Exhibit 13
 Greenville
Federal Financial Corporation
 
 2009 Annual
Report




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Greenville Federal Financial Corporation
June 30, 2009 and 2008
 Contents
 Letter from the President and Chief Executive Officer
    
    
    1Business of Greenville Federal Financial Corporation
    
    
    3Selected Financial and Other Data
    
    
    4Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    6Financial StatementsReport of Independent Registered Public Accounting Firm
    
    
    22Consolidated Balance Sheets
    
    
    23Consolidated Statements of Operations
    
    
    24Consolidated Statements of Comprehensive Income
    
    
    25Consolidated Statements of Stockholders Equity
    
    
    26Consolidated Statements of Cash Flows
    
    
    27Notes to Consolidated Financial Statements
    
    
    29Managements Report On Internal Controls
    
    
    58Directors and Officers
    
    
    59Investor and Corporate Information
    
    
    60Office Locations
    
    
    61




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Letter from the President and Chief Executive Officer
       1




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2




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Greenville Federal Financial Corporation
Business of Greenville Federal Financial Corporation
       3




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Greenville Federal Financial Corporation
Selected Financial and Other Data
  At June 30,2009
    
    
    2008(In thousands)SELECTED FINANCIAL CONDITION DATA:Total assets
    
    $
    119,570
    
    
    $
    126,126Cash and cash equivalents
    
    
    4,474
    
    
    
    7,220Investment securities available for sale
    
    
    11,888
    
    
    
    16,157Investment securities held to maturity
    
    
    11
    
    
    
    2,021Mortgage-backed securities held to maturity
    
    
    1,822
    
    
    
    1,280Loans receivable
    
    
    91,663
    
    
    
    89,851Deposits
    
    
    72,918
    
    
    
    83,697Advances from the Federal Home Loan Bank
    
    
    26,903
    
    
    
    19,214Stockholders equity
    
    
    18,614
    
    
    
    21,856Allowance for loan losses
    
    
    577
    
    
    
    583Nonperforming loans
    
    
    834
    
    
    
    747
 For the year ended June 30,2009
    
    
    2008(In thousands, except per share data)SELECTED OPERATIONS DATA:Total interest income
    
    $
    6,809
    
    
    $
    7,422Total interest expense
    
    
    2,511
    
    
    
    3,416Net interest income
    
    
    4,298
    
    
    
    4,006Provision for loan losses
    
    
    155
    
    
    
    189Net interest income after provision for loan losses
    
    
    4,143
    
    
    
    3,817Total other income
    
    
    843
    
    
    
    858Total general, administrative and other expense
    
    
    8,175
    
    
    
    5,829Loss before income credits
    
    
    (3,189
    )
    
    
    (1,154
    )Federal income credits
    
    
    (36
    )
    
    
    (231
    )Net loss
    
    $
    (3,153
    )
    
    $
    (923
    )Earnings (loss) per share  basic and diluted
    
    $
    (1.42
    )
    
    $
    (0.42
    )
  4




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Greenville Federal Financial Corporation
Selected Financial and Other Data
 At or for the year endedJune 30,2009
    
    
    2008Performance Ratios:Return on average assets
    
    
    (2.59
    )%
    
    
    (0.72
    )%Return on average equity
    
    
    (16.09
    )
    
    
    (4.15
    )Average equity to average assets
    
    
    16.07
    
    
    
    17.47Equity to assets at the end of the year
    
    
    15.57
    
    
    
    17.33Interest rate spread 1
    
    
    3.46
    
    
    
    2.80Net interest margin 2
    
    
    3.83
    
    
    
    3.37Average interest-earning assets to average
interest-bearing liabilities
    
    
    116.47
    
    
    
    119.85Total general, administrative and other
expenses to average total assets5
    
    
    3.98
    
    
    
    3.15Efficiency ratio 36
    
    
    94.27
    
    
    
    82.43Dividend payout ratio 4
    
    NA
    
    
    NAAsset Quality Ratios:Nonperforming loans as a percent of total loans
    
    
    0.90
    
    
    
    0.81Nonperforming assets as a percent of total assets
    
    
    1.17
    
    
    
    1.14Allowance for loan losses as a percent of total loans
    
    
    0.62
    
    
    
    0.64Allowance for loan losses as a percent of
nonperforming loans
    
    
    69.18
    
    
    
    78.05Regulatory Capital Ratios:Tangible capital
    
    
    8.62
    
    
    
    10.56Core capital
    
    
    8.62
    
    
    
    10.56Risk-based capital
    
    
    13.83
    
    
    
    16.56Number 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 year.2
    
    Net interest margin represents net interest income as a
percent of average interest-earning assets for the year.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.5
    
    This ratio was calculated without the other-than-temporary
impairment charge on investment securities of $1.8 million. Including the
impairment charge, the ratio was 4.58%.6
    
    This ratio was calculated without the other-than-temporary
impairment charge on investment securities. Including the impairment charge,
the ratio was 158.9%.  5




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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.
  6




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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
    7




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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, 2009 and June 30, 2008
    8




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Greenville Federal Financial Corporation
Managements Discussion and Analysis of Financial Condition and
Results of Operations
      9




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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, 2009 and
June 30, 2008
 General.
   10




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Greenville Federal Financial Corporation
Managements Discussion and Analysis of Financial Condition and
Results of Operations
 Interest income.
  Interest expense .
 Net interest income
 Provision for loan losses
  11




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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 .
  12




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Greenville Federal Financial Corporation
Managements Discussion and Analysis of Financial Condition and
Results of Operations
  18
  Federal income taxes
  13




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Greenville Federal Financial Corporation
Managements Discussion and Analysis of Financial Condition and
Results of Operations
 Average balance sheets
  2009
    
    
    
    
    
    
    
    
    
    
    2008Interest
    
    
    
    
    
    
    
    
    
    
    InterestAverage
    
    
    income/
    
    
    Yield/
    
    
    Average
    
    
    income/
    
    
    Yield/balances
    
    
    expense
    
    
    rates
    
    
    balances
    
    
    expense
    
    
    rates(Dollars in thousands)Loans receivable 1
    
    $
    90,729
    
    
    $
    5,983
    
    
    
    6.59
    %
    
    $
    88,761
    
    
    $
    6,034
    
    
    
    6.80
    %Mortgage-backed securities
    
    
    1,729
    
    
    
    97
    
    
    
    5.63
    
    
    
    1,485
    
    
    
    89
    
    
    
    5.99Investment securities
    
    
    13,778
    
    
    
    611
    
    
    
    4.44
    
    
    
    24,032
    
    
    
    1,098
    
    
    
    4.57Other interest-bearing deposits
    
    
    5,933
    
    
    
    118
    
    
    
    2.00
    
    
    
    4,594
    
    
    
    201
    
    
    
    4.38Total interest-earning assets
    
    
    112,169
    
    
    
    6,809
    
    
    
    6.07
    
    
    
    118,872
    
    
    
    7,422
    
    
    
    6.24Non-interest-earning assets
    
    
    9,794
    
    
    
    
    
    
    
    
    
    
    
    8,516Total assets
    
    $
    121,963
    
    
    
