UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB


            [|X|] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended December 31, 2001
                                               -----------------

                                       OR

            [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                            THE EXCHANGE ACT OF 1934

            For the transition period from           to
                                           ---------    ---------

                         Commission file number: 0-25854


                               GFSB BANCORP, INC.
                 ----------------------------------------------
                 (Name of Small Business Issuer in its Charter)


Delaware
--------------------------------------------
(State or Other Jurisdiction of Incorporation or Organization)
                                                                 04-2095007
                                                                ------------
                                                              (I.R.S. Employer
                                                             Identification No.)
221 West Aztec Avenue, Gallup, New Mexico
-----------------------------------------
(Address of Principal Executive Offices)
                                                                     87301
                                                                   ----------
                                                                   (Zip Code)

Issuer's Telephone Number, Including Area Code:      (505) 722-4361
                                                   ------------------

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days.
                       Yes   |X|      No
                            -----         -----


As of February 5, 2002,  there were issued and outstanding  1,150,106  shares of
the registrant's Common Stock.

<PAGE>
                               GFSB Bancorp, Inc.


                                      Index
<TABLE>
<CAPTION>
                                                                                             Page No.
                                                                                             --------
<S>                                                                                          <C>


                          PART I. FINANCIAL INFORMATION

Item 1.      Condensed Consolidated Financial Statements:

             Condensed Consolidated Statements of Financial Condition
                 December 31, 2001 and June 30, 2001                                             3

             Condensed Consolidated Statements of Earnings and Comprehensive Earnings
                 Three months and six months ended December 31, 2001 and 2000                    4

             Condensed Consolidated Statements of Cash Flows
                 Six months ended December 31, 2001 and 2000                                     6

             Notes to Condensed Consolidated Financial Statements                                8

Item 2.      Management's Discussion and Analysis or Plan of Operation                           9

                           PART II. OTHER INFORMATION

Item 4.      Submission of Matters to a Vote of Security Holders                                16

Item 6.      Exhibits and Reports on Form 8-K                                                   16

             Signatures                                                                         18
</TABLE>

                                        2

<PAGE>
                               GFSB Bancorp, Inc.

            CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

<TABLE>
<CAPTION>
                                                         December 31,       June 30,
                                                              2001             2001
                                                         -------------    -------------
                                                          (Unaudited)
<S>                                                    <C>              <C>
                                     ASSETS
Cash and due from banks                                  $   3,449,129    $   3,216,000
Interest-bearing deposits with banks                           374,789        1,046,254
Available-for-sale investment securities                    23,500,367       21,804,107
Available-for-sale mortgage-backed securities               32,030,440       32,376,812
Held-to-maturity investment securities                       1,943,046        1,945,720
Stock of Federal Home Loan Bank, at cost, restricted         3,759,500        3,649,000
Loans receivable, net, substantially pledged               130,917,364      130,430,937
Accrued interest and dividends receivable                    1,117,296        1,185,400
Premises and equipment                                       2,217,529        1,323,770
Other real estate and repossessed property                      74,245            7,950
Prepaid and other assets                                        71,674           66,674
Deferred tax asset                                              98,006           98,006
                                                         -------------    -------------
         TOTAL ASSETS                                    $ 199,553,385      197,150,630
                                                         =============    =============

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Transaction and NOW accounts                             $  16,268,253    $  15,462,712
Savings and MMDA deposits                                   14,258,459       14,521,879
Time deposits                                               78,931,700       76,675,576
Advances from Federal Home Loan Bank                        71,332,839       72,105,997
Repurchase agreements                                        1,049,495        1,324,335
Accrued interest payable                                       438,105          473,446
Advances from borrowers for taxes and insurance                443,394          440,048
Accounts payable and accrued liabilities                       291,771          219,855
Deferred income taxes                                          671,577          653,197
Dividends declared and payable                                 109,392           98,453
Income taxes payable                                             1,168          195,854
                                                         -------------    -------------
         TOTAL LIABILITIES                                 183,796,153      182,171,352
                                                         -------------    -------------

COMMITMENTS AND CONTINGENCIES                                        -                -

STOCKHOLDERS' EQUITY
Preferred stock, $.10 par value, 500,000
  shares authorized;  no shares issued or
  outstanding                                                        -                -
Common stock, $.10 par value, 1,500,000
  shares authorized;  1,150,106 issued and outstanding
  at June 30,2001 and December 31, 2001                        115,011          115,011
Additional paid-in-capital                                   2,681,578        2,630,860
Unearned ESOP stock                                           (241,313)        (272,480)
Retained earnings, substantially
  restricted                                                11,898,307       11,237,917
Accumulated other comprehensive
earnings                                                     1,303,649        1,267,970
                                                         -------------    -------------

         TOTAL STOCKHOLDERS' EQUITY                         15,757,232       14,979,278
                                                         -------------    -------------

         TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $ 199,553,385    $ 197,150,630
                                                         =============    =============
</TABLE>

See notes to consolidated financial statements.

