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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-QSB
 (Mark One)
 þ
    
    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2007
 OR
 o
    
    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
 For the transition period from  to
 Commission File Number: 000-51668
 GREENVILLE FEDERAL FINANCIAL CORPORATION
 
 Ohio
    
    20-3742295(State or other jurisdiction of
    
    (IRS Employer Identification No.)incorporation or organization)
  
   
  
  þ o
  o þ
  o þ




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PagePART I
    
    
    
    FINANCIAL INFORMATIONITEM 1
    
    Financial
StatementsConsolidated Balance Sheets
    
    
    3Consolidated Statements of Income
    
    
    4Consolidated Statements of Comprehensive Income
    
    
    5Consolidated Statements of Cash Flows
    
    
    6Notes to Consolidated Financial Statements
    
    
    8ITEM 2
    
    Managements Discussion and Analysis or Plan of Operations
    
    
    11ITEM 3
    
    Controls and Procedures
    
    
    14PART II
    
    
    
    OTHER INFORMATION
    
    
    15ITEM 1
    
    Legal ProceedingsITEM 2
    
    Unregistered Sales of Equity Securities and Use of ProceedsITEM 3
    
    Defaults Upon Senior SecuritiesITEM 4
    
    Submission of Matters to a Vote of Security HoldersITEM 5
    
    Other InformationITEM 6
    
    ExhibitsSIGNATURES
    
    
    16EX-31.1EX-31.2EX-32.1EX-32.2
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ITEM 1. FINANCIAL STATEMENTS
 GREENVILLE FEDERAL FINANCIAL CORPORATION
 
 CONSOLIDATED BALANCE SHEETS
  September 30,
    
    
    June 30,2007
    
    
    2007ASSETS
    
    (Unaudited)Cash and due from banks
    
    $
    2,141
    
    
    $
    2,030Interest-bearing deposits in other financial institutions
    
    
    1,301
    
    
    
    1,497Cash and cash equivalents
    
    
    3,442
    
    
    
    3,527Investment securities designated as available for sale  at market
    
    
    17,223
    
    
    
    17,013Investment securities designated as held to maturity  at
amortized cost
    
    
    10,029
    
    
    
    11,031Mortgage-backed securities designated as held to maturity 
at amortized cost
    
    
    1,545
    
    
    
    1,684Loans receivable  net of allowance for loan losses of $571 and
$579 at September 30, 2007 and June 30, 2007, respectively
    
    
    87,790
    
    
    
    87,413Office premises and equipment  at depreciated cost
    
    
    1,990
    
    
    
    2,022Real estate acquired through foreclosure
    
    
    247
    
    
    
    247Stock in Federal Home Loan Bank  at cost
    
    
    1,925
    
    
    
    1,925Cash surrender value of life insurance
    
    
    3,887
    
    
    
    3,849Accrued interest receivable on loans
    
    
    458
    
    
    
    442Accrued interest receivable on mortgage-backed securities
    
    
    8
    
    
    
    9Accrued interest receivable on investment securities and other
    
    
    153
    
    
    
    99Prepaid expenses and other assets
    
    
    331
    
    
    
    447Total assets
    
    $
    129,028
    
    
    $
    129,708LIABILITIES AND STOCKHOLDERS EQUITYDeposits
    
    $
    79,618
    
    
    $
    79,633Advances from the Federal Home Loan Bank
    
    
    25,565
    
    
    
    26,125Advances by borrowers for taxes and insurance
    
    
    289
    
    
    
    382Accrued interest payable
    
    
    245
    
    
    
    333Other liabilities
    
    
    408
    
    
    
    387Deferred federal income taxes
    
    
    84
    
    
    
    104Total liabilities
    
    
    106,209
    
    
    
    106,964Commitments and contingencies
    
    
    
    
    
    
    Stockholders equityPreferred stock  authorized 1,000,000 shares, $.01 par value; no shares issued
    
    
    
    
    
    
    Common stock  authorized 8,000,000 shares, $.01 par value; 2,298,411 shares
issued and outstanding
    
    
    23
    
    
    
    23Additional paid-in capital
    
    
    9,145
    
    
    
    9,145Retained earnings  restricted
    
    
    14,723
    
    
    
    14,636Shares acquired by Employee Stock Ownership Plan
    
    
    (721
    )
    
    
    (721
    )Accumulated comprehensive loss  unrealized losses on securities
designated as available for sale, net of related tax benefits
    
    
    (351
    )
    
    
    (339
    )Total stockholders equity
    
    
    22,819
    
    
    
    22,744Total liabilities and stockholders equity
    
    $
    129,028
    
    
    $
    129,708
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GREENVILLE FEDERAL FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF INCOME
 