    
    
    
    
    
    
    
    $
    127,388Interest-bearing deposits:Interest-bearing demand deposits
    
    $
    4,680
    
    
    
    19
    
    
    
    0.40
    
    
    $
    4,459
    
    
    
    25
    
    
    
    0.56Savings deposits
    
    
    20,971
    
    
    
    164
    
    
    
    0.74
    
    
    
    19,379
    
    
    
    215
    
    
    
    1.11Time deposits
    
    
    48,567
    
    
    
    1,433
    
    
    
    2.95
    
    
    
    51,567
    
    
    
    2,070
    
    
    
    4.01Total interest-bearing deposits
    
    
    74,218
    
    
    
    1,616
    
    
    
    2.14
    
    
    
    75,405
    
    
    
    2,310
    
    
    
    3.06Borrowings
    
    
    22,092
    
    
    
    895
    
    
    
    4.05
    
    
    
    23,781
    
    
    
    1,106
    
    
    
    4.65Total interest-bearing liabilities
    
    
    96,310
    
    
    
    2,511
    
    
    
    2.61
    
    
    
    99,186
    
    
    
    3,416
    
    
    
    3.44Non-interest-bearing demand deposits
    
    
    4,792
    
    
    
    
    
    
    
    
    
    
    
    4,420Non-interest-bearing liabilities
    
    
    1,263
    
    
    
    
    
    
    
    
    
    
    
    1,525Total liabilities
    
    
    6,055
    
    
    
    
    
    
    
    
    
    
    
    105,131Stockholders equity
    
    
    19,598
    
    
    
    
    
    
    
    
    
    
    
    22,257Total liabilities and
stockholders equity
    
    $
    121,963
    
    
    
    
    
    
    
    
    
    
    $
    127,388Net interest income
    
    
    
    
    
    $
    4,298
    
    
    
    
    
    
    
    
    
    
    $
    4,006Interest rate spread
    
    
    
    
    
    
    
    
    
    
    3.46
    %
    
    
    
    
    
    
    
    
    
    
    2.80
    %Net interest margin (net
interest income as a
percent of average
interest-earning assets)
    
    
    
    
    
    
    
    
    
    
    3.83
    %
    
    
    
    
    
    
    
    
    
    
    3.37
    %Average interest-earning
assets to average interest-
bearing liabilities
    
    
    
    
    
    
    
    
    
    
    116.47
    %
    
    
    
    
    
    
    
    
    
    
    119.85
    %
 
 1
    
    Includes average balances of non-accrual loans.  14




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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 30,2009
    
    
    2009
    
    
    2008Weighted-average yield on loan portfolio1
    
    
    6.21
    %
    
    
    6.59
    %
    
    
    6.80
    %Weighted-average yield on mortgage-backed securities
    
    
    5.40
    
    
    
    5.63
    
    
    
    5.99Weighted-average yield on investment securities
    
    
    4.20
    
    
    
    4.44
    
    
    
    4.57Weighted-average yield on interest-bearing deposits
    
    
    1.97
    
    
    
    2.00
    
    
    
    4.38Weighted-average yield on all interest-earning assets
    
    
    5.81
    
    
    
    6.07
    
    
    
    6.24Weighted-average interest rate on deposits
    
    
    1.77
    
    
    
    2.14
    
    
    
    3.06Weighted-average interest rate on Federal Home
Loan Bank advances
    
    
    3.83
    
    
    
    4.05
    
    
    
    4.65Weighted-average interest rate paid on all interest-bearing liabilities
    
    
    2.31
    
    
    
    2.61
    
    
    
    3.44Interest rate spread (spread between weighted-average
interest rate on all interest-earning assets and all
interest-bearing liabilities)
    
    
    3.49
    
    
    
    3.46
    
    
    
    2.80Net interest margin (net interest income as a percentage
of average interest-earning assets)
    
    NA
    
    
    
    3.83
    
    
    
    3.37
 
 1
    
    Includes average balances of non-accrual loans.  15




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Greenville Federal Financial Corporation
Managements Discussion and Analysis of Financial Condition and
Results of Operations
  Year ended June 30,2009 vs. 2008Increase(decrease)due toVolume
    
    
    Rate
    
    
    Total(In thousands)Interest income attributable to:Loans receivable
    
    $
    132
    
    
    $
    (184
    )
    
    $
    (52
    )Mortgage-backed securities
    
    
    14
    
    
    
    (6
    )
    
    
    8Investment securities
    
    
    (455
    )
    
    
    (33
    )
    
    
    (488
    )Interest-earning deposits
    
    
    48
    
    
    
    (129
    )
    
    
    (81
    )Total interest income
    
    
    (261
    )
    
    
    (352
    )
    
    
    (613
    )Interest expense attributable to:Demand deposits
    
    
    1
    
    
    
    (7
    )
    
    
    (6
    )Savings deposits
    
    
    16
    
    
    
    (68
    )
    
    
    (52
    )Time deposits
    
    
    (115
    )
    
    
    (521
    )
    
    
    (636
    )Federal Home Loan Bank advances
    
    
    (75
    )
    
    
    (136
    )
    
    
    (211
    )Total interest expense
    
    
    (173
    )
    
    
    (732
    )
    
    
    (905
    )Increase (decrease) in net interest income
    
    $
    (88
    )
    
    $
    380
    
    
    $
    292
 Asset and liability management
     16




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Greenville Federal Financial Corporation
Managements Discussion and Analysis of Financial Condition and
Results of Operations
  June 30, 2009Net 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
    
    $
    12,150
    
    
    $
    (2,437
    )
    
    
    (17
    )%
    
    
    10.17
    %
    
    (140
    )bp+200
    
    
    13,334
    
    
    
    (1,253
    )
    
    
    (9
    )
    
    
    10.93
    
    
    
    (64
    )+100
    
    
    14,202
    
    
    
    (386
    )
    
    
    (3
    )
    
    
    11.43
    
    
    
    (14
    )0
    
    
    14,587
    
    
    
    
    
    
    
    
    
    
    
    11.57
    
    
    
    -100
    
    
    14,282
    
    
    
    (305
    )
    
    
    (2
    )
    
    
    11.22
    
    
    
    (35
    )-200 (5)
 June 30, 2008Net 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
    
    $
    14,541
    
    
    $
    (3,933
    )
    
    
    (21
    )%
    
    
    11.58
    %
    
    (241
    ) bp+200
    
    
    15,791
    
    
    
    (2,683
    )
    
    
    (15
    )
    
    
    12.37
    
    
    
    (162
    )+100
    
    
    17,295
    
    
    
    (1,179
    )
    
    
    (6
    )
    
    
    13.31
    
    
    
    (68
    )0
    
    
    18,474
    
    
    
    
    
    
    
    
    
    
    
    13.99
    
    
    
    -100
    
    
    19,095
    
    
    
    621
    
    
    
    3
    
    
    
    14.29
    
    
    
    30-200 (5)
 
 (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.(5)
    
    Because of the low interest rate environment, the Office of Thrift Supervision did
not calculate results for minus 200 bp.  17




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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 30,2009
    