                                        3
<PAGE>

                                                GFSB Bancorp, Inc.

                                   CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                                             AND COMPREHENSIVE EARNINGS
<TABLE>
<CAPTION>
                                                                       Three months ended          Six months ended
                                                                            December 31,             December 31,
                                                                      -----------------------   -----------------------
                                                                         2001         2000         2001         2000
                                                                      ----------   ----------   ----------   ----------
                                                                       (Unaudited) (Unaudited) (Unaudited)  (Unaudited)
<S>                                                                 <C>          <C>          <C>           <C>
Interest income
                Loans receivable
                                        Mortgage loans                $2,176,818   $2,194,347   $4,320,978    4,262,227
                                        Commercial loans                 323,645      287,353      676,911      482,317
                                        Share and consumer loans         121,821      163,627      247,655      310,245
                Investment and mortgage-backed securities                790,043      934,489    1,583,413    1,869,192
                Other interest-earning assets                             34,396       85,623       79,397      170,313
                                                                      ----------   ----------   ----------   ----------
                                        TOTAL INTEREST EARNINGS        3,446,723    3,665,439    6,908,354    7,094,294
Interest expense
                Deposits                                               1,145,021      930,330    2,358,507    1,800,817
                Advances from Federal Home Loan Bank                     834,058    1,402,591    1,711,968    2,771,458
                Repurchase agreements                                      2,733       24,213       11,235       42,624
                                                                      ----------   ----------   ----------   ----------
                                        TOTAL INTEREST EXPENSE         1,981,812    2,357,134    4,081,710    4,614,899
                                                                      ----------   ----------   ----------   ----------
                                        NET INTEREST EARNINGS          1,464,911    1,308,305    2,826,644    2,479,395

Provision for loan losses                                                      -       80,000       50,007      150,000
                                                                      ----------   ----------   ----------   ----------
                                        NET INTEREST EARNINGS AFTER
                                          PROVISION FOR LOAN LOSSES    1,464,911    1,228,305    2,776,637    2,329,395
                                                                      ----------   ----------   ----------   ----------
Non-interest earnings
                Income from real estate operations                           900            -          900            -
                Miscellaneous income                                      10,123       35,916       22,710       47,128
                Net gains/(losses) from sales of AFS securities           10,000            -       10,000         (336)
                Net gains from sales of loans                              6,720        2,981       16,845       17,732
                Service charge income                                     71,735       79,061      141,741      150,171
                                                                      ----------   ----------   ----------   ----------
                                        TOTAL NON-INTEREST EARNINGS       99,478      117,958      192,196      214,695
                                                                      ----------   ----------   ----------   ----------

Non-interest expense
                Compensation and benefits                                470,874      444,379      890,379      832,509
                FDIC Insurance                                             4,847        3,972        9,607        8,174
                Insurance                                                  8,790        8,013       17,577       16,404
                Stock services                                            13,361        5,942       15,974        8,233
                Occupancy                                                 98,445       83,195      200,157      174,140
                Data processing                                           56,564       50,431      148,981      102,187
                Professional fees                                         20,473       34,064       67,354       51,891
                Advertising                                               19,528       22,896       40,361       41,218
                Stationary, printing and office supplies                  25,236       21,082       54,581       35,209
                ATM expense                                               10,382       10,301       22,679       21,631
                Supervisory exam fees                                     12,684       10,976       28,242       21,952
                Postage                                                   11,881       10,168       28,459       18,799
                Other                                                     56,667       71,161      125,258      133,190
                                                                      ----------   ----------   ----------   ----------
                                        TOTAL NON-INTEREST EXPENSE       809,732      776,580    1,649,609    1,465,537
                                                                      ----------   ----------   ----------   ----------
</TABLE>

                                                                        4
<PAGE>
                                                 GFSB Bancorp, Inc.

                                   CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                                      AND COMPREHENSIVE EARNINGS - CONTINUED
<TABLE>
<CAPTION>
                                                                          Three months ended          Six months ended
                                                                             December 31,               December 31,
                                                                       -------------------------- -----------------------
                                                                           2001          2000          2001      2000
                                                                       -------------------------- -----------------------
                                                                        (Unaudited)   (Unaudited) (Unaudited) (Unaudited)

<S>                                                                   <C>           <C>          <C>         <C>
                                        EARNINGS BEFORE INCOME TAXES       754,657       569,683   1,319,224   1,078,553

Income tax expense
                Currently payable                                          266,626       186,977     440,314     346,820
                Deferred provision                                               -             -           -           -
                                                                       -----------   -----------   ---------   ---------
                                                                           266,626       186,977     440,314     346,820
                                                                       -----------   -----------   ---------   ---------
                                        NET EARNINGS                   $   488,031   $   382,706     878,910     731,733
                                                                       ===========   ===========   =========   =========

