##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended December 31, 2009
 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 
incorporation or organization)
    
    (IRS Employer Identification No.)
 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)
    
    
    5Consolidated Statements of Cash Flows
    
    
    6Notes to Consolidated Financial Statements
    
    
    8Item 2. Managements Discussion and Analysis of Financial Condition
and Results of Operations
    
    
    17Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    24Item 4T. 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
    
    
    26Item 6. Exhibits
    
    
    26SIGNATURES
    
    
    27Exhibit 4Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




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ITEM 1.   Financial Statements
 Greenville Federal Financial Corporation
 
 Consolidated Balance Sheets
 (In thousands, except share data)
 December 31,
    
    
    June 30,2009
    
    
    2009(Unaudited)ASSETSCash and due from banks
    
    $
    2,182
    
    
    $
    1,870Interest-bearing deposits in other financial institutions
    
    
    5,857
    
    
    
    2,604Cash and cash equivalents
    
    
    8,039
    
    
    
    4,474Investment securities designated as available for sale  at market
    
    
    11,787
    
    
    
    11,888Investment securities designated as held to maturity  at amortized cost
(fair value: 12/31/09  $5, 6/30/09  $11)
    
    
    5
    
    
    
    11Mortgage-backed securities designated as held to maturity  at amortized cost
(fair value: 12/31/09  $1,630, 6/30/09  $1,893)
    
    
    1,546
    
    
    
    1,822Loans receivable  net of allowance for loan losses of $680 and $577 at
December 31, 2009 and June 30, 2009, respectively
    
    
    92,476
    
    
    
    91,663Office premises and equipment  at depreciated cost
    
    
    1,896
    
    
    
    1,958Real estate acquired through foreclosure
    
    
    319
    
    
    
    559Stock in Federal Home Loan Bank  at cost
    
    
    2,003
    
    
    
    2,003Cash surrender value of life insurance
    
    
    4,225
    
    
    
    4,151Accrued interest receivable
    
    
    472
    
    
    
    511Prepaid expenses and other assets
    
    
    984
    
    
    
    530Total assets
    
    $
    123,752
    
    
    $
    119,570LIABILITIES AND STOCKHOLDERS EQUITYDeposits
    
    $
    75,814
    
    
    $
    72,918Advances from the Federal Home Loan Bank
    
    
    29,058
    
    
    
    26,903Advances by borrowers for taxes and insurance
    
    
    459
    
    
    
    406Accrued interest payable
    
    
    81
    
    
    
    111Other liabilities
    
    
    618
    
    
    
    618Total liabilities
    
    
    106,030
    
    
    
    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 2,097,341 outstanding
    
    
    23
    
    
    
    23Treasury Stock, at cost, 201,070 shares
    
    
    (1,308
    )
    
    
    (4
    )Additional paid-in capital
    
    
    9,079
    
    
    
    9,051Retained earnings  restricted
    
    
    10,017
    
    
    
    10,018Shares acquired by Employee Stock Ownership Plan
    
    
    (541
    )
    
    
    (541
    )Accumulated comprehensive income, net of related tax benefits
    
    
    452
    
    
    
    67Total stockholders equity
    
    
    17,722
    
    
    
    18,614Total liabilities and stockholders equity
    
    $
    123,752
    
    
    $
    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
    
    
    Six months endedDecember 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2009
    
    
    2008Interest incomeLoans
    
    $
    1,433
    
    
    $
    1,494
    
    
    $
    2,877
    
    
    $
    2,988Mortgage-backed securities
    
    
    21
    
    
    
    23
    
    
    
    44
    
    
    
    40Investment securities
    
    
    112
    
    
    
    171
    
    
    
    231
    
    
    
    349Interest-bearing deposits and other
    
    
    23
    
    
    
    28
    
    
    
    48
    
    
    
    73Total interest income
    
    
    1,589
    
    
    
    1,716
    
    
    
    3,200
    
    
    
    3,450Interest expenseDeposits
    
    
    311
    
    
    
    447
    
    
    
    630
    
    
    
    905Borrowings
    
    
    235
    
    
    
    202
    
    
    
    482
    
    
    
    407Total interest expense
    
    
    546
    
    
    
    649
    
    
    
    1,112
    
    
    
    1,312Net interest income
    
    
    1,043
    
    
    
    1,067
    
    
    
    2,088
    
    
    