    
    2008(In thousands)Net loss
    
    $
    (3,153
    )
    
    $
    (923
    )Adjustments to reconcile net loss to net
cash from operating activities
    
    
    3,407
    
    
    
    2,000Net cash provided by operating activities
    
    
    254
    
    
    
    1,077Net cash provided by investing activities
    
    
    358
    
    
    
    5,902Net cash used in financing activities
    
    
    (3,358
    )
    
    
    (3,286
    )Net increase in cash and cash equivalents
    
    
    (2,746
    )
    
    
    3,693Cash and cash equivalents at beginning of year
    
    
    7,220
    
    
    
    3,527Cash and cash equivalents at end of year
    
    $
    4,474
    
    
    $
    7,220
  18




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Greenville Federal Financial Corporation
Managements Discussion and Analysis of Financial Condition and
Results of Operations
     19




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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
    
    $
    8,363
    
    
    $
    8,811
    
    
    $
    4,101
    
    
    $
    5,628
    
    
    $
    26,903Certificate of deposit maturities
    
    
    23,786
    
    
    
    10,024
    
    
    
    7,700
    
    
    
    11
    
    
    
    41,521Amount of commitments expiration per period:Commitments to originate one- to four-family
loans
    
    
    1,394
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,394Letters of credit
    
    
    35
    
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    55Home equity and commercial lines of credit
    
    
    2,486
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,486Undisbursed loans in process
    
    
    562
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    562Lease obligations
    
    
    52
    
    
    
    17
    
    
    
    
    
    
    
    
    
    
    
    69Total contractual obligations
    
    $
    36,678
    
    
    $
    18,872
    
    
    $
    11,801
    
    
    $
    5,639
    
    
    $
    72,990
   20




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Greenville Federal Financial Corporation
Managements Discussion and Analysis of Financial Condition and
Results of Operations
    June 30, 2009Excess of regulatorycapital over currentRegulatory capital
    
    
    Current requirement
    
    
    requirementAmount
    
    
    Percent
    
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent(Dollars in thousands)Tangible capital
    
    $
    10,288
    
    
    
    8.6
    %
    
    $
    1,791
    
    
    
    1.5
    %
    
    $
    8,498
    
    
    
    7.1
    %Core capital
    
    $
    10,288
    
    
    
    8.6
    %
    
    $
    4,776
    
    
    
    4.0
    %
    
    $
    5,512
    
    
    
    4.6
    %Risk-based capital
    
    $
    10,813
    
    
    
    13.8
    %
    
    $
    6,257
    
    
    
    8.0
    %
    
    $
    4,556
    
    
    
    5.8
    %
 Impact of Inflation and Changing Prices
    21




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Report of Independent Registered Public Accounting Firm
 
    Fair Value Measurements
 /s/ BKD, LLP
 
  22




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Greenville Federal Financial Corporation
Consolidated Balance Sheets
June 30, 2009 and 2008
(In thousands, except share data)
 2009
    
    
    2008AssetsCash and due from banks
    
    $
    1,870
    
    
    $
    1,601Interest-bearing deposits in other financial institutions
    
    
    2,604
    
    
    
    5,619Cash and cash equivalents
    
    
    4,474
    
    
    
    7,220Investment securities available for sale  at market
    
    
    11,888
    
    
    
    16,157Investment securities held to maturity  at amortized cost
    
    
    11
    
    
    
    2,021Mortgage-backed securities held to maturity  at amortized cost
    
    
    1,822
    
    
    
    1,280Loans receivable  net of allowance for loans losses of $577
and $583 at June 30, 2009 and 2008, respectively
    
    
    91,663
    
    
    
    89,851Office premises and equipment  at depreciated cost
    
    
    1,958
    
    
    
    1,907Real estate acquired through foreclosure
    
    
    559
    
    
    
    687Stock in Federal Home Loan Bank  at cost
    
    
    2,003
    
    
    
    1,976Cash surrender value of life insurance
    
    
    4,151
    
    
    
    4,002Accrued interest receivable
    
    
    511
    
    
    
    549Deferred federal income taxes
    
    
    176
    
    
    
    157Prepaid expenses and other assets
    
    
    354
    
    
    
    319Total assets
    
    $
    119,570
    
    
    $
    126,126Liabilities and Stockholders EquityDeposits
    
    $
    72,918
    
    
    $
    83,697Advances from the Federal Home Loan Bank
    
    
    26,903
    
    
    
    19,214Advances by borrowers for taxes and insurance
    
    
    406
    
    
    
    398Accrued interest payable
    
    
    111
    
    
    
    215Other liabilities
    
    
    618
    
    
    
    691Accrued federal income taxes
    
    
    
    
    
    
    55Total liabilities
    
    
    100,956
    
    
    
    104,270Commitments and Contingencies
    
    
    
    
    
    
    Common stock  authorized 8,000,000 shares, $.01 par value;
2,298,411 shares issued and 2,297,851 outstanding
    
    
    23
    
    
    
    23Treasury Stock, at cost, 560 shares
    
    
    (4
    )
    
    
    Additional paid-in capital
    
    
    9,051
    
    
    
    9,021Retained earnings  restricted
    
    
    10,018
    
    
    
    13,443Shares acquired by Employee Stock Ownership Plan
    
    
    (541
    )
    
    
    (631
    )Accumulated comprehensive loss  unrealized losses on
securities designated as available for sale
    
    
    67
    
    
    
    Total stockholders equity
    
    
    18,614
    
    
    
    21,856Total liabilities and stockholders equity
    
    $
    119,570
    
    
    $
    126,126
 See Notes to Consolidated Financial Statements
  23




---



##### 



Greenville Federal Financial Corporation
Consolidated Statements of Operations
For the years ended June 30, 2009 and 2008
(In thousands, except share data)
 2009
    
    
    2008Interest IncomeLoans
    
    $
    5,982
    
    
    $
    6,034Mortgage-backed securities
    
    
    97
    
    
    
    89Investment securities
    
    
    611
    
    
    
    1,098Interest-bearing deposits and other
    
    
    119
    
    
    
    201Total interest income
    
    
    6,809
    
    
    
    7,422Interest ExpenseDeposits
    
    
    1,616
    
    
    
    2,310Borrowings
    
    
    895
    
    
    
    1,106Total interest expense
    
    
    2,511
    
    
    
    3,416Net Interest Income
    
    
    4,298
    
    
    
    4,006Provision for Loan Losses
    
    
    155
    
    
    
    189Net Interest Income After Provision for Loan Losses
    
    
    4,143
    
    
    
    3,817Other IncomeCustomer service charges
    
    
    572
    
    
    
    596Gain (loss) on sale of real estate acquired through foreclosure
    
    
    6
    
    
    
    (1
    )Other operating
    
    
    265
    
    
    
    263Total other income
    
    
    843
    
    
    
    858General, Administrative and Other ExpenseEmployee compensation and benefits
    
    
    2,426
    
    
    
    2,092Occupancy and equipment
    
    
    434
    
    
    
    377Franchise taxes
    
    
    190
    
    
    
    215Data processing
    
    
    408
    
    
    