Other Comprehensive Earnings
                Unrealized gain (loss), net of tax                        (114,145)      579,789      35,679     957,828
                                                                       -----------   -----------   ---------   ---------
                                        COMPREHENSIVE EARNINGS             373,886       962,495     914,589   1,689,561
                                                                       ===========   ===========   =========   =========
Earnings per common share
                Basic                                                  $      0.44          0.35        0.80        0.66
                                                                       ===========   ===========   =========   =========
Weighted average number of common shares outstanding
                Basic                                                    1,103,364     1,105,117   1,101,938   1,107,086
                                                                       ===========   ===========   =========   =========
Earnings per common share
                Diluted                                                       0.43          0.34        0.77        0.65
                                                                       ===========   ===========   =========   =========
Weighted average number of common shares outstanding
                Diluted                                                  1,143,436     1,128,680   1,140,767   1,130,650
                                                                       ===========   ===========   =========   =========
Comprehensive earnings per common share
                Basic                                                         0.34          0.87        0.83        1.53
                                                                       ===========   ===========   =========   =========
                Diluted                                                       0.33          0.85        0.80        1.49
                                                                       ===========   ===========   =========   =========
Dividends per share                                                           0.10          0.08        0.09        0.08
                                                                       ===========   ===========   =========   =========

</TABLE>

                                       5
<PAGE>
                               GFSB Bancorp, Inc.

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                Increase (decrease) in cash and cash equivalents

<TABLE>
<CAPTION>
                                                                                   Six months ended
                                                                                     December 31,
                                                                             ---------------------------
                                                                                 2001           2000
                                                                             ------------- -------------
                                                                                (Unaudited)   (Unaudited)
<S>                                                                        <C>            <C>
Cash flows from operating activities
                 Net earnings                                                $   878,910    $   731,733
                 Adjustments to reconcile net earnings to
                   net cash provided by operations
                                 Deferred loan origination fees                 (215,510)      (120,548)
                                 Gain on sale of loans and securities            (26,846)       (17,396)
                                 Provision for loan losses                        50,007        150,000
                                 Depreciation of premises and equipment          104,891         89,083
                                 Amortization of investment and mortgage-
                                   backed securities premiums                     96,793         35,544
                                 Stock dividends on FHLB stock                   (61,500)      (142,500)
                                 Release of ESOP stock                            76,335         50,442
                                 Stock compensation                                8,325         34,178


                 Net changes in operating assets and liabilities
                                 Accrued interest and dividends receivable        68,104       (132,436)
                                 Prepaid and other assets                         (5,000)       113,542
                                 Accrued interest payable                        (35,341)         8,556
                                 Accounts payable and accrued liabilities         63,591         94,910
                                 Repurchase agreements                          (274,840)       489,376
                                 Income taxes payable                           (194,686)        86,166
                                 Dividends declared and payable                   10,939         (1,703)
                                                                             -----------    -----------
                                                 Net cash provided by
                                                 operating activities            544,172      1,468,947
                                                                             -----------    -----------

Cash flows from investing activities
                 Purchase of premises and equipment                             (998,650)       (25,921)
                 Loan originations and principal
                   repayment on loans, net                                      (370,373)   (12,158,117)
                 Principal payments on mortgage-backed
                   securities                                                  5,423,524      2,257,861
                 Purchases of mortgage-backed securities                      (5,130,469)      (509,098)
                 Purchases of available-for-sale securities                   (4,043,762)    (3,221,028)
                 Maturities and proceeds from sale of
                   available-for-sale securities                               1,310,000      3,012,812
                 Principal payments on available-for-sale securities           1,055,759        170,195
                 Principal payments on hold-to-maturity securities                 5,000         10,000
                 Purchase of FHLB stock                                          (49,000)      (178,000)
                                                                             -----------    -----------
                                                 Net cash used by
                                                 investing activities         (2,797,971)   (10,641,296)
                                                                             -----------    -----------
</TABLE>

                                       6
<PAGE>

                               GFSB Bancorp, Inc.

