##### Table of Contents



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 March 31, 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)
 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
    
    
    15ITEM 3
    
    Controls and Procedures
    
    
    20PART II
    
    
    
    OTHER INFORMATION
    
    
    21ITEM 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
    
    
    23EX-31.1EX-31.2EX-32.1EX-32.2
  2




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##### Table of Contents



ITEM 1. FINANCIAL STATEMENTS
 GREENVILLE FEDERAL FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
  March 31,
    
    
    June 30,2007
    
    
    2006(Unaudited)ASSETSCash and due from banks
    
    $
    2,248
    
    
    $
    2,225Interest-bearing deposits in other financial institutions
    
    
    1,129
    
    
    
    1,029Cash and cash equivalents
    
    
    3,377
    
    
    
    3,254Investment securities designated as available for sale  at market
    
    
    16,879
    
    
    
    16,204Investment securities designated as held to maturity  at
amortized cost, approximate market value of $11,866
and $16,596 at March 31, 2007 and June 30, 2006, respectively
    
    
    12,034
    
    
    
    17,041Mortgage-backed
securities designated as held to maturity 
at amortized cost, approximate market value of $1,849 and
$2,164 at March 31, 2007 and June 30, 2006, respectively
    
    
    1,825
    
    
    
    2,172Loans receivable  net
    
    
    85,509
    
    
    
    83,452Office premises and equipment  at depreciated cost
    
    
    2,023
    
    
    
    2,069Real estate acquired through foreclosure
    
    
    312
    
    
    
    Stock in Federal Home Loan Bank  at cost
    
    
    1,925
    
    
    
    1,869Cash surrender value of life insurance
    
    
    3,812
    
    
    
    3,705Accrued interest receivable on loans
    
    
    415
    
    
    
    418Accrued interest receivable on mortgage-backed securities
    
    
    9
    
    
    
    11Accrued interest receivable on investment securities and other
    
    
    161
    
    
    
    146Prepaid expenses and other assets
    
    
    560
    
    
    
    367Prepaid federal income taxes
    
    
    170
    
    
    
    Total assets
    
    $
    129,011
    
    
    $
    130,708LIABILITIES AND STOCKHOLDERS EQUITYDeposits
    
    $
    79,693
    
    
    $
    78,782Advances from the Federal Home Loan Bank
    
    
    25,351
    
    
    
    28,177Advances by borrowers for taxes and insurance
    
    
    291
    
    
    
    355Accrued interest payable
    
    
    262
    
    
    
    271Other liabilities
    
    
    522
    
    
    
    440Accrued federal income taxes
    
    
    
    
    
    
    60Deferred federal income taxes
    
    
    151
    
    
    
    41Total liabilities
    
    
    106,270
    
    
    
    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
    
    
    23
    
    
    
    23Additional paid-in capital
    
    
    9,400
    
    
    
    9,400Retained earnings  restricted
    
    
    14,503
    
    
    
    14,285Shares acquired by Employee Stock Ownership Plan
    
    
    (811
    )
    
    
    (811
    )Shares acquired by 2006 Equity Plan
    
    
    (93
    )
    
    
    Accumulated comprehensive loss  unrealized losses on securities
designated as available for sale, net of related tax benefits
    
    
    (281
    )
    
    
    (315
    )Total stockholders equity
    
    
    22,741
    
    
    
    22,582Total liabilities and stockholders equity
    
    $
    129,011
    
    
    $
    130,708
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GREENVILLE FEDERAL FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF EARNINGS
 
 For the three months
    
    
    For the nine monthsended March 31,
    
    
    ended March 31,2007
    
    
    2006
    
    
    2007
    
    
    2006Interest incomeLoans
    
    $
    1,460
    
    
    $
    1,358
    
    
    $
    4,336
    
    
    $
    4,018Mortgage-backed securities
    
    
    26
    
    
    
    15
    
    
    
    81
    
    
    
    50Investment securities
    
    
    327
    
    
    
    310
    
    
    
    1,017
    
    
    
    907Interest-bearing deposits and other
    
    
    49
    
    
    
    96
    
    
    
    150
    
    
    
    192Total interest income
    
    
    1,862
    
    
    
    1,779
    
    
    
    5,584
    
    
    
    5,167Interest expenseDeposits
    
    
    569
    
    
    
    480
    
    
    
    1,672
    
    
    
    1,355Borrowings
    
    
    315
    
    
    
    344
    
    
    
    1,013
    
    
    
    1,080Total interest expense
    
    
    884
    
    
    
    824
    
    
    
    2,685
    
    
    
    2,435Net interest income
    
    
    978
    
    
    
    955
    
    
    
    2,899
    
    
    
    2,732Provision for losses on loans
    
    
    3
    
    
    
    6
    
    
    
    13
    
    
    
    23Net interest income after provision for
losses on loans
    
    
    975
    
    
    
    949
    
    
    
    2,886
    
    
    
    2,709Other incomeCustomer service charges
    
    
    130
    
    
    
