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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-QSB
  þ
    
    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2006
 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
  o þ
  o þ




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PagePART I
    
    
    
    FINANCIAL INFORMATIONITEM 1
    
    Financial StatementsConsolidated Statements of Financial Condition
    
    
    3Consolidated Statements of Earnings
    
    
    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
    
    
    12ITEM 3
    
    Controls and Procedures
    
    
    15PART II
    
    
    
    OTHER INFORMATION
    
    
    16ITEM 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
    
    
    
    
    17EX-31.1EX-31.2EX-32.1EX-32.2
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ITEM 1. FINANCIAL STATEMENTS
 GREENVILLE FEDERAL FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
  September 30,
    
    
    June 30,2006
    
    
    2006(Unaudited)ASSETSCash and due from banks
    
    $
    2,260
    
    
    $
    2,225Interest-bearing deposits in other financial institutions
    
    
    956
    
    
    
    1,029Cash and cash equivalents
    
    
    3,216
    
    
    
    3,254Investment securities designated as available for sale  at market
    
    
    16,472
    
    
    
    16,204Investment securities designated as held to maturity  at
amortized cost, approximate market value of $15,762
and $16,596 at September 30, 2006 and June 30, 2006, respectively
    
    
    16,038
    
    
    
    17,041Mortgage-backed securities designated as held to maturity 
at amortized cost, approximate market value of $2,100 and
$2,164 at September 30, 2006 and June 30, 2006, respectively
    
    
    2,081
    
    
    
    2,172Loans receivable  net
    
    
    85,330
    
    
    
    83,452Office premises and equipment  at depreciated cost
    
    
    2,075
    
    
    
    2,069Real estate acquired through foreclosure
    
    
    499
    
    
    
    Stock in Federal Home Loan Bank  at cost
    
    
    1,896
    
    
    
    1,869Cash surrender value of life insurance
    
    
    3,740
    
    
    
    3,705Accrued interest receivable on loans
    
    
    431
    
    
    
    418Accrued interest receivable on mortgage-backed securities
    
    
    10
    
    
    
    11Accrued interest receivable on investment securities and other
    
    
    159
    
    
    
    146Prepaid expenses and other assets
    
    
    301
    
    
    
    367Total assets
    
    $
    132,248
    
    
    $
    130,708LIABILITIES AND STOCKHOLDERS EQUITYDeposits
    
    $
    79,290
    
    
    $
    78,782Advances from the Federal Home Loan Bank
    
    
    29,012
    
    
    
    28,177Advances by borrowers for taxes and insurance
    
    
    269
    
    
    
    355Accrued interest payable
    
    
    296
    
    
    
    271Other liabilities
    
    
    508
    
    
    
    440Accrued federal income taxes
    
    
    127
    
    
    
    60Deferred federal income taxes
    
    
    51
    
    
    
    41Total liabilities
    
    
    109,553
    
    
    
    108,126Commitments 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
    
    
    9,400
    
    
    
    9,400Retained earnings  restricted
    
    
    14,353
    
    
    
    14,285Shares acquired by Employee Stock Ownership Plan
    
    
    (811
    )
    
    
    (811
    )Accumulated comprehensive loss  unrealized losses on securities
designated as available for sale, net of related tax benefits
    
    
    (270
    )
    
    
    (315
    )Total stockholders equity
    
    
    22,695
    
    
    
    22,582Total liabilities and stockholders equity
    
    $
    132,248
    
    
    $
    130,708
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GREENVILLE FEDERAL FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF EARNINGS
 
 2006
    
    
    2005Interest incomeLoans
    
    $
    1,418
    
    
    $
    1,310Mortgage-backed securities
    
    
    28
    
    
    
    18Investment securities
    
    
    342
    
    
    
    293Interest-bearing deposits and other
    
    
    51
    
    
    
    38Total interest income
    
    
    1,839
    
    
    
    1,659Interest expenseDeposits
    
    
    548
    
    
    
    418Borrowings
    
    
    340
    
    
    
    368Total interest expense
    
    
    888
    
    
    
    786Net interest income
    
    
    951
    
    
    
    873Provision for losses on loans
    
    
    2
    
    
    
    8Net interest income after provision for
losses on loans
    
    
    949
    
    
    
    865Other incomeCustomer service charges
    
    
    131
    
    
    
    136Gain on redemption of investment security
    
    
    
    
    
    
    16Other operating
    
    
    60
    
    
    
    54Total other income
    
    
    191
    
    
    
    206General, administrative and other expenseEmployee compensation and benefits
    
    
    496
    
    
    
    477Occupancy and equipment
    
    
    102
    
    
    
    115Franchise taxes
    
    
    57
    
    
    
    45Data processing
    
    
    110
    
    
    
    98Advertising
    
    
    20
    
    
    
    17Other operating
    
    
    160
    
    
    
    108Total general, administrative and other expense
    
    
    945
    
    
    
    860Earnings before income taxes
    
    
    195
    
    
    
    211Federal income taxesCurrent
    
    
    67
    
    
    
    93Deferred
    
    
    (13
    )
    
    
    (36
    )Total federal income taxes
    
    
    54
    
    
    
    57NET EARNINGS
    
    $
    141
    
    
    $
    154Earnings per share  basic and diluted
    
    $
    0.06
    
    
    
    N/ADividends declared per share
    
    $
    0.07
    
    
    
    N/A
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GREENVILLE FEDERAL FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
 2006
    