           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

                Increase (decrease) in cash and cash equivalents

<TABLE>
<CAPTION>
                                                                                    Six months ended
                                                                                      December 31,
                                                                           --------------------------------
                                                                                2001              2000
                                                                           --------------     -------------
                                                                             (Unaudited)       (Unaudited)
<S>                                                                      <C>              <C>
Cash flows from financing activities
                 Net increase in transaction accounts, passbook
                   savings, money market accounts, and
                   certificates of deposit                                 $    2,798,245   $     4,453,663
                 Net increase in mortgage escrow funds                              3,346            72,332
                 Proceeds from FHLB advances                                  291,654,462     1,385,222,346
                 Repayments on FHLB advances                                 (292,427,620)   (1,379,105,303)
                 Purchase of GFSB Bancorp stock under the
                   stock repurchase plan in cash                                        -          (236,190)
                 Dividends paid or to be paid in cash                            (218,520)         (176,831)
                 Price paid for vested management bonus stock plan stock            5,550                 -
                                                                           --------------   ---------------
                                                 Net cash provided by
                                                 financing activities           1,815,463        10,230,017
                                                                           --------------   ---------------
                 (Decrease) increase in cash and cash equivalents                (438,336)        1,057,668

                 Cash and cash equivalents at beginning of period               4,262,254         4,090,965
                                                                           --------------   ---------------

                 Cash and cash equivalents at end of period                $    3,823,918         5,148,633
                                                                           ==============   ===============

Supplemental disclosures of cash flow information
                 Cash paid during the period for
                                 Interest on deposits and advances         $    4,117,052    $    4,563,718
                                 Income taxes                                     635,000           261,823

                 Change in unrealized gain, net of deferred
                   taxes on available-for-sale securities                          35,679           957,828

                 Dividends declared not yet paid                                  109,392            87,172

Supplemental schedule of noncash and financing activities
                 Issuance of stock dividend                                    $        -            23,091

</TABLE>
                                       7
<PAGE>

                               GFSB BANCORP, INC.

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

         1.  The  accompanying   unaudited  condensed   consolidated   financial
statements were in accordance with instructions for Form 10-QSB and therefore do
not  include  all  disclosure  necessary  for a  complete  presentation  of  the
consolidated   financial   statements  in  conformity  with  generally  accepted
accounting  principles.  However,  all adjustments  which are, in the opinion of
management,  necessary  for  the  fair  presentation  of the  interim  financial
statements have been included.  All such  adjustments are of a normal  recurring
nature.  The condensed  consolidated  statements of earnings are not necessarily
indicative  of results,  which may be expected for the entire  year,  or for any
other interim period.

Certain information and footnote  disclosures normally included in the financial
statements prepared in accordance with generally accepted accounting  principles
have been  condensed  or omitted  pursuant to the rules and  regulations  of the
Securities  and  Exchange  Commission.  It is  suggested  that  these  condensed
unaudited  financial  statement be read in conjunction  with the Form 10-KSB for
the year ended June 30, 2001.


                                       8
<PAGE>

Item 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

General

The  Private  Securities  Litigation  Reform Act of 1995  contains  safe  harbor
provisions regarding forward-looking  statements.  When used in this discussion,
the words  "believes",  "anticipates",  "contemplates",  "expects",  and similar
expressions are intended to identify forward-looking statements. Such statements
are subject to certain risks and uncertainties  which could cause actual results
to differ materially from those projected. Those risks and uncertainties include
changes in interest  rates,  risks  associated with the ability to control costs
and expenses,  and general  economic  conditions.  We undertake no obligation to
publicly  release  the  results  of  any  revisions  to  those  forward  looking
statements which may be made to reflect events or  circumstances  after the date
hereof or to reflect the occurrence of unanticipated events.

Overview

GFSB  Bancorp,  Inc., is a Bank holding  company  headquartered  in Gallup,  New
Mexico,  which provides a full range of deposits and  traditional  mortgage loan
products  through its wholly owned banking  subsidiary,  Gallup Federal  Savings
Bank. All references refer  collectively to the Company and the Bank, unless the
context indicates otherwise.

On November 14, 2001,  GFSB  Bancorp  purchased  land and a building in San Juan
County,  New  Mexico  for the  purpose  of  opening a Branch  of the  Bank.  The
acquisition  totaled  approximately  $902,000.  The Bank expects to open its new
branch  facility  on or  about  March  2002  and  estimates  that it will  spend
approximately  $400,000 to renovate this branch location.  The operation of this
new branch may increase non-interest expense in future periods.

                                       9
<PAGE>

RESULTS OF OPERATIONS

COMPARISON OF OPERATING  RESULTS FOR QUARTER ENDED DECEMBER 31, 2001 COMPARED TO
QUARTER ENDED DECEMBER 31, 2000.

General

Net income for the  quarter  ended  December  31,  2001  increased  $105,000  to
$488,000 compared to net income of $383,000 for the comparable  quarter in 2000.
The  increase  in net income was  primarily  the  result of an  increase  in net
interest  earnings  income of $157,000,  a $80,000  decline in the provision for
loan losses, offset by a $33,000 increase in non-interest expense and an $80,000
increase in income tax expense.  Please refer to "Average Balance Sheets" for an
analysis  of the  changes  in net  interest  income for the three  months  ended
December 31, 2001 compared to the same 2000 period.

