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


                                   FORM 10-QSB


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

                  For the quarterly period ended March 31, 2005
                                                 --------------

                                       OR

               [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF
                                THE EXCHANGE ACT

               For the transition period from ________ to ________


                         Commission file number: 0-25854


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


Delaware                                                        85-0430841
--------------------------------------------                -------------------
(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) 726-6500
                                                             --------------

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 May 11, 2005,  there were issued and outstanding  1,188,486  shares of the
registrant's Common Stock.

Transitional Small Business Disclosure format:
                      Yes                       No        X
                           -------------             ------------


<PAGE>

                               GFSB Bancorp, Inc.

                                      Index

<TABLE>
<CAPTION>

                                                                                          Page No.

                          PART I. FINANCIAL INFORMATION
<S>                                                                                        <C>

Item 1.    Condensed Consolidated Financial Statements:

           Condensed Consolidated Statements of Financial Condition
               March 31, 2005 and June 30, 2004                                               3

           Condensed Consolidated Statements of Earnings and Comprehensive Earnings
               Three months and nine months ended March 31, 2005 and March 31, 2004           4

           Condensed Consolidated Statements of Cash Flows
               Nine months ended March 31, 2005 and March 31, 2004                            6

           Notes to Condensed Consolidated Financial Statements                               8

Item 2.    Management's Discussion and Analysis of Financial Condition and                    9
               Results of Operations

Item 3.    Controls and Procedures                                                           18

                           PART II. OTHER INFORMATION

Item 1.    Legal Proceedings                                                                 19

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds                       19

Item 3.    Defaults Upon Senior Securities                                                   19

Item 4.    Submission of Matters to a Vote of Security Holders                               19

Item 5.    Other Information                                                                 19

Item 6.    Exhibits                                                                          19

           Signatures                                                                        21

</TABLE>
                                        2

<PAGE>

                               GFSB Bancorp, Inc.

            CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

<TABLE>
<CAPTION>
                                                                        March 31,       June 30,
                                                                          2005            2004
                                                                     -------------    -------------
                                                                       (Unaudited)
<S>                                                                <C>              <C>
                                     ASSETS

Cash and due from banks                                              $   6,930,156    $   7,840,712
Interest-bearing deposits with banks                                       312,600          866,281
Available-for-sale investment securities                                25,301,589       30,518,828
Available-for-sale mortgage-backed securities                           24,567,852       30,680,195
Held-to-maturity investment securities                                     389,999          398,999
Stock of Federal Home Loan Bank, at cost, restricted                     3,393,900        4,409,200
Loans receivable, net, substantially pledged                           143,326,159      152,430,322
Loans held-for-sale                                                           --            411,400
Accrued interest and dividends receivable                                  849,975          859,298
Premises and equipment                                                   2,366,131        2,513,992
Other real estate and repossessed property                                 283,262          437,211
Prepaid and other assets                                                   153,707          445,847
Deferred tax asset                                                         295,917          275,125
                                                                     -------------    -------------

         TOTAL ASSETS                                                $ 208,171,247    $ 232,087,410
                                                                     =============    =============

                      LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Transaction and NOW accounts                                         $  33,193,188    $  28,987,811
Savings and MMDA deposits                                               22,994,734       21,501,954
Time deposits                                                           80,321,466       83,369,991
Advances from Federal Home Loan Bank                                    46,629,681       73,652,218
Other secured borrowings                                                 4,021,948        4,814,763
Repurchase agreements                                                      180,538          157,119
Accrued interest payable                                                   422,755          460,520
Advances from borrowers for taxes and insurance                            578,859          499,998
Accounts payable and accrued liabilities                                   387,634          369,595
Dividends declared and payable                                             137,904          140,895
                                                                     -------------    -------------

         TOTAL LIABILITIES                                             188,868,707      213,954,864
                                                                     -------------    -------------

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;  1,146,645 issued and outstanding
  at March 31, 2005 and June 30, 2004                                      114,665          114,665
Additional paid-in-capital                                               3,296,865        3,095,718
Unearned ESOP stock                                                         (3,682)         (68,048)
Retained earnings, substantially restricted                             15,344,196       14,440,118
Accumulated other comprehensive earnings                                   550,496          550,093
                                                                     -------------    -------------

         TOTAL STOCKHOLDERS' EQUITY                                     19,302,540       18,132,546
                                                                     -------------    -------------

         TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                  $ 208,171,247    $ 232,087,410
                                                                     =============    =============
</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,
                                                           ----------------------------------     --------------------------------
                                                                  2005                2004              2005               2004
                                                             ---------------------------------------------------------------------
                                                              (Unaudited)         (Unaudited)        (Unaudited)        (Unaudited)
<S>                                                    <C>                 <C>                <C>                <C>
Interest income
     Loans receivable
            Mortgage loans                               $     1,972,162     $     2,008,343    $     5,934,023    $     6,075,465
            Commercial loans                                     426,341             381,429          1,228,008          1,117,957
            Share and consumer loans                              97,118             104,884            301,094            320,214
     Investment and mortgage-backed securities                   452,643             553,797          1,386,256          1,579,976
     Other interest-earning assets                                26,859              17,389             70,922             65,967
                                                         ---------------     ---------------    ---------------    ---------------

