
    Average
    
    
    Carrying
    
    
    Average
    
    
    Carrying
    
    
    Average
    
    
    average life
    
    
    Carrying
    
    
    Market
    
    
    averagevalue
    
    
    Yield
    
    
    value
    
    
    yield
    
    
    value
    
    
    yield
    
    
    value
    
    
    yield
    
    
    in years
    
    
    value
    
    
    value
    
    
    yield(Dollars in thousands)U.S.
Government agency
and sponsored
entity securities
    
    $
    6,000
    
    
    
    2.76
    %
    
    $
    11,000
    
    
    
    3.76
    %
    
    $
    
    
    
    
    
    %
    
    $
    
    
    
    
    
    %
    
    
    1.65
    
    
    $
    17,000
    
    
    $
    16,555
    
    
    
    3.41
    %Municipal
obligations
    
    
    
    
    
    
    
    
    
    
    41
    
    
    
    3.63
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3.83
    
    
    
    41
    
    
    
    41
    
    
    
    3.63$
    6,000
    
    
    
    2.76
    %
    
    $
    11,041
    
    
    
    3.76
    %
    
    $
    
    
    
    
    
    %
    
    $
    
    
    
    
    
    %
    
    
    1.66
    
    
    $
    17,041
    
    
    $
    16,596
    
    
    
    3.41
    %
 18




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##### Table of Contents



Deposits and borrowings
 General.
 Deposits.
  19




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##### Table of Contents



At June 30,2006
    
    
    2005Percent
    
    
    
    
    
    
    Percentof total
    
    
    
    
    
    
    of totalAmount
    
    
    deposits
    
    
    Amount
    
    
    deposits(Dollars in thousands)Transaction accounts:Non-interest-bearing accounts
    
    $
    4,153
    
    
    
    5.3
    %
    
    $
    3,553
    
    
    
    4.5
    %NOW accounts (1)
    
    
    4,859
    
    
    
    6.2
    
    
    
    5,172
    
    
    
    6.6Money market accounts (2)
    
    
    602
    
    
    
    0.7
    
    
    
    958
    
    
    
    1.2Savings accounts (3)
    
    
    20,661
    
    
    
    26.2
    
    
    
    22,435
    
    
    
    28.4Total transaction accounts
    
    
    30,275
    
    
    
    38.4
    
    
    
    32,118
    
    
    
    40.7Certificates of deposit:1.01% -  2.00%
    
    
    614
    
    
    
    0.8
    
    
    
    15,583
    
    
    
    19.82.01% -  3.00%
    
    
    11,610
    
    
    
    14.7
    
    
    
    11,152
    
    
    
    14.13.01% -  4.00%
    
    
    14,693
    
    
    
    18.7
    
    
    
    13,640
    
    
    
    17.34.01% -  5.00%
    
    
    21,210
    
    
    
    26.9
    
    
    
    4,293
    
    
    
    5.4Greater than 5.00%
    
    
    380
    
    
    
    0.5
    
    
    
    2,112
    
    
    
    2.7Total certificates of deposit
    
    
    48,507
    
    
    
    61.6
    
    
    
    46,780
    
    
    
    59.3Total deposits (4)
    
    $
    78,782
    
    
    
    100.0
    %
    
    $
    78,898
    
    
    
    100.0
    %
 
 (1)
    
    Greenville Federals weighted-average interest rate paid on NOW accounts fluctuates with the
general movement of interest rates. At June 30, 2006 and 2005, the weighted-average rates on
NOW accounts were 0.56% and 0.56%, respectively.(2)
    
    Greenville Federals weighted-average interest rate paid on money market accounts fluctuates
with the general movement of interest rates. At June 30, 2006 and 2005, the weighted-average
rates on money market accounts were 0.60%, and 0.60%, respectively.(3)
    
    Greenville Federals weighted-average rate on savings accounts fluctuates with the general
movement of interest rates. The weighted-average interest rate on savings accounts was 1.04%,
and 0.73%, at June 30, 2006 and 2005, respectively.(4)
    
    IRAs are included in the various certificates of deposit balances. IRAs totaled $7.4 million
and $7.3 million as of June 30, 2006 and 2005, respectively. 20




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##### Table of Contents



June 30, 2006
    
    
    June 30, 2005Amount
    
    
    Average interest rate
    
    
    Amount
    
    
    Average interest rate(Dollars in thousands)3 months or less
    
    $
    5,616
    
    
    
    4.65
    %
    
    $
    3,606
    
    
    
    2.55
    %Over 3 to 6 months
    
    
    3,353
    
    
    
    4.57
    
    
    
    2,335
    
    
    