Average Balance Sheets

The  following  table sets forth certain  information  relating to the Company's
average  balance sheet and reflects the average yield on assets and average cost
of liabilities for the periods indicated and the average yields earned and rates
paid. Average balances are derived from month-end balances.  Management does not
believe that the use of month-end balances instead of daily average balances has
caused any material differences in the information presented.

<TABLE>
<CAPTION>
                                       Quarter ended December 31, 2001               Quarter ended December 31, 2000
                                    --------------------------------------      ----------------------------------------

                                    Average                      Average         Average                        Average
                                    Balance      Interest       Yield/Cost       Balance       Interest       Yield/Cost
                                    -------      --------       ----------       -------       --------       ----------
                                         (Dollars in Thousands)                         (Dollars in Thousands)
<S>                              <C>             <C>             <C>         <C>              <C>              <C>
Interest-earning assets:
Loans receivable (1)             $  130,071     $   2,622           8.06%     $  118,897      $   2,645           8.90%
Investment securities and
 mortgage-backed securities          58,753           790           5.38%         55,841            934           6.69%
Other interest-earning
  assets (2)                          4,421            35           3.17%          5,524             86           6.23%
                                 -----------    ----------                    -----------     ----------

Total interest-earning assets       193,245         3,447           7.13%        180,262          3,665           8.13%
Non-interest-earning assets           6,671                                        6,398
                                 -----------                                  -----------
Total assets                       $199,916                                   $  186,660
                                 ===========                                  ===========

Interest-bearing liabilities:
  Transaction accounts           $    7,983     $      18            .90%     $    6,172     $       33           2.14%
  Passbook savings                    4,422            14           1.27%          4,825             25           2.07%
  Money market accounts               9,819           103           4.20%          9,296             83           3.57%
  Certificates of deposit            78,885         1,010           5.12%         54,382            789           5.80%
  Other liabilities (3)              72,357           837           4.63%         88,558          1,427           6.45%
                                 -----------    ----------                   -----------     ----------      ----------
Total interest-bearing
   liabilities                      173,466         1,982           4.57%        163,233          2,357           5.78%
Non-interest bearing
   liabilities                       10,724                                        9,785
                                 -----------                                 -----------

Total liabilities                   184,190                                      173,018

Stockholders' equity                 15,726                                       13,642
                                 -----------                                 -----------
Total liabilities and
  stockholders' equity           $  199,916                                  $   186,660
                                 ===========                                 ===========

Net interest income                             $   1,465                                     $   1,308
                                                ==========                                    =========


                                       10
<PAGE>

Interest rate spread (4)                                            2.56%                                      2.35%
                                                               ===========                                  ========
Net yield on interest-
  earning  assets (5)                                               3.03%                                      2.90%
                                                               ===========                                  ========
Ratio of average interest-
  earning assets to average
interest-bearing  liabilities                                       1.11X                                      1.10X
                                                               ===========                                  ========
</TABLE>
(1)  Average balances include non-accrual loans.
(2)  Includes interest-bearing deposits in other financial institutions
(3)  Other liabilities include FHLB advances and Repurchase agreements.
(4)  Interest-rate spread represents the difference between the average yield on
     interest-earning   assets  and  the   average   cost  of   interest-bearing
     liabilities.
(5)  Net yield on interest - earning assets  represents net interest income as a
     percentage of average interest-earning assets.

Rate/Volume Analysis

The table below sets forth  certain  information  regarding  changes in interest
income and interest expense of the Company for the periods  indicated.  For each
category   of   interest-earning   assets  and   interest-bearing   liabilities,
information is provided on changes  attributable to (i) changes in volume;  (ii)
changes in rates; (iii) changes in rate-volume.  The changes attributable to the
combined  impact of volume and rate have been allocated  proportionately  to the
changes due to volume and the changes due to rate.

                                               Quarter ended
                                          December 31, 2001 vs. 2000
                                             Increase (Decrease)
                                                   Due to
                                       --------------------------------
                                                          Rate/
                                       Volume    Rate     Volume    Net
                                       ------    ----     ------   -----
                                            (Dollars in Thousands)
Interest income:

  Loans receivable                      $ 248    $(249)   $ (22)   $ (23)
  Mortgage-backed securities and
     investment securities                 49     (183)     (10)    (144)
  Other interest-earning  assets          (17)     (42)       8      (51)
                                        -----    -----    -----    -----
    Total interest-earning assets         280     (474)     (24)    (218)
                                        -----    -----    -----    -----

Interest expense:

  Transaction accounts                     10      (19)      (6)     (15)
  Savings accounts                         (2)     (11)       1      (12)
  Money markets                             5       15        1       21
  Certificates of deposit                 355      (92)     (42)     221
  Other liabilities                      (261)    (403)      74     (590)
                                        -----    -----    -----    -----
   Total interest-bearing liabilities     107     (510)      28     (375)
                                        -----    -----    -----    -----
Net change in interest income           $ 173    $  36    $ (52)   $ 157
                                        =====    =====    =====    =====

