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 March 31, 2002
                                                 --------------

                                       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                                                    04-2095007
--------------------------------------------                ----------
(State or Other Jurisdiction of Incorporation            (I.R.S. Employer
or Organization)                                        Identification No.)


221 West Aztec Avenue, Gallup, New Mexico                    87301
-----------------------------------------                    -----
(Address of Principal Executive Offices)                  (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 April 30, 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.
                                                                                                --------

                          PART I. FINANCIAL INFORMATION
<S>      <C>                                                                                   <C>
Item 1.    Condensed Consolidated Financial Statements:

           Condensed Consolidated Statements of Financial Condition
               March 31, 2002 and June 30, 2001                                                     3

           Condensed Consolidated Statements of Earnings and Comprehensive Earnings
               Three months and nine months ended March 31, 2002 and 2001                           4

           Condensed Consolidated Statements of Cash Flows
               Nine months ended March 31, 2002 and 2001                                            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 6.    Exhibits and Reports on Form 8-K                                                        16

           Signatures                                                                              17

</TABLE>

                                        2
<PAGE>

                                          GFSB Bancorp, Inc.

                        CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
                                                               March 31,         June 30,
                                                                 2002              2001
                                                             -------------     ------------
                                                                      (Unaudited)
                                     ASSETS

<S>                                                       <C>               <C>
Cash and due from banks                                      $   3,986,496    $   3,216,000
Interest-bearing deposits with banks                               807,164        1,046,254
Available-for-sale investment securities                        24,732,336       21,804,107
Available-for-sale mortgage-backed securities                   29,355,761       32,376,812
Held-to-maturity investment securities                           1,924,209        1,945,720
Stock of Federal Home Loan Bank, at cost, restricted             4,187,200        3,649,000
Loans receivable, net, substantially pledged                   134,301,528      130,430,937
Accrued interest and dividends receivable                        1,149,025        1,185,400
Premises and equipment                                           2,493,264        1,323,770
Other real estate and repossessed property                          71,883            7,950
Prepaid and other assets                                           127,169           66,674
Deferred tax asset                                                  98,006           98,006
                                                             -------------    -------------
       TOTAL ASSETS                                          $ 203,234,041      197,150,630
                                                             =============    =============

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Transaction and NOW accounts                                 $  17,889,908    $  15,462,712
Savings and MMDA deposits                                       16,086,320       14,521,879
Time deposits                                                   68,265,935       76,675,576
Advances from Federal Home Loan Bank                            81,616,607       72,105,997
Repurchase agreements                                            1,296,414        1,324,335
Accrued interest payable                                           471,024          473,446
Advances from borrowers for taxes and insurance                    639,066          440,048
Accounts payable and accrued liabilities                           328,044          219,855
Deferred income taxes                                              583,425          653,197
Dividends declared and payable                                     110,506           98,453
Income taxes payable                                                 1,168          195,854
                                                             -------------    -------------
       TOTAL LIABILITIES                                       187,288,417      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 March 31, 2002 and June 30, 2001                              115,011          115,011
Additional paid-in-capital                                       2,720,352        2,630,860
Unearned ESOP stock                                               (224,085)        (272,480)
Retained earnings, substantially
  restricted                                                    12,201,814       11,237,917
Accumulated other comprehensive
earnings                                                         1,132,532        1,267,970
                                                             -------------    -------------
       TOTAL STOCKHOLDERS' EQUITY                               15,945,624       14,979,278
                                                             -------------    -------------

       TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY            $ 203,234,041    $ 197,150,630
                                                             =============    =============
</TABLE>

See notes to condensed consolidated financial statements.

                                        3

<PAGE>

                                                 GFSB Bancorp, Inc.