    116
    
    
    
    408
    
    
    
    390Gain on sale of real estate acquired through foreclosure
    
    
    
    
    
    
    2
    
    
    
    
    
    
    
    11Gain on redemption of investment security
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    16Other operating
    
    
    60
    
    
    
    61
    
    
    
    179
    
    
    
    175Total other income
    
    
    190
    
    
    
    179
    
    
    
    587
    
    
    
    592General, administrative and other expenseEmployee compensation and benefits
    
    
    525
    
    
    
    546
    
    
    
    1,539
    
    
    
    1,528Occupancy and equipment
    
    
    96
    
    
    
    97
    
    
    
    295
    
    
    
    328Franchise taxes
    
    
    58
    
    
    
    44
    
    
    
    153
    
    
    
    134Data processing
    
    
    120
    
    
    
    106
    
    
    
    339
    
    
    
    305Advertising
    
    
    12
    
    
    
    19
    
    
    
    52
    
    
    
    56Other operating
    
    
    150
    
    
    
    148
    
    
    
    490
    
    
    
    385Total general, administrative and other expense
    
    
    961
    
    
    
    960
    
    
    
    2,868
    
    
    
    2,736Earnings before income taxes
    
    
    204
    
    
    
    168
    
    
    
    605
    
    
    
    565Federal income taxesCurrent
    
    
    (40
    )
    
    
    (5
    )
    
    
    78
    
    
    
    155Deferred
    
    
    98
    
    
    
    54
    
    
    
    92
    
    
    
    1Total federal income taxes
    
    
    58
    
    
    
    49
    
    
    
    170
    
    
    
    156NET EARNINGS
    
    $
    146
    
    
    $
    119
    
    
    $
    435
    
    
    $
    409Earnings per
share  basic
    
    $
    0.07
    
    
    $
    0.05
    
    
    $
    0.20
    
    
    $
    0.26Dividends declared per share
    
    $
    0.07
    
    
    
    N/A
    
    
    $
    0.21
    
    
    
    N/A
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GREENVILLE FEDERAL FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
 For the three months
    
    
    For the nine monthsended March 31,
    
    
    ended March 31,2007
    
    
    2006
    
    
    2007
    
    
    2006Net earnings
    
    $
    146
    
    
    $
    119
    
    
    $
    435
    
    
    $
    409Other comprehensive income (losses), net of related tax effects:Unrealized holding gains (losses) on securities during the period,
net of taxes (benefits) of $6, $(11), $18 and $(44)
for the respective periods
    
    
    12
    
    
    
    (22
    )
    
    
    34
    
    
    
    (86
    )Comprehensive income
    
    $
    158
    
    
    $
    97
    
    
    $
    469
    
    
    $
    323Accumulated comprehensive loss
    
    $
    (281
    )
    
    $
    (293
    )
    
    $
    (281
    )
    
    $
    (293
    )
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GREENVILLE FEDERAL FINANCIAL CORPORATION
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 2007
    
    
    2006Cash flows from operating activities:Net earnings for the period
    
    $
    435
    
    
    $
    409Adjustments to reconcile net earnings to net cash
provided by (used in) operating activities:Amortization of deferred loan origination fees
    
    
    (38
    )
    
    
    (39
    )Depreciation and amortization
    
    
    110
    
    
    
    102Amortization of mortgage servicing assets
    
    
    28
    
    
    
    18Provision for losses on loans
    
    
    13
    
    
    
    23Gain on sale of real estate acquired through foreclosure
    
    
    
    
    
    
    (11
    )Federal Home Loan Bank stock dividends
    
    
    (56
    )
    
    
    (74
    )Increase in cash surrender value of life insurance
    
    
    (107
    )
    
    
    (100
    )Increase (decrease) in cash due to changes in:Accrued interest receivable on loans
    
    
    3
    
    
    
    (6
    )Accrued interest receivable on mortgage-backed securities
    
    
    2
    
    
    
    2Accrued interest receivable on investment securities and other
    
    
    (15
    )
    
    
    (19
    )Prepaid expenses and other assets
    
    
    (221
    )
    
    
    54Accrued interest payable
    
    
    (9
    )
    
    
    24Other liabilities
    
    
    83
    
    
    
    (2
    )Federal income taxesCurrent
    
    
    (230
    )
    
    
    (21
    )Deferred
    
    
    92
    
    
    
    1Net cash provided by operating activities
    
    
    90
    
    
    
    361Cash flows provided by (used in) investing activities:Purchases of investment securities designated as available for sale
    
    
    (624
    )
    
    
    (468
    )Proceeds from maturity of investment securities designated
as held to maturity
    
    
    5,007
    
    
    
    1,007Proceeds from repayment of mortgage-backed securities
    
    
    347
    
    
    
    437Loan principal repayments
    
    
    11,608
    
    
    
    14,962Loan disbursements
    
    
    (14,451
    )
    
