<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q

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

                      For the quarter ended March 31, 2002
                                            --------------
                                       OR

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

                For the transition period from _______ to _______

Commission number 0-23325
                  -------

                        Guaranty Federal Bancshares, Inc.
                        ---------------------------------
             (Exact name of registrant as specified in its charter)

           Delaware                            43-1792717
           --------                            ----------
(State or other jurisdiction of                (IRS Employer Identification No.)
incorporation or organization)

       1341 West Battlefield
       Springfield, Missouri                   65807
       ---------------------                   -----
(Address of principal executive offices)       (Zip Code)


                        Telephone Number: (417) 520-4333
                                          --------------

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Sections 13 or 15(d) of the Securities Exchange act of
1934 during the preceding 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___
                      -----

         Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the latest practicable date.

              Class                               Outstanding at May 6, 2002
              -----                               --------------------------
Common Stock, Par Value $0.10                          3,028,315 Shares

<PAGE>

                        GUARANTY FEDERAL BANCSHARES, INC.
                                    Form 10-Q

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Item                                                                                             Page
<S>                                                                                             <C>

                                      PART I. Financial Information

1.  Condensed Consolidated Financial Statements (Unaudited):

    Statements of Financial Condition                                                              3

    Statements of Income                                                                           4

    Statements of  Stockholders' Equity                                                            5

    Statements of Cash Flow                                                                        7

    Notes to Consolidated Financial Statements                                                     8

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

3.  Quantitative and Qualitative Disclosures about Market Risk                                    15

                                        PART II. Other Information

1.  Legal Proceedings                                                                             17

2.  Changes in Securities and Use of Proceeds                                                     17

3.  Defaults Upon Senior Securities                                                               17

4.  Submission of Matters to Vote of Security Holders                                             17

5.  Other Information                                                                             17

6.  Exhibits and Reports on Form 8-K                                                              17

Signatures                                                                                        18
</TABLE>

                                       2

<PAGE>

GUARANTY FEDERAL BANCSHARES, INC.
FORM 10-Q FOR MARCH 31, 2002

PART I
Item 1. Financial Statements
----------------------------

                        GUARANTY FEDERAL BANCSHARES, INC.
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                  MARCH 31, 2002 (UNAUDITED) AND JUNE 30, 2001

<TABLE>
<CAPTION>
                                                                                                3/31/02         6/30/2001
                                                                                             -------------    ------------
                                            ASSETS

<S>                                                                                          <C>                 <C>
Cash                                                                                         $   2,705,325       2,665,287
Interest-bearing deposits in other financial institutions                                       32,719,899       7,648,271
                                                                                             -------------    ------------
    Cash and cash equivalents                                                                   35,425,224      10,313,558
Available-for-sale securities                                                                   16,921,859      19,447,892
Held-to-maturity securities                                                                      3,513,110       4,545,866
Stock in Federal Home Loan Bank, at cost                                                         8,600,400       8,600,400
Mortgage loans held for sale                                                                     3,493,430       2,862,793
Loans receivable, net of allowance for loan losses;
    3/31/2002 - $2,607,423; 6/30/2001 - $2,697,389                                             314,666,388     317,243,111
Accrued interest receivable:
    Loans                                                                                        1,635,004       1,940,922
    Investments                                                                                     77,156         207,831
Prepaid expenses and other assets                                                                1,807,400       1,168,750
Foreclosed assets held for sale                                                                    530,727           4,200
Premises and equipment                                                                           7,580,809       7,758,082
                                                                                             -------------    ------------
                                                                                             $ 394,251,507     374,093,405
                                                                                             =============    ============

                           LIABILITIES AND STOCKHOLDERS ' EQUITY

LIABILITIES
Deposits                                                                                     $ 229,212,040     170,647,500
Federal Home Loan Bank advances                                                                112,611,859     146,656,583
Securities sold under agreements to repurchase                                                   1,039,738       1,264,448
Advances from borrowers for taxes and insurance                                                    684,798       1,293,062
Accrued expenses and other liabilities                                                           2,236,537       1,344,804
Accrued interest payable                                                                         1,131,080         950,674
Income taxes payable                                                                               352,360         121,725
Deferred income taxes                                                                            1,336,091       1,608,818
                                                                                             -------------    ------------
                                                                                               348,604,503     323,887,614
                                                                                             -------------    ------------