                                   CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                                              AND COMPREHENSIVE EARNINGS
<TABLE>
<CAPTION>
                                                            Three months ended          Nine months ended
                                                                March 31,                   March 31,
                                                        -------------------------   -------------------------
                                                           2002          2001          2002           2001
                                                        -----------   -----------   -----------   -----------
                                                        (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
<S>                                                   <C>           <C>           <C>             <C>
Interest income
           Loans receivable
                          Mortgage loans                $ 2,136,176   $ 2,173,011   $ 6,457,153     6,435,237
                          Commercial loans                  296,589       414,014       973,501       896,331
                          Share and consumer loans          109,856       150,367       357,511       460,612
           Investment and mortgage-backed securities        722,954       889,473     2,306,366     2,758,665
           Other interest-earning assets                     34,092        80,675       113,489       250,988
                                                        -----------   -----------   -----------   -----------
                          TOTAL INTEREST EARNINGS         3,299,667     3,707,540    10,208,020    10,801,833

Interest expense
           Deposits                                         905,175     1,059,907     3,263,682     2,860,723
           Advances from Federal Home Loan Bank             842,496     1,193,820     2,554,465     3,965,278
           Repurchase agreements                              1,552        11,980        12,787        54,604
                                                        -----------   -----------   -----------   -----------
                          TOTAL INTEREST EXPENSE          1,749,223     2,265,707     5,830,934     6,880,605
                                                        -----------   -----------   -----------   -----------

                          NET INTEREST EARNINGS           1,550,444     1,441,833     4,377,086     3,921,228

Provision for loan losses                                    70,011       120,000       120,018       270,000
                                                        -----------   -----------   -----------   -----------

                          NET INTEREST EARNINGS AFTER
                            PROVISION FOR LOAN LOSSES     1,480,433     1,321,833     4,257,068     3,651,228
                                                        -----------   -----------   -----------   -----------
Non-interest earnings
           Income from real estate operations                 1,350             -         2,250             -
           Miscellaneous income                              10,378        11,160        33,088        58,287
           Net gains from sales of AFS securities                 -        11,261        10,000        10,925
           Net gains from sales of loans                     11,444           950        28,290        18,682
           Service charge income                             67,358        70,569       209,099       220,740
                                                        -----------   -----------   -----------   -----------
                          TOTAL NON-INTEREST EARNINGS        90,530        93,940       282,727       308,634
                                                        -----------   -----------   -----------   -----------
Non-interest expense
           Compensation and benefits                        546,105       402,721     1,436,484     1,235,229
           FDIC Insurance                                     4,833         3,867        14,439        12,041
           Insurance                                         11,445         8,872        29,022        25,275
           Stock services                                     6,548         2,514        22,522        10,747
           Occupancy                                        111,795        88,456       311,952       262,596
           Data processing                                   92,790        61,040       241,771       163,226
           Professional fees                                 22,185        14,274        89,538        66,165
           Advertising                                       21,119        17,250        61,480        58,468
           Stationary, printing and office supplies          22,159        14,609        76,740        49,818
           ATM expense                                       12,388         9,169        35,067        30,801
           Supervisory exam fees                             13,568        12,130        41,810        34,081
           Postage                                           16,130        13,925        44,589        32,725
           Other                                             80,070        80,563       205,329       213,754
                                                        -----------   -----------   -----------   -----------
                          TOTAL NON-INTEREST EXPENSE        961,135       729,390     2,610,743     2,194,926
                                                        -----------   -----------   -----------   -----------
</TABLE>
                                              4

<PAGE>

                                                GFSB Bancorp, Inc.

                                   CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                                       AND COMPREHENSIVE EARNINGS - CONTINUED

<TABLE>
<CAPTION>
                                                              Three months ended           Nine months ended
                                                                    March 31,                  March 31,
                                                          ----------------------------   ---------------------
                                                               2002           2001         2002       2001
                                                          ----------------------------   ---------------------
                                                            (Unaudited)     (Unaudited) (Unaudited) (Unaudited)
<S>                                                    <C>             <C>             <C>         <C>
                          EARNINGS BEFORE INCOME TAXES         609,828         686,383   1,929,052   1,764,936

Income tax expense
           Currently payable                                   191,311         243,406     631,625     590,226
           Deferred provision                                        -               -           -           -
                                                         -------------   -------------   ---------   ---------
                                                               191,311         243,406     631,625     590,226
                                                         -------------   -------------   ---------   ---------
                          NET EARNINGS                   $     418,517   $     442,977   1,297,427   1,174,710
                                                         =============   =============   =========   =========