    541Advertising
    
    
    62
    
    
    
    69Loss on sale of investments
    
    
    6
    
    
    
    Other operating
    
    
    1,109
    
    
    
    684Impairment charge on investment securities
    
    
    3,329
    
    
    
    1,820Provision for loss on real estate acquired through foreclosure
    
    
    211
    
    
    
    31Total general, administrative and other expense
    
    
    8,175
    
    
    
    5,829Loss Before Federal Income Taxes (Credits)
    
    
    (3,189
    )
    
    
    (1,154
    )Federal Income Taxes (Credits)Current
    
    
    (36
    )
    
    
    48Deferred
    
    
    
    
    
    
    (279
    )Total federal income tax credits
    
    
    (36
    )
    
    
    (231
    )Net Loss
    
    $
    (3,153
    )
    
    $
    (923
    )Loss Per Share  Basic and Diluted
    
    $
    (1.42
    )
    
    $
    (0.42
    )
 See Notes to Consolidated Financial Statements
  24




---



##### 



Greenville Federal Financial Corporation
Consolidated Statements of Comprehensive Income (Loss)
For the years ended June 30, 2009 and 2008
(In thousands)
 2009
    
    
    2008Net Loss
    
    $
    (3,153
    )
    
    $
    (923
    )Other Comprehensive (Loss) Gain, Net of Related Tax Benefits:Unrealized holding gains on securities during the year
    
    
    61
    
    
    
    Reclassification adjustment for realized loss on securities
    
    
    6
    
    
    
    Reclassification of impairment charge included in net loss,
net of taxes of $175 for the year ended June 30, 2008
    
    
    
    
    
    
    339Comprehensive Loss
    
    $
    (3.086
    )
    
    $
    (584
    )Accumulated Comprehensive Gain
    
    $
    67
    
    
    $
    
 See Notes to Consolidated Financial Statements
  25




---



##### 



Greenville Federal Financial Corporation
Consolidated Statements of Stockholders Equity
For the years ended June 30, 2009 and 2008
(In thousands, except share data)
 UnrealizedShares
    
    
    GainsAcquired
    
    
    (Losses) onby Employee
    
    
    SecuritiesAdditional
    
    
    
    
    
    
    Stock
    
    
    DesignatedCommon
    
    
    Treasury
    
    
    Paid-in
    
    
    Retained
    
    
    Ownership
    
    
    as AvailableStock
    
    
    Shares
    
    
    Capital
    
    
    Earnings
    
    
    Plan
    
    
    for Sale
    
    
    TotalBalance, July 1, 2007
    
    $
    23
    
    
    $
    
    
    
    $
    9,145
    
    
    $
    14,636
    
    
    $
    (721
    )
    
    $
    (339
    )
    
    $
    22,744Impairment losses recognized on securities
designated as available for sale, net of
related taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    339
    
    
    
    339Net loss for the year ended June 30, 2008
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (923
    )
    
    
    
    
    
    
    
    
    
    
    (923
    )Cash dividends paid of $.28 per share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (270
    )
    
    
    
    
    
    
    
    
    
    
    (270
    )Amortization of ESOP expense
    
    
    
    
    
    
    
    
    
    
    (13
    )
    
    
    
    
    
    
    90
    
    
    
    
    
    
    
    77Expense recognized for 2006 equity plan trust
    
    
    
    
    
    
    
    
    
    
    74
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    74Shares acquired by 2006 equity plan trust
    
    
    
    
    
    
    
    
    
    
    (185
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (185
    )Balance, June 30, 2008
    
    
    23
    
    
    
    
    
    
    
    9,021
    
    
    
    13,443
    
    
    
    (631
    )
    
    
    
    
    
    
    21,856Unrealized gain on securities designated as
available for sale, net of related taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    67
    
    
    
    67Net loss for the year ended June 30, 2009
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,153
    )
    
    
    
    
    
    
    
    
    
    
    (3,153
    )Cash dividends paid of $.28 per share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (272
    )
    
    
    
    
    
    
    
    
    
    
    (272
    )Repurchase of ESOP shares, now Treasury shares
    
    
    
    
    
    
    (4
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4
    )Amortization of ESOP expense
    
    
    
    
    
    
    
    
    
    
    (43
    )
    
    
    
    
    
    
    90
    
    
    
    
    
    
    
    47Expense recognized for 2006 equity plan trust
    
    
    
    
    
    
    
    
    
    
    73
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    73Balance, June 30, 2009
    
    $
    23
    
    
    $
    (4
    )
    
    $
    9051
    
    
    $
    10,018
    
    
    $
    (541
    )
    
    $
    67
    
    
    $
    18,614
 See Notes to Consolidated Financial Statements
  26




---



##### 



Greenville Federal Financial Corporation
Consolidated Statements of Cash Flows
For the years ended June 30, 2009 and 2008
(In thousands)
 2009
    
    
    2008Cash Flows from Operating ActivitiesNet loss
    
    $
    (3,153
    )
    
    $
    (923
    )Adjustments to reconcile net income (loss) to net cash provided by
operating activities:Accretion and amortization of premiums and discounts on
investment and mortgage-backed securities  net
    
    
    (4
    )
    
    
    (4
    )Amortization of deferred loan origination fees
    
    
    (121
    )
    
    
    (43
    )Depreciation and amortization
    
    
    135
    
    
    
    125Amortization of mortgage servicing rights
    
    
    32
    
    
    
    30Amortization of ESOP expense
    
    
    47
    
    
    
    77Other-than-temporary impairment charge on investment securities
    
    
    3,329
    
    
    
    1,820Loss on redemption of investment security
    
    
    6
    
    
    
    Provision for loan losses
    
    
    155
    
    
    
    189Provision for losses on mortgage servicing rights
    
    
    2
    
    
    
    10Provision for losses on real estate acquired through foreclosure
    
    
    211
    
    
    
    31(Gain) loss on sale of real estate acquired through foreclosure
    
    
    (6
    )
    
    
    1Amortization of expense related to stock benefit plans
    
    
    73
    
    
    
    74Federal Home Loan Bank stock dividends
    
    
    (27
    )
    
    
    (51
    )Increase in cash surrender value of life insurance
    
    
    (149
    )
    
    
    (153
    )Increase (decrease) in cash due to changes in:Accrued interest receivable
    
    
    38
    
    
    
    1Prepaid expenses and other assets
    
    
    (82
    )
    
    
    (69
    )Accrued interest payable
    
    
    (104
    )
    
    
    (118
    )Other liabilities
    
    
    (73
    )
    
    
    304Federal income taxesCurrent
    
    
    (55
    )
    
    
    55Deferred
    
    
    
    
    
    
    (279
    )Net cash provided by operating activities
    
    
    254
    
    
    
    1,077Cash Flows Provided by (Used in) Investing ActivitiesPurchases of investment securities designated as available for sale
    
    
    
    
    
    
    (450
    )Purchases of mortgage securities designated as held to maturity
    
    
    (1,004
    )
    
    
    Proceeds from redemption of investment securities designated as
available for sale
    
    
    1,000
    
    
    
    Proceeds from maturity of investment securities designated as held
to maturity
    
    
    2,010
    
    
    
