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 September 30, 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                              (I.R.S. Employer
Incorporation 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 October 31, 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
            September 30, 2002 and June 30, 2002                                      3

        Condensed Consolidated Statements of Earnings and Comprehensive Earnings
            Three months ended September 30, 2002 and September 30, 2001              4

        Condensed Consolidated Statements of Cash Flows
            Three months ended September 30, 2002 and September 30, 2001              6

        Notes to Condensed Consolidated Financial Statements                          8

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

Item 3. Controls and Procedures                                                       9

                        PART II. OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K                                             14

        Signatures                                                                   15

</TABLE>
                                        2
<PAGE>

                               GFSB Bancorp, Inc.

            CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

<TABLE>
<CAPTION>

                                                         September 30,       June 30,
                                                              2002             2002
                                                         -------------    -------------
<S>                                                    <C>              <C>
                                     ASSETS

Cash and due from banks                                  $   4,798,839    $   4,825,439
Interest-bearing deposits with banks                         1,471,461          826,052
Available-for-sale investment securities                    22,348,193       23,973,426
Available-for-sale mortgage-backed securities               28,090,985       27,290,274
Held-to-maturity investment securities                       1,406,629        1,405,403
Stock of Federal Home Loan Bank, at cost, restricted         4,250,300        4,218,500
Loans receivable, net, substantially pledged               140,304,333      139,748,188
Accrued interest and dividends receivable                    1,042,870        1,073,201
Premises and equipment                                       2,456,835        2,511,173
Other real estate and repossessed property                     150,642          150,642
Prepaid and other assets                                       159,913          122,771
                                                         -------------    -------------

        TOTAL ASSETS                                     $ 206,481,000      206,145,069
                                                         =============    =============

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Transaction and NOW accounts                             $  22,141,212    $  20,417,085
Savings and MMDA deposits                                   18,712,552       17,305,540
Time deposits                                               73,199,980       72,626,849
Advances from Federal Home Loan Bank                        71,713,456       76,386,455
Repurchase agreements                                        1,610,174        1,234,857
Accrued interest payable                                       476,353          448,955
Advances from borrowers for taxes and insurance                593,572          416,575
Accounts payable and accrued liabilities                       252,998          245,409
Deferred income taxes                                          578,346          568,728
Dividends declared and payable                                 110,506          110,506
Income taxes payable                                           243,336            1,168
                                                         -------------    -------------

        TOTAL LIABILITIES                                  189,632,485      189,762,127
                                                         -------------    -------------


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 September 30, 2002 and June 30, 2002                      115,011          115,011
Additional paid-in-capital                                   2,790,894        2,761,251
Unearned ESOP stock                                           (191,766)        (207,926)
Retained earnings, substantially
  restricted                                                12,821,457       12,420,358
Accumulated other comprehensive
earnings                                                     1,312,919        1,294,248
                                                         -------------    -------------

        TOTAL STOCKHOLDERS' EQUITY                          16,848,515       16,382,942
                                                         -------------    -------------

        TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $ 206,481,000    $ 206,145,069
                                                         =============    =============
</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
                                                                                September 30,
                                                                           -----------------------
                                                                              2002         2001
                                                                           -----------  ----------
                                                                           (Unaudited)  (Unaudited)
<S>                                                                      <C>          <C>
Interest income
             Loans receivable
                                Mortgage loans                             $2,135,694   $2,144,160
                                Commercial loans                              331,480      353,267
                                Share and consumer loans                      108,963      125,834
             Investment and mortgage-backed securities                        638,059      793,370
             Other interest-earning assets                                     32,805       45,000
                                                                           ----------   ----------
                                TOTAL INTEREST EARNINGS                     3,247,001    3,461,631

Interest expense
             Deposits                                                         794,345    1,213,486
             Advances from Federal Home Loan Bank                             804,994      877,910
             Repurchase agreements                                              2,142        8,502
                                                                           ----------   ----------

                                TOTAL INTEREST EXPENSE                      1,601,481    2,099,898
                                                                           ----------   ----------