STOCKHOLDERS' EQUITY
Common Stock:
    $0.10 par value; authorized 10,000,000 shares;
        issued; 3/31/2002 - 6,355,409 shares, 6/30/2001 - 6,268,394 shares                         635,541         626,840
Additional paid-in capital                                                                      49,618,309      48,451,515
Unearned ESOP shares                                                                            (2,468,570)     (2,640,800)
Retained earnings, substantially restricted                                                     26,846,934      25,951,537
Accumulated other comprehensive income
    Unrealized appreciation on available-for-sale securities,
    net of income taxes; 3/31/2002 - $1,869,102, 6/30/2001 - $ 2,318,786                         3,181,453       3,948,203
                                                                                             -------------    ------------
                                                                                                77,813,667      76,337,295
Treasury stock, at cost;
    3/31/2002 - 2,607,393 shares, 6/30/2001 - 2,200,950 shares                                 (32,166,663)    (26,131,504)
                                                                                             -------------    ------------
                                                                                                45,647,004      50,205,791
                                                                                             -------------    ------------
                                                                                             $ 394,251,507     374,093,405
                                                                                             =============    ============
</TABLE>

See Notes to Condensed Consolidated Financial Statements

                                       3

<PAGE>

GUARANTY FEDERAL BANCSHARES, INC.
FORM 10-Q FOR MARCH 31, 2002

                        GUARANTY FEDERAL BANCSHARES, INC.
                        CONSOLIDATED STATEMENTS OF INCOME
     THREE MONTHS AND NINE MONTHS ENDED MARCH 31, 2002 AND 2001 (UNAUDITED)

<TABLE>
<CAPTION>
                                                                 Three months ended           Nine months ended
                                                             -------------------------    -------------------------
                                                               3/31/02        3/31/01       3/31/02      3/31/01
                                                             -----------    ----------    -----------   -----------
<S>                                                          <C>            <C>          <C>          <C>
INTEREST INCOME
Loans                                                        $ 5,814,637     6,317,661     18,334,644    18,655,823
Investment securities                                            124,568       306,084        508,516       876,201
Other                                                            211,435       204,750        545,563       711,111
                                                             -----------    ----------    -----------   -----------
   Total Interest Income                                       6,150,640     6,828,495     19,388,723    20,243,135
                                                             -----------    ----------    -----------   -----------
INTEREST EXPENSE
Deposits                                                       1,788,768     1,639,262      5,412,180     4,959,116
Federal Home Loan Bank advances                                1,533,044     2,549,823      5,521,305     7,190,901
Other                                                              5,094         6,363         27,276         6,363
                                                             -----------    ----------    -----------   -----------
   Total Interest Expense                                      3,326,906     4,195,448     10,960,761    12,156,380
                                                             -----------    ----------    -----------   -----------
Net Interest Income                                            2,823,734     2,633,047      8,427,962     8,086,755
Provision for Loan Losses                                         66,000       115,000        216,000       215,000
                                                             -----------    ----------    -----------   -----------
Net Interest Income after
   Provision for Loan Losses                                   2,757,734     2,518,047      8,211,962     7,871,755
                                                             -----------    ----------    -----------   -----------
NONINTEREST INCOME
Service charges                                                  375,755       292,648      1,118,174       923,758
Late charges and other fees                                       39,345        64,052         98,312       173,168
Gain on loans and investment securities                          376,111       146,711      1,260,963       301,469
Income (loss) on foreclosed assets                                  (673)            -            188          (625)
Other income                                                      58,253        37,223        179,405       104,864
                                                             -----------    ----------    -----------   -----------
   Total Noninterest Income                                      848,791       540,634      2,657,042     1,502,634
                                                             -----------    ----------    -----------   -----------
NONINTEREST EXPENSE
Salaries and employee benefits                                 1,257,596     1,099,597      3,484,973     3,016,358
Occupancy                                                        325,866       284,764        941,947       742,185
SAIF deposit insurance premiums                                    8,278         6,902         25,643        21,979
Data processing fees                                             208,941       244,208        555,341       479,174
Advertising                                                       91,735        94,985        277,318       306,699
Other expense                                                    472,224       279,887      1,465,108       999,684
                                                             -----------    ----------    -----------   -----------
   Total Noninterest Expense                                   2,364,640     2,010,343      6,750,330     5,566,079
                                                             -----------    ----------    -----------   -----------
Income Before Income Taxes                                     1,241,885     1,048,338      4,118,674     3,808,310
Provision for Income Taxes                                       424,328       352,213      1,399,349     1,351,560
                                                             -----------    ----------    -----------   -----------
NET INCOME                                                       817,557       696,125      2,719,325     2,456,750
OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized appreciation (depreciation) on
   available-for-sale securities, net of income taxes
   of ($113,742), ($102,706), ($449,684) and $756,520,
   respectively                                                 (194,741)     (174,878)      (766,750)    1,288,128
                                                             -----------    ----------    -----------   -----------
COMPREHENSIVE INCOME                                             622,816       521,247      1,952,575     3,744,878
                                                             ===========    ==========    ===========   ===========
BASIC EARNINGS PER SHARE                                     $      0.22    $     0.17    $      0.72   $      0.58
                                                             ===========    ==========    ===========   ===========
DILUTED EARNINGS PER SHARE                                   $      0.21    $     0.17    $      0.71   $      0.58
                                                             ===========    ==========    ===========   ===========
</TABLE>

See Notes to Condensed Consolidated Financial Statements.