    2,138Provision for losses on loans
    
    
    82
    
    
    
    50
    
    
    
    152
    
    
    
    50Net interest income after
provision for losses on loans
    
    
    961
    
    
    
    1,017
    
    
    
    1,936
    
    
    
    2,088Other incomeCustomer service charges
    
    
    157
    
    
    
    147
    
    
    
    302
    
    
    
    303Gain (loss) on sale of real estate acquired
through foreclosure
    
    
    (1
    )
    
    
    4
    
    
    
    (1
    )
    
    
    4Other operating
    
    
    71
    
    
    
    76
    
    
    
    152
    
    
    
    147Total other income
    
    
    227
    
    
    
    227
    
    
    
    453
    
    
    
    454General, administrative and other expenseEmployee compensation and benefits
    
    
    523
    
    
    
    610
    
    
    
    1,120
    
    
    
    1,177Occupancy and equipment
    
    
    113
    
    
    
    97
    
    
    
    212
    
    
    
    196Franchise taxes
    
    
    44
    
    
    
    48
    
    
    
    87
    
    
    
    96Data processing
    
    
    81
    
    
    
    95
    
    
    
    163
    
    
    
    240Advertising
    
    
    11
    
    
    
    18
    
    
    
    31
    
    
    
    37Loss (gain) on redemption of investment
securities
    
    
    (11
    )
    
    
    4
    
    
    
    (14
    )
    
    
    8Impairment charge on investment securities
    
    
    
    
    
    
    1,456
    
    
    
    
    
    
    
    2,848Provision for loss on real estate acquired
through foreclosure
    
    
    
    
    
    
    170
    
    
    
    7
    
    
    
    183FDIC insurance expense
    
    
    45
    
    
    
    4
    
    
    
    85
    
    
    
    8Other operating
    
    
    276
    
    
    
    234
    
    
    
    518
    
    
    
    435Total general, administrative
and other expense
    
    
    1,082
    
    
    
    2,736
    
    
    
    2,209
    
    
    
    5,228Income (loss) before income taxes
    
    
    106
    
    
    
    (1,492
    )
    
    
    180
    
    
    
    (2,686
    )Federal income taxesCurrent
    
    
    24
    
    
    
    (36
    )
    
    
    37
    
    
    
    18Deferred
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total federal income taxes
    
    
    24
    
    
    
    (36
    )
    
    
    37
    
    
    
    18NET INCOME (LOSS)
    
    $
    82
    
    
    $
    (1,456
    )
    
    $
    143
    
    
    $
    (2,704
    )Earnings per share  basic and diluted
    
    $
    0.04
    
    
    $
    (0.66
    )
    
    $
    0.07
    
    
    $
    (1.22
    )Dividends declared per share
    
    $
    0.07
    
    
    $
    0.07
    
    
    $
    0.07
    
    
    $
    0.14
 See notes to consolidated financial statements.
  4




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Greenville Federal Financial Corporation
 
 Consolidated Statements of Comprehensive Income (Loss)
 (In thousands)
 (Unaudited)
 Three Months Ended
    
    
    Six Months EndedDecember 31,
    
    
    December 31,2009
    
    
    2008
    
    
    2009
    
    
    2008Net income (loss)
    
    $
    82
    
    
    $
    (1,456
    )
    
    $
    143
    
    
    $
    (2,704
    )Other comprehensive income
(losses), net of related tax
benefits:Unrealized holding gains (losses)
on securities during the period,
net of taxes (benefits) of $0, $0,
$0 and $0 for the respective
periods
    
    
    (10
    )
    
    
    
    
    
    
    385
    
    
    
    Comprehensive income
    
    $
    72
    
    
    $
    (1,456
    )
    
    $
    528
    
    
    $
    (2,704
    )Accumulated comprehensive gain, net
of related tax benefits
    
    $
    452
    
    
    $
    
    
    
    $
    452
    
    
    $
    
 See notes to consolidated financial statements.
  5




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Greenville Federal Financial Corporation
 
 Consolidated Statements of Cash Flows
 For the six months ended December 31, 2009 and 2008
 (In thousands)
 (Unaudited)
 2009
    
    
    2008Cash flows from operating activities:Net income (loss) for the period
    
    $
    143
    
    
    $
    (2,704
    )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
    
    
    5
    
    
    
    (1
    )Amortization of deferred loan origination fees
    
    
    (106
    )
    