            TOTAL INTEREST EARNINGS                            2,975,123           3,065,842          8,920,303          9,159,579

Interest expense
     Deposits                                                    595,049             666,258          1,801,414          2,166,025
     Advances from Federal Home Loan Bank                        548,284             659,373          1,757,161          2,036,789
     Repurchase agreements                                           841                   6              2,100                146
                                                         ---------------     ---------------    ---------------    ---------------

            TOTAL INTEREST EXPENSE                             1,144,174           1,325,637          3,560,675          4,202,960
                                                         ---------------     ---------------    ---------------    ---------------

            NET INTEREST EARNINGS                              1,830,949           1,740,205          5,359,628          4,956,619

Provision for loan losses                                              -             339,016             60,000            469,030
                                                         ---------------     ---------------    ---------------    ---------------

            NET INTEREST EARNINGS AFTER
              PROVISION FOR LOAN LOSSES                        1,830,949           1,401,189          5,299,628          4,487,589
                                                         ---------------     ---------------    ---------------    ---------------

Non-interest earnings
     Income from real estate operations                            4,585               1,350             13,084              4,900
     Miscellaneous income                                         16,973              12,184             53,643             78,060
     Net loss from sales of available-for-sale securities              -                   -                  -             (1,417)
     Net gains from sales of loans                                15,267               2,879             45,605             33,154
     Service charge income                                       204,393             170,488            639,673            518,577
                                                         ---------------     ---------------    ---------------    ---------------

            TOTAL NON-INTEREST EARNINGS                          241,218             186,901            752,005            633,274
                                                         ---------------     ---------------    ---------------    ---------------
Non-interest expense
     Compensation and benefits                                   593,657             561,408          1,863,050          1,782,997
     FDIC insurance                                               14,817               5,163             44,535             14,715
     Insurance                                                    15,805              14,410             48,142             39,321
     Stock services                                                6,629               4,504             16,345             24,469
     Occupancy                                                   128,879             142,071            374,675            415,158
     Data processing                                              96,944              95,339            288,617            279,199
     Professional fees                                           118,812              81,229            456,528            187,152
     Advertising                                                  55,650              58,656            147,176            165,212
     Stationery, printing and office supplies                     14,865              29,715             65,411             90,786
     ATM expense                                                  25,129              21,773             74,188             55,812
     Supervisory exam fees                                        23,692              16,042             71,525             45,213
     Postage                                                      45,060              18,136             69,891             56,977
     Other                                                        82,476             119,285            340,206            316,692
                                                         ---------------     ---------------    ---------------    ---------------

            TOTAL NON-INTEREST EXPENSE                         1,222,415           1,167,731          3,860,289          3,473,703
                                                         ---------------     ---------------    ---------------    ---------------
</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,
                                                           ----------------------------------     ---------------------------------
                                                                  2005                2004               2005              2004
                                                           ----------------------------------     ---------------------------------
                                                              (Unaudited)         (Unaudited)        (Unaudited)       (Unaudited)
<S>                                                    <C>                 <C>                <C>                  <C>
            EARNINGS BEFORE INCOME TAXES                 $       849,752     $       420,359    $     2,191,344      $   1,647,160

Income tax expense
     Currently payable                                           343,171             204,406            883,698            709,155
     Deferred (benefit)                                          (21,000)           (108,500)           (21,000)          (213,500)
                                                         ---------------     ---------------    ---------------    ---------------

                                                                 322,171              95,906            862,698            495,655
                                                         ---------------     ---------------    ---------------    ---------------

            NET EARNINGS                                 $       527,581     $       324,453    $     1,328,646      $   1,151,505
                                                         ===============     ===============    ===============      =============

Other comprehensive earnings
     Unrealized (loss) gain, net of tax                         (277,648)            105,094                403           (166,981)
                                                         ---------------     ---------------    ---------------    ---------------
            COMPREHENSIVE EARNINGS                       $       249,933     $       429,547    $     1,329,049      $     984,524
                                                         ===============     ===============    ===============      =============
Earnings per common share
     Basic                                               $          0.46     $          0.29    $          1.17      $        1.02
                                                         ===============     ===============    ===============      =============

Weighted average number of common shares outstanding
     Basic                                                     1,144,086           1,126,787          1,139,926          1,125,096
                                                         ===============     ===============    ===============      =============
Earnings per common share
     Diluted                                             $          0.44     $          0.27    $          1.11      $        0.97
                                                         ===============     ===============    ===============      =============

Weighted average number of common shares outstanding
     Diluted                                                   1,204,291           1,183,235          1,200,238          1,181,231
                                                         ===============     ===============    ===============      =============