                                       4

<PAGE>

GUARANTY FEDERAL BANCSHARES, INC.
FORM 10-Q FOR MARCH 31, 2002

                        GUARANTY FEDERAL BANCSHARES, INC.
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                  NINE MONTHS ENDED MARCH 31, 2002 (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                        Accumulated Other
                                                                                          Comprehensive
                                                                                          --------------
                                                                                             Income
                                                                                             ------
                                                                                           Unrealized
                                                 Additional                              Appreciation on
                                        Common    Paid-In      Unearned      Retained   Available-for-Sale    Treasury
                                         Stock    Capital    ESOP Shares     Earnings    Securities, Net        Stock       Total
                                      ---------  ----------  -----------   -----------  ------------------  ------------ ----------
<S>                                   <C>        <C>          <C>           <C>         <C>                   <C>          <C>
Balance, July 1, 2001                 $ 626,840  48,451,515   (2,640,800)   25,951,537           3,948,203  (26,131,504) 50,205,791
Net income                                    -           -            -     2,719,325                   -            -   2,719,325
Dividends on common stock,
 ($0.25 per share on 3,800,279
   shares & $0.25 per share on
     3,495,430 shares)                        -           -            -   (1,823,928)                   -            -  (1,823,928)
Recognition and Retention Plan
   (RRP) & Restricted Stock Plan
   (RSP):
    RRP and RSP expense                       -     302,274            -            -                    -            -     302,274
    Tax liability of RRP & RSP shares          -     (17,164)          -            -                    -            -     (17,164)
Stock options exercised                   8,701     819,405            -            -                    -            -     828,106
Dividends on RRP stock                        -       1,647            -            -                    -            -       1,647
Release of ESOP shares                        -      60,632      172,230            -                    -            -     232,862
Treasury stock purchased                      -           -            -            -                    -   (6,035,159) (6,035,159)
Change in unrealized appreciation
   on available-for-sale securitites,
   net of income taxes of ($449,684)          -           -            -            -             (766,750)           -    (766,750)
                                      ---------  ----------  -----------   ----------   ------------------  -----------  ----------
Balance, March 31, 2002               $ 635,541  49,618,309   (2,468,570)  26,846,934            3,181,453  (32,166,663) 45,647,004
                                      =========  ==========  ===========   ==========   ==================  ===========  ==========
</TABLE>

See Notes to Condensed Consolidated Financial Statements

                                       5

<PAGE>

GUARANTY FEDERAL BANCSHARES, INC.
FORM 10-Q FOR MARCH 31, 2002

                        GUARANTY FEDERAL BANCSHARES, INC.
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                  NINE MONTHS ENDED MARCH 31, 2001 (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                        Accumulated Other
                                                                                          Comprehensive
                                                                                          --------------
                                                                                             Income
                                                                                             ------
                                                                                           Unrealized
                                                 Additional                              Appreciation on
                                        Common    Paid-In      Unearned      Retained   Available-for-Sale    Treasury
                                         Stock    Capital    ESOP Shares     Earnings    Securities, Net        Stock      Total
                                      ---------  ----------  -----------   -----------  ------------------  -----------  ----------
<S>                                   <C>        <C>          <C>           <C>         <C>                   <C>          <C>
Balance, July 1, 2000                 $ 625,004  47,921,681   (2,870,440)   24,654,965           2,398,947  (16,144,767) 56,585,390
Net income                                    -           -            -     2,456,750                   -            -   2,456,750
Dividends on common stock,
 ($0.23 per share on 4,346,561
   shares & $0.24 per share on
     3,902,882 shares)                        -           -            -    (1,936,401)                  -            -  (1,936,401)
Recognition and Retention Plan
   (RRP) & Restricted Stock Plan
   (RSP):
    RRP and RSP expense                       -     368,611            -             -                   -            -     368,611
    Tax provision for RRP & RSP               -      (2,010)           -             -                   -            -      (2,010)
Stock options exercised                   1,628      96,054            -             -                   -            -      97,682
Dividends on RRP stock                        -       4,525            -             -                   -            -       4,525
Stock purchased for 2000 stock awards         -     (85,945)           -             -                   -            -     (85,945)
Release of ESOP shares                        -      24,418      174,077             -                   -            -     198,495
Treasury stock purchased                      -           -            -             -                   -   (8,688,289) (8,688,289)
Change in unrealized appreciation
   on available-for-sale securitites,
   net of income taxes of $756,520            -           -            -             -           1,288,128            -   1,288,128
                                      ---------  ----------  -----------   -----------  ------------------  -----------  ----------
Balance, March 31, 2001               $ 626,632  48,327,334   (2,696,363)   25,175,314           3,687,075  (24,833,056) 50,286,936
                                      =========  ==========  ===========   ===========  ==================  ===========  ==========
</TABLE>

