##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 (Mark One)
 þ
    
    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended March 31, 2010
 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)
 690 Wagner Avenue, Greenville, Ohio 45331
 (Issuers telephone number)
 (Former name, former address and former fiscal year, if changed since last report)
 þ o
 Yes o No o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ(Do not check if a smaller reporting company)
 o þ




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##### 



Greenville Federal Financial Corporation
  PagePART I  FINANCIAL INFORMATIONItem 1. Consolidated Balance Sheets
    
    
    3Consolidated Statements of Operations
    
    
    4Consolidated Statements of Comprehensive Income (Loss)
    
    
    6Consolidated Statements of Cash Flows
    
    
    7Notes to Consolidated Financial Statements
    
    
    9Item 2. Managements Discussion and Analysis of Financial Condition
and Results of Operations
    
    
    17Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    24Item 4. Controls and Procedures
    
    
    24PART II  OTHER INFORMATIONItem 1. Legal Proceedings
    
    
    25Item 1A. Risk Factors
    
    
    25Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    25Item 3. Defaults Upon Senior Securities
    
    
    25Item 4. Submission of Matters to a Vote of Security Holders
    
    
    25Item 5. Other Information
    
    
    25Item 6. Exhibits
    
    
    26SIGNATURES
    
    
    27Exhibit 4Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
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ITEM 1. Financial Statements
 Greenville Federal Financial Corporation
 
 Consolidated Balance Sheets
 (In thousands, except share data)
 March 31,
    
    
    June 30,2010
    
    
    2009(Unaudited)ASSETSCash and due from banks
    
    $
    1,895
    
    
    $
    1,870Interest-bearing deposits in other financial institutions
    
    
    4,178
    
    
    
    2,604Cash and cash equivalents
    
    
    6,073
    
    
    
    4,474Investment securities designated as available for sale  at fair value
    
    
    11,554
    
    
    
    11,888Investment securities designated as held to maturity  at amortized cost
(fair value: 3/31/10  $3, 6/30/09  $11)
    
    
    3
    
    
    
    11Mortgage-backed securities designated as held to maturity  at amortized cost
(fair value: 3/31/10  $1,456, 6/30/09  $1,893)
    
    
    1,370
    
    
    
    1,822Loans receivable  net of allowance for loan losses of $750 and $577 at
March 31, 2010 and June 30, 2009, respectively
    
    
    92,882
    
    
    
    91,663Office premises and equipment  at depreciated cost
    
    
    1,860
    
    
    
    1,958Real estate acquired through foreclosure
    
    
    72
    
    
    
    559Stock in Federal Home Loan Bank  at cost
    
    
    2,003
    
    
    
    2,003Cash surrender value of life insurance
    
    
    4,261
    
    
    
    4,151Accrued interest receivable
    
    
    471
    
    
    
    511Prepaid expenses and other assets
    
    
    1,021
    
    
    
    530Total assets
    
    $
    121,570
    
    
    $
    119,570LIABILITIES AND STOCKHOLDERS EQUITYDeposits
    
    $
    78,336
    
    
    $
    72,918Advances from the Federal Home Loan Bank
    
    
    24,669
    
    
    
    26,903Advances by borrowers for taxes and insurance
    
    
    291
    
    
    
    406Accrued interest payable
    
    
    79
    
    
    
    111Other liabilities
    
    
    584
    
    
    
    618Total liabilities
    
    
    103,959
    
    
    
    100,956Commitments and contingencies
    
    
    
    
    
    
    Stockholders equityPreferred stock  authorized 1,000,000 shares, $.01 par value; no shares issued
    
    
    
    
    
    
    Common stock  authorized 8,000,000 shares of $.01 par value; 2,298,411 shares
issued and 2,096,196 outstanding
    
    
    23
    
    
    
    23Treasury Stock, at cost, 202,215 shares
    
    
    (1,490
    )
    
    
    (4
    )Additional paid-in capital
    
    
    9,092
    
    
    