Comprehensive earnings per common share
     Basic                                               $          0.22     $          0.38    $          1.17      $        0.88
                                                         ===============     ===============    ===============      =============
     Diluted                                             $          0.21     $          0.36    $          1.11      $        0.83
                                                         ===============     ===============    ===============      =============
Dividends per share                                      $         0.125     $         0.125    $         0.375      $       0.360
                                                         ===============     ===============    ===============      =============
</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,
                                                                      ----------------------------
                                                                           2005            2004
                                                                      ------------    ------------
                                                                        (Unaudited)     (Unaudited)
<S>                                                                  <C>             <C>
Cash flows from operating activities
    Net earnings                                                      $  1,328,646    $  1,151,505
    Adjustments to reconcile net earnings to
      net cash provided by operations
       Deferred loan origination fees                                     (411,233)       (413,928)
       Gain on sale of loans and securities                                (45,604)        (31,737)
       Provision for loan losses                                            60,000         469,030
       Depreciation of premises and equipment                              177,897         218,274
       Amortization of investment and mortgage-
         backed securities premiums                                        208,524         308,306
       Stock dividends on equity securities                               (265,600)        (60,000)
       Release of ESOP stock                                               265,512         203,052
       Stock compensation under management stock bonus plan                122,539          29,117
       (Benefit) for deferred income taxes                                 (21,000)       (213,500)

    Net changes in operating assets and liabilities
       Accrued interest and dividends receivable                             9,323        (118,709)
       Prepaid and other assets                                            (40,360)        (39,882)
       Accrued interest payable                                            (37,764)        (35,900)
       Accounts payable and accrued liabilities                           (131,599)        118,775
       Income taxes (receivable) payable                                   359,598         (98,146)
       Dividends declared and payable                                       (2,991)         18,381
                                                                      ------------    ------------
                       Net cash provided by
                       operating activities                              1,575,888       1,504,638
                                                                      ------------    ------------

Cash flows from investing activities
    Purchase of premises and equipment                                     (30,036)       (470,920)
    Loan originations and principal
      repayment on loans, net                                            7,921,799     (11,256,682)
    Change in other secured borrowings                                    (792,815)      1,325,621
    Proceeds from the sale of loans                                      2,144,550       2,137,557
    Principal payments on mortgage-backed
      securities                                                         6,028,125      10,943,433
    Principal payments on available-for-sale securities                  5,806,814       1,663,455
    Principal payments on held-to-maturity securities                        9,000           7,000
    Purchases of mortgage-backed securities                                      -      (7,649,914)
    Purchases of available-for-sale securities                          (3,017,500)     (5,331,514)
    Maturities and proceeds from sale of
      available-for-sale securities                                      2,502,232         700,000
    Maturities and proceeds from sale of held-to-maturity securites              -         270,000
    Redemption of FHLB stock                                             1,082,900               -
                                                                      ------------    ------------

                       Net cash provided/(used) by
                       investing activities                             21,655,069      (7,661,964)
                                                                      ------------    ------------
</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,
                                                                     ----------------------------------
                                                                            2005               2004
                                                                     ---------------    ---------------
                                                                         (Unaudited)         (Unaudited)
<S>                                                                <C>                <C>
Cash flows from financing activities
    Net increase in transaction accounts, passbook
      savings, money market accounts, and
      certificates of deposit                                        $     2,649,631    $     8,706,979
    Net increase in repurchase agreements                                     23,418             53,525
    Net increase in mortgage escrow funds                                    215,737            217,108
    Proceeds from FHLB advances                                          524,770,000      1,144,089,296
    Repayments on FHLB advances                                         (551,792,537)    (1,146,195,823)
    Net increase (decrease) in note payable                                 (136,875)           136,875
    Dividends paid or to be paid in cash                                    (424,568)          (402,483)
    Price paid for vested management bonus
       stock plan stock                                                            -              7,622
                                                                     ---------------    ---------------

                       Net cash provided/(used) by
                       financing activities                              (24,695,194)         6,613,099
                                                                     ---------------    ---------------

    Increase/(decrease) in cash and cash equivalents                      (1,464,237)           455,773

    Cash and cash equivalents at beginning of period                       8,706,993          7,252,358
                                                                     ---------------    ---------------

    Cash and cash equivalents at end of period                       $     7,242,756    $     7,708,131
                                                                     ===============    ===============

Supplemental disclosures of cash flow information
    Cash paid during the period for
       Interest on deposits and advances                             $     3,596,340    $     4,238,715
       Income taxes                                                          503,100            593,800

    Change in market value, net of deferred taxes on
      available-for-sale securities (other comprehensive earnings)               403           (166,981)

    Dividends declared not yet paid                                          137,904            140,848

</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 prepared in accordance with the instructions for Form 10-QSB and
therefore do not include all disclosures  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, 2004.

                                       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  that 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  that 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 savings and loan  holding  company  headquartered  in
Gallup,  New  Mexico,  which  provides a full range of deposit  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.

Proposed Merger

On August 25, 2004, the Company announced that it had signed a definitive merger
agreement with First Federal Banc of the Southwest,  Inc. ("FFBSW"), the holding
company for First  Federal  Bank,  Roswell,  New  Mexico,  pursuant to which the
Company will merge with and into FFBSW.

Under the terms of the agreement, upon consummation of the merger of the Company
into  FFBSW,  each  outstanding  share of the  Company's  common  stock  will be
converted into the right to receive either $20.00 in cash or FFBSW common stock,
at the election of the holder, subject to an overall requirement that 51% of the
Company's total outstanding common stock be exchanged for stock. The transaction
is subject to various  conditions,  including  stockholder  approval of both the
Company and FFBSW, and approval by the applicable banking regulatory agencies.

Pursuant  to the terms of the merger  agreement,  FFBSW has  agreed to  register
FFBSW's common stock under the Securities  Exchange Act of 1934 and it will file
reports with the  Securities  and  Exchange  Commission.  In addition,  upon the
completion of the merger, its shares are expected to be listed on the NASDAQ.