See Notes to Condensed Consolidated Financial Statements

                                       6

<PAGE>

GUARANTY FEDERAL BANCSHARES, INC.
FORM 10-Q FOR MARCH 31, 2002

                        GUARANTY FEDERAL BANCSHARES, INC
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                     NINE MONTHS ENDED MARCH 31, (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                        3/31/02            3/31/01
                                                                                     ------------       ------------
   <S>                                                                               <C>                <C>
   CASH FLOWS FROM OPERATING ACTIVITIES
   Net income                                                                        $  2,719,325          2,456,750
   Items not requiring (providing) cash:
        Deferred income taxes                                                             176,957            (16,563)
        Depreciation                                                                      703,160            440,868
        Provision for loan losses securities                                              216,000            215,000
        Gain on loans and investment                                                   (1,260,963)          (301,469)
        Gain on sale of premises and equipment                                                  -             (2,743)
        (Gain) loss on sale of foreclosed assets                                           (4,340)             1,070
        Amortization of deferred income, premiums and discounts                           (37,430)           (79,748)
        RRP/RSP expense                                                                   302,274            368,611
   Origination of loans held for sale                                                 (51,212,246)       (21,793,131)
   Proceeds from sale of loans held for sale                                           51,257,520         17,519,803
   Release of ESOP shares                                                                 232,862            198,495
   Changes in:
        Accrued interest receivable                                                       514,781           (314,088)
        Prepaid expenses and other assets                                                (619,545)          (445,513)
        Accounts payable and accrued expenses                                              13,855          1,375,461
        Income taxes payable                                                              213,471           (183,376)
                                                                                     ------------       ------------
           Net cash provided by (used in) operating activities                          3,215,681           (560,573)
                                                                                     ------------       ------------
   CASH FLOWS FROM INVESTING ACTIVITIES
   Net collections (originations) of loans                                             17,276,322        (22,495,626)
   Principal payments on available-for-sale securities                                  1,714,347             73,320
   Principal payments on held-to-maturity securities                                    1,026,325          1,652,964
   Purchase of premises and equipment                                                    (332,119)        (1,426,255)
   Proceeds from sale of premises and equipment                                                 -              5,622
   Purchase of available-for-sale securities                                           (8,396,776)        (4,008,379)
   Proceeds from sale of available-for-sale securities                                  2,680,154            278,986
   Proceeds from maturities of available-for-sale securities                            6,000,000                  -
   Purchase of FHLB stock                                                                       -         (1,725,000)
   Proceeds from sale of fore closed assets                                                56,020                555
   Cash acquired in purchase of Commercial Federal Bank branches                       25,556,972                  -
                                                                                     ------------       ------------
        Net cash provided by (used in) investing activities                            45,581,245        (27,643,813)
                                                                                     ------------       ------------

   CASH FLOWS FROM FINANCIANG ACTIVITIES
   Stock options exercised                                                                828,106             97,682
   Cash dividends paid                                                                   (950,070)          (999,710)
   Cash dividends received on RRP stock                                                     1,647              4,525
   Net increase in demand deposits,
     NOW accounts and savings accounts                                                 14,414,469          2,764,650
   Net increase in certificates of deposit                                              2,933,445            436,433
   Net increase (decrease) in securities sold under agreement store purchase             (224,710)           880,927
   Proceeds from FHLB advances                                                         46,500,000         72,500,000
   Repayments of FHLB advances                                                        (80,544,724)       (39,173,777)
   Advances from borrowers for taxes and insura nce                                      (608,264)          (431,653)
   Stock purchased for stock awards                                                             -            (85,945)
   Treasury stock purchased                                                            (6,035,159)        (8,688,289)
                                                                                     ------------       ------------
        Net cash provided by (used in) financing activities                           (23,685,260)        27,304,843
                                                                                     ------------       ------------
   INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                    25,111,666          (899,543)
   CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                      10,313,558          9,157,271
                                                                                     ------------       ------------
   CASH AND CASH EQUIVALENTS, END OF PERIOD                                          $ 35,425,224          8,257,728
                                                                                     ============       ============
</TABLE>

See Notes to Condensed Consolidated Financial Statements

                                       7

<PAGE>

GUARANTY FEDERAL BANCSHARES, INC.
FORM 10-Q FOR MARCH 31, 2002

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Note 1:  Basis of Presentation

         The accompanying unaudited interim consolidated financial statements
have been prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to Form 10-Q and
Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all adjustments
(consisting only of normal recurring accruals) considered necessary for a fair
presentation have been included.

         The results of operations for the period are not necessarily indicative
of the results to be expected for the full year.

         These condensed consolidated financial statements should be read in
conjunction with the consolidated financial statements and notes thereto
included in the Company's Form 10-K Annual Report for 2001 filed with the
Securities and Exchange Commission. The condensed consolidated balance sheet of
the Company as of June 30, 2001, has been derived from the audited consolidated
balance sheet of the Company as of that date. Certain information and note
disclosures normally included in the Company's annual financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted.