    9,010Proceeds from repayment of mortgage-backed securities
    
    
    466
    
    
    
    408Loan principal repayments
    
    
    12,955
    
    
    
    12,415Loan disbursements
    
    
    (15,179
    )
    
    
    (15,672
    )Purchase of office premises and equipment
    
    
    (186
    )
    
    
    (10
    )Additions to real estate acquired through foreclosure
    
    
    (14
    )
    
    
    Proceeds from sale of real estate acquired through foreclosure
    
    
    310
    
    
    
    201Net cash provided by investing activities
    
    
    358
    
    
    
    5,902Net cash provided by operating and investing
activities (subtotal carried forward)
    
    
    612
    
    
    
    6,979
 See Notes to Consolidated Financial Statements
  27




---



##### 



Greenville Federal Financial Corporation
Consolidated Statements of Cash Flows
For the years ended June 30, 2009 and 2008
(In thousands)
 2009
    
    
    2008Net cash provided by operating and investing
activities (subtotal brought forward)
    
    $
    612
    
    
    $
    6,979Cash Flows Provided by (Used in) Financing ActivitiesNet increase (decrease) in deposit accounts
    
    
    (10,779
    )
    
    
    4,064Proceeds from Federal Home Loan Bank advances
    
    
    11,750
    
    
    
    30,000Repayment of Federal Home Loan Bank advances
    
    
    (4,061
    )
    
    
    (36,911
    )Advances by borrowers for taxes and insurance
    
    
    8
    
    
    
    16Shares acquired by 2006 equity plan
    
    
    
    
    
    
    (185
    )Purchase of Treasury Stock
    
    
    (4
    )
    
    
    Dividends paid on common stock
    
    
    (272
    )
    
    
    (270
    )Net cash used in financing activities
    
    
    (3,358
    )
    
    
    (3,286
    )Increase (Decrease) in Cash and Cash Equivalents
    
    
    (2,746
    )
    
    
    3,693Cash and Cash Equivalents, Beginning of Year
    
    
    7,220
    
    
    
    3,527Cash and Cash Equivalents, End of Year
    
    $
    4,474
    
    
    $
    7,220Supplemental Disclosure of Cash Flow InformationCash paid during the year for:Interest on deposits and borrowings
    
    $
    2,615
    
    
    $
    3,534Federal income taxes
    
    $
    92
    
    
    $
    83Supplemental Disclosure of Noncash Investing ActivitiesTransfers from loans to real estate acquired through foreclosure
    
    $
    378
    
    
    $
    673Unrealized gains on securities designated as available for
sale, net of related tax benefits
    
    $
    67
    
    
    $
    
 See Notes to Consolidated Financial Statements
  28




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 Note 1: Summary of Accounting Policies
     Principles of Consolidation
   29




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 Loans Receivable
   Securities
    Loan Origination Fees and Costs
   30




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 Allowance for Loan Losses
     Office Premises and Equipment
   31




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 Real Estate Acquired through Foreclosure
  Investment in Federal Home Loan Bank Stock
  Mortgage Servicing Rights
  Income Taxes
  Cash and Cash Equivalents
   32




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 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
  33




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
  2009
    
    
    2008Carrying
    
    
    Fair
    
    
    Carrying
    
    
    FairValue
    
    
    Value
    
    
    Value
    
    
    Value(In thousands)Financial AssetsCash and cash equivalents
    
    $
    4,474
    
    
    $
    4,474
    
    
    $
    7,220
    
    
    $
    7,220Investment securities available
for sale
    
    
    11,888
    
    
    
    11,888
    
    
    
    16,157
    
    
    
    16,157Investment securities held to
maturity
    
    
    11
    
    
    
    11
    
    
    
    2,021
    
    
    
    2,022Mortgage-backed securities
    
    
    1,822
    
    
    
    1,893
    
    
    
    1,280
    
    
    
    1,300Loans receivable
    
    
    91,663
    
    
    
    96,002
    
    
    
    89,851
    
    
    
    89,307Federal Home Loan Bank stock
    
    
    2,003
    
    
    
    2,003
    
    
    
    1,976
    
    
    
    1,976Accrued interest receivable
    
    
    511
    
    
    
    511
    
    
    
    549
    
    
    
    549$
    112,372
    
    
    $
    116,782
    
    
    $
    119,054
    
    
    $
    118,531Financial LiabilitiesDeposits
    
    $
    72,918
    
    
    $
    73,859
    
    
    $
    83,697
    
    
    $
    84,324Advances from the Federal Home
Loan Bank
    
    
    26,903
    
    
    
    26,192
    
    
    
    19,214
    
    
    
    19,183Advances by borrowers for taxes
and insurance
    
    
    406
    
    
    
    406
    
    
    
    398
    
    
    
    398Accrued interest payable
    
    
    111
    
    
    
    111
    
    
    
    215
    
    
    
    215$
    100,338
    
    
    $
    100,568
    
    
    $
    103,524
    
    
    $
    104,120
 Cash Surrender Value of Life Insurance
  Advertising
  Earnings Per Share
   34




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
   Reclassifications
  Recent Accounting Developments
 Fair Value Measurements
  35




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 The Fair Value Option for Financial Assets
and Financial Liabilities  Including an Amendment of FASB Statement No. 115
 Accounting for Deferred Compensation and Postretirement Benefit Aspects of Endorsement
Split-Dollar Life Insurance Arrangements
 Accounting for Purchases of Life Insurance  Determining the Amount that Could be
Realized in Accordance with FASB Technical Bulletin No. 85-4
  Accounting for
Uncertainty in Income Taxes
  36




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 Accounting for Income Taxes
    
    
    FAS SFAS 157-4 Determining Fair Value When the Volume and Level of Activity for the
Assets or Liability Have Significantly Decreased and Identifying Transactions That Are
Not Orderlyaddresses the criteria to be used in the determination of an active market
in determining whether observable transactions are Level 1 or Level 2 under the
framework established by SFAS 157, Fair Value Measurements.The FSP reiterates that
fair value is based on the notion of exit price in an orderly transaction between
willing market participants at the valuation date.
  37




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 
    
    FSP SFAS 115-2 and SFAS 124-2, Recognition and Presentation of Other-than-Temporary
Impairmentsprovide additional guidance designed to create greater clarity and
consistency in accounting for and presenting impairment losses on debt securities.
 