At a  meeting  held May 11,  2005  stockholders  of FFBSW  approved  the  merger
agreement.  Subject to approval of the merger  agreement by the  stockholders of
the Company at a meeting  scheduled for May 18, 2005,  the closing of the merger
is expected by June 1, 2005.

Comparison of Financial Condition at March 31, 2005 and June 30, 2004

Total assets  decreased by $23.9 million,  or 10.3%,  to $208.2 million at March
31, 2005 from $232.1  million at June 30, 2004  primarily  due to  decreases  in
available-for-sale   investment  and  mortgage-backed   securities,   net  loans
receivable,  cash and cash  equivalents,  stock of the  Federal  Home  Loan Bank
("FHLB"),  and loans held for sale.  The $11.3  million,  or 18.5%,  decrease in
available-for-sale investment and mortgage-backed securities to $49.9 million at
March 31, 2005 from $61.2 million at June 30, 2004,  was primarily the result of
normal monthly  principal  payments  received on the securities owned. Net loans
receivable  decreased  $9.1 million,  or 6.0%, to $143.3  million,  at March 31,
2005,  from $152.4  million at June 30, 2004,  primarily  due to normal  monthly
principal  payments  received on the loans.  Cash and cash  equivalents  of $7.2
million  held at March 31, 2005 was $1.5 million or 16.8% less than the June 30,
2004 balance of $8.7 million,  primarily due to normal daily  fluctuations and a
decision by management to reduce the level of cash for the purpose of increasing
profitability  through an increase in the level of interest  earning

                                       9

<PAGE>

assets and also for the purpose of reducing  cash  exposure  risk.  The stock of
FHLB  decreased $1.0 million,  or 23.0%,  to $3.4 million at March 31, 2005 from
$4.4 million at June 30, 2004,  primarily due to quarterly stock  redemptions by
the FHLB.  There were no loans held for sale at March 31, 2005, while there were
$0.4 million in loans held for sale at June 30, 2004, resulting in a decrease of
$0.4 million,  or 100.0%. This change was primarily a matter of timing, as there
has been no change in the Company's plan to sell certain longer-term, fixed-rate
one- to four-family  loans in the secondary  market.  The remaining $1.5 million
decrease in assets  during the  nine-month  period  ended March 31, 2005 was the
result of small changes in various asset accounts including accrued interest and
dividends receivable,  premises and equipment, other real estate and repossessed
property, deferred tax asset, and prepaid and other assets.

Total liabilities  decreased $25.1 million, or 11.7% mostly due to a decrease in
FHLB advances of $27.0 million or 36.7% to $46.6 million at March 31, 2005, from
$73.7 million at June 30, 2004. Total deposits  increased $2.6 million,  or 2.0%
to $136.5 million at March 31, 2005 from $133.9  million at June 30, 2004,  with
the increase made up of a $5.7 million or 11.3% increase in transaction  and NOW
accounts and savings and MMDA  deposits  from $50.5  million at June 30, 2004 to
$56.2  million  at March 31,  2005  partially  offset by a $3.0  million or 3.7%
decrease in time  deposits to $80.3 million at March 31, 2005 from $83.4 million
at June 30, 2004.  The remaining $0.7 million  decrease in  liabilities  was the
result  of  changes  in  various  liability  accounts  including  other  secured
borrowings,  repurchase  agreements,  accrued  interest  payable,  advances from
borrowers for taxes and insurance,  dividends payable,  and accounts payable and
accrued liabilities.

Stockholders'  equity increased $1.2 million,  or 6.5% to $19.3 million at March
31,  2005 from $18.1  million at June 30,  2004,  primarily  due to  earnings of
$1.329 million for the nine-month  period ended March 31, 2005. The Company paid
a cash dividend of $0.125 per share, or $141,000, in the quarter ended September
30, 2004, a cash dividend of $0.125 per share, or $141,000, in the quarter ended
December 31, 2004, and a cash dividend of $0.125 per share, or $141,000,  in the
quarter ended March 31, 2005.

                                       10

<PAGE>

RESULTS OF OPERATIONS

COMPARISON  OF OPERATING  RESULTS FOR QUARTER  ENDED MARCH 31, 2005  COMPARED TO
QUARTER ENDED MARCH 31, 2004.

General

Net earnings for the quarter ended March 31, 2005 increased $203,000 to $528,000
($0.44 per  diluted  share)  from  $324,000  ($0.27 per  diluted  share) for the
quarter  ended March 31, 2004.  The increase in net earnings was  primarily  the
result of a $91,000 increase in net interest  earnings,  a $339,000  decrease in
the provision for loan losses, and a $54,000 increase in non-interest  earnings,
partially  offset by a $55,000  increase in non-interest  expense and a $226,000
increase in income tax expense.  Please refer to "Average Balance Sheets" for an
analysis of the changes in net interest earnings for the quarter ended March 31,
2005 compared to the quarter ended March 31, 2004.