Other Comprehensive Earnings
           Unrealized (loss) gain, net of tax                 (171,117)        193,601    (135,439)  1,151,429
                                                         -------------   -------------   ---------   ---------
                          COMPREHENSIVE EARNINGS               247,400         636,578   1,161,988   2,326,139
                                                         =============   =============   =========   =========

Earnings per common share
           Basic                                         $        0.38            0.40        1.18        1.06
                                                         =============   =============   =========   =========

Weighted average number of common shares outstanding
           Basic                                             1,106,475       1,097,536   1,103,553   1,105,920
                                                         =============   =============   =========   =========

Earnings per common share
           Diluted                                                0.37            0.39        1.13        1.04
                                                         =============   =============   =========   =========

Weighted average number of common shares outstanding
           Diluted                                           1,146,377       1,123,578   1,143,355   1,134,130
                                                         =============   =============   =========   =========

Comprehensive earnings per common share
           Basic                                                  0.22            0.58        1.05        2.10
                                                         =============   =============   =========   =========

           Diluted                                                0.22            0.57        1.02        2.05
                                                         =============   =============   =========   =========

Dividends per share                                               0.10            0.09        0.10        0.08
                                                         =============   =============   =========   =========
</TABLE>

See notes to condensed consolidated financial statements.

                                        5
<PAGE>

                                              GFSB Bancorp, Inc.

                                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                Increase (decrease) in cash and cash equivalents

<TABLE>
<CAPTION>
                                                                       Nine months ended
                                                                           March 31,
                                                                  ---------------------------
                                                                      2002            2001
                                                                  -----------    ------------
                                                                   (Unaudited)     (Unaudited)
<S>                                                            <C>             <C>
Cash flows from operating activities
           Net earnings                                          $  1,297,427    $  1,174,710
           Adjustments to reconcile net earnings to
             net cash provided by operations
                     Deferred loan origination fees                  (329,372)       (257,244)
                     Gain on sale of loans and securities             (38,290)        (29,607)
                     Provision for loan losses                        120,018         270,000
                     Depreciation of premises and equipment           141,219         135,043
                     Amortization of investment and mortgage-
                       backed securities premiums                     121,727          55,439
                     Stock dividends on FHLB stock                    (90,300)       (205,300)
                     Release of ESOP stock                            121,237          78,455
                     Stock compensation                                12,488          38,340

           Net changes in operating assets and liabilities
                     Accrued interest and dividends receivable         36,375        (105,532)
                     Prepaid and other assets                         (60,495)        116,690
                     Accrued interest payable                          (2,422)        142,814
                     Accounts payable and accrued liabilities          95,701          42,839
                     Repurchase agreements                            (27,921)      1,147,635
                     Income taxes payable                            (194,686)        182,605
                     Dividends declared and payable                    12,053           9,578
                                                                 ------------    ------------
                               Net cash provided by
                               operating activities                 1,214,759       2,796,465
                                                                 ------------    ------------
Cash flows from investing activities
           Purchase of premises and equipment                      (1,310,713)        (75,125)
           Loan originations and principal
             repayment on loans, net                               (3,696,880)    (17,940,653)
           Principal payments on mortgage-backed
             securities                                             7,951,455       3,521,945
           Purchases of mortgage-backed securities                 (5,130,469)     (2,504,724)
           Purchases of available-for-sale securities              (6,167,537)     (3,284,814)
           Maturities and proceeds from sale of
             available-for-sale securities                          1,310,000       6,442,814
           Principal payments on available-for-sale securities      1,808,947         213,475
           Principal payments on hold-to-maturity securities           25,000          10,000
           Purchases of hold-to-maturity securities                         -        (270,000)
           Purchase of FHLB stock                                    (447,900)       (199,200)
                                                                 ------------    ------------
                               Net cash used by
                               investing activities                (5,658,097)    (14,086,282)
                                                                 ------------    ------------
</TABLE>

                                                       6
<PAGE>

                                       GFSB Bancorp, Inc.