                                NET INTEREST EARNINGS                       1,645,520    1,361,733

Provision for loan losses                                                      25,000       50,007
                                                                           ----------   ----------

                                NET INTEREST EARNINGS AFTER
                                  PROVISION FOR LOAN LOSSES                 1,620,520    1,311,726
                                                                           ----------   ----------
Non-interest earnings
             Income from real estate operations                                 2,200            -
             Miscellaneous income                                              12,165       12,587
             Net gains from sales of loans                                     15,206       10,125
             Service charge income                                             98,779       70,006
                                                                           ----------   ----------

                                TOTAL NON-INTEREST EARNINGS                   128,350       92,718
                                                                           ----------   ----------
Non-interest expense
             Compensation and benefits                                        538,306      419,505
             FDIC insurance                                                     4,329        4,760
             Insurance                                                         12,288        8,787
             Stock services                                                     3,944        2,613
             Occupancy                                                        136,040      101,712
             Data processing                                                   68,072       92,417
             Professional fees                                                 33,648       46,880
             Advertising                                                       35,713       20,833
             Stationary, printing and office supplies                          44,828       29,345
             ATM expense                                                       15,357       12,297
             Supervisory exam fees                                             13,900       15,558
             Postage                                                           12,319       16,577
             Other                                                             77,055       68,592
                                                                           ----------   ----------
                                TOTAL NON-INTEREST EXPENSE                    995,799      839,876
                                                                           ----------   ----------
</TABLE>
                                        4


<PAGE>

                               GFSB Bancorp, Inc.

                  CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                     AND COMPREHENSIVE EARNINGS - CONTINUED

<TABLE>
<CAPTION>
                                                                   Three months ended   Three months ended
                                                                     September 30,       September 30,
                                                                 -----------------------------------------
                                                                      2002                   2001
                                                                 -----------------------------------------
<S>                                                             <C>                    <C>
                                                                      (Unaudited)            (Unaudited)

                                EARNINGS BEFORE INCOME TAXES             753,071                564,568

Income tax expense
             Currently payable                                           241,468                173,688
             Deferred provision                                                -                      -
                                                                 ----------------       ----------------
                                                                         241,468                173,688
                                                                 ----------------       ----------------

                                NET EARNINGS                     $       511,603        $       390,880
                                                                 ================       ================



Other Comprehensive Earnings
             Unrealized gain, net of tax                                  18,671                149,823
                                                                 ----------------       ----------------
                                COMPREHENSIVE EARNINGS                   530,274                540,703
                                                                 ================       ================

Earnings per common share
             Basic                                               $          0.46                   0.36
                                                                 ================       ================
Weighted average number of common shares outstanding
             Basic                                                     1,112,130              1,100,443
                                                                 ================       ================
Earnings per common share
             Diluted                                                        0.44                   0.34
                                                                 ================       ================
Weighted average number of common shares outstanding
             Diluted                                                   1,156,063              1,140,381
                                                                 ================       ================

Comprehensive earnings per common share
             Basic                                                          0.48                   0.49
                                                                 ================       ================

             Diluted                                                        0.46                   0.47
                                                                 ================       ================

Dividends per share                                                         0.10                   0.09
                                                                 ================       ================
</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>
                                                                     Three months ended
                                                                        September 30,
                                                                 --------------------------
                                                                     2002           2001
                                                                 -----------    -----------
<S>                                                            <C>            <C>
                                                                  (Unaudited)    (Unaudited)
Cash flows from operating activities
           Net earnings                                          $   511,603    $   390,880
           Adjustments to reconcile net earnings to
             net cash provided by operations
                     Deferred loan origination fees                  (55,277)       (62,524)
                     Gain on sale of loans                           (15,206)       (10,125)
                     Provision for loan losses                        25,000         50,007
                     Depreciation of premises and equipment           71,665         52,877
                     Amortization of investment and mortgage-
                       backed securities premiums                    (11,094)        62,675
                     Stock dividends on FHLB stock                   (31,800)       (33,500)
                     Release of ESOP stock                            45,803         37,653
                     Stock compensation                                7,687          4,162