    9,051Retained earnings  restricted
    
    
    10,069
    
    
    
    10,018Shares acquired by Employee Stock Ownership Plan
    
    
    (541
    )
    
    
    (541
    )Accumulated comprehensive income, net of related tax benefits
    
    
    458
    
    
    
    67Total stockholders equity
    
    
    17,611
    
    
    
    18,614Total liabilities and stockholders equity
    
    $
    121,570
    
    
    $
    119,570
 See notes to consolidated financial statements.
  3




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Greenville Federal Financial Corporation
 
 Consolidated Statements of Operations
 (In thousands, except share data)
 (Unaudited)
 Three months ended
    
    
    Nine months endedMarch 31,
    
    
    March 31,2010
    
    
    2009
    
    
    2010
    
    
    2009Interest incomeLoans
    
    $
    1,416
    
    
    $
    1,518
    
    
    $
    4,292
    
    
    $
    4,505Mortgage-backed securities
    
    
    19
    
    
    
    30
    
    
    
    63
    
    
    
    70Investment securities
    
    
    97
    
    
    
    134
    
    
    
    328
    
    
    
    483Interest-bearing deposits and other
    
    
    23
    
    
    
    23
    
    
    
    71
    
    
    
    96Total interest income
    
    
    1,555
    
    
    
    1,705
    
    
    
    4,754
    
    
    
    5,154Interest expenseDeposits
    
    
    289
    
    
    
    385
    
    
    
    919
    
    
    
    1,289Borrowings
    
    
    208
    
    
    
    236
    
    
    
    691
    
    
    
    643Total interest expense
    
    
    497
    
    
    
    621
    
    
    
    1,610
    
    
    
    1,932Net interest income
    
    
    1,058
    
    
    
    1,084
    
    
    
    3,144
    
    
    
    3,222Provision for losses on loans
    
    
    70
    
    
    
    35
    
    
    
    222
    
    
    
    85Net interest income after
provision for losses on loans
    
    
    988
    
    
    
    1,049
    
    
    
    2,922
    
    
    
    3,137Other incomeCustomer service charges
    
    
    115
    
    
    
    126
    
    
    
    416
    
    
    
    429Gain (loss) on redemption of investment
securities
    
    
    11
    
    
    
    3
    
    
    
    25
    
    
    
    (5
    )Other operating
    
    
    66
    
    
    
    55
    
    
    
    218
    
    
    
    203Total other income
    
    
    192
    
    
    
    184
    
    
    
    659
    
    
    
    627General, administrative and other expenseEmployee compensation and benefits
    
    
    514
    
    
    
    607
    
    
    
    1,633
    
    
    
    1,784Occupancy and equipment
    
    
    96
    
    
    
    113
    
    
    
    307
    
    
    
    309Franchise taxes
    
    
    28
    
    
    
    35
    
    
    
    114
    
    
    
    131Data processing
    
    
    85
    
    
    
    82
    
    
    
    248
    
    
    
    322Advertising
    
    
    17
    
    
    
    12
    
    
    
    47
    
    
    
    49Impairment charge on investment securities
    
    
    
    
    
    
    482
    
    
    
    
    
    
    
    3,329Loss (gain) on sale of real estate acquired
through foreclosure
    
    
    5
    
    
    
    9
    
    
    
    6
    
    
    
    6Provision for loss on real estate acquired
through foreclosure
    
    
    98
    
    
    
    10
    
    
    
    105
    
    
    
    193FDIC insurance expense
    
    
    44
    
    
    
    4
    
    
    
    129
    
    
    
    12Other operating
    
    
    144
    
    
    
    228
    
    
    
    662
    
    
    
    665Total general, administrative
and other expense
    
    
    1,031
    
    
    
    1,582
    
    
    
    3,251
    
    
    
    6,800Income (loss) before income taxes
    
    
    149
    
    
    
    (349
    )
    
    
    330
    
    
    