Note 2:  Principles of Consolidation

         The consolidated financial statements include the accounts of the
Company, its wholly-owned subsidiary, Guaranty Federal Savings Bank (the
"Bank"), and the wholly-owned subsidiary of the Bank, Guaranty Financial
Services of Springfield, Inc. Significant intercompany accounts and transactions
have been eliminated in consolidation.

Note 3:  Benefit Plans

         The Company has established four stock award plans for the benefit of
certain directors, officers and employees of the Bank and its subsidiary. The
plans provide a proprietary interest in the Company in a manner designed to
encourage these individuals to remain with the Bank. A Committee of the Bank's
Board of Directors administers the plans. The Company accounts for the cost of
share purchases under the plans as a reduction of stockholders' equity. The
awards vest at the rate of 20% per year over a five-year period. Compensation
expense is recognized based on the Company's stock price on the date the shares
are awarded to employees.

         On October 18, 1995, the Bank's stockholders voted to approve both a
Recognition and Retention Plan ("RRP") and a Stock Option Plan ("SOP"). On July
22, 1998, the Company's stockholders voted to approve both a 1998 Restricted
Stock Plan ("RSP") and a 1998 Stock Option Plan ("1998 SOP"). The RRP and RSP
authorized shares to be issued to directors, officers and employees of the Bank.
On February 17, 2000, the directors of the Company established the Stock
Compensation Plan (the "2000 SCP") with both a stock award component and stock
option component. On March 22, 2001, the directors of the Company established
the Stock Compensation Plan (the "2001 SCP") with both a stock award component
and stock option component. As of March 31, 2002, all of the RRP, RSP and 2000
SCP shares have been purchased and all except 18,076 shares have been awarded.
As of March 31, 2002, 10,239 of the 2001 SCP shares have been awarded. The
Company is amortizing the RRP, RSP and SCP expense over each participant's
vesting period. The Company recognized $302,274 of expense under these stock
award plans for the nine month period ended March 31, 2002. The SOP, 1998 SOP
and the 2000 SCP authorized stock options on shares to be issued to officers and
employees of the Bank, as of March 31, 2002 all options except those on 62,500
shares have been granted. The RRP, RSP, SOP, 1998 SOP and 2000 SCP vest over a
five year period. As of March 31, 2002, there were 440,052 unexercised options
that have been granted at prices ranging from $5.83 to $13.89 per share and
74,139 RRP, RSP, 2000 SCP and 2001 SCP shares were unvested.

                                        8

<PAGE>

GUARANTY FEDERAL BANCSHARES, INC.
FORM 10-Q FOR MARCH 31, 2002

Note 4: Earnings Per Share

<TABLE>
<CAPTION>
                                         For three months ended March 31, 2002    For nine months ended March 31, 2002
                                         -------------------------------------    ------------------------------------
                                           Income       Shares       Per-share      Income        Shares     Per-share
<S>                                      <C>          <C>            <C>          <C>          <C>         <C>
Basic EPS
Income available to common stockholders  $ 817,557      3,788,810    $  0.22      $ 2,719,325   3,800,258    $  0.72
                                                                     =======                                 =======


Effect of Dilutive Securities
Stock Options                                              45,437                                  39,091
                                         ---------    -----------                              ----------
Income available to common stockholders  $ 817,557      3,834,247    $  0.21      $ 2,719,325   3,839,349    $  0.71
                                         =========    ===========    =======      ===========  ==========    =======

<CAPTION>

                                         For three months ended March 31, 2001    For nine months ended March 31, 2001
                                         -------------------------------------    ------------------------------------
                                           Income       Shares       Per-share      Income        Shares     Per-share
<S>                                      <C>          <C>            <C>          <C>          <C>         <C>
Basic EPS
Income available to common stockholders  $ 696,125      3,980,180    $  0.17      $ 2,456,750   4,218,857    $  0.58
                                                                     =======                                 =======


Effect of Dilutive Securities
Stock Options                                    -         53,324                           -      44,368
                                         ---------    -----------                 -----------  ----------    -------
Income available to common stockholders  $ 696,125      4,033,504    $  0.17      $ 2,456,750   4,263,225    $  0.58
                                         =========    ===========    =======      ===========  ==========    =======
</TABLE>

         Options to purchase 15,000 shares of common stock at $13.89 per share,
outstanding during the three months and nine months ended March 31, 2002, were
not included in the computation of diluted EPS because the options' exercise
price was greater than the average market price of the common shares.