    
    (23
    )Depreciation and amortization
    
    
    73
    
    
    
    60Amortization of mortgage servicing rights
    
    
    11
    
    
    
    7Other-than-temporary impairment of investment securities designated as
available for sale
    
    
    
    
    
    
    2,848Loss (gain) on redemption of investment security
    
    
    (14
    )
    
    
    8Provision for losses on loans
    
    
    82
    
    
    
    50Provision for loss on real estate acquired through foreclosure
    
    
    7
    
    
    
    183Loss (gain) on disposition of real estate acquired through foreclosure
    
    
    5
    
    
    
    (4
    )Federal Home Loan Bank stock dividends
    
    
    
    
    
    
    (27
    )Increase in cash surrender value of life insurance
    
    
    (74
    )
    
    
    (77
    )Increase (decrease) in cash due to changes in:Accrued interest receivable on loans
    
    
    33
    
    
    
    30Accrued interest receivable on mortgage-backed securities
    
    
    2
    
    
    
    (4
    )Accrued interest receivable on investment securities and other
    
    
    4
    
    
    
    22Prepaid expenses and other assets
    
    
    (465
    )
    
    
    10Accrued interest payable
    
    
    (30
    )
    
    
    (64
    )Other liabilities
    
    
    (45
    )
    
    
    (111
    )Stock option expense
    
    
    7
    
    
    
    12Retention share expense
    
    
    21
    
    
    
    24Federal income taxesCurrent
    
    
    45
    
    
    
    (55
    )Net cash provided by operating activities
    
    
    (296
    )
    
    
    184Cash flows used in investing activities:Purchases of mortgage-backed securities designated as held to maturity
    
    
    
    
    
    
    (1,004
    )Sale/redemption of investment securities
    
    
    500
    
    
    
    500Proceeds from maturity of investment securities designated as held to maturity
    
    
    
    
    
    
    2,005Proceeds from repayment of mortgage-backed securities
    
    
    277
    
    
    
    103Loan principal repayments
    
    
    2,889
    
    
    
    6,032Loan disbursements
    
    
    (3,828
    )
    
    
    (6,881
    )Purchase of office equipment
    
    
    (11
    )
    
    
    (83
    )Additions to real estate acquired through foreclosure
    
    
    
    
    
    
    (13
    )Proceeds from sale of real estate acquired through foreclosure
    
    
    378
    
    
    
    155Net cash provided by investing activities
    
    
    205
    
    
    
    814
 See notes to consolidated financial statements.
  6




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Greenville Federal Financial Corporation
Consolidated Statements of Cash Flows (Continued)
For the six months ended December 31, 2009 and 2008
(In thousands)
(Unaudited)
 2009
    
    
    2008(net balance brought forward)
    
    $
    (91
    )
    
    $
    998Cash flows provided by financing activities:Net increase (decrease) in deposit accounts
    
    
    2,896
    
    
    
    (3,089
    )Proceeds from Federal Home Loan Bank advances
    
    
    5,000
    
    
    
    3,500Repayments of Federal Home Loan Bank advances
    
    
    (2,845
    )
    
    
    (2,210
    )Advances by borrowers for taxes and insurance
    
    
    53
    
    
    
    70Repurchase of common stock
    
    
    (1,304
    )
    
    
    Dividends on common stock
    
    
    (144
    )
    
    
    (143
    )Net cash used in financing activities
    
    
    3,656
    
    
    
    (1,872
    )Net increase (decrease) in cash and cash equivalents
    
    
    3,565
    
    
    
    (874
    )Cash and cash equivalents at beginning of period
    
    
    4,474
    
    
    
    7,220Cash and cash equivalents at end of period
    
    $
    8,039
    
    
    $
    6,346Supplemental disclosure of cash flow information:Cash paid during the period for:Interest on deposits and borrowings
    
    $
    1,088
    
    
    $
    1,376Federal income taxes
    
    $
    
    
    
    $
    92Supplemental disclosure of noncash investing activities:Transfers from loans to real estate acquired through foreclosure
    
    $
    150
    
    
    $
    210Unrealized gains on securities designated as available for sale, net of related tax effects
    
    $
    385
    
    
    $
    
 See notes to consolidated financial statements.
  7




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Greenville Federal Financial Corporation
 