    (3,036
    )
 See notes to consolidated financial statements.
  4




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Greenville Federal Financial Corporation
Consolidated Statements of Operations
(In thousands, except share data)
(Unaudited)
 Three months ended
    
    
    Nine months endedMarch 31,
    
    
    March 31,2010
    
    
    2009
    
    
    2010
    
    
    2009Federal income taxesCurrent
    
    
    39
    
    
    
    22
    
    
    
    76
    
    
    
    39Deferred
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total federal income taxes
    
    
    39
    
    
    
    22
    
    
    
    76
    
    
    
    39NET INCOME (LOSS)
    
    $
    110
    
    
    $
    (371
    )
    
    $
    254
    
    
    $
    (3,075
    )Earnings per share  basic and diluted
    
    $
    0.05
    
    
    $
    (0.17
    )
    
    $
    0.12
    
    
    $
    (1.38
    )Dividends declared per share
    
    $
    0.07
    
    
    $
    0.07
    
    
    $
    0.21
    
    
    $
    0.21
 See notes to consolidated financial statements.
  5




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Greenville Federal Financial Corporation
 
 Consolidated Statements of Comprehensive Income (Loss)
 (In thousands)
 (Unaudited)
 Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2010
    
    
    2009
    
    
    2010
    
    
    2009Net income (loss)
    
    $
    110
    
    
    $
    (371
    )
    
    $
    254
    
    
    $
    (3,075
    )Other comprehensive income
(losses), net of related tax
benefits:Unrealized holding gains (losses)
on available for sale securities
    
    
    17
    
    
    
    3
    
    
    
    416
    
    
    
    (5
    )Reclassification adjustment for
losses (gains) later recognized in
income
    
    
    (11
    )
    
    
    (3
    )
    
    
    (25
    )
    
    
    5Unrealized holding gains (losses)
on securities during the period,
net of taxes (benefits) of $0, $0,
$0 and $0 for the respective
periods
    
    
    6
    
    
    
    
    
    
    
    391
    
    
    
    Comprehensive income
    
    $
    116
    
    
    $
    (371
    )
    
    $
    645
    
    
    $
    (3,075
    )Accumulated comprehensive gain, net
of related tax benefits
    
    $
    458
    
    
    $
    
    
    
    $
    458
    
    
    $
    
 See notes to consolidated financial statements.
  6




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Greenville Federal Financial Corporation
 
 Consolidated Statements of Cash Flows
 For the nine months ended March 31, 2010 and 2009
 (In thousands)
 (Unaudited)
 2010
    
    
    2009Cash flows from operating activities:Net income (loss) for the period
    
    $
    254
    
    
    $
    (3,075
    )Adjustments to reconcile net income to net cash provided by operating activities:Accretion and amortization of premiums and discounts on investments and
mortgage-backed securities  net
    
    
    6
    
    
    
    (2
    )Amortization of deferred loan origination fees
    
    
    (117
    )
    
    
    (80
    )Depreciation and amortization
    
    
    109
    
    
    
    98Amortization of mortgage servicing rights
    
    
    13
    
    
    
    23Other-than-temporary impairment of investment securities designated as
available for sale
    
    
    
    
    
    
    3,329Loss (gain) on redemption of investment security
    
    
    (25
    )
    
    
    5Provision for losses on loans
    
    
    222
    
    
    
    85Provision for loss on real estate acquired through foreclosure
    
    
    101
    
    
    
    193Loss (gain) on disposition of real estate acquired through foreclosure
    
    
    11
    
    
    
    6Federal Home Loan Bank stock dividends
    
    
    
    
    
    
    (27
    )Increase in cash surrender value of life insurance
    
    
    (110
    )
    
    
    (113
    )Increase (decrease) in cash due to changes in:Accrued interest receivable on loans
    
    
    27
    
    
    
    57Accrued interest receivable on mortgage-backed securities
    
    
    3
    
    
    