    
    FSP SFAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial
Instrumentsenhances consistency in financial reporting by increasing the frequency of
fair value disclosures.
  Treasury Stock
  Note 2: Investment and Mortgage-backed Securities
  June 30, 2009Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    Value(In thousands)Available for Sale:Asset management fund
    
    $
    11,821
    
    
    $
    67
    
    
    $
    
    
    
    $
    11,888Held to Maturity:Municipal obligations
    
    $
    11
    
    
    $
    
    
    
    $
    
    
    
    $
    11
 June 30, 2008Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    Value(In thousands)Available for Sale:Asset management fund
    
    $
    16,157
    
    
    $
    
    
    
    $
    
    
    
    $
    16,157Held to Maturity:Municipal obligations
    
    $
    21
    
    
    $
    
    
    
    $
    
    
    
    $
    21Federal Home Loan
Bank bonds
    
    
    2,000
    
    
    
    1
    
    
    
    
    
    
    
    2,001$
    2,021
    
    
    $
    1
    
    
    $
    
    
    
    $
    2,022
  38




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
  June 30,2009
    
    
    2008Estimated
    
    
    
    
    
    
    EstimatedAmortized
    
    
    Fair
    
    
    Amortized
    
    
    FairCost
    
    
    Value
    
    
    Cost
    
    
    ValueHeld to Maturity:Due within one year
    
    $
    11
    
    
    $
    11
    
    
    $
    2,000
    
    
    $
    2,001Due after one year through
three years
    
    
    
    
    
    
    
    
    
    
    21
    
    
    
    21Total held to maturity
    
    $
    11
    
    
    $
    11
    
    
    $
    2,021
    
    
    $
    2,022
  June 30, 2009Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    Value(In thousands)Federal Home Loan Mortgage
Corporation participation
certificates
    
    $
    155
    
    
    $
    
    
    
    $
    
    
    
    $
    155Federal National Mortgage
Association participation
certificates
    
    
    881
    
    
    
    42
    
    
    
    
    
    
    
    923Government National Mortgage
Association participation
certificates
    
    
    786
    
    
    
    29
    
    
    
    
    
    
    
    815Total
mortgage-backed
securities
    
    $
    1,822
    
    
    $
    72
    
    
    $
    
    
    
    $
    1,893
  39




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 June 30, 2008Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    Value(In thousands)Federal Home Loan Mortgage
Corporation participation
certificates
    
    $
    180
    
    
    $
    1
    
    
    $
    
    
    
    $
    181Federal National Mortgage
Association participation
certificates
    
    
    1,088
    
    
    
    20
    
    
    
    
    
    
    
    1,108Government National Mortgage
Association participation
certificates
    
    
    12
    
    
    
    
    
    
    
    
    
    
    
    12Total
mortgage-backed
securities
    
    $
    1,280
    
    
    $
    21
    
    
    $
    
    
    
    $
    1,301
  June 30,2009
    
    
    2008Estimated
    
    
    
    
    
    
    EstimatedAmortized
    
    
    Fair
    
    
    Amortized
    
    
    FairCost
    
    
    Value
    
    
    Cost
    
    
    ValueDue in one year or less
    
    $
    
    
    
    $
    
    
    
    $
    3
    
    
    $
    3Due after one year
through five years
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    1Due after five years
through ten years
    
    
    135
    
    
    
    135
    
    
    
    154
    
    
    
    155Due after ten years
    
    
    1,686
    
    
    
    1,757
    
    
    
    1,122
    
    
    
    1,142$
    1,822
    
    
    $
    1,893
    
    
    $
    1,280
    
    
    $
    1,301
  40




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
     41




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 Note 3: Loans Receivable
  2009
    
    
    2008(In thousands)Residential real estateOne- to four-family
    
    $
    77,866
    
    
    $
    74,882Multi-family
    
    
    3,825
    
    
    
    3,907Construction
    
    
    686
    
    
    
    998Nonresidential real estate
    
    
    5,793
    
    
    
    5,999Commercial
    
    
    2,270
    
    
    
    2,879Consumer and other
    
    
    2,710
    
    
    
    3,004Total loans
    
    
    93,150
    
    
    
    91,669LessUnearned interest
    
    
    10
    
    
    
    10Deferred loan origination fees, net
    
    
    338
    
    
    
    368Allowance for loan losses
    
    
    577
    
    
    
    583Undisbursed portion of loans in process
    
    
    562
    
    
    
    857Net loans
    
    $
    91,663
    
    
    $
    89,851
    42




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 Note 4: Allowance for Loan Losses
  2009
    
    
    2008(In thousands)Balance, beginning of year
    
    $
    583
    
    
    $
    579Provision for loan losses
    
    
    155
    
    
    
    189Charge-offs of loans, net of recoveries
    
    
    (161
    )
    
    
    (185
    )Balance, end of year
    
    $
    577
    
    
    $
    583
   Note 5: Office Premises and Equipment
  2009
    
    
    2008(In thousands)Land
    
    $
    572
    
    
    $
    572Leasehold improvements
    
    
    204
    
    
    
    204Buildings and improvements
    
    
    1,721
    
    
    
    1,721Furniture and equipment
    
    
    1,714
    
    
    
    1,528Vehicles
    
    
    13
    
    
    
    134,224
    
    
    
    4,038Less accumulated depreciation and amortization
    
    
    (2,266
    )
    
    
    (2,131
    )Net premises and equipment
    
    $
    1,958
    
    
    $
    1,907
  43




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 Note 6: Mortgage Servicing Rights
  2009
    
    
    2008(In thousands)Balance at beginning of year
    
    $
    118
    
    
    $
    148Amortization of mortgage servicing rights
    
    
    (32
    )
    
    
    (30
    )Balance at end of year
    
    $
    86
    
    
    $
    118Valuation allowance for impairment at beginning of year
    
    $
    (10
    )
    
    $
    Valuation allowance recorded
    
    
    (2
    )
    
    
    (10
    )Valuation allowance for impairment at end of year
    
    $
    (12
    )
    
    $
    (10
    )Net carrying value of mortgage servicing rights at end
of year
    
    $
    74
    
    
    $
    108
   44




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 Note 7: Deposits
  Deposit type and weighted average
    
    2009
    
    
    2008interest rate
    
    Amount
    
    
    %
    
    
    Amount
    
    
    %(Dollars in thousands)Non-interest-bearing checking
    
    $
    4,832
    
    
    
    6.6
    %
    
    $
    4,806
    
    
    
    5.7
    %NOW accounts2009  0.17%
    
    
    4,937
    
    
    
    6.82008  0.56%
    
    
    
    
    
    
    
    
    
    
    4,580
    
    
    
    5.5Money market accounts2009  0.20%
    
    
    338
    
    
    
    0.52008  0.60%
    
    
    
    
    
    
    
    
    
    
    330
    
    
    
    0.4Savings accounts2009  0.57%
    
    
    21,290
    
    
    
    29.22008  1.50%
    
    
    
    
    
    
    
    
    
    
    20,357
    
    
    
    24.3Total demand, transaction and
savings deposits
    
    
    31,397
    
    
    
    43.1
    
    
    
    30,073
    
    
    
    35.9Certificates of depositOriginal maturities of:Less than twelve months2009  1.63%
    
    
    14,566
    
    
    
    20.02008  2.75%
    
    
    
    
    
    
    
    
    
    
    32,130
    
    
    
    38.4Twelve months to thirty-six months2009  2.88%
    
    
    11,385
    
    
    
    15.62008  3.68%
    
    
    
    
    
    
    
    
    
    
    9,678
    
    
    
    11.6Thirty-six months and greater2009  3.98%
    
    
    15,570
    
    
    
    21.42008  3.92%
    
    
    
    
    
    
    
    
    
    
    11,816
    
    
    
    14.1Total certificates of deposit
    
    
    41,521
    
    
    