 Notes to Consolidated Financial Statements
 For the six- and three-month periods ended December 31, 2009 and 2009
 Note 1: Basis of Presentation
    Note 2: Principles of Consolidation
  Note 3: Earnings Per Share
   8




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Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
   Note 4: Recent Accounting Developments
 Subsequent Events
 : Fair Value Measurements and Disclosures
 Financial Instruments
   9




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Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
 : Investments  Debt and Equity Securities
  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)2009Asset Management Fund
    
    $
    11,787,000
    
    
    
    
    
    
    $
    11,787,000
  Fair Value of Financial Instruments
   11




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Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
  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
  12




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Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
  December 31, 2009
    
    
    June 30, 2009Carrying
    
    
    Fair
    
    
    Carrying
    
    
    FairValue
    
    
    Value
    
    
    Value
    
    
    Value(In thousands)Financial AssetsCash and cash equivalents
    
    $
    8,039
    
    
    $
    8,039
    
    
    $
    4,474
    
    
    $
    4,474Investment securities available for sale
    
    
    11,787
    
    
    
    11,787
    
    
    
    11,888
    
    
    
    11,888Investment securities held to maturity
    
    
    5
    
    
    
    5
    
    
    
    11
    
    
    
    11Mortgage-backed securities
    
    
    1,546
    
    
    
    1,630
    
    
    
    1,822
    
    
    
    1,893Loans receivable
    
    
    92,476
    
    
    
    99,110
    
    
    
    91,663
    
    
    
    96,002Accrued interest receivable
    
    
    472
    
    
    
    472
    
    
    
    511
    
    
    
    511$
    114,325
    
    
    $
    121,043
    
    
    $
    110,369
    
    
    $
    114,779Financial LiabilitiesDeposits
    
    $
    75,814
    
    
    $
    76,788
    
    
    $
    72,918
    
    
    $
    73,859Advances from the Federal Home Loan Bank
    
    
    29,058
    
    
    
    28,424
    
    
    
    26,903
    
    
    
    26,192Advances by borrowers for taxes and insurance
    
    
    459
    
    
    
    459
    
    
    
    406
    
    
    
    406Accrued interest payable
    
    
    81
    
    
    
    81
    
    
    
    111
    
    
    
    111$
    105,412
    
    
    $
    105,752
    
    
    $
    100,338
    
    
    $
    100,568
 Note 7: Investment and Mortgage-backed Securities
  Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    Value(In thousands)December 31, 2009Available for Sale:Asset management fund
    
    $
    11,335
    
    
    $
    452
    
    
    $
    
    
    
    $
    11,787Held to Maturity:Municipal obligations
    
    $
    5
    
    
    $
    
    
    
    $
    
    
    
    $
    5June 30, 2009Available for Sale:Asset management fund
    
    $
    11,821
    
    
    $
    67
    
    
    $
    
    
    
    $
    11,888Held to Maturity:Municipal obligations
    
    $
    11
    
    
    $
    
    
    
    $
    
    
    
    $
    11
  13




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Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
  December 31, 2009
    
    
    June 30, 2009Estimated
    
    
    
    
    
    
    EstimatedAmortized
    
    
    Fair
    
    
    Amortized
    
    
    FairCost
    
    
    Value
    
    
    Cost
    
    
    ValueHeld to Maturity:Due within one year
    
    $
    5
    
    
    $
    5
    
    
    $
    11
    
    
    $
    11Total held to maturity
    
    $
    5
    
    
    $
    5
    
    
    $
    11
    
    
    $
    11
  Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    Value(In thousands)December 31, 2009Federal Home Loan Mortgage
Corporation participation
certificates
    
    $
    145
    
    
    $
    2
    
    
    $
    
    
    
    $
    147Federal National Mortgage
Association participation
certificates
    
    
    794
    
    
    
    50
    
    
    
    
    
    
    
    844Government National Mortgage
Association participation
certificates
    
    
    607
    
    
    
    32
    
    
    
    
    
    
    
    639Total mortgage-backed securities
    
    $
    1,546
    
    
    $
    84
    
    
    $
    
    
    
    $
    1,630June 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
  14




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Greenville Federal Financial Corporation
Notes to Consolidated Financial Statements
  December 31, 2009
    
    
    June 30, 2009Amortized
    
    
    Estimated
    
    
    Amortized
    
    
    EstimatedCost
    
    
    Fair Value
    
    
    Cost
    
    
    Fair ValueDue in one year or less
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Due after one year through five years
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    1Due after five years through ten years
    