Note 5: Branch Acquisition

         On December 6, 2001, the Bank completed an acquisition of certain
assets and liabilities of five branches of Commercial Federal Bank in
Springfield, Missouri. The Bank acquired approximately $15.5 million in select
consumer and home equity loans and assumed approximately $41.2 million in
deposit liabilities. The Bank has also assumed the leases and equipment at all
but one of the branches. The transaction has been accounted for as a purchase by
recording the acquired assets and liabilities at their estimated fair values at
the acquisition date. Net proceeds received by the Bank below their fair values
was recorded as goodwill. The consolidated operations of the Company include the
interest income and expense on the acquired loan assets and deposit liabilities
from the acquisition date. Information necessary to present the results of
operations on a pro forma basis for the current and comparable prior periods is
unavailable.

Note 6: Impact of Recent Accounting Pronouncements

         The Financial Accounting Standards Board (FASB) recently adopted
Statement of Financial Accounting Standards (SFAS) 142, Goodwill and Other
Intangible Assets. This Statement establishes new financial accounting and
reporting standards for acquired goodwill and other intangible assets. The
Statement addresses how intangible assets that are acquired individually or with
a group of other assets (but not those acquired in a business combination)
should be accounted for in financial statements upon their acquisition. It also
addresses how goodwill and other intangible assets (including those acquired in
a business combination) should be accounted for after they have been initially
recognized in the financial statements. SFAS 142 is effective for fiscal years
beginning after December 15, 2001. The Company will first apply SFAS 142 in the
first quarter of its fiscal year ending June 30, 2003. The impact of adopting
SFAS 142 is expected to be immaterial.

Note 7: Subsequent Event

         On April 2, 2002, the Company repurchased 717,647 shares of its common
stock from its largest group of shareholders for approximately $10.7 million.

                                        9

<PAGE>

GUARANTY FEDERAL BANCSHARES, INC.
FORM 10-Q FOR MARCH 31, 2002

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

General

         The accompanying Consolidated Financial Statements include the accounts
of Guaranty Federal Bancshares, Inc. (the "Company"), and all accounts of its
wholly-owned subsidiary, Guaranty Federal Savings Bank (the "Bank") and all
accounts of the wholly-owned subsidiary of the Bank, Guaranty Financial Services
of Springfield, Inc. All significant intercompany transactions and balances have
been eliminated in consolidation.

         The primary function of the Company has been to monitor its investment
in the Bank. As a result, the results of operations of the Company are derived
primarily from operations of the Bank. The Bank's results of operations are
primarily dependent on net interest margin, which is the difference between
interest income on interest-earning assets and interest expense on
interest-bearing liabilities. The Bank's income is also affected by the level of
its noninterest expenses, such as employee salary and benefits, occupancy
expenses and other expenses. The following discussion reviews the financial
condition at March 31, 2002, and the results of operations for the nine months
ended March 31, 2002 and 2001.

         The Bank completed its acquisition of the Springfield branch offices of
Commercial Federal Bank on December 6, 2001, in which it assumed approximately
$41.2 million in deposit liabilities, and purchased approximately $15.5 million
in loan assets. In addition the Bank acquired four " in store" branches located
in Dillons Supermarkets. The acquisition increased the number of offices from
five to nine.

         The Company recently completed the repurchase of shares of its common
stock for approximately $15.7 million, comprised of 330,381 shares purchased on
March 28, 2002 and 717,647 shares purchased on April 2, 2002. The stock was
purchased from the Company's two largest groups of shareholders. The transaction
resolves a dispute involving the Company and each of the selling parties
regarding claims that the Company had a prior obligation to purchase the shares.
The transaction was funded with cash the Company received as a result of the
acquisition of the Springfield branch offices of Commercial Federal Bank in
December 2001.

         The discussion set forth below, as well as other portions of this Form
10-Q, may contain forward-looking comments. Such comments are based upon the
information currently available to management of the Company and management's
perception thereof as of the date of the Form 10-Q. Actual results of the
Company's operations could materially differ from those forward-looking
comments. The differences could be caused by a number of factors or combination
of factors including, but not limited to: changes in demand for banking
services; changes in portfolio composition; changes in management strategy;
increased competition from both bank and non-bank companies; changes in the
general level of interest rates; the effect of regulatory or government
legislative changes; technology changes; and fluctuation in inflation.

Financial Condition

         The Company's total assets increased $20,158,102 (5%) from $374,093,405
as of June 30, 2001, to $394,251,507 as of March 31, 2002.

         Interest-bearing deposits in other financial institutions increased
$25,071,628 (328%) from $7,648,271 as of June 30, 2001, to $32,719,899 as of
March 31, 2002, as the Company received approximately $25.6 million cash as a
result of its acquisition of the Springfield branches of Commercial Federal
Bank.

         Securities available-for-sale decreased $2,526,033 (13%) from
$19,447,892 as of June 30, 2001, to $16,921,859 as of March 31, 2002. This is
primarily due to purchases of $8,396,776 of investment securities, which was
offset by maturities of $6,000,000 in securities, $2,680,154 in sales of
securities, and the decrease in fair value of various equity securities. The
Bank continues to hold 85,000 shares of Federal Home Loan Mortgage Corporation
("FHLMC") stock with an amortized cost of $83,231 in the available-for-sale
category. As of March 31,2002, the gross unrealized gain on the stock was
$5,303,219, a decrease from $6,237,587 as of June 30, 2001.