    56.9
    
    
    
    53,624
    
    
    
    64.1Total deposit accounts
    
    $
    72,918
    
    
    
    100.0
    %
    
    $
    83,697
    
    
    
    100.0
    %
  45




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
   2009
    
    
    2008(In thousands)Demand, transaction and savings accounts
    
    $
    184
    
    
    $
    242Certificate of deposit accounts
    
    
    1,432
    
    
    
    2,068Balance at end of year
    
    $
    1,616
    
    
    $
    2,310
  2009
    
    
    2008(In thousands)Due within one year
    
    $
    23,786
    
    
    $
    39,141Due after one year to two years
    
    
    5,260
    
    
    
    6,498Due after two years to three years
    
    
    4,764
    
    
    
    2,398Due after three years to four years
    
    
    5,936
    
    
    
    1,915Due after four years to five years
    
    
    1,775
    
    
    
    3,672$
    41,521
    
    
    $
    53,624
 Note 8: Advances from the Federal Home Loan Bank
  Maturing in fiscal year ending June 30,
    
    2009
    
    
    2008(In thousands)2009
    
    $
    
    
    
    $
    3,3802010
    
    
    8,364
    
    
    
    6,6572011
    
    
    6,584
    
    
    
    5,3592012
    
    
    2,226
    
    
    
    1,1142013
    
    
    1,727
    
    
    
    709Thereafter
    
    
    8,002
    
    
    
    1,995$
    26,903
    
    
    $
    19,214
  46




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 Note 9: Federal Income Taxes (Credits)
  2009
    
    
    2008(In thousands)Federal income tax credits computed at the 34%
statutory rate
    
    $
    (1,084
    )
    
    $
    (392
    )Increase (decrease) in taxes resulting from:Increase in cash surrender value of life insurance
    
    
    (51
    )
    
    
    (52
    )Valuation allowance on deferred tax assets
    
    
    1,132
    
    
    
    210Other
    
    
    (30
    )
    
    
    3Federal income tax credit per consolidated financial
statements
    
    $
    (36
    )
    
    $
    (231
    )Effective rate of tax
    
    
    (1.1
    )%
    
    
    (20.0
    )%
  2009
    
    
    2008(In thousands)Taxes (payable) refundable on temporary
differences at statutory rate:Deferred tax liabilitiesFederal Home Loan Bank stock dividends
    
    $
    (424
    )
    
    $
    (406
    )Difference between book and tax depreciation
    
    
    (70
    )
    
    
    (27
    )Mortgage servicing rights
    
    
    (25
    )
    
    
    (37
    )Prepaid expenses and other
    
    
    (29
    )
    
    
    (32
    )Total deferred tax liabilities
    
    
    (548
    )
    
    
    (502
    )Deferred tax assetsGeneral loan loss allowance
    
    
    188
    
    
    
    185Deferred loan origination fees
    
    
    46
    
    
    
    73Other-than-temporary impairment loss
    
    
    1,750
    
    
    
    607Other
    
    
    82
    
    
    
    4Gross deferred tax assets
    
    
    2,066
    
    
    
    869Less: valuation allowance
    
    
    (1,342
    )
    
    
    (210
    )Total deferred tax assets, net
    
    
    724
    
    
    
    659Net deferred tax asset
    
    $
    176
    
    
    $
    157
   47




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
  Note 10: Commitments and Contingencies
     48




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 Note 11: Lease Commitments
  Year ended June 30,
    
    (In thousands)2010
    
    
    522011
    
    
    17$
    69
  Note 12: Benefit Plans
    49




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 2009
    
    
    2008Allocated shares
    
    
    35,479
    
    
    
    27,030Unallocated shares
    
    
    54,059
    
    
    
    63,068Total ESOP shares
    
    
    89,538
    
    
    
    90,098Fair value of unallocated shares at June 30
    
    $
    178,000
    
    
    $
    460,000
   Note 13: Stock Option Plan
   50




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
            51




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 Note 14: Regulatory Capital
     As of June 30, 2009To Be Well CapitalizedFor Capital Adequacy
    
    
    Under Prompt CorrectiveActual
    
    
    Purposes
    
    
    Action ProvisionsAmount
    
    
    Ratio
    
    
    Amount
    
    
    Ratio
    
    
    Amount
    
    
    Ratio(Dollars in thousands)Tangible capital
    
    $
    10,288
    
    
    
    8.6
    %
    
    ≥$
    1,791
    
    
    ≥
    1.5
    %
    
    ≥$
    5,970
    
    
    ≥
    5.0
    %Core capital
    
    $
    10,288
    
    
    
    8.6
    %
    
    ≥$
    4,776
    
    
    ≥
    4.0
    %
    
    ≥$
    7,164
    
    
    ≥
    6.0
    %Risk-based capital
    
    $
    10,813
    
    
    
    13.8
    %
    
    ≥$
    6,257
    
    

    ≥
    8.0
    %
    
    ≥$
    7,821
    
    
    ≥
    10.0
    %
 As of June 30, 2008To Be Well CapitalizedFor Capital Adequacy
    
    
    Under Prompt CorrectiveActual
    
    
    Purposes
    
    
    Action ProvisionsAmount
    
    
    Ratio
    
    
    Amount
    
    
    Ratio
    
    
    Amount
    
    
    Ratio(Dollars in thousands)Tangible capital
    
    $
    13,319
    
    
    
    10.6
    %
    
    ≥$
    1,892
    
    
    ≥
    1.5
    %
    
    ≥$
    6,306
    
    
    ≥
    5.0
    %Core capital
    
    $
    13,319
    
    
    
    10.6
    %
    
    ≥$
    5,045
    
    
    ≥
    4.0
    %
    
    ≥$
    7,568
    
    
    ≥
    6.0
    %Risk-based capital
    
    $
    13,834
    
    
    
    16.6
    %
    
    ≥$
    6,683
    
    
    ≥
    8.0
    %
    
    ≥$
    8,353
    
    
    ≥
    10.0
    %
  52




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
  June 30,2009
    
    
    2008(In thousands)GAAP capital
    
    $
    10,363
    
    
    $
    13,326Reconciling items:Unrealized gain on investments available-for-sale
    
    
    (67
    )
    
    
    Mortgage servicing rights excluded
    
    
    (8
    )
    
    
    (7
    )Tangible and core capital
    
    
    10,288
    
    
    
    13,319General valuation allowance
    
    
    525
    
    
    
    515Risk-based capital
    
    $
    10,813
    
    
    $
    13,834
     53




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 Note 15: Related Party Transactions
   Note 16: Disclosures About Fair Value of Assets and Liabilities
 Fair Value Measurements
  Level 1
    
    Quoted prices in active markets for identical assets
or liabilities.Level 2
    
    Observable inputs other than Level 1 prices, such as
quoted prices for similar assets or liabilities; quoted prices in
markets that are not active; or other inputs that are observable or can
be corroborated by observable market data for substantially the full
term of the assets or liabilities.Level 3
    
    Unobservable inputs that are supported by little or
no market activity and that are significant to the fair value of the
assets or liabilities.
  Available-for-Sale Securities
   54