                     CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

                          Increase (decrease) in cash and cash equivalents

<TABLE>
<CAPTION>
                                                                                Nine months ended
                                                                                    March 31,
                                                                      -----------------------------------
                                                                           2002               2001
                                                                      ----------------    ---------------
                                                                         (Unaudited)        (Unaudited)
<S>                                                                  <C>                <C>
Cash flows from financing activities
           Net (decrease) increase in transaction accounts, passbook
             savings, money market accounts, and
             certificates of deposit                                   $    (4,418,004)   $    22,964,390
           Net increase in mortgage escrow funds                               199,018            326,507
           Proceeds from FHLB advances                                     175,155,000      1,616,072,346
           Repayments on FHLB advances                                    (165,644,390)    (1,627,852,976)
           Purchase of GFSB Bancorp stock under the
             stock repurchase plan in cash                                     (79,084)          (291,930)
           Dividends paid or to be paid in cash                               (333,530)          (275,284)
           Price paid for vested management bonus stock plan stock              16,650             50,512
           Proceeds from exercise of stock                                      79,084                  -
                                                                       ---------------    ---------------
                               Net cash provided by
                               financing activities                          4,974,744         10,993,565
                                                                       ---------------    ---------------
           Increase (decrease) in cash and cash equivalents                    531,406           (296,252)

           Cash and cash equivalents at beginning of period                  4,262,254          4,090,965
                                                                       ---------------    ---------------
           Cash and cash equivalents at end of period                  $     4,793,660          3,794,713
                                                                       ===============    ===============
Supplemental disclosures of cash flow information
           Cash paid during the period for
                     Interest on deposits and advances                 $     5,833,356    $     6,683,186
                     Income taxes                                              801,111            408,790

           Change in unrealized gain, net of deferred
             taxes on available-for-sale securities                            135,439          1,151,429

           Dividends declared not yet paid                                     110,506             98,453


Supplemental schedule of noncash and financing activities
           Issuance of stock dividend                                  $             -             23,091
</TABLE>

See notes to condensed consolidated financial statements.

                                        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  accounting  principles
generally  accepted in the United States of America.  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  statements 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  opened  its new branch
facility on March 11, 2002.  Renovation  costs in connection with the new branch
were  approximately   $397,000  at  March  31,  2002,  which  were  capitalized.
Additionally,  time deposits  decreased  $8,410,000 to  $68,266,000 at March 31,
2002, from  $76,676,000 at June 30, 2001 as a result of a decrease in our public
fund time deposits. The Bank funds loans from two primary sources,  deposits and
Federal Home Loan Bank borrowings.  Federal Home Loan Bank borrowings  increased
$9,511,000 at March 31, 2002, to $81,617,000  from $72,106,000 at June 30, 2001.
The increase in borrowings was primarily the result of an offset to the decrease
in time deposits, additional borrowings were used to fund loans.

During  the  quarter  ended  March  31,  2002,  the Bank  introduced  its  "Gold
NetTeller" Internet Banking product at  www.gallupfed.com.  The service delivers
real-time  interactive  information  for retail  and  commercial  customers  and
includes Bill Pay features.  The web site will be expanded in the near future to
provide a substantial  amount of information  and range of services  including a
commercial cash management  product and on-line loan  applications.  The Company
believes the service will enhance its growth potential by allowing it to compete
favorably in this emerging  technology  within its  marketing  area and does not
anticipate a material impact on profitability.


RESULTS OF OPERATIONS

COMPARISON  OF OPERATING  RESULTS FOR QUARTER  ENDED MARCH 31, 2002  COMPARED TO
QUARTER ENDED MARCH 31, 2001.

General

Net income for the quarter ended March 31, 2002 decreased  $24,000 from $443,000
for the quarter ended March 31, 2001 to $419,000 for the quarter ended March 31,
2002.  The decrease in net income was primarily the result of an increase in net
interest  earnings income of $109,000,  a $50,000  decrease in the provision for
loan  losses,  offset by a $232,000  increase  in  non-interest  expense  and an
$52,000 decrease 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
March 31, 2002 compared to the same 2001 period.