         Securities held-to-maturity decreased due to principal repayments, by
$1,032,756 (23%) from $4,545,866 as of June 30, 2001, to $3,513,110 as of March
31, 2002.

                                       10

<PAGE>

     Net loans receivable decreased by $2,576,723 (1%) from $317,243,111 as of
June 30, 2001, to $314,666,388 as of March 31, 2002. As a part of the Commercial
Federal acquisition, the Company purchased approximately $15.5 million in
consumer and home equity loans. Also, during this period the Bank continued its
increased emphasis on commercial lending. As a result commercial loans have
increased by $19,583,591 during this period. The Bank has begun selling
conforming loans on single family residences, while retaining the servicing
rights. As a result of the majority of new loan originations being designated as
loans held for sale, permanent mortgage loans secured by both owner and
non-owner occupied residential real estate decreased by $21,027,792 while loans
held for sale increased by $630,637. The Bank continues to be active in
construction lending. However, during the period construction loans decreased by
$14,463,073. Loan growth is anticipated to represent a major part of the Bank's
future asset growth.

     Allowance for loan losses decreased $89,964 (3%) from $2,697,389 as of June
30, 2001 to $2,607,423 as of March 31, 2002. The allowance decreased due to net
loan charge-offs exceeding the provision for loan losses for the period. The
allowance for loan losses as of March 31, 2002 and June 30, 2001 was 0.83% and
0.85% respectively, of net loans outstanding. As of March 31, 2002, the
allowance for loan losses was 113% of impaired loans versus 55% as of June 30,
2001.

     Premises and equipment decreased $177,273 (2%) from $7,758,082, as of June
30, 2001 to $7,580,809 as of March 31, 2002 primarily due to the depreciation
recognized on these assets.

     Deposits increased $58,564,540 (34%) from $170,647,500 as of June 30, 2001,
to $229,212,040 as of March 31, 2002. As a result of the Commercial Federal
acquisition, the Company assumed approximately $41.2 million in deposits.
Excluding the acquisition, for the nine months ended March 31, 2002, checking
and savings accounts increased by $14,414,469 (25%) while certificates of
deposits increased by $2,933,445 (3%).

     In order to comply with the Federal Home Loan Bank (the "FHLB") limitation
of advances to 35% of assets, the Company decreased borrowings from the FHLB by
$34,044,724 (23%) from $146,656,583 as of June 30, 2001, to $112,611,859 as of
March 31, 2002. The Company plans to reduce its FHLB borrowings to a level that
will provide a borrowing capacity sufficient to provide for contingencies.

     Advances from borrowers for taxes and insurance decreased $608,264 (47%)
from $1,293,062 as of June 30, 2001, to $684,798 as of March 31, 2001. This was
primarily due to the payment of 2001 real estate taxes from borrower's escrow
accounts.

     Accrued expenses and other liabilities increased $891,733 (66%) from
$1,344,804 as of June 30, 2001, to $2,236,537 as of March 31, 2002. This was
primarily due to $873,858 ($0.25 per share) of dividends that were declared but
unpaid as of March 31, 2002.

     Stockholders' equity (including unrealized appreciation on securities
available-for-sale, net of tax) decreased $4,558,787 from $50,205,791 as of June
30, 2001, to $45,647,004 as of March 31, 2002. During this period the Company
repurchased a total of 406,443 of its outstanding shares in the open market at a
cost of $6,035,159. In addition, dividends in the amount of $950,070 ($0.25 per
share) were declared and paid, on October 15, 2001, to stockholders' of record
as of September 4, 2001 and $873,858 ($0.25 per share) were declared and paid on
April 12, 2002, to stockholders of record as of April 1, 2002. There was a
decrease in the unrealized appreciation on available-for-sale securities of
$766,750. On a per share basis, stockholders' equity decreased from $13.20 as of
June 30, 2001 to $13.04 as of March 31, 2002.

Average Balances, Interest and Average Yields

     The Company's profitability is primarily dependent upon net interest
income, which represents the difference between interest and fees earned on
loans and debt and equity securities, and the cost of deposits and borrowings.
Net interest income is dependent on the difference between the average balances
and rates earned on interest-earning assets and the average balances and rates
paid on interest-bearing liabilities. Non-interest income, non-interest expense,
and income taxes also impact net income.

                                       11

<PAGE>

     The following table sets forth certain information relating to the
Company's average consolidated statements of financial condition and reflects
the average yield on assets and average cost of liabilities for the periods
indicated. Such yields and costs are derived by dividing income or expense
annualized by the average balance of assets or liabilities, respectively, for
the periods shown. Average balances were derived from average daily balances.
The average balance of loans includes loans on which the Company has
discontinued accruing interest. The yields and costs include fees which are
considered adjustments to yields. All dollar amounts are in thousands.