 2007
    
    
    2006Interest incomeLoans
    
    $
    1,510
    
    
    $
    1,418Mortgage-backed securities
    
    
    24
    
    
    
    28Investment securities
    
    
    334
    
    
    
    342Interest-bearing deposits and other
    
    
    51
    
    
    
    51Total interest income
    
    
    1,919
    
    
    
    1,839Interest expenseDeposits
    
    
    614
    
    
    
    548Borrowings
    
    
    324
    
    
    
    340Total interest expense
    
    
    938
    
    
    
    888Net interest income
    
    
    981
    
    
    
    951Provision for losses on loans
    
    
    
    
    
    
    2Net interest income after provision for
losses on loans
    
    
    981
    
    
    
    949Other incomeCustomer service charges
    
    
    154
    
    
    
    131Other operating
    
    
    61
    
    
    
    60Total other income
    
    
    215
    
    
    
    191General, administrative and other expenseEmployee compensation and benefits
    
    
    524
    
    
    
    496Occupancy and equipment
    
    
    91
    
    
    
    102Franchise taxes
    
    
    59
    
    
    
    57Data processing
    
    
    126
    
    
    
    110Advertising
    
    
    18
    
    
    
    20Other operating
    
    
    156
    
    
    
    160Total general, administrative and other expense
    
    
    974
    
    
    
    945Income before income taxes
    
    
    222
    
    
    
    195Federal income taxesCurrent
    
    
    77
    
    
    
    67Deferred
    
    
    (14
    )
    
    
    (13
    )Total federal income taxes
    
    
    63
    
    
    
    54NET INCOME
    
    $
    159
    
    
    $
    141Earnings per share  basic and diluted
    
    $
    0.07
    
    
    $
    0.06Dividends declared per share
    
    $
    0.07
    
    
    $
    0.07
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GREENVILLE FEDERAL FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
 2007
    
    
    2006Net income
    
    $
    159
    
    
    $
    141Other comprehensive income, net of related tax effects:Unrealized holding gains (losses) on securities during the period,
net of taxes (benefits) of $(6) and $23 for the periods ended
September 30, 2007 and 2006, respectively
    
    
    (12
    )
    
    
    45Comprehensive income
    
    $
    147
    
    
    $
    186Accumulated comprehensive loss
    
    $
    (351
    )
    
    $
    (270
    )
  5




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GREENVILLE FEDERAL FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 2007
    
    
    2006Cash flows from operating activities:Net income for the period
    
    $
    159
    
    
    $
    141Adjustments to reconcile net income to net cash
provided by operating activities:Accretion and amortization of premiums and discounts on
investment and mortgage-backed securities  net
    
    
    (1
    )
    
    
    Amortization of deferred loan origination fees
    
    
    (48
    )
    
    
    (24
    )Depreciation and amortization
    
    
    32
    
    
    
    40Amortization of mortgage servicing rights
    
    
    9
    
    
    
    8Provision for losses on loans
    
    
    
    
    
    
    2Federal Home Loan Bank stock dividends
    
    
    
    
    
    
    (27
    )Increase in cash surrender value of life insurance
    
    
    (38
    )
    
    
    (35
    )(Decrease) increase in cash due to changes in:Accrued interest receivable on loans
    
    
    (16
    )
    
    
    (13
    )Accrued interest receivable on mortgage-backed securities
    
    
    1
    
    
    
    1Accrued interest receivable on investment securities and other
    
    
    (54
    )
    
    
    (13
    )Prepaid expenses and other assets
    
    
    40
    
    
    
    58Accrued interest payable
    
    
    (88
    )
    
    
    25Other liabilities
    
    
    11
    
    
    
    69Federal income taxesCurrent
    
    
    77
    
    
    
    67Deferred
    
    
    (14
    )
    
    
    (13
    )Net cash provided by operating activities
    
    
    70
    
    
    
    286Cash flows from investing activities:Purchases of investment securities designated as available for sale
    
    
    (228
    )
    
    
    (201
    )Proceeds from maturity of investment securities designated
as held to maturity
    
    
    1,002
    
    
    
    1,003Proceeds from repayment of mortgage-backed securities
    
    
    140
    
    
    
    91Loan principal repayments
    
    
    3,376
    
    
    
    2,983Loan disbursements
    
    
    (3,705
    )
    
    
    (5,338
    )Purchase of office premises and equipment
    
    
    
    
    
    
    (46
    )Net cash provided by (used in) investing activities
    
    
    585
    
    
    
    (1,508
    )Cash flows from financing activities:Net increase (decrease) in deposit accounts
    
    
    (15
    )
    
    
    508Proceeds from Federal Home Loan Bank advances
    
    
    10,500
    
    
    
    8,500Repayment of Federal Home Loan Bank advances
    
    
    (11,060
    )
    
    
    (7,665
    )Advances by borrowers for taxes and insurance
    
    
    (93
    )
    