           Net changes in operating assets and liabilities
                     Accrued interest and dividends receivable        30,331        (42,200)
                     Prepaid and other assets                        (37,142)      (143,095)
                     Accrued interest payable                         27,398         (8,589)
                     Accounts payable and accrued liabilities            (98)        21,869
                     Repurchase agreements                           375,317         85,948
                     Income taxes payable                            242,168       (195,854)
                                                                 -----------    -----------

                               Net cash provided by
                               operating activities                1,186,355        210,184
                                                                 -----------    -----------

Cash flows from investing activities
           Purchase of premises and equipment                        (17,327)       (63,437)
           Loan originations and principal
             repayment on loans, net                                (510,662)     1,417,193
           Principal payments on mortgage-backed
             securities                                            2,291,281      2,877,594
           Purchases of mortgage-backed securities                (3,141,114)             -
           Purchases of available-for-sale securities                (22,358)    (3,992,187)
           Maturities and proceeds from sale of
             available-for-sale securities                            85,000        200,000
           Principal payments on available-for-sale securities     1,649,872        713,433
           Purchase of FHLB stock                                          -           (800)
                                                                 -----------    -----------
                               Net cash provided by
                               investing activities                  334,692      1,151,796
                                                                 -----------    -----------
</TABLE>

                                        6

<PAGE>

                                       GFSB Bancorp, Inc.

                   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

                        Increase (decrease) in cash and cash equivalents

<TABLE>
<CAPTION>
                                                                       Three months ended  Three months ended
                                                                         September 30,        September 30,
                                                                      -----------------------------------------
                                                                           2002                   2001
                                                                      ---------------      --------------------
                                                                          (Unaudited)               (Unaudited)
<S>                                                               <C>                  <C>
Cash flows from financing activities
           Net decrease in transaction accounts, passbook
             savings, money market accounts, and
             certificates of deposit                                  $    3,704,270        $          909,708
           Net increase in mortgage escrow funds                             176,997                   178,531
           Proceeds from FHLB advances                                    91,986,387               165,567,462
           Repayments on FHLB advances                                   (96,659,386)             (167,972,255)
           Dividends paid or to be paid in cash                             (110,506)                 (103,510)
           Price paid for vested management bonus
              stock plan stock                                                     -                     5,550
                                                                      ---------------      --------------------
                               Net cash used by
                               financing activities                         (902,238)               (1,414,514)
                                                                      ---------------      --------------------
           Increase (decrease) in cash and cash equivalents                  618,809                   (52,534)

           Cash and cash equivalents at beginning of period                5,651,491                 4,262,254
                                                                      ---------------      --------------------

           Cash and cash equivalents at end of period                 $    6,270,300                 4,209,720
                                                                      ===============      ====================

Supplemental disclosures of cash flow information
           Cash paid during the period for
                     Interest on deposits and advances                $    1,574,084       $         2,099,985
                     Income taxes                                                  -                   415,511

           Change in unrealized gain, net of deferred
             taxes on available-for-sale securities                           18,671                   149,823

           Dividends declared not yet paid                                   110,506                    98,453
</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 and
comprehensive  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 accounting  principles generally accepted
in the United States of America 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, 2002.

                                       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,  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.


Item 3.  CONTROLS AND PROCEDURES

         (a) Evaluation of disclosure  controls and  procedures.  Based on their
             --------------------------------------------------
evaluation  as of a date  within 90 days of the  filing  date of this  Quarterly
Report  on  Form  10-QSB,  the  Registrant's  principal  executive  officer  and
principal  financial  officer have  concluded that the  Registrant's  disclosure
controls and procedures (as defined in Rules  13a-14(c) and 15d-14(c)  under the
Securities  Exchange Act of 1934 (the  "Exchange  Act")) are effective to ensure
that  information  required to be  disclosed  by the Company in reports  that it
files or submits under the Exchange Act is recorded,  processed,  summarized and
reported within the time periods specified in Securities and Exchange Commission
rules and forms.