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
  Fair Value Measurements UsingQuoted Pricesin Active
    
    
    SignificantMarkets for
    
    
    Other
    
    
    SignificantIdentical
    
    
    Observable
    
    
    UnobservableAssets
    
    
    Inputs
    
    
    InputsFair Value
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Available-for-sale
securities
    
    $
    11,888,000
    
    
    
    
    
    
    $
    11,888,000
  Note 17: Subsequent Events
      55




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 Note 18: Greenville Federal Financial Corporation Condensed Financial Statements
  Greenville Federal Financial Corporation
Balance Sheets
 2009
    
    
    2008AssetsInterest-bearing deposits in Greenville Federal
    
    $
    7,477
    
    
    $
    7,855Demand deposit in Greenville Federal
    
    
    15
    
    
    
    3Loan receivable from ESOP
    
    
    584
    
    
    
    663Prepaid expenses and other assets
    
    
    109
    
    
    
    61Receivable from Greenville Federal
    
    
    123
    
    
    
    61Investment in Greenville Federal
    
    
    10,363
    
    
    
    13,326Total assets
    
    $
    18,671
    
    
    $
    21,908Liabilities and Stockholders EquityAccrued expenses and other liabilities
    
    $
    57
    
    
    $
    52Stockholders equityCommon stock and additional paid-in capital
    
    
    9,074
    
    
    
    9,044Treasury stock
    
    
    (4
    )
    
    
    Retained earnings
    
    
    10,018
    
    
    
    13,443Shares acquired by employee stock ownership plan
    
    
    (541
    )
    
    
    (631
    )Unrealized gains on securities designated
as available for sale, net of tax effects
    
    
    67
    
    
    
    Total stockholders equity
    
    
    18,614
    
    
    
    21,856Total liabilities and stockholders equity
    
    $
    18,671
    
    
    $
    21,908
  56




---



##### 



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
June 30, 2009 and 2008
 Greenville Federal Financial Corporation
Statements of Operations
 2009
    
    
    2008RevenueInterest income
    
    $
    166
    
    
    $
    286Equity in loss of Greenville Federal
    
    
    (3,077
    )
    
    
    (981
    )Total loss
    
    
    (2,910
    )
    
    
    (695
    )General and administrative expenses
    
    
    283
    
    
    
    198Loss before income taxes
    
    
    (3,193
    )
    
    
    (893
    )Income taxes
    
    
    (40
    )
    
    
    30Net Loss
    
    $
    (3,153
    )
    
    $
    (923
    )
 Greenville Federal Financial Corporation
Statements of Cash Flows
 2009
    
    
    2008Cash flows from operating activities:Net loss
    
    $
    (3,153
    )
    
    $
    (923
    )Equity in undistributed loss of Greenville Federal
    
    
    3042
    
    
    
    981Amortization of expense related to stock benefit plans
    
    
    77
    
    
    
    75Increase in cash due to changes in:Prepaid expenses and other assets
    
    
    (171
    )
    
    
    4,651Other liabilities
    
    
    36
    
    
    
    23Net cash provided by (used in) operating activities
    
    
    (169
    )
    
    
    4,807Cash flows from investing activities:Principal repayments on loan to ESOP
    
    
    79
    
    
    
    75Net cash provided by investing activities
    
    
    79
    
    
    
    75Cash flows from financing activities:Shares acquired under 2006 equity plan
    
    
    
    
    
    
    (185
    )Treasury shares
    
    
    (4
    )
    
    
    Dividends paid
    
    
    (272
    )
    
    
    (270
    )Net cash used in financing activities
    
    
    (276
    )
    
    
    (455
    )Net increase (decrease) in cash and cash equivalents
    
    
    (366
    )
    
    
    4,427Cash and cash equivalents at beginning of year
    
    
    7,858
    
    
    
    3,431Cash and cash equivalents at end of year
    
    $
    7,492
    
    
    $
    7,858
  57




---



##### 



Greenville Federal Financial Corporation
 Managements Report On Internal Controls
 Greenville Federal Financial Corporation
Managements Report on Internal Control Over Financial Reporting
     /s/ Jeff D. Kniese
    
    
    
    /s/ Susan J. AllreadJeff D. Kniese
    
    
    
    Susan J. AllreadPresident & Chief Executive Officer
    
    
    
    Chief Financial OfficerSeptember 28, 2009
    
    
    
    September 28, 2009
  58




---



##### 



Greenville Federal Financial Corporation
 Directors and Officers
 Directors of Greenville
    
    ExecutiveFederal Financial
    
    Officers of
    
    ExecutiveCorporation and
    
    Greenville Federal
    
    Officers ofGreenville Federal
    
    Financial Corporation
    
    Greenville FederalJeff D. Kniese
    
    Jeff D. Kniese
    
    Jeff D. KniesePresident 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 T. Feltman
    
    and Secretary
    
    Vice President andRetired
    
    
    
    Compliance OfficerGeorge S. Luce, Jr.SalespersonBest Equipment Company, Inc.(Distributor)Richard J. OBrienRetiredEunice F. SteinbrecherChair of the BoardMessiah College;Real Estate Managementand InvestmentJames W. WardCertified Public AccountantFry and CompanyDavid R. WolvertonRetired, President and ChiefExecutive OfficerGreenville Federal
  59




---



##### 



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, 2009
    
    $
    3.90
    
    
    $
    3.30
    
    
    $
    0.07March 31, 2009
    
    $
    5.05
    
    
    $
    3.09
    
    
    $
    0.07December 31, 2008
    
    $
    6.25
    
    
    $
    4.88
    
    
    $
    0.07September 30, 2008
    
    $
    7.25
    
    
    $
    6.16
    
    
    $
    0.07
 Dividendsdeclared perQuarter Ended
    
    High
    
    
    Low
    
    
    shareJune 30, 2008
    
    $
    8.25
    
    
    $
    7.05
    
    
    $
    0.07March 31, 2008
    
    $
    8.68
    
    
    $
    8.00
    
    
    $
    0.07December 31, 2007
    
    $
    9.50
    
    
    $
    8.10
    
    
    $
    0.07September 30, 2007
    
    $
    9.75
    
    
    $
    8.85
    
    
    $
    0.07
    60




---



##### 



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
 A copy of the Greenville Federal Financial Corporation Annual Report on Form 10-K for the
fiscal year ended June 30, 2009, as filed with the Securities and Exchange Commission, may be
obtained without charge by contacting Ms. Susan Allread, Greenville Federal Financial
Corporation, 690 Wagner Avenue, Greenville, Ohio 45331.
 OFFICE LOCATIONS
 Full Service Banking Locations
 Main Office:
    
    
    
    Branch Office:
    
    GF XPRESS690 Wagner Avenue
    
    
    
    200 Lease AvenueGreenville, Ohio 45331
    
    
    
    Greenville, Ohio 45331(937) 548-4158
    
    
    
    (937) 548-4158
 www.greenvillefederal.com
  61




---



##### 



Greenville
Federal Financial Corporation
 690 Wagner Avenue
Greenville, Ohio 45331
937-548-4158
www.greenvillefederal.com