                                       9

<PAGE>

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 March 31, 2002                   Quarter ended March 31, 2001
                                      ----------------------------                   ----------------------------
                                   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)               $133,371        $2,543           7.63%       $125,317         $2,738           8.74%
Investment securities and
 mortgage-backed securities          56,817           723           5.09%         54,739            889           6.50%
Other interest-earning
  assets (2)                          4,889            33           2.70%          5,706             81           5.67%
                                 -----------    ----------                    -----------     ----------

Total interest-earning assets       195,077         3,299           6.32%        185,762          3,708           7.98%
Non-interest-earning assets           7,480                                        5,631
                                 -----------                                  -----------
Total assets                       $202,557                                     $191,393
                                 ===========                                 ============

Interest-bearing liabilities:
  Transaction accounts              $ 8,205          $ 16           .78%        $ 6,370          $ 23            1.44%
  Savings accounts                    4,753            15          1.26%          4,835            22            1.82%
  Money market accounts              10,645            32          1.20%          9,634            82            3.40%
  Certificates of deposit            74,428           842          4.53%         63,091           933            5.92%
  Other liabilities (3)              77,900           844          4.33%         83,319         1,206            5.79%
                                 -----------    ----------                   -----------    ----------      -----------
Total interest-bearing
   liabilities                      175,931         1,749          3.98%        167,249         2,266            5.42%
Non-interest bearing
   liabilities                       10,692                                       9,814
                                 -----------                                 -----------

Total liabilities                   186,623                                     177,063

Stockholders' equity                 15,934                                      14,330
                                 -----------                                 -----------
Total liabilities and
  stockholders' equity             $202,557                                    $191,393
                                 ===========                                 ===========

Net interest income                                $1,550                                      $1,442
                                                ==========                                  ==========

Interest rate spread (4)                                           2.34%                                         2.56%
                                                              ===========                                   ===========
Net yield on interest-
  Earning  assets (5)                                              3.18%                                         3.11%
                                                              ===========                                   ===========
Ratio of average interest-
  Earning assets to average
interest-bearing  liabilities                                      1.11X                                         1.11X
                                                              ===========                                   ===========
</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.

                                       10
<PAGE>

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
                                              March 31, 2002 vs. 2001
                                               Increase (Decrease)
                                                     Due to
                                        ---------------------------------
                                                           Rate/
                                        Volume    Rate    Volume     Net
                                        ------    ----    ------    -----
                                                 (Dollars in Thousands)
Interest income:

  Loans receivable                      $ 176    $(348)   $ (22)   $(194)
  Mortgage-backed securities and
     investment securities                 34     (193)      (7)    (166)
  Other interest-earning  assets          (12)     (42)       6      (48)
                                        -----    -----    -----    -----
    Total interest-earning assets         198     (583)     (23)    (408)
                                        -----    -----    -----    -----

Interest expense:

  Transaction accounts                      7      (11)      (3)      (7)
  Savings accounts                         (1)      (7)       1       (7)
  Money markets                             9      (53)      (6)     (50)
  Certificates of deposit                 168     (219)     (39)     (90)
  Other liabilities                       (78)    (304)      20     (362)
                                        -----    -----    -----    -----
   Total interest-bearing liabilities     105     (594)     (27)    (516)
                                        -----    -----    -----    -----
Net change in interest income           $  93    $  11    $   4    $ 108
                                        =====    =====    =====    =====

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 $70,000 and $120,000 for the
quarter  ended March 31, 2002 and 2001.  The decrease in the  provision for loan
losses for the current  three-month period was the result of less loan growth in
commercial  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 estimated amounts.

                                       11
<PAGE>

Non-Interest Income

Total  non-interest  income  decreased  by $3,400 or 3.6% from  $93,900  for the
quarter  ended March 31, 2001 to $90,500 for the quarter  ended March 31,  2002.
This  decrease  was  primarily  due to a decrease  in service  charge  income of
$3,200.  Net gains from sales of loans were  $11,400  and $1,000 for the quarter
ended March 31, 2002 and 2001.  There were no net gains from  available-for-sale
securities  for the  quarter  ended  March 31,  2002.  Net gains  from  sales of
available-for-sale  securities  for the  quarter  ending  March  31,  2001  were
$11,300.