         (b) Changes in internal controls.  There were no significant changes in
             ----------------------------
the Registrant's  internal controls or in other factors that could significantly
affect these controls subsequent to the date of their evaluation,  including any
corrective  actions  with  regard  to  significant   deficiencies  and  material
weaknesses.

                                       9
<PAGE>

RESULTS OF OPERATIONS

COMPARISON OF OPERATING RESULTS FOR QUARTER ENDED SEPTEMBER 30, 2002 COMPARED TO
QUARTER ENDED SEPTEMBER 30, 2001.

General

Net earnings for the three months ended September 30, 2002 increased $121,000 to
$512,000  from  $391,000  for the three  months ended  September  30, 2001.  The
increase in net earnings is primarily  the result of an increase in net interest
earnings of $284,000,  a $25,000 decrease in the provision for loan losses and a
$35,000  increase in  non-interest  earnings,  offset by a $156,000  increase in
non-interest expense and a $67,000 increase in income tax expense.  Please refer
to "Average  Balance  Sheets"  for an  analysis  of the changes in net  interest
earnings for the three months ended September 30, 2002 compared to the same 2001
period.

                                       10
<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 annual 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 September 30, 2002             Quarter ended September 30, 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)               $140,319        $2,576           7.34%       $129,249         $2,623           8.12%
Investment securities and
 mortgage-backed securities          51,768           638           4.93%         56,099            793           5.65%
Other interest-earning
  assets (2)                          5,150            33           2.56%          4,754             45           3.79%
                                   --------        ------                       --------         ------
Total interest-earning assets       197,237         3,247           6.58%        190,102          3,461           7.28%
                                                    -----                                         -----
Non-interest-earning assets           8,835                                        5,729
                                   --------                                     --------
Total assets                       $206,072                                     $195,831
                                   ========                                     ========

Interest-bearing liabilities:
  Transaction accounts              $ 8,747          $ 18           .82%        $ 7,614          $   24          1.26%
  Passbook savings                    5,440            17          1.25%          4,677              16          1.37%
  Money market accounts              12,235            37          1.21%          9,473              58          2.45%
  Certificates of deposit            73,533           722          3.93%         77,591           1,116          5.75%
  Other liabilities (3)              75,030           807          4.30%         70,828             886          5.00%
                                   --------        ------                       --------         ------
Total interest-bearing
   liabilities                      174,985         1,601          3.66%        170,183           2,100          4.94%
                                                    -----                                         -----
Non-interest bearing
   liabilities                       14,407                                      10,411
                                   --------                                     --------

Total liabilities                   189,392                                     180,594

Stockholders' equity                 16,680                                      15,237
                                   --------                                     --------
Total liabilities and
  stockholders' equity             $206,072                                    $195,831
                                   ========                                    ========

Net interest income                                $1,646                                        $1,361
                                                   ======                                        ======
Interest rate spread (4)                                           2.92%                                         2.34%
                                                                   ====                                          ====
Net yield on interest-
  earning  assets (5)                                              3.34%                                         2.86%
                                                                   ====                                          ====
Ratio of average interest-
Earning assets to average
interest-bearing  liabilities                                      1.13X                                         1.12X
                                                                   ====                                          ====
</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.

                                       11
<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 September 30, 2002 vs.
                                                          2001
                                                  Increase (Decrease)
                                                         Due to
                                           -------------------------------------
                                                                Rate/
                                           Volume     Rate      Volume       Net
                                           ------     ----      ------     -----
                                                 (Dollars in Thousands)
Interest income:
  Loans receivable                           $225    $(252)      $(21)    $ (48)
  Mortgage-backed securities and
     investment securities                    (61)    (101)         7      (155)
  Other interest-earning  assets                4      (15)        (1)      (12)
                                             ----    -----       ----      ----
    Total interest-earning assets             168     (368)       (15)     (215)

Interest expense:

  Transaction accounts                          3       (8)        (1)       (6)
  Savings accounts                              3       (1)        (1)         1
  Money markets                                17      (29)        (9)      (21)
  Certificates of deposit                     (58)    (353)        17      (394)
  Other liabilities                            53     (124)        (8)      (79)
                                             ----    -----       ----      ----
   Total interest-bearing liabilities          18     (515)        (2)     (499)
                                             ----    -----       ----      ----

Net change in interest income               $ 150    $ 147       $(13)    $(284)
                                            =====    =====      =====     =====

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 $25,000 and $50,000 for the
quarters ended  September 30, 2002 and 2001,  respectively.  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,  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.