    
    2005Net earnings
    
    $
    141
    
    
    $
    154Other comprehensive income, net of related tax effects:Unrealized holding gains (losses) on securities during the period,
net of taxes (benefits) of $23 and $(22) for the periods ended
September 30, 2006 and 2005, respectively
    
    
    45
    
    
    
    (42
    )Comprehensive income
    
    $
    186
    
    
    $
    112Accumulated comprehensive loss
    
    $
    (270
    )
    
    $
    (249
    )
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GREENVILLE FEDERAL FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 2006
    
    
    2005Cash flows from operating activities:Net earnings for the period
    
    $
    141
    
    
    $
    154Adjustments to reconcile net earnings to net cash
provided by operating activities:Accretion and amortization of premiums and discounts on
investment and mortgage-backed securities  net
    
    
    
    
    
    
    1Amortization of deferred loan origination fees
    
    
    (24
    )
    
    
    (15
    )Depreciation and amortization
    
    
    40
    
    
    
    53Amortization of mortgage servicing rights
    
    
    8
    
    
    
    9Provision for losses on loans
    
    
    2
    
    
    
    8Federal Home Loan Bank stock dividends
    
    
    (27
    )
    
    
    (22
    )Increase in cash surrender value of life insurance
    
    
    (35
    )
    
    
    (33
    )Increase (decrease) in cash due to changes in:Accrued interest receivable on loans
    
    
    (13
    )
    
    
    8Accrued interest receivable on mortgage-backed securities
    
    
    1
    
    
    
    1Accrued interest receivable on investment securities and other
    
    
    (13
    )
    
    
    (17
    )Prepaid expenses and other assets
    
    
    58
    
    
    
    (33
    )Accrued interest payable
    
    
    25
    
    
    
    25Other liabilities
    
    
    69
    
    
    
    (113
    )Federal income taxesCurrent
    
    
    67
    
    
    
    93Deferred
    
    
    (13
    )
    
    
    (36
    )Net cash provided by operating activities
    
    
    286
    
    
    
    83Cash flows used in investing activities:Purchases of investment securities designated as available for sale
    
    
    (201
    )
    
    
    (144
    )Proceeds from maturity of investment securities designated
as held to maturity
    
    
    1,003
    
    
    
    2Proceeds from repayment of mortgage-backed securities
    
    
    91
    
    
    
    179Loan principal repayments
    
    
    2,983
    
    
    
    6,165Loan disbursements
    
    
    (5,338
    )
    
    
    (7,875
    )Purchase of office premises and equipment
    
    
    (46
    )
    
    
    (17
    )Net cash used in investing activities
    
    
    (1,508
    )
    
    
    (1,690
    )Cash flows provided by financing activities:Net increase in deposit accounts
    
    
    508
    
    
    
    2,433Proceeds from Federal Home Loan Bank advances
    
    
    8,500
    
    
    
    6,500Repayment of Federal Home Loan Bank advances
    
    
    (7,665
    )
    
    
    (6,550
    )Advances by borrowers for taxes and insurance
    
    
    (86
    )
    
    
    (81
    )Dividends paid on common stock
    
    
    (73
    )
    
    
    Net cash provided by financing activities
    
    
    1,184
    
    
    
    2,302Net increase (decrease) in cash and cash equivalents
    
    
    (38
    )
    
    
    695Cash and cash equivalents at beginning of period
    
    
    3,254
    
    
    
    3,716Cash and cash equivalents at end of period
    
    $
    3,216
    
    
    $
    4,411
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GREENVILLE FEDERAL FINANCIAL CORPORATION
 CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
 
 2006
    
    
    2005Supplemental disclosure of cash flow information:Cash paid during the period for:Interest on deposits and borrowings
    
    $
    863
    
    
    $
    811Supplemental disclosure of noncash investing activities:Transfers from loans to real estate acquired through foreclosure
    
    $
    499
    
    
    $
    Loans originated upon sale of real estate acquired through
foreclosure
    
    $
    
    
    
    $
    83Unrealized gains (losses) on securities designated as available for
sale, net of related tax effects
    
    $
    45
    
    
    $
    (42
    )
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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)
  Recent Accounting Developments
     9




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GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  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;
    
    Initially measure all separately recognized servicing assets and liabilities
at fair value, if practicable; and
    
    Separately present servicing assets and liabilities subsequently measured at
fair value in the statement of financial position and additional disclosures
for all separately recognized servicing assets and servicing liabilities.
     10




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GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  Recent Accounting Developments
     11




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GREENVILLE FEDERAL FINANCIAL CORPORATION
 
 ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OR PLANOF OPERATIONS
 Forward Looking Statements
  Critical Accounting Policies
  Discussion of Financial Condition Changes from June 30, 2006 to September 30, 2006
     12




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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, 2006 to September 30, 2006
      Comparison of Operating Results for the Three-Month Periods Ended September 30, 2006 and
2005
 General
  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, 2006 and 2005
 Net Interest Income
    Provision for Losses on Loans
  Other Income
  14




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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, 2006 and 2005
 General, Administrative and Other Expense
  Federal Income Taxes
  
 Controls and Procedures
   15




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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 10, 2006
    By:
    /s/ David M. KeplerDavid M. KeplerPresident and Chief Executive OfficerDate: November 10, 2006
    By:
    /s/ Susan J. AllreadSusan J. AllreadChief Financial Officer 17




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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, 2005)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, 2005)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