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 March 31, 2005                 Quarter ended March 31, 2004
                                   ----------------------------                 ----------------------------
                                    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)               $146,506        $2,495          6.81%        $156,489         $2,494          6.37%
Investment securities and
 mortgage-backed securities          52,496           453          3.45%          67,459            554          3.28%
Other interest-earning
  assets (2)                          3,814            27          2.83%           4,013             17          1.69%
                                   --------        ------                       --------         ------

Total interest-earning assets       202,816         2,975          5.87%         227,961          3,065          5.38%
                                                    -----                                         -----
Non-interest-earning assets          11,246                                       11,492
                                   --------                                    --------

Total assets                       $214,062                                     $239,453
                                   ========                                     ========

Interest-bearing liabilities:
  Transaction accounts              $12,794          $ 11           .34%       $ 11,020          $    6           .22%
  Passbook savings                    9,201            17           .74%          7,702              16           .83%
  Money market accounts              12,926            31           .96%         12,305              24           .78%
  Certificates of deposit            81,496           536          2.63%         91,899             620          2.70%
  Other liabilities (3)              58,730           549          3.74%         80,750             659          3.26%
                                   --------        ------                       --------         ------
Total interest-bearing
   liabilities                      175,147         1,144          2.61%        203,676           1,325          2.60%
                                                    -----                                         -----
Non-interest bearing
   liabilities                       19,631                                      17,342
                                   --------                                    --------

Total liabilities                   194,778                                     221,018

Stockholders' equity                 19,284                                      18,435
                                   --------                                    --------
Total liabilities and
  stockholders' equity             $214,062                                    $239,453
                                   ========                                    ========

                                       11
<PAGE>

Net interest earnings                              $1,831                                      $1,740
                                                   ======                                      ======
Interest rate spread (4)                                           3.26%                                         2.78%
                                                                   ====                                          ====
Net yield on interest-
  earning  assets (5)                                              3.61%                                         3.05%
                                                                   ====                                          ====
Ratio of average interest-
Earning assets to average
interest-bearing  liabilities                                      1.16X                                         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,  repurchase  agreements and other
     secured borrowings.
(4)  Interest-rate spread represents the difference between the average yield on
     interest-earning   assets  and  the   average   cost  of   interest-bearing
     liabilities.
(5)  Net yield on interest - earning assets  represents net interest income as a
     percentage of average interest-earning assets.

Rate/Volume Analysis

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

                                     Quarter ended March 31, 2005 vs. 2004
                                               Increase (Decrease)
                                                      Due to
                                        --------------------------------
                                                           Rate/
                                        Volume    Rate    Volume     Net
                                        ------    ----    ------     ---
                                                 (Dollars in Thousands)
Interest income:
  Loans receivable                      $(159)   $ 172    $ (12)   $   1
  Mortgage-backed securities and
     investment securities               (123)      29       (7)    (101)
  Other interest-earning  assets           (1)      11        -       10
                                        -----    -----    -----    -----
    Total interest-earning assets        (283)     212      (19)     (90)
                                        -----    -----    -----    -----
Interest expense:

  Transaction accounts                      1        3        1        5
  Savings accounts                          3       (2)       -        1
  Money markets                             1        6        -        7
  Certificates of deposit                 (70)     (16)       2      (84)
  Other liabilities                      (179)      97      (28)    (110)
                                        -----    -----    -----    -----
   Total interest-bearing liabilities    (244)      88      (25)    (181)
                                        -----    -----    -----    -----

Net change in interest income           $ (39)   $ 124    $   6    $  91
                                        =====    =====    =====    =====

As shown in the above  tables,  average  annualized  yields on  interest-earning
assets improved  substantially  for the quarter ended March 31, 2005 compared to
the same quarter  during 2004.  Average yield on loans  receivable  increased 44
basis points to 6.81% for the quarter ended March 31, 2005 compared to 6.37% for
the  quarter  ended  March  31,  2004,  a 6.9%  improvement.  Average  yield  on
investment  and  mortgage-backed  securities  increased 17 basis points,  a 5.2%
increase,  from  3.28% for the  quarter  ended  March 31,  2004 to 3.45% for the
quarter ended March 31, 2005. Yields on other  interest-earning  assets improved
114 basis points,  or 67.5%, to 2.83% in the most recent quarter,  from 1.69% in
the same period a year ago.  These  improvements  reflect a general  increase in
interest  rates over the  period,  as well as  management  decisions  to improve
average yields through better pricing discipline.

Additionally,  as seen in the rate/volume analysis table, the improved yields on
interest-earning  assets  partially  offset a decrease in asset balances,  which
resulted from management's focus on improving yields and asset quality.

                                       12
<PAGE>

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 none and $339,000 for the
quarters  ended  March 31,  2005 and 2004,  respectively.  The  decrease  in the
provision for loan losses for the current quarter compared to the same quarter a
year earlier is primarily due to  improvement  in loan quality and the fact that
the Company's  loan  portfolio  decreased  during the period.  While the Company
maintains  its allowance for losses at a level that 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.

Non-Interest Earnings

Total  non-interest  earnings  increased by $54,000 or 29.1% to $241,000 for the
quarter ended March 31, 2005 from $187,000 for the quarter ended March 31, 2004.
This increase was primarily due to a $34,000  increase in service charge income,
a  $12,000  increase  in  gains  from  sales of  loans,  a  $5,000  increase  in
miscellaneous  income,  and  a  $3,000  increase  in  income  from  real  estate
operations.  The  $34,000  increase in service  charge  income was mainly due to
increased  account  analysis  service  charges and increased  insufficient-funds
charges collected on transaction accounts.