    (3
    )Accrued interest receivable on investment securities and other
    
    
    10
    
    
    
    29Prepaid expenses and other assets
    
    
    (504
    )
    
    
    (78
    )Accrued interest payable
    
    
    (32
    )
    
    
    (73
    )Other liabilities
    
    
    (85
    )
    
    
    (168
    )Stock option expense
    
    
    11
    
    
    
    17Retention share expense
    
    
    30
    
    
    
    37Federal income taxesCurrent
    
    
    51
    
    
    
    (55
    )Net cash from operating activities
    
    
    (25
    )
    
    
    205Cash flows used in investing activities:Purchases of mortgage-backed securities designated as held to maturity
    
    
    
    
    
    
    (1,004
    )Sale/redemption of investment securities
    
    
    750
    
    
    
    750Proceeds from maturity of investment securities designated as held to maturity
    
    
    
    
    
    
    2,008Proceeds from repayment of mortgage-backed securities
    
    
    454
    
    
    
    257Loan principal repayments
    
    
    9,319
    
    
    
    9,693Loan disbursements
    
    
    (10,803
    )
    
    
    (11,964
    )Purchase of office equipment
    
    
    (11
    )
    
    
    (179
    )Additions to real estate acquired through foreclosure
    
    
    
    
    
    
    (14
    )Proceeds from sale of real estate acquired through foreclosure
    
    
    535
    
    
    
    224Net cash from investing activities
    
    
    244
    
    
    
    (229
    )
 See notes to consolidated financial statements.
  7




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Greenville Federal Financial Corporation
Consolidated Statements of Cash Flows (Continued)
For the nine months ended March 31, 2010 and 2009
(In thousands)
(Unaudited)
 2010
    
    
    2009(net balance brought forward)
    
    $
    219
    
    
    $
    (24
    )Cash flows provided by financing activities:Net increase (decrease) in deposit accounts
    
    
    5,418
    
    
    
    (7,468
    )Proceeds from Federal Home Loan Bank advances
    
    
    5,000
    
    
    
    9,500Repayments of Federal Home Loan Bank advances
    
    
    (7,234
    )
    
    
    (3,007
    )Advances by borrowers for taxes and insurance
    
    
    (115
    )
    
    
    (92
    )Repurchase of treasury stock
    
    
    (1,486
    )
    
    
    (4
    )Dividends on common stock
    
    
    (203
    )
    
    
    (217
    )Net cash from financing activities
    
    
    1,380
    
    
    
    (1,288
    )Net increase (decrease) in cash and cash equivalents
    
    
    1,599
    
    
    
    (1,312
    )Cash and cash equivalents at beginning of period
    
    
    4,474
    
    
    
    7,220Cash and cash equivalents at end of period
    
    $
    6,073
    
    
    $
    5,908Supplemental disclosure of cash flow information:Cash paid during the period for:Interest on deposits and borrowings
    
    $
    1,572
    
    
    $
    2,005Federal income taxes
    
    $
    
    
    
    $
    92Supplemental disclosure of noncash investing activities:Transfers from loans to real estate acquired through foreclosure
    
    $
    160
    
    
    $
    394Unrealized gains on securities designated as available for
sale, net of related tax effects
    
    $
    391
    
    
    $
    
 See notes to consolidated financial statements.
  8




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Greenville Federal Financial Corporation
 
 Notes to Consolidated Financial Statements
 For the nine- and three-month periods ended March 31, 2009 and 2010
 Note 1: Basis of Presentation
    Note 2: Principles of Consolidation
  Note 3: Earnings Per Share
   9




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Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
   Note 4: Recent Accounting Developments
 Recently Issued but not yet Effective Accounting Pronouncements:
 Consolidation
  Note 5: Commitments
   10




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Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
 Note 6: Disclosures About Fair Value of Assets and Liabilities
  Level 1
    