    
    (86
    )Dividends paid on common stock
    
    
    (72
    )
    
    
    (73
    )Net cash (used in) provided by financing activities
    
    
    (740
    )
    
    
    1,184Decrease in cash and cash equivalents
    
    
    (85
    )
    
    
    (38
    )Cash and cash equivalents at beginning of period
    
    
    3,527
    
    
    
    3,254Cash and cash equivalents at end of period
    
    $
    3,442
    
    
    $
    3,216
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GREENVILLE FEDERAL FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
 
 2007
    
    
    2006Supplemental disclosure of cash flow information:Cash paid during the period for:Interest on deposits and borrowings
    
    $
    1,026
    
    
    $
    863Supplemental disclosure of noncash investing activities:Transfers from loans to real estate acquired through foreclosure
    
    $
    
    
    
    $
    499Unrealized gains (losses) on securities designated as available for
sale, net of related tax effects
    
    $
    (12
    )
    
    $
    45
  7




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GREENVILLE FEDERAL FINANCIAL CORPORATION
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  Basis of Presentation
    Principles of Consolidation
  Earnings Per Share
  8




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GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  Earnings Per Share
   Recent Accounting Developments
  
    
    Separately recognize financial assets as servicing assets or servicing liabilities, each
time it undertakes an obligation to service a financial asset by entering into certain
kinds of servicing contracts;
    
    Separately present servicing assets and liabilities subsequently measured at fair value
in the statement of financial condition and additional disclosures for all separately
recognized servicing assets and servicing liabilities; and
    
    Initially measure all separately recognized servicing assets and liabilities at fair
value, if practicable.
    9




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GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
   Stock-Based Compensation Plan
 
     
 10




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GREENVILLE FEDERAL FINANCIAL CORPORATION
 
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
 Forward Looking Statements
  Critical Accounting Policies
  Discussion of Financial Condition Changes from June 30, 2007 to September 30, 2007
    11




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GREENVILLE FEDERAL FINANCIAL CORPORATION
 MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN
OF OPERATIONS (CONTINUED)
 Discussion of Financial Condition Changes from June 30, 2007 to September 30, 2007
      12




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GREENVILLE FEDERAL FINANCIAL CORPORATION
 MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN
OF OPERATIONS (CONTINUED)
 Comparison of Operating Results for the Three-Month Periods Ended September 30, 2007 and
2006
 General
  Net Interest Income
    Provision for Losses on Loans
  13




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GREENVILLE FEDERAL FINANCIAL CORPORATION
 MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN
OF OPERATIONS (CONTINUED)
 Comparison of Operating Results for the Three-Month Periods Ended September 30, 2007 and 2006
 Other Income
  General, Administrative and Other Expense
  Federal Income Taxes
  
 Controls and Procedures
   14




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Greenville Federal Financial Corporation
 
  
 Legal Proceedings
  
 Unregistered Sales of Equity Securities and Use of Proceeds
    
 Defaults Upon Senior Securities
  
 Submission of Matters to a Vote of Security Holders
  
 Other Information
  
 Exhibits
 3.1
    
    Greenville Federal Financial Corporation Federal Stock Subsidiary Holding Company Charter3.2
    
    Greenville Federal Financial Corporation Federal Stock Subsidiary Holding Company Bylaws31.1
    
    Chief Executive Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 200231.2
    
    Chief Financial Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 200232.1
    
    Chief Executive Officer certification pursuant to Section 906 of the Sarbanes-Oxley Act of 200232.2
    
    Chief Financial Officer certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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Greenville Federal Financial Corporation
 
 SIGNATURES
  GREENVILLE FEDERAL FINANCIAL CORPORATIONDate:    November  6, 2007
    By:
    /s/David M. KeplerDavid M. KeplerPresident and Chief Executive OfficerDate:    November  6, 2007
    By:
    /s/Susan J. AllreadSusan J. AllreadChief Financial Officer 16




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INDEX TO EXHIBITS
 3.1
    
    Greenville Federal Financial Corporation Federal Stock Subsidiary Holding Company Charter
(Incorporated by reference to Exhibit 2 to the Registration Statement on Form 8-A filed by the
Registrant with the Securities and Exchange Commission on December 14, 2006)3.2
    
    Greenville Federal Financial Corporation Federal Stock Subsidiary Holding Company Bylaws
(Incorporated by reference to Exhibit 3 to the Registration Statement on Form 8-A filed by the
Registrant with the Securities and Exchange Commission on December 14, 2006)31.1
    
    Chief Executive Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 200231.2
    
    Chief Financial Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 200232.1
    
    Chief Executive Officer certification pursuant to Section 906 of the Sarbanes-Oxley Act of 200232.2
    
    Chief Financial Officer certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002