Provision for Losses on Loans

The Company  maintains  an  allowance  for loan losses  based upon  management's
periodic evaluation of known and inherent risks in the loan portfolio, past loss
experience,  adverse  situations that may affect the borrower's ability to repay
loans,  estimated  value of the  underlying  collateral and current and expected
market  conditions.  No provision for loan loss was made in the current quarter.
The  provision  for loan  losses for the  quarter  ended  December  31, 2000 was
$80,000.  The  decrease  in the  provision  for  loan  losses  for  the  current
three-month  period  was the  result  of less  loan  growth  in  commercial  and
commercial  real  estate  loans,  which tend to have  greater  credit  risk than
residential  real estate  loans.  While the Company  maintains its allowance for
losses at a level which it considers  to be adequate at the balance  sheet date,
there can be no assurance  that further  additions  will not be made to the loss
allowances and that such losses will not exceed the

                                       11
<PAGE>
estimated amounts.

Non-Interest Income

Total  non-interest  income  decreased by $18,500 or 18.6% from $118,000 for the
quarter ended  December 31, 2000 to $99,500 for the quarter  ended  December 31,
2001.  This  decrease was  primarily  due to decreased  miscellaneous  income of
$25,800 and decreased  service  charge income of $7,300,  offset by increases in
net  gains  from  sales  of  loans  of  $3,700  and  net  gains  from  sales  of
available-for-sale  securities of $10,000.  The decrease in miscellaneous income
is primarily due to a gain on the sale of other real estate owned of $21,300 and
$6,000  received from a winning  raffle ticket in the quarter ended December 31,
2000.  Service  charge  income  decreased  for the current  three  month  period
primarily  due to a decline in  insufficient  fee charges  collected  on NOW and
checking accounts.

Non-Interest Expense

Total  non-interest  expense  increased  $33,200 or 4.3% from  $776,600  for the
quarter ended  December 31, 2000 to $809,700 for the quarter ended  December 31,
2001. The most  significant  increases in  non-interest  expense for the current
period were primarily  attributable  to  compensation  and benefits,  occupancy,
stock services and data processing, offset by decreases in professional fees and
other non-interest  expenses.  The increase in compensation and benefits expense
reflects  increases of $24,400 in general salaries and benefit expense primarily
due to the hiring of a project  manager for the new branch  purchase and general
merit increases. Occupancy costs increased $15,300 primarily due to increases in
depreciation for furniture, fixtures, and equipment, resulting from the purchase
of equipment  needed to operate our new service  bureau  format.  Stock services
increased $7,400 primarily due to a regulatory  filing fee paid to the OTS. Data
processing  expense  increased by $6,100 due to increased service bureau expense
resulting  from growth in the volume of  deposits  and loans and a change in our
service bureau provider.  Professional fees decreased $13,600 primarily due to a
decrease in legal and  accounting  fees this quarter.  In the three months ended
December 31, 2000, other non-interest  expense included  approximately $9,200 of
telephone expense related to the upgrading of the Bank's telephone system.

                                       12
<PAGE>

RESULTS OF OPERATIONS

COMPARISON OF OPERATING RESULTS FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, 2001
COMPARED TO THE SIX-MONTH PERIOD ENDED DECEMBER 31, 2000.

General

Net income for the six months  ended  December  31, 2001  increased  $147,000 to
$879,000 compared to net income of $732,000 for the comparable  six-month period
in 2000.  The increase in net income was primarily the result of an increase net
interest  earnings income of $347,000,  a $100,000  decline in the provision for
loan losses, offset by a $185,000 increase in non-interest expense and a $93,000
increase in income tax expense.  Please refer to "Average Balance Sheets" for an
analysis of the change in net interest  income for the six months ended December
31, 2001 compared to the same 2000 period.

Average Balance Sheets

The  following  table sets forth certain  information  relating to the Company's
average  balance sheet and reflects the average yield on assets and average cost
of liabilities for the periods indicated and the average yields earned and rates
paid. Average balances are derived from month-end balances.  Management does not
believe that the use of month-end balances instead of daily average balances has
caused any material differences in the information presented.