    Quoted prices in active markets for identical assets or liabilitiesLevel 2
    
    Observable inputs other than Level 1 prices, such as quoted prices for similar
assets or liabilities; quoted prices in active 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
   Fair Value Measurements UsingQuoted Prices in
    
    
    SignificantActive Markets
    
    
    Other
    
    
    Significantfor Identical
    
    
    Observable
    
    
    UnobservableAssets
    
    
    Inputs
    
    
    InputsFair Value
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)March 31, 2010Asset Management Fund
    
    $
    11,554,000
    
    
    
    
    
    
    $
    11,554,000June 30, 2009Asset Management Fund
    
    $
    11,888,000
    
    
    
    
    
    
    $
    11,888,000
   11




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Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
 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
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Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
  March 31, 2010
    
    
    June 30, 2009Carrying
    
    
    Fair
    
    
    Carrying
    
    
    FairValue
    
    
    Value
    
    
    Value
    
    
    Value(In thousands)Financial AssetsCash and cash equivalents
    
    $
    6,073
    
    
    $
    6,073
    
    
    $
    4,474
    
    
    $
    4,474Investment securities available for sale
    
    
    11,554
    
    
    
    11,554
    
    
    
    11,888
    
    
    
    11,888Investment securities held to maturity
    
    
    3
    
    
    
    3
    
    
    
    11
    
    
    
    11Mortgage-backed securities
    
    
    1,370
    
    
    
    1,456
    
    
    
    1,822
    
    
    
    1,893Loans receivable
    
    
    92,882
    
    
    
    99,208
    
    
    
    91,663
    
    
    
    96,002Accrued interest receivable
    
    
    471
    
    
    
    471
    
    
    
    511
    
    
    
    511$
    112,353
    
    
    $
    118,765
    
    
    $
    110,369
    
    
    $
    114,779Financial LiabilitiesDeposits
    
    $
    78,336
    
    
    $
    79,301
    
    
    $
    72,918
    
    
    $
    73,859Advances from the Federal Home Loan Bank
    
    
    24,669
    
    
    
    24,324
    
    
    
    26,903
    
    
    
    26,192Advances by borrowers for taxes and insurance
    
    
    291
    
    
    
    291
    
    
    
    406
    
    
    
    406Accrued interest payable
    
    
    79
    
    
    
    79
    
    
    
    111
    
    
    
    111$
    103,375
    
    
    $
    103,995
    
    
    $
    100,338
    
    
    $
    100,568
 Note 7: Investment and Mortgage-backed Securities
  Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    Value(In thousands)March 31, 2010Available for Sale:Asset management fund
    
    $
    11,096
    
    
    $
    458
    
    
    $
    
    
    
    $
    11,554Held to Maturity:Municipal obligations
    
    $
    3
    
    
    $
    
    
    
    $
    
    
    
    $
    3June 30, 2009Available for Sale:Asset management fund
    
    $
    11,821
    
    
    $
    67
    
    
    $
    
    
    
    $
    11,888Held to Maturity:Municipal obligations
    
    $
    11
    
    
    $
    
    
    
    $
    
    
    
    $
    11
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Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
  March 31, 2010
    
    
    June 30, 2009Estimated
    
    
    
    
    
    
    EstimatedAmortized
    
    
    Fair
    
    
    Amortized
    
    
    FairCost
    
    
    Value
    
    
    Cost
    
    
    ValueHeld to Maturity:Due within one year
    
    $
    3
    
    
    $
    3
    
    
    $
    11
    
    
    $
    11Total held to maturity
    
    $
    3
    
    
    $
    3
    
    
    $
    11
    
    
    $
    11
  Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    Value(In thousands)March 31, 2010Federal Home Loan Mortgage
Corporation participation
certificates
    
    $
    140
    
    
    $
    2
    
    
    $
    
    
    
    $
    142Federal National Mortgage
Association participation
certificates
    
    
    699
    
    
    
    50
    
    
    
    
    
    
    
    749Government National Mortgage
Association participation
certificates
    
    
    531
    
    
    