Non-Interest Expense

Total  non-interest  expense  increased  $231,700 or 31.8% from $729,400 for the
quarter  ended March 31, 2001 to $961,100 for the quarter  ended March 31, 2002.
The most  significant  increases in non-interest  expense for the current period
were primarily  attributable  to  compensation  and benefits,  data  processing,
occupancy,  stock  services,  professional  fees and stationary,  printing,  and
office  supplies.  The increase in compensation  and benefits  expense  reflects
increases of $62,200 in general salaries and benefit  expense,  primarily due to
the hiring of a project  manager for the new branch  purchase in the second 2002
quarter and the hiring of nine employees to staff the new branch, an increase of
$17,000 in expense related to employee stock compensation plans, and $57,400 due
to the  repurchase  of stock from an employee  exercise/sale  of stock.  General
merit  increases  also  contribute to this  increase.  Data  processing  expense
increased by $31,800 due to increased  service bureau expense resulting from the
growth in the number of deposit and loan accounts serviced,  and a change in our
service bureau  provider.  Occupancy costs increased  $23,300,  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 and
equipment  purchased  for the new branch  (occupancy  expense for the new branch
purchase was  $11,000.)  Stock  services  increased  $4,000 due  primarily to an
increase  in our NASDAQ  annual  fees.  Professional  fees  increased  by $7,900
primarily  due to an  increase  in  legal  and  accounting  fees  this  quarter.
Stationary,  printing and office supplies increased $7,600, primarily due to the
purchase  of forms and  supplies  for the new  branch and  normal  increases  in
stationary, printing and office supplies expense.


RESULTS OF OPERATIONS

COMPARISON OF OPERATING  RESULTS FOR THE NINE-MONTH  PERIOD ENDED MARCH 31, 2002
COMPARED TO THE NINE-MONTH PERIOD ENDED MARCH 31, 2001.

General

Net income for the nine  months  ended  March 31,  2002  increased  $123,000  to
$1,297,000  compared to net income of $1,175,000 for the  comparable  nine-month
period in 2001.  The  increase  in net  income  was  primarily  the result of an
increase net interest  earnings  income of $456,000,  a $150,000  decline in the
provision  for loan  losses,  a decrease  of $26,000 in  non-interest  earnings,
offset by a $416,000 increase in non-interest  expense and a $42,000 increase in
income tax expense.  Please refer to "Average Balance Sheets" for an analysis of
the change in net  interest  income for the nine  months  ended  March 31,  2002
compared to the same 2001 period.

                                       12
<PAGE>

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>
                                        Nine-month period ended                        Nine-month period ended
                                        ------------------------                       -----------------------
                                             March 31, 2002                                 March 31, 2001
                                             --------------                                 --------------

                                    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)               $131,100        $7,788           7.92%       $119,120         $7,792           8.72%
Investment securities and
 mortgage-backed securities          57,271         2,306           5.37%         55,490          2,759           6.63%
Other interest-earning
  assets (2)                          3,776           113           3.99%          5,515            251           6.07%
                                 -----------    ----------                    -----------     ----------

Total interest-earning assets       192,147        10,207           7.05%        180,125         10,802           8.00%
Non-interest-earning assets           7,594                                        5,830
                                 -----------                                  -----------
Total assets                       $199,741                                     $185,955
                                 ===========                                 ============

Interest-bearing liabilities:
  Transaction accounts              $ 7,901          $ 59          1.00%        $ 6,169          $ 69            1.49%
  Passbook savings                    4,640            44          1.26%          4,935            73            1.97%
  Money market accounts              10,066           127          1.68%          9,494           250            3.51%
  Certificates of deposit            76,639         3,033          5.26%         57,207         2,469            5.75%
  Other liabilities (3)              74,085         2,567          4.62%         85,251         4,020            6.29%
                                 -----------    ----------                   -----------    ----------      -----------
Total interest-bearing
   liabilities                      173,331         5,830          4.48%        163,056         6,881            5.63%
Non-interest bearing
   liabilities                       10,773                                       9,248
                                 -----------                                 -----------
Total liabilities                   184,104                                     172,304

Stockholders' equity                 15,637                                      13,651
                                 -----------                                 -----------

Total liabilities and
  stockholders' equity             $199,741                                    $185,955
                                 ===========                                 ===========

Net interest income                                $4,377                                      $3,921
                                                ==========                                  ==========
Interest rate spread (4)                                           2.57%                                         2.37%
                                                              ===========                                   ===========
Net yield on interest-
  earning  assets (5)                                              3.04%                                         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.

                                       13
<PAGE>

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.