Non-Interest Expense

Total  non-interest  expense  increased  $55,000 or 4.7% to  $1,222,000  for the
quarter  ended March 31, 2005 from  $1,168,000  for the quarter  ended March 31,
2004.  The  increase in  non-interest  expense  was  primarily  attributable  to
increases  in  professional  fees,  compensation  and  benefits,  postage,  FDIC
insurance, supervisory exam fees, and ATM expense, partially offset by decreases
in stationery,  printing and office supplies, occupancy, and other expenses. The
$38,000  increase in  professional  fees for the quarter ended March 31, 2005 is
primarily  attributable  to  increases  in  legal  fees and  other  professional
services in connection with the Agreement and Plan of Merger between the Company
and First  Federal  Banc of the  Southwest,  Inc.  announced on August 25, 2004.
Compensation and benefits increased $32,000, primarily due to increased accruals
for performance  bonuses.  The $27,000  increase in postage expense is primarily
attributable  to an increase  mailing  costs due to  increased  mailings  due to
growth in the number of deposit accounts. The $10,000 increase in FDIC insurance
was primarily due to an increase in the FDIC assessment.  The $8,000 increase in
supervisory  exam fees was  primarily due to an increase in the Office of Thrift
Supervision supervisory exam fees assessment. The $3,000 increase in ATM expense
is  primarily  attributable  to an increase  in the volume of ATM  transactions.
Stationery,  printing, and office supplies expense decreased $15,000,  primarily
due to expenses  associated with the opening of a new branch in the year-earlier
period.  Occupancy  expense  decreased  $13,000,  primarily due to a decrease in
depreciation  expense for  furniture,  fixtures and  equipment.  Other  expenses
decreased  $37,000,  primarily  due to  decreases  in  loss  on  sale  of  other
repossessed assets, correspondent bank expense, charitable contributions,  other
operational shortages and organizational dues and subscriptions.

Borrowings

The Company may obtain advances from the FHLB of Dallas to supplement its supply
of  funds  available  for  loans  and  investments.  Advances  from the FHLB are
typically  secured by a pledge of the Company's  stock in the FHLB, a portion of
the Company's  first mortgage  loans and certain other assets.  Each FHLB credit
program has its own interest rate, which may be fixed or variable,  and range of
maturities. The Company, if the need arises, may also access the Federal Reserve
Bank discount  window to supplement its supply of funds  available for loans and
investments and to meet deposit withdrawal requirements.  For the quarters ended
March 31,  2005 and March 31,  2004,  borrowings  with the FHLB  averaged  $52.2
million and $75.4 million,  respectively.  The approximate weighted-average rate
paid on borrowings was 3.74% and 3.92% for the quarters ended March 31, 2005 and
March 31, 2004, respectively.

                                       13

<PAGE>

RESULTS OF OPERATIONS

COMPARISON OF OPERATING  RESULTS FOR THE NINE-MONTH  PERIOD ENDED MARCH 31, 2005
COMPARED TO THE NINE-MONTH PERIOD ENDED MARCH 31, 2004.

General

Net earnings for the nine-month  period ended March 31, 2005 increased  $177,000
to $1,329,000  compared to net earnings of $1,152,000 for the nine-month  period
ended March 31, 2004. The increase in net earnings was primarily the result of a
$403,000 increase in net interest earnings, a $409,000 decrease in the provision
for loan losses,  and a $119,000  increase in non-interest  earnings,  partially
offset by a $387,000 increase in non-interest expense and a $367,000 increase in
income tax expense.  Please refer to "Average Balance Sheets" for an analysis of
the change in net interest  earnings for the  nine-month  period ended March 31,
2005 compared to the nine-month period ended March 31, 2004.

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, 2005                                 March 31, 2004
                                             --------------                                 --------------
                                    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)               $150,000        $7,463          6.63%       $155,794        $7,514            6.43%
Investment securities and
 Mortgage-backed securities          56,544         1,386          3.27%         67,055         1,580            3.14%
Other interest-earning
  assets (2)                          3,838            71          2.47%          3,899            66            2.26%
                                   --------        ------                      --------        ------

Total interest-earning assets       210,382         8,920          5.65%        226,748         9,160            5.39%
Non-interest-earning assets          12,079                                      11,783
                                   --------                                    --------

Total assets                       $222,461                                    $238,531
                                   ========                                    ========

Interest-bearing liabilities:
  Transaction accounts              $12,645          $ 34           .36%        $10,586        $   24             .30%
  Passbook savings                    9,180            52           .76%          7,064            50             .94%
  Money market accounts              12,990            92           .94%         12,604            82             .87%
  Certificates of deposit            82,622         1,623          2.62%         90,948         2,010            2.95%
  Other liabilities (3)              66,593         1,759          3.52%         81,924         2,037            3.32%
                                   --------        ------                      --------        ------
Total interest-bearing
   liabilities                      184,030         3,560          2.58%        203,126         4,203            2.76%
Non-interest bearing
   liabilities                       19,437                                      17,415
                                   --------                                    --------

Total liabilities                   203,467                                     220,541