    
    (18,338
    )Purchase of office equipment
    
    
    (64
    )
    
    
    (20
    )Proceeds from sale of real estate acquired through foreclosure
    
    
    499
    
    
    
    21Additions to real estate acquired through foreclosure
    
    
    
    
    
    
    (3
    )Net cash provided by (used in) investing activities
    
    
    2,322
    
    
    
    (2,402
    )Cash flows provided by (used in) financing activities:Net increase in deposit accounts
    
    
    911
    
    
    
    1,229Proceeds from Federal Home Loan Bank advances
    
    
    30,115
    
    
    
    9,500Repayment of Federal Home Loan Bank advances
    
    
    (32,941
    )
    
    
    (12,826
    )Advances by borrowers for taxes and insurance
    
    
    (64
    )
    
    
    (70
    )Proceeds from issuance of common stock
    
    
    
    
    
    
    8,472Shares acquired by 2006 equity plan
    
    
    (93
    )
    
    
    Dividends on common stock
    
    
    (217
    )
    
    
    Net cash provided by (used in) financing activities
    
    
    (2,289
    )
    
    
    6,305Net increase in cash and cash equivalents
    
    
    123
    
    
    
    4,264Cash and cash equivalents at beginning of period
    
    
    3,254
    
    
    
    3,716Cash and cash equivalents at end of period
    
    $
    3,377
    
    
    $
    7,980
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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
    
    $
    2,694
    
    
    $
    2,411Federal income taxes
    
    $
    308
    
    
    $
    175Supplemental disclosure of noncash investing activities:Transfers from loans to real estate acquired through foreclosure
    
    $
    811
    
    
    $
    54Loans originated upon sale of real estate acquired through
foreclosure
    
    $
    
    
    
    $
    83Unrealized gains (losses) on securities designated as available for
sale, net of related tax effects
    
    $
    34
    
    
    $
    (86
    )
 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
      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
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  Recent Accounting Developments
        12




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GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  Recent Accounting Developments
       13




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GREENVILLE FEDERAL FINANCIAL CORPORATION
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
  Recent Accounting Developments
     14




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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 March 31, 2007
    15




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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 March 31, 2007
      16




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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 March 31, 2007 and 2006
 General
  Net Interest Income
    Provision for Losses on Loans
  17




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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 March 31, 2007 and 2006
 Other Income
  General, Administrative and Other Expense
  Federal Income Taxes
  Comparison of Operating Results for the Nine-Month Periods Ended March 31, 2007 and 2006
 General
  Net Interest Income
  18




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GREENVILLE FEDERAL FINANCIAL CORPORATION
 MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN
OF OPERATIONS (CONTINUED)
 Comparison of Operating Results for the Nine-Month Periods Ended March 31, 2007 and 2006
 Net Interest Income
   Provision for Losses on Loans
  Other Income
  General, Administrative and Other Expense
  19




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GREENVILLE FEDERAL FINANCIAL CORPORATION
 MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN
OF OPERATIONS (CONTINUED)
 Comparison of Operating Results for the Nine-Month Periods Ended March 31, 2007 and 2006
 Federal Income Taxes
  
 Controls and Procedures
   20




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Greenville Federal Financial Corporation
 
  
 Legal Proceedings
  
 Unregistered Sales of Equity Securities and Use of Proceeds
    Issuer Purchases of Equity SecuritiesTotal Number of
    
    
    Maximum Number ofShares Purchased as
    
    
    Shares that May YetPart of Publicly
    
    
    Be Purchased UnderTotal Number of
    
    
    Average Price Paid
    
    
    Announced Plans or
    
    
    the Plans orPeriod
    
    Shares Purchased
    
    
    per Share
    
    
    Programs
    
    
    Programs1/1 to 1/31/2007
    
    
    
    
    
    $
    
    
    
    
    
    
    
    
    2/1 to 2/28/2007
    
    
    8,803
    
    
    
    10.52
    
    
    
    8,803
    
    
    
    36,2453/1 to 3/31/2007
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    8,803
    
    
    $
    10.52
    
    
    
    8,803
    
    
    
    36,245
 
 (1)
    
    On October 31, 2006, stockholders of the Corporation approved the Greenville Federal
Financial Corporation 2006 Equity Plan. As permitted by the 2006 Equity Plan, the
Greenville Federal Financial Corporation 2006 Equity Plan Trust may purchase up to 45,048
shares of Corporation common stock either on the open market, in privately negotiated
transactions or from the Corporation for retention shares to be awarded pursuant to the
Equity Plan. 
 Defaults Upon Senior Securities
  
 Submission of Matters to a Vote of Security Holders
  
 Other Information
  21




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Greenville Federal Financial Corporation
  
 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:
May 11, 2007
    
    By:
    
    /s/ David M. Kepler

David M. KeplerPresident and Chief Executive OfficerDate:
May 11, 2007
    
    By:
    
    /s/ Susan J. Allread

Susan J. AllreadChief Financial Officer
 23




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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