                                       12

<PAGE>

Non-Interest Earnings

Total  non-interest  earnings  increased by $35,000 or 37.6% to $128,000 for the
quarter ended  September  30, 2002 from $93,000 for the quarter ended  September
30, 2001.  This  increase  was  primarily  due to an increase in service  charge
income of $29,000,  which was the result of increased insufficient funds charges
collected on NOW and Checking accounts.

Non-Interest Expense

Total  non-interest  expense  increased  $156,000 or 18.6% to  $996,000  for the
quarter ended  September 30, 2002 from $840,000 for the quarter ended  September
30, 2001. The most significant  changes in non-interest  expenses were increases
in  compensation  and benefits,  occupancy  costs,  advertising  and stationary,
printing  and  office  supplies,  offset by  decreases  in data  processing  and
professional  fees. The $119,000  increase in compensation  and benefits expense
reflects a $98,000 increase in general  salaries and benefits expense  primarily
due to the hiring of nine  employees  to staff the Bank's new branch and general
merit increases in administrative and other employee  salaries,  Other increases
in  compensation  and benefits  include  $12,000 in expense  related to employee
stock  compensation  plans  and  $9,000  in  expense  related  to  director  fee
compensation.  Occupancy costs  increased  $34,000 due primarily to increases in
depreciation  for  furniture,  fixtures,  and  equipment,  maintenance  contract
expense and other  occupancy costs  associated with  maintaining the new branch.
Advertising  expense  increased  $15,000  primarily due to the Bank's efforts to
achieve growth in the  Farmington,  New Mexico  market,  where the new branch is
located.  Stationary,  printing and office supplies  increased $15,000 primarily
due to the purchase of forms and supplies  for the new branch.  Data  processing
decreased  $24,000 primarily due to higher service bureau expense in the quarter
ended September 30, 2001 due to a change to a new service provider. Professional
fees  decreased  $13,000  primarily due to lower legal fees in the quarter ended
September 30, 2002.

                                       13
<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****
               99.0    Certification pursuant to 18 U.S.C. Section 1350,
                         as adopted pursuant to Section 906 of the
                         Sarbanes-Oxley Act of 2002

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

          *    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.


                                       14

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


                                       15
<PAGE>

                            SECTION 302 CERTIFICATION


     I, Richard C. Kauzlaric, certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of GFSB Bancorp, Inc.:

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     (a)  designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     (b)  evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     (c)  presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's  other certifying  officer and I have disclosed,  based on
     our most recent  evaluation,  to the  registrant's  auditors  and the audit
     committee of  registrant's  board of directors (or persons  performing  the
     equivalent functions):

     (a)  all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     (b)  any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6.   The  registrant's  other  certifying  officer and I have  indicated in this
     quarterly  report  whether  there  were  significant  changes  in  internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.



Date:  November 13, 2002              /s/ Richard C. Kauzlaric
       --------------------------     ------------------------------------------
                                      Richard C. Kauzlaric
                                      President

                                       16
<PAGE>

                            SECTION 302 CERTIFICATION


     I,   Jerry R. Spurlin, certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of GFSB Bancorp, Inc.:

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     (a)  designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     (b)  evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     (c)  presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's  other certifying  officer and I have disclosed,  based on
     our most recent  evaluation,  to the  registrant's  auditors  and the audit
     committee of  registrant's  board of directors (or persons  performing  the
     equivalent functions):

     (a)  all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     (b)  any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6.   The  registrant's  other  certifying  officer and I have  indicated in this
     quarterly  report  whether  there  were  significant  changes  in  internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.



Date:  November 13, 2002            /s/ Jerry R. Spurlin
       -----------------------      --------------------------------------------
                                    Jerry R. Spurlin
                                    Chief Financial Officer


                                       17