Stockholders' equity                 18,994                                      17,990
                                   --------                                    --------
Total liabilities and
  Stockholders' equity             $222,461                                    $238,531
                                   ========                                    ========

                                       14

<PAGE>

Net interest income                                $5,360                                      $4,957
                                                   ======                                      ======
Interest rate spread (4)                                           3.07%                                         2.63%
                                                                   ====                                          ====
Net yield on interest-
  earning assets (5)                                               3.40%                                         2.91%
                                                                   ====                                          ====
Ratio of average interest-
  earning assets to average
  interest-bearing liabilities                                     1.14X                                         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,  repurchase  agreements and other
     secured  borrowings.  The  FHLB  borrowings  are  adversely  affecting  the
     Company's net interest  earnings  because some of them bear fixed  interest
     rates that are above current market rates.  These  borrowings will continue
     to  adversely  affect net  interest  earnings  unless paid off early,  at a
     significant penalty, or unless market rates increase.
(4)  Interest-rate spread represents the difference between the average yield on
     interest-earning   assets  and  the   average   cost  of   interest-bearing
     liabilities.
(5)  Net yield on interest - earning assets  represents net interest income as a
     percentage of average interest-earning assets.

Rate/Volume Analysis

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

                                                Nine-month period ended
                                                March 31, 2005 vs. 2004
                                                  Increase (Decrease)
                                                         Due to
                                           ------------------------------------
                                                               Rate/
                                            Volume     Rate    Volume      Net
                                            ------     ----    ------      ---
                                                   (Dollars in Thousands)
Interest income:

  Loans receivable                           $(279)   $ 234    $  (6)   $ (51)
  Mortgage-backed securities and
     investment securities                    (248)      65      (11)    (194)
  Other interest-earning assets                 (1)       6        -        5
                                             -----    -----    -----    -----
    Total interest-earning assets             (528)     305      (17)    (240)
                                             -----    -----    -----    -----
Interest expense:

  Transaction accounts                           5        5        -       10
  Savings accounts                              15      (10)      (3)       2
  Money markets                                  3        7        -       10
  Certificates of deposit                     (184)    (225)      22     (387)
  Other liabilities                           (382)     123      (19)    (278)
                                             -----    -----    -----    -----
   Total interest-bearing liabilities         (543)    (100)       -     (643)
                                             -----    -----    -----    -----

Net change in interest income                $  15    $ 405    $ (17)   $ 403
                                             =====    =====    =====    =====

As shown in the above  tables,  average  annualized  yields on  interest-earning
assets  improved for the nine months  ended March 31, 2005  compared to the same
period in the prior fiscal year. Average yield on loans receivable  increased 20
basis points to 6.63% for the nine months ended March 31, 2005 compared to 6.43%
for the nine months ended March 31, 2004, a 3.1%  improvement.  Average yield on
investment  and  mortgage-backed  securities  increased 13 basis points,  a 4.1%
increase,  from 3.14% for the nine months  ended March 31, 2004 to 3.27% for the
nine  months  ended  March 31,  2005.  Yields on other  interest-earning  assets
improved 21 basis points,  or 9.3%, to

                                       15

<PAGE>

2.47% in the  current  nine-month  period,  from 2.26% in the same period a year
ago. These  improvements  reflect a general  increase in interest rates over the
period, as well as management decisions to improve average yields through better
pricing discipline.

Additionally,  as seen in the rate/volume analysis table, the improved yields on
interest-earning  assets  partially  offset a decrease in asset balances,  which
resulted from management's focus on improving yields and asset quality.


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 losses was $60,000 and $469,000 for
the  nine-month  periods  ended  March  31,  2005 and  2004,  respectively.  See
"Comparison  of Operating  Results for the quarter ended March 31, 2005 compared
to quarter ended March 31, 2004 - Provision for Losses on Loans."

Non-Interest Earnings

Total  non-interest  earnings increased by $119,000 or 18.7% to $752,000 for the
nine-month  period ended March 31, 2005 from $633,000 for the nine-month  period
ended March 31, 2004.  This increase was primarily due to an increase in service
charge  income of  $121,000,  an  increase  of $8,000 in income from real estate
operations, and a $12,000 increase in gains from sales of loans partially offset
by a decrease in miscellaneous  income of $24,000. The decrease in miscellaneous
income is  primarily  due to gains on the sale of other real estate owned in the
nine-month  period  ended March 31, 2004 not  present in the  nine-month  period
ended March 31, 2005.  The increase in service charge income is primarily due to
increased  account  analysis  service  charges and increased  insufficient-funds
charges collected on NOW and checking accounts.