    34
    
    
    
    
    
    
    
    565Total mortgage-backed securities
    
    $
    1,370
    
    
    $
    86
    
    
    $
    
    
    
    $
    1,456June 30, 2009Federal 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
    
    
    $
    71
    
    
    $
    
    
    
    $
    1,893
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Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
  March 31, 2010
    
    
    June 30, 2009Amortized
    
    
    Estimated
    
    
    Amortized
    
    
    EstimatedCost
    
    
    Fair Value
    
    
    Cost
    
    
    Fair ValueDue in one year or less
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Due after one year through five years
    
    
    2
    
    
    
    2
    
    
    
    1
    
    
    
    1Due after five years through ten years
    
    
    120
    
    
    
    122
    
    
    
    135
    
    
    
    135Due after ten years
    
    
    1,248
    
    
    
    1,332
    
    
    
    1,686
    
    
    
    1,757$
    1,370
    
    
    $
    1,456
    
    
    $
    1,822
    
    
    $
    1,893
    Note 8: Loans Receivable
  March 31,
    
    
    June 30,2010
    
    
    2009(In thousands)Residential real estateOne- to four-family
    
    $
    79,942
    
    
    $
    77,866Multi-family
    
    
    3,758
    
    
    
    3,825Construction
    
    
    1,041
    
    
    
    686Nonresidential real estate
    
    
    5,425
    
    
    
    5,793Commercial
    
    
    1,935
    
    
    
    2,270Consumer and other
    
    
    2,372
    
    
    
    2,710Total loans
    
    
    94,473
    
    
    
    93,150LessUnearned interest
    
    
    7
    
    
    
    10Deferred loan origination fees, net
    
    
    307
    
    
    
    338Allowance for loan losses
    
    
    750
    
    
    
    577Undisbursed portion of loans in process
    
    
    527
    
    
    
    562Net loans
    
    $
    92,882
    
    
    $
    91,663
  15




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##### Table of Contents



Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
 Note 9: Allowance for Loan Losses
  2010
    
    
    2009(In thousands)Balance, July 1
    
    $
    577
    
    
    $
    583Provision for loan losses
    
    
    222
    
    
    
    85Charge-offs of loans, net of recoveries
    
    
    (49
    )
    
    
    (93
    )Balance, March 31, 2010
    
    $
    750
    
    
    $
    575
    16




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##### Table of Contents



Greenville Federal Financial Corporation
 
 Managements Discussion and Analysis of Financial Condition
 and Results of Operations
 Forward Looking Statements
  Critical Accounting Policies
  Discussion of Financial Condition Changes from June 30, 2009 to March 31, 2010
      17




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##### Table of Contents



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




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##### Table of Contents



Greenville Federal Financial Corporation
Managements Discussion and Analysis of Financial Condition
and Results of Operations
  Minimum Required ToMinimum Required For
    
    
    Be Well CapitalizedCapital Adequacy
    
    
    Under Prompt CorrectiveActual
    
    
    Purposes
    
    
    Action RegulationsAmount
    
    
    Ratio
    
    
    Amount
    
    
    Ratio
    
    
    Amount
    
    
    Ratio(Dollars in thousands)March 31, 2010Tangible capital
    
    $
    10,652
    
    
    
    8.80
    %
    
    $
    1,815
    
    
    
    1.50
    %
    
    $
    6,051
    
    
    
    5.00
    %Core capital
    
    $
    10,652
    
    
    
    8.80
    %
    
    $
    4,841
    
    
    
    4.00
    %
    
    $
    7,261
    
    
    
    6.00
    %Risk-based capital
    
    $
    11,286
    
    
    
    14.47
    %
    
    $
    6,240
    
    
    
    8.00
    %
    
    $
    7,800
    
    
    
    10.00
    %June 30, 2009Tangible capital
    
    $
    10,288
    
    
    
    8.62
    %
    
    $
    1,791
    
    
    