    1.97Over 6 to 12 months
    
    
    559
    
    
    
    3.94
    
    
    
    1,036
    
    
    
    4.43Over 12 months
    
    
    997
    
    
    
    3.77
    
    
    
    1,894
    
    
    
    4.02Total time deposits
$100,000 or greater
    
    $
    10,525
    
    
    
    4.50
    %
    
    $
    8,871
    
    
    
    3.72
    %
 Borrowings.
  At or for theyear endedJune 30,2006
    
    2005(Dollars in thousands)Average balance outstanding
    
    $
    30,621
    
    
    $
    28,290Maximum amount outstanding at any month end
during the year
    
    
    32,193
    
    
    
    32,789Balance outstanding at end of year
    
    
    28,177
    
    
    
    32,243Weighted-average interest rate during the year
    
    
    4.64
    %
    
    
    4.97
    %Weighted-average interest rate at end of year
    
    
    4.81
    %
    
    
    4.77
    %
 Subsidiaries
  21




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##### Table of Contents



Personnel
  SUPERVISION AND REGULATION
   General
   Greenville Federal Financial Corporation
  22




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##### Table of Contents



Greenville Federal
       23




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##### Table of Contents



Insurance of accounts and regulation by the FDIC
  Regulatory capital requirements
       24




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##### Table of Contents



Limitations on dividends and other capital distributions
    25




---



##### Table of Contents



Liquidity
  Qualified thrift lender test
  Community Reinvestment Act
  26




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##### Table of Contents



Transactions with affiliates
   Federal Reserve System
  Federal Home Loan Bank System
   Patriot Act
  27




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##### Table of Contents




    
    establishment of anti-money laundering programs;
    
    establishment of a program specifying procedures for obtaining identifying
information from customers seeking to open new accounts, including verifying the
identity of customers within a reasonable period of time;
    
    establishment of enhanced due diligence policies, procedures and controls designed
to detect and report money laundering; and
    
    prohibitions on correspondent accounts for foreign shell banks and compliance with
record keeping obligations with respect to correspondent accounts of foreign banks.
  Federal securities law
   TAXATION
 Federal income taxation
 General.
 Bad debt reserves.
 28




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##### Table of Contents



Taxable distributions and recapture.
 Charitable contributions.
 Tax treatment of distributions.
 Corporate dividends-received deduction.
 Alternative minimum tax.
 Net operating loss carryovers.
  29




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##### Table of Contents



Ohio franchise and income taxation
 General.
   
 Item 2. Description of Property
 Properties
  Date acquiredLocation
    
    Owned or leased
    
    or leased
    
    Book value
    
    Deposits(Dollars in thousands)Main Office:690 Wagner AvenueGreenville, Ohio
    
    Owned
    
    
    4/11/95
    
    
    $
    1,684
    
    
    $
    74,901Branch:Kroger Store200 Lease Avenue
    
    Leased (1)
    
    
    8/11/00
    
    
    
    
    
    
    $
    3,881Vacant Land:State Rt. Alt. 49NArcanum, Ohio
    
    Owned
    
    
    6/18/04
    
    
    
    162
    
    
    
    
 
 (1)
    
    Greenville Federal exercised its option to extend the lease for an additional two years
past its expiration of October 26, 2005. The rental fee currently is $4,000 per month. 30




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##### Table of Contents



Item 3. Legal Proceedings
  
 Item 4. Submission of Matters to a Vote of Security Holders
  
 PART II
 
 Item 5.
    
    Market for Common Equity, Related Stockholder Matters and Small Business Issuer Purchases of Equity Securities.
  
 Item 6. Managements Discussion and Analysis or Plan of Operation.
  
 Item 7. Financial Statements
  
 Item 8. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
  
 Item 8A. Controls and Procedures.
  
 Item 8B. Other Information.
  31




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##### Table of Contents



PART III
 
 Item 9.
    
    Directors, Executive Officers, Promoters and Control Persons; Compliance with Section 16(a) of the Exchange Act.
   