                                                Nine-month period ended
                                                March 31, 2002 vs. 2001
                                                  Increase (Decrease)
                                                         Due to
                                        ----------------------------------------
                                                              Rate/
                                        Volume     Rate       Volume      Net
                                        ------     ----       ------     -----
                                                 (Dollars in Thousands)
Interest income:
  Loans receivable                      $  783    $  (714)   $   (71)   $    (2)
  Mortgage-backed securities and
     investment securities                  89       (524)       (17)      (452)
  Other interest-earning  assets           (79)       (86)        27       (138)
                                        ------    -------    -------    -------
    Total interest-earning assets          793     (1,324)       (61)      (592)
                                        ------    -------    -------    -------
Interest expense:

  Transaction accounts                      19        (23)        (6)       (10)
  Savings accounts                          (4)       (26)         2        (28)
  Money markets                             15       (130)        (8)      (123)
  Certificates of deposit                  838       (210)       (60)       568
  Other liabilities                       (527)    (1,068)       140     (1,455)
                                        ------    -------    -------    -------
   Total interest-bearing liabilities      341     (1,457)        68     (1,048)
                                        ------    -------    -------    -------

Net change in interest income           $  452    $   133    $  (129)   $   456
                                        ======    =======    =======    =======

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 $120,000 and $270,000 for the
nine-month period ended March 31, 2002 and 2001,  respectively.  See "Comparison
of Operating  Results for the quarter  ended March 31, 2002  compared to quarter
ended March 31, 2001 - Provision for Losses on Loans."

                                       14

<PAGE>

Non-Interest Income

Total  non-interest  income  decreased by $25,900 or 8.4% from  $308,600 for the
nine months ended March 31, 2001 to $282,700 for the nine months ended March 31,
2002.  This  decrease was  primarily  due to decreased  miscellaneous  income of
$25,200 and decreased service charge income of $11,600, offset by an increase in
net gains from the sale of loans of $9,600. The decrease in miscellaneous income
is a result of  recognition  of a $21,300  gain on the sale of other real estate
owned and  proceeds  received  of $6,000  from a  winning  raffle  ticket in the
quarter  ended  December  31, 2000.  See  "Comparison  of Operating  Results for
quarter  ended  March 31,  2002  compared  to  quarter  ended  March 31,  2001 -
Non-Interest Income. "

Non-Interest Expense

Total  non-interest  expense increased $415,800 or 18.9% from $2,194,900 for the
nine months ended March 31, 2001 to  $2,610,700  for the nine months ended March
31, 2002. The most significant  changes in non-interest  expenses were increases
in compensation  and benefits,  data processing,  occupancy costs,  professional
fees,  stationary,  printing,  and office supplies. The increase in compensation
and benefits  expense  reflects  increases  of $115,200 in general  salaries and
benefits  expense  primarily due to the hiring of a project  manager for the new
branch purchase in September 2001, the hiring of nine employees to staff the new
branch and the hiring of two  additions to staff in current  nine-month  period.
Also,  contributing  to  this  increase  were  general  merit  increases.  Other
increases in  compensation  and  benefits  were,  $17,000 in expense  related to
employee stock  compensation  plans,  and $57,400 due to the repurchase of stock
from an employee  exercise/sale of stock.  Data processing  expense increased by
$78,500 due to increased  service  bureau  expense  resulting from growth in the
number of deposit and loan accounts  serviced and a change in our service bureau
provider.  The increase in professional  fees of $23,400 was due to increases in
audit,  accounting,  and legal  fees.  Occupancy  costs  increased  $49,400  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 and equipment purchased for the new branch.  Stationary,  printing
and office supplies increased $26,900 primarily as the result of the purchase of
new forms during the first  2002-quarter  for the Bank's new service  bureau and
the purchase of forms and supplies for the new branch.

                                       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
         ---------------------------------------------------

                  Not applicable.


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****
         --------------
         *        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.

                                       16



<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:    May 7, 2002             /s/Jerry R. Spurlin
                                 -----------------------------------------------
                                 Jerry R. Spurlin
                                 Assistant Secretary and Chief Financial Officer
                                 (Duly Authorized Representative and
                                 Principal Financial Officer)


                                       17