Non-Interest Expense

Total non-interest  expense increased $387,000,  or 11.1%, to $3,860,000 for the
nine-month period ended March 31, 2005 from $3,474,000 for the nine-month period
ended March 31,  2004.  The  increase  in  non-interest  expense  was  primarily
attributable to increases in professional fees,  compensation and benefits, FDIC
insurance,  supervisory exam fees, other expenses,  ATM expense,  postage,  data
processing, and insurance expenses,  partially offset by decreases in occupancy,
stationery,  printing and office supplies,  advertising, and stock services. The
$270,000 increase in professional fees for the nine-month period ended March 31,
2005 is primarily attributable to increases in legal fees and other professional
services in connection with the Agreement and Plan of Merger between the Company
and First  Federal  Banc of the  Southwest,  Inc.  announced on August 25, 2004.
Compensation  and  benefits   increased  $80,000,   primarily   attributable  to
accelerated  vesting  of  restricted  stock as a  result  of the  filing  of the
Agreement  and Plan of Merger  between the Company and First Federal Banc of the
Southwest,  Inc.  announced  on August 25,  2004.  The $30,000  increase in FDIC
insurance was primarily due to an increase in the FDIC  assessment.  The $26,000
increase in supervisory exam fees was primarily due to an increase in the Office
of Thrift Supervision supervisory exam fees assessment. Other expenses increased
$24,000,  primarily due to an increase in loan expense.  The $18,000 increase in
ATM  expense  is  primarily  attributable  to an  increase  in the volume of ATM
transactions. The $13,000 increase in postage expense was primarily attributable
to  increased  mailings  due to growth in the number of deposit  accounts.  Data
processing  costs increased by $9,000,  primarily due to growth in the number of
deposit accounts and transaction  volume increases.  Insurance expense increased
$9,000 due to a general  increase in premium  rates for  property  and  casualty
insurance.  Occupancy  expense  decreased $40,000 primarily due to a decrease in
depreciation expense for furniture, fixtures and equipment. Stationery, printing
and office  supplies  expense  and  advertising  expense  decreased  $25,000 and
$18,000, respectively,  mainly due to higher expenses in the year-earlier period
associated with the opening of the new branch in Farmington,  New Mexico.  Stock
services expenses were down $8,000 as a result of reduced stock activity.

                                       16

<PAGE>

Borrowings

The Company may obtain advances from the FHLB of Dallas to supplement its supply
of  funds  available  for  loans  and  investments.  Advances  from the FHLB are
typically  secured by a pledge of the Company's  stock in the FHLB, a portion of
the Company's  first mortgage  loans and certain other assets.  Each FHLB credit
program has its own interest rate, which may be fixed or variable,  and range of
maturities. The Company, if the need arises, may also access the Federal Reserve
Bank discount  window to supplement its supply of funds  available for loans and
investments  and to meet deposit  withdrawal  requirements.  For the  nine-month
period  ended  March  31,  2005 and  March 31,  2004,  borrowings  with the FHLB
averaged $60.0 million and $72.5 million, respectively. The approximate weighted
average rate paid on borrowings was 3.52% and 3.32% for the  nine-month  periods
ended March 31, 2005 and March 31, 2004, respectively.

                                       17

<PAGE>

Item 3.  CONTROLS AND PROCEDURES

     (a)  Evaluation  of  disclosure  controls  and  procedures.  The  Company's
          management  evaluated,  with the  participation of the Company's Chief
          Executive  Officer and Chief Financial  Officer,  the effectiveness of
          the Company's  disclosure controls and procedures as of the end of the
          period covered by this report. Based on such evaluation, the Company's
          principal  executive officer and the principal  financial officer have
          concluded that such  disclosure  controls and procedures 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  control  over  financial  reporting.  During the
          quarter  under report,  there was no change in the Company's  internal
          control over financial reporting that has materially  affected,  or is
          reasonably likely to materially affect, the Company's internal control
          over financial reporting.

                                       18

<PAGE>

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


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

                  Not applicable.

Item 2.  Unregistered Sales of Equity 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
         --------

         (a)      List of Exhibits
<TABLE>
<CAPTION>
<S>                 <C>      <C>
                      2.1      Agreement and Plan of Merger, dated as of August 25, 2004, between
                                GFSB Bancorp, Inc. and First Federal Banc of the Southwest, Inc.*
                      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*****
                      10.6+    Change-in-Control Severance Agreement with Richard P. Gallegos******
                      10.7+    Change-in-Control Severance Agreement with Jerry R. Spurlin******
                      10.8+    Change-in-Control Severance Agreement with William W. Head, Jr.******
                      10.9+    Change-in-Control Severance Agreement with Leonard C. Scalzi******
                      31.1     Rule 13a-14(a)/15d-14(a) Certification
                      31.2     Rule 13a-14(a)/15d-14(a) Certification
                      32       Section 1350 Certification
</TABLE>

       --------------
       +        Management contract or compensatory plan or arrangement.
       *        Incorporated  herein by reference to the identically  numbered
                exhibit to the  current  report on Form 8-K filed with the SEC
                on August 26, 2004.
       **       Incorporated herein by reference to the Registration Statement
                on Form S-1 of the Company (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.

                                     19

<PAGE>

       ****     Incorporated by reference to the identically numbered exhibits
                of the  Quarterly  Report on Form 10-QSB for the quarter ended
                March 31, 2001 filed with the SEC.
       *****    Incorporated by reference to Exhibit 4.1 to the Registration
                Statement on Form S-8 (File No. 333-51498) filed with the SEC
                on December 8, 2000.
       ******   Incorporated by reference to Annual Report on Form 10-KSB for
                the fiscal year ended June 30, 2004 as filed September 27, 2004.

                                       20

<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 12, 2005           /s/Jerry R. Spurlin
          -------------------    -----------------------------------------------
                                 Jerry R. Spurlin
                                 Assistant Secretary and Chief Financial Officer
                                 (Duly Authorized Representative and
                                 Principal Financial Officer)



                                       21