 Item 10. Executive Compensation
  
 Item 11. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
  
 Item 12. Certain Relationships and Related Transactions
  
 Item 13. Exhibits
 3.1
    
    Federal Stock Charter3.2
    
    Federal Stock Bylaws10.1
    
    Employment Agreement for David M. Kepler (Replaced)10.2
    
    Employment Agreement for David M. Kepler (Current)10.3
    
    Employment Agreement for Susan J. Allread (Replaced)10.4
    
    Employment Agreement for Susan J. Allread (Current)
 32




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##### Table of Contents



13
    
    2006 Annual Report to Stockholders (the following parts
of which are incorporated herein by reference: Market
Price of GFFCs Common Stock and Related Stockholder
Matters, Managements Discussion and Analysis of
Financial Condition and Results of Operations and
Consolidated Financial Statements)20
    
    Proxy Statement for 2006 Annual Meeting of Stockholders21
    
    Subsidiaries31.1
    
    Certification of Chief Executive Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 200231.2
    
    Certification of Chief Financial Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 200232.1
    
    Certification of Chief Executive Officer pursuant to
Section 906 of the Sarbanes-Oxley Act of 200232.2
    
    Certification of Chief Financial Officer pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
 
 Item 14. Principal Accountant Fees and Services
  33




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##### Table of Contents



SIGNATURES
  GREENVILLE FEDERAL FINANCIAL CORPORATIONBy:
    /s/ David M. KeplerDavid M. KeplerPresident and Chief Executive OfficerDate: September 26, 2006  /s/ David Feltman
    
    /s/ David M. KeplerDavid Feltman
    
    David M. KeplerDirector
    
    President, Chief Executive Officer and Director(Principal Executive Officer)Date: September 26, 2006
    
    Date: September 26, 2006/s/ George S. Luce, Jr.
    
    /s/ Richard J. OBrienGeorge S. Luce, Jr.
    
    Richard J. OBrienDirector
    
    DirectorDate: September 26, 2006
    
    Date: September 26, 2006/s/ Eunice F. Steinbrecher
    
    /s/ James W. WardEunice F. Steinbrecher
    
    James W. WardDirector
    
    Director, Chairman of the BoardDate: September 26, 2006
    
    Date: September 26, 2006/s/ David R. Wolverton
    
    /s/ Susan J. AllreadDavid R. Wolverton
    
    Susan J. AllreadDirector
    
    Chief Financial Officer and Secretary(Principal Financial Officer and Principal
Accounting Officer)Date: September 26, 2006
    
    Date: September 26, 2006
 34




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##### Table of Contents



INDEX TO EXHIBITS
 EXHIBITNUMBER
    
    DESCRIPTION3.1
    
    Greenville Federal Financial Corporation Federal Stock Subsidiary Holding Company Charter
    
    Incorporated by reference to
the Registration Statement
on Form 8-A (the Form 8-A)
filed by the Registrant with
the Securities and Exchange
Commission (the SEC) on
December 14, 2005, Exhibit 23.2
    
    Greenville Federal Financial
Corporation Federal Stock Subsidiary Holding Company Bylaws
    
    Incorporated by reference to
the Form 8-A filed by the
Registrant with the SEC on
December 14, 2005, Exhibit 310.1
    
    Employment Agreement for
David M. Kepler (Replaced)
    
    Incorporated by reference to
Exhibit 10.1 to the Current
Report on Form 8-K filed by
the Registrant with the SEC
on January 19, 200610.2
    
    Employment Agreement for
David M. Kepler (Current)
    
    Incorporated by reference to
Exhibit 10.1 to the Current
Report on Form 8-K filed by
the Registrant with the SEC
on September 21, 200610.3
    
    Employment Agreement for
Susan J. Allread (Replaced)
    
    Incorporated by reference to
Exhibit 10.2 to the Current
Report on Form 8-K filed by
the Registrant with the SEC
on January 19, 200610.4
    
    Employment Agreement for
Susan J. Allread (Current)
    
    Incorporated by reference to
Exhibit 10.2 to the Current
Report on Form 8-K filed by
the Registrant with the SEC
on September 21, 200613
    
    Greenville Federal Financial
Corporation 2006 Annual
Report to Stockholders
    
    Included herewith20
    
    Proxy Statement for 2006
Annual Meeting of
Stockholders
    
    Incorporated by reference to
the Proxy Statement for the
2006 Annual Meeting of
Stockholders, to be filed
with the SEC no later than
120 days after the end of
the fiscal year21
    
    Subsidiaries
    
    Included herewith31.1
    
    Certification of Chief
Executive Officer pursuant
to Section 302 of the
Sarbanes-Oxley Act of 2002
    
    Included herewith31.2
    
    Certification of Chief
Financial Officer pursuant
to Section 302 of the
Sarbanes-Oxley Act of 2002
    
    Included herewith
 35




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##### Table of Contents



EXHIBITNUMBER
    
    DESCRIPTION32.1
    
    Certification of Chief
Executive Officer pursuant
to Section 906 of the
Sarbanes-Oxley Act of 2002
    
    Included herewith32.2
    
    Certification of Chief
Financial Officer pursuant
to Section 906 of the
Sarbanes-Oxley Act of 2002
    
    Included herewith
 36