<TABLE>
<CAPTION>
                                         Six-month period ended                         Six-month period ended
                                    --------------------------------------      -----------------------------------------
                                            December 31, 2001                             December 31, 2000
                                    --------------------------------------      -----------------------------------------

                                    Average                      Average         Average                        Average
                                    Balance       Interest      Yield/Cost       Balance        Interest       Yield/Cost
                                    -------       --------      ----------       -------        --------       ----------
                                          (Dollars in Thousands)                        (Dollars in Thousands)
<S>                              <C>           <C>            <C>           <C>              <C>             <C>
Interest-earning assets:
Loans receivable (1)              $ 129,776     $   5,246           8.08%     $  115,984      $   5,055           8.72%
Investment securities and
 Mortgage-backed securities          57,559         1,583           5.50%         55,955          1,869           6.69%
Other interest-earning
  assets (2)                          4,596            79           3.44%          5,417            170           6.28%
                                  ----------    ----------                    -----------     ----------

Total interest-earning assets       191,931         6,908           7.20%        177,356          7,094           8.00%
Non-interest-earning assets           6,175                                        6,064
                                  ----------                                  -----------
Total assets                      $ 198,106                                     $183,420
                                  ==========                                  ===========

Interest-bearing liabilities:
  Transaction accounts            $   7,814     $      43           1.10%      $   6,084       $    45            1.48%
  Passbook savings                    4,548            29           1.28%          4,967            51            2.05%
  Money market accounts               9,699           206           4.25%          9,421           168            3.57%
  Certificates of deposit            78,229         2,079           5.32%         53,596         1,537            5.74%
  Other liabilities (3)              71,661         1,724           4.81%         87,002         2,814            6.47%
                                  ----------    ----------                    ----------      --------      -----------
Total interest-bearing
   liabilities                      171,951         4,081           4.75%        161,070          4,615           5.73%
Non-interest bearing
   liabilities                       10,670                                        9,036
                                  ----------                                  ----------
Total liabilities                   182,621                                      170,106

Stockholders' equity                 15,485                                       13,314
                                  ----------                                  ----------
Total liabilities and
  Stockholders' equity            $ 198,106                                   $  183,420
                                  ==========                                  ==========

                                       13
<PAGE>

Net interest income                             $   2,827                                     $ 2,479
                                                ==========                                    ========
Interest rate spread (4)                                            2.45%                                     2.27%
                                                              ===========                                  ========
Net yield on interest-
  earning  assets (5)                                               2.95%                                     2.80%
                                                              ===========                                  ========
Ratio of average interest-
  earning assets to average
interest-bearing  liabilities                                       1.12X                                     1.10X
                                                              ===========                                  ========
</TABLE>

(1)  Average balances include non-accrual loans.
(2)  Includes interest-bearing deposits in other financial institutions
(3)  Other liabilities include FHLB advances and Repurchase agreements
(4)  Interest-rate spread represents the difference between the average yield on
     interest-earning   assets  and  the   average   cost  of   interest-bearing
     liabilities.
(5)  Net yield on interest - earning assets  represents net interest income as a
     percentage of average interest-earning assets.

Rate/Volume Analysis

The table below sets forth  certain  information  regarding  changes in interest
income and interest expense of the Company for the periods  indicated.  For each
category   of   interest-earning   assets  and   interest-bearing   liabilities,
information is provided on changes  attributable to (i) changes in volume;  (ii)
changes in rates; (iii) changes in rate-volume.  The changes attributable to the
combined  impact of volume and rate have been allocated  proportionately  to the
changes due to volume and the changes due to rate.

                                                Six-month period ended
                                              December 31, 2001 vs. 2000
                                                 Increase (Decrease)
                                                        Due to
                                       ----------------------------------------
                                                             Rate/
                                        Volume     Rate      Volume       Net
                                        ------     ----      ------     -------
                                                (Dollars in Thousands)
Interest income:
  Loans receivable                     $   601    $  (371)   $   (39)   $   191
  Mortgage-backed securities and
     investment securities                  54       (333)        (7)      (286)
  Other interest-earning  assets           (26)       (77)        12        (91)
                                       -------    -------    -------    -------
    Total interest-earning assets          629       (781)       (34)      (186)
                                       -------    -------    -------    -------

Interest expense:

  Transaction accounts                      13        (12)        (3)        (2)
  Savings accounts                          (5)       (19)         2        (22)
  Money markets                              5         32          1         38
  Certificates of deposit                  707       (113)       (52)       542
  Other liabilities                       (496)      (722)       128     (1,090)
                                       -------    -------    -------    -------
   Total interest-bearing liabilities      224       (834)        76       (534)
                                       -------    -------    -------    -------
Net change in interest income          $   405    $    53    $  (110)   $   348
                                       =======    =======    =======    =======

Provision for Losses on Loans

The Company  maintains  an  allowance  for loan losses  based upon  management's
periodic evaluation of known and inherent risks in the loan portfolio, past loss
experience,  adverse  situations that may affect the borrower's ability to repay
loans,  estimated  value of the  underlying  collateral and current and expected
market conditions.  The provision for loan loss was $50,000 and $150,000 for the
six-month period ended December 31, 2001 and 2000, respectively. See "Comparison
of Operating Results for the quarter ended December 31, 2001 compared to quarter
ended December 31, 2000 - Provision for Losses on Loans."