    1.50
    %
    
    $
    5,970
    
    
    
    5.00
    %Core capital
    
    $
    10,288
    
    
    
    8.62
    %
    
    $
    4,776
    
    
    
    4.00
    %
    
    $
    7,164
    
    
    
    6.00
    %Risk-based capital
    
    $
    10,813
    
    
    
    13.83
    %
    
    $
    6,257
    
    
    
    8.00
    %
    
    $
    11,939
    
    
    
    10.00
    %
 Comparison of Operating Results for the Three-Month Periods Ended March 31, 2010 and 2009
 General
  Net Interest Income
   19




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##### Table of Contents



Greenville Federal Financial Corporation
Managements Discussion and Analysis of Financial Condition
and Results of Operations
   Provision for Losses on Loans
  General, Administrative and Other Expense
    20




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##### Table of Contents



Greenville Federal Financial Corporation
Managements Discussion and Analysis of Financial Condition
and Results of Operations
 Federal Income Taxes
  Comparison of Operating Results for the Nine-Month Periods Ended March 31, 2010 and 2009
 General
  Net Interest Income
     21




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##### Table of Contents



Greenville Federal Financial Corporation
Managements Discussion and Analysis of Financial Condition
and Results of Operations
 Provision for Losses on Loans
  Other Income
  General, Administrative and Other Expense
   Federal Income Taxes
   22




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##### Table of Contents



Greenville Federal Financial Corporation
Managements Discussion and Analysis of Financial Condition
and Results of Operations
 Economic Trends and Uncertainties
        23




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##### Table of Contents



Greenville Federal Financial Corporation
Managements Discussion and Analysis of Financial Condition
and Results of Operations
     
 ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
  
 ITEM 4. Controls and Procedures
    24




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##### Table of Contents



Greenville Federal Financial Corporation
 
 PART II  OTHER INFORMATION (CONTINUED)
 
 ITEM 1. Legal Proceedings
  
 ITEM 1A. Risk Factors
  
 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
  Total Number ofShares (or Units)
    
    
    Maximum Number (orPurchased as Part
    
    
    Approximate Dollar Value)Total Number of
    
    
    Average Price
    
    
    of Publicly
    
    
    of Shares (or Units) ThatShares (or Units)
    
    
    Paid Per Share
    
    
    Announced Plans
    
    
    May Be Purchased UnderPeriod
    
    Purchased(1)
    
    
    (or Unit)
    
    
    or Programs
    
    
    the Plans or ProgramsMarch 2010
    
    
    1,145
    
    
    $
    4.00
    
    
    
    
    
    
    
    
 (1)
    
    All of the 1,145 shares were repurchased pursuant to a put option under the
Companys employee stock ownership plan. 
 ITEM 3. Defaults Upon Senior Securities
  
 ITEM 4. Submission of Matters to a Vote of Security Holders
  
 ITEM 5. Other Information
   25




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##### Table of Contents



Greenville Federal Financial Corporation
PART II  OTHER INFORMATION (CONTINUED)
 
 ITEM 6. Exhibits
 3.1
    
    
    Greenville Federal Financial Corporation Federal Stock Subsidiary Holding Company Charter3.2
    
    
    Greenville Federal Financial Corporation Federal Stock Subsidiary Holding Company Bylaws4
    
    
    Agreement to Furnish Long-Term Debt Instruments and Agreements31.1
    
    
    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
  26




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##### Table of Contents



Greenville Federal Financial Corporation
 
 SIGNATURES
  GREENVILLE FEDERAL FINANCIAL CORPORATIONDate:  May 14, 2010
    By:
    /s/ Jeff D. KnieseJeff D. KniesePresident and Chief Executive OfficerDate:  May 14, 2010
    By:
    /s/ Susan J. AllreadSusan J. AllreadChief Financial Officer  27




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##### Table of Contents



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)4
    
    
    Agreement to Furnish Long-Term Debt Instruments and Agreements31.1
    
    
    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