    
    176
    
    
    
    178
    
    
    
    135
    
    
    
    135Due after ten years
    
    
    1,370
    
    
    
    1,452
    
    
    
    1,686
    
    
    
    1,757$
    1,546
    
    
    $
    1,630
    
    
    $
    1,822
    
    
    $
    1,893
    Note 8: Loans Receivable
  December 31,
    
    
    June 30,2009
    
    
    2009(In thousands)Residential real estateOne- to four-family
    
    $
    79,227
    
    
    $
    77,866Multi-family
    
    
    3,781
    
    
    
    3,825Construction
    
    
    1,326
    
    
    
    686Nonresidential real estate
    
    
    5,375
    
    
    
    5,793Commercial
    
    
    2,043
    
    
    
    2,270Consumer and other
    
    
    2,500
    
    
    
    2,710Total loans
    
    
    94,252
    
    
    
    93,150LessUnearned interest
    
    
    8
    
    
    
    10Deferred loan origination fees, net
    
    
    317
    
    
    
    338Allowance for loan losses
    
    
    680
    
    
    
    577Undisbursed portion of loans in process
    
    
    771
    
    
    
    562Net loans
    
    $
    92,476
    
    
    $
    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
  2009
    
    
    2008(In thousands)Balance, July 1
    
    $
    577
    
    
    $
    583Provision for loan losses
    
    
    152
    
    
    
    50Charge-offs of loans, net of recoveries
    
    
    (49
    )
    
    
    (75
    )Balance, end of year
    
    $
    680
    
    
    $
    558
    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 December 31, 2009
      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)December 31, 2009Tangible capital
    
    $
    10,538
    
    
    
    8.56
    %
    
    $
    1,846
    
    
    
    1.50
    %
    
    $
    6,154
    
    
    
    5.00
    %Core capital
    
    $
    10,538
    
    
    
    8.56
    %
    
    $
    4,923
    
    
    
    4.00
    %
    
    $
    7,385
    
    
    
    6.00
    %Risk-based capital
    
    $
    11,097
    
    
    
    13.44
    %
    
    $
    6,274
    
    
    
    8.00
    %
    
    $
    7,843
    
    
    
    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 December 31, 2009 and 2008
 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 Six-Month Periods Ended December 31, 2009 and 2008
 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 4T.
    
    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 of Shares (or
    
    
    Maximum Number (or ApproximateTotal Number of
    
    
    Average Price
    
    
    Units) Purchased as Part of
    
    
    Dollar Value) of Shares (or Units)Shares (or Units)
    
    
    Paid Per Share
    
    
    Publicly Announced Plans
    
    
    That May Be Purchased Under thePeriod
    
    Purchased(1)
    
    
    (or Unit)
    
    
    or Programs
    
    
    Plans or ProgramsNovember 2009
    
    
    200,510
    
    
    $
    6.50
    
    
    
    200,510
    
    
    
    
 (1)
    
    The shares were purchased pursuant to an issuer tender offer announced on July 8, 2009. The
Board of Directors announced an intention to repurchase up to 200,000 shares, subject to an
increase of up to an additional 2% of the outstanding common shares of the Corporation. The Board
of Directors later determined to repurchase 200,510 shares. The tender offer expired on November
16, 2009. 
 ITEM 3.
    
    Defaults Upon Senior Securities
  
 ITEM 4.
    
    Submission of Matters to a Vote of Security Holders
  For
    
    
    WithheldGeorge S. Luce, Jr.
    
    
    1,976,136
    
    
    
    85,165James W. Ward
    
    
    1,976,796
    
    
    
    87,505David R. Wolverton
    
    
    1,971,636
    
    
    
    89,665
  25




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##### Table of Contents



Greenville Federal Financial Corporation
PART II  OTHER INFORMATION (CONTINUED)
  For
    
    
    WithheldJeff D. Kniese
    
    
    1,973,471
    
    
    
    87,830
 Crowe Horwath, LLP
 BrokerFor
    
    Against
    
    
    Abstain
    
    
    non-vote2,051,186
    
    
    25
    
    
    
    5,552
    
    
    
    4,540
 
 ITEM 5.
    
    Other Information
  
 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:  February 12, 2010
    By:
    /s/ Jeff D. KnieseJeff D. KniesePresident and Chief Executive OfficerDate:  February 12, 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
  28