Non-Interest Income

Total  non-interest  income  decreased by $22,500 or 11.7% from $214,700 for the
six months ended December


                                       14
<PAGE>

31, 2000 to $192,200 for the six months ended  December 31, 2001.  This decrease
was  primarily  due to decreased  miscellaneous  income of $24,400 and decreased
service  charge  income of $8,400,  offset by an  increase in net gains from the
sale of  available-for-sale  securities of $10,000. See "Comparison of Operating
Results for quarter ended  December 31, 2001 compared to quarter ended  December
31, 2000 - Non-Interest Income.

Non-Interest Expense

Total  non-interest  expense increased $184,100 or 12.6% from $1,465,500 for the
six months  ended  December  30,  2000 to  $1,649,600  for the six months  ended
December 31, 2001. The most  significant  changes in non-interest  expenses were
increases in compensation  and benefits,  data  processing,  professional  fees,
occupancy costs and stationary,  printing,  and office supplies. The increase in
compensation  and  benefits  expense  reflects  increases  of $53,000 in general
salaries  and benefits  expense  primarily  due to the hiring of the  operations
manager in September  2000,  the hiring of a project  manager for the new branch
purchase in September  2001 and the hiring of two  additions to staff in current
six-month  period.  Also,  contributing  to this  increase  were  general  merit
increases. Data processing expense increased by $46,800 due to increased service
bureau  expense  resulting from growth in deposits and loans and a change in our
service bureau provider. The increase in professional fees of $15,500 was due to
increases in audit,  accounting,  and legal fees during the first 2002  quarter.
Occupancy costs increased $26,000 due primarily to increases in depreciation for
furniture,  fixtures,  and  equipment,  resulting from the purchase of equipment
needed to operate our new service bureau format. Stationary, printing and office
supplies  increased $19,400 primarily as the result of the purchase of new forms
during the first 2002 quarter for the banks new service bureau.

                                       15
<PAGE>

PART II.  OTHER INFORMATION
--------  -----------------


Item 1.  Legal Proceedings
         -----------------

                  Not applicable.

Item 2.  Changes in Securities and Use of Proceeds
         -----------------------------------------

                  Not applicable.

Item 3.  Defaults Upon Senior Securities
         -------------------------------

                  Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders
         ---------------------------------------------------


The annual  meeting of the  stockholders  of the Company was held on October 26,
2001. At the meeting two directors  were elected for terms to expire in 2004 and
the appointment of Neff & Ricci,  LLP as the Company's  independent  accountants
was ratified.

The results of voting are shown for each matter considered.

Director election:

Nominees                           Votes for     Votes withheld

Wallace R. Phillips                 863,407          1,875
Richard C. Kauzlaric                817,546         47,736



Independent accountant ratification:

                                   Votes for     Votes against      Abstentions

                                    846,532         15,000             3,750

Item 5.  Other Information
         -----------------

                  Not applicable.

Item 6.  Exhibits and Reports on Form 8-K
         --------------------------------

                  (a) List of Exhibits

                     3.1     Certificate of Incorporation of GFSB Bancorp, Inc.*
                     3.2     Bylaws of GFSB Bancorp, Inc.*
                     10.1    1995 Stock Option Plan**
                     10.2    Management Stock Bonus Plan**
                     10.3    Form of Directors Deferred Compensation Agreement
                               between the Bank and Directors***
                     10.4    Form of Directors Stock Compensation Plan between
                               the Company and Directors of the Company***
                     10.5    2000 Stock Option Plan****

                                       16
<PAGE>

         --------------
         *        Incorporated herein by reference to exhibits  3(i)(Certificate
                  of  Incorporation)   and  3(ii)(Bylaws)  to  the  Registration
                  Statement on Form S-1 of the  Registrant  (File No.  33-90400)
                  initially filed with the Commission on March 17, 1995.

         **       Incorporated by reference to the identically numbered exhibits
                  of the Annual  Report on Form 10-KSB for the fiscal year ended
                  June 30, 1997 (File No. 0-25854) filed with the SEC.


         ***      Incorporated by reference to the identically numbered exhibits
                  of the  Quarterly  Report on Form 10-QSB for the quarter ended
                  March 31, 2000 filed with the SEC.

         ****     Incorporated  by  reference  to the  Proxy  Statement  for the
                  Annual Meeting of  Stockholders  on October 27, 2000 and filed
                  with the SEC on September 25, 2000.

(b)      Not applicable.


                                       17


<PAGE>



SIGNATURES

In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.

                                  GFSB BANCORP, INC.


Date:    February 13, 2002       /s/Jerry R. Spurlin
                                 -----------------------------------------------
                                 Jerry R. Spurlin
                                 Assistant Secretary and Chief Financial Officer
                                 (Duly Authorized Representative and
                                 Principal Financial Officer)



                                       18