<TABLE>
<CAPTION>
                                               Three Months ended 3/31/2002   Three Months ended 3/31/2001
                                               ----------------------------- -------------------------------
                                                Average              Yield /  Average                Yield /
                                                Balance    Interest   Cost    Balance     Interest    Cost
                                               ---------  ---------- ------- ---------   ---------- --------
<S>                                            <C>        <C>        <C>     <C>         <C>        <C>
ASSETS
Interest-earning:

Loans                                          $ 310,445     5,815   7.49%   $ 309,963      6,318    8.15%
Investment securities                             13,984       124   3.55%      17,227        306    7.11%
Other assets                                      47,959       212   1.77%      16,575        204    4.92%
                                               ---------   -------   ----    ---------   --------   -----
Total interest-earning                           372,388     6,151   6.61%     343,765      6,828    7.94%
Noninterest-earning                               28,986                         7,531
                                               ---------                     ---------
                                               $ 401,374                     $ 351,296
                                               =========                     =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing:

Savings accounts                               $  17,945        83   1.85%   $   7,654         49    2.56%
Transaction accounts                              59,253       217   1.46%      38,323        289    3.02%
Certificates of Deposit                          142,402     1,490   4.19%      89,442      1,301    5.82%
FHLB Advances                                    114,456     1,533   5.36%     159,711      2,550    6.39%
Other Borrowed Funds                               1,707         5   1.17%         358          6    6.70%
                                               ---------   -------   ----    ---------   --------   -----
Total interest-bearing                           335,763     3,328   3.96%     295,488      4,195    5.68%
Noninterest-bearing                               14,543                         4,003
                                               ---------                     ---------
Total liabilities                                350,306                       299,491
Stockholders' equity                              51,068                        51,805
                                               ---------                     ---------
                                               $ 401,374                     $ 351,296
                                               =========                     =========
Net earning balance                            $  36,625                     $  48,277
                                               =========                     =========
Earning yield less costing rate                                      2.64%                           2.27%
                                                                     ====                           =====
Net interest income, and net yield spread
   on interest earning assets                              $ 2,823   3.03%                $ 2,633    3.06%
                                                           =======   ====                 =======   =====
Ratio of interest-earning assets to
     interest-bearing liabilities                              111%                           116%
                                                           =======                        =======
</TABLE>

                                       12

<PAGE>

GUARANTY FEDERAL BANCSHARES, INC.
FORM 10-Q FOR MARCH 31, 2002

<TABLE>
<CAPTION>
                                              Nine Months ended 3/31/2002        Nine Months ended 3/31/2001
                                             ------------------------------     ------------------------------
                                              Average              Yield /       Average               Yield /
                                              Balance    Interest   Cost         Balance    Interest    Cost
                                             ---------   --------  --------     ---------   --------  --------
<S>                                          <C>        <C>        <C>         <C>         <C>       <C>
ASSETS
Interest-earning:
Loans                                        $ 326,753    18,335    7.48%      $ 305,626    18,656    8.14%
Investment securities                           15,482       508    4.37%         15,822       876    7.38%
Other assets                                    33,758       546    2.16%         16,440       711    5.77%
                                             ---------   -------    ----       ---------   -------    ----
Total interest-earning                         375,993    19,389    6.88%        337,888    20,243    7.99%
Noninterest-earning                             13,488                             8,572
                                             ---------                         ---------
                                             $ 389,481                         $ 346,460
                                             =========                         =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing:
Savings accounts                             $  12,242       166    1.81%      $   7,767       159    2.73%
Transaction accounts                            52,343       703    1.79%         37,914       889    3.13%
Certificates of Deposit                        127,232     4,544    4.76%         89,628     3,911    5.82%
FHLB Advances                                  131,349     5,521    5.60%        153,293     7,191    6.25%
Other Borrowed Funds                             1,977        27    1.82%            179         6    4.47%
                                             ---------   -------    ----       ---------   -------    ----
Total interest-bearing                         325,143    10,961    4.49%        288,781    12,156    5.61%
Noninterest-bearing                             13,504                             4,525
                                             ---------                         ---------
Total liabilities                              338,647                           293,306
Stockholders' equity                            50,834                            53,154
                                             ---------                         ---------
                                             $ 389,481                         $ 346,460
                                             =========                         =========
Net earning balance                          $  50,850                         $  49,107
                                             =========                         =========
Earning yield less costing rate                                     2.39%                             2.38%
                                                                    ====                              ====
Net interest income, and net yield spread
   on interest earning assets                            $ 8,428    2.99%                  $ 8,087    3.19%
                                                         =======    ====                   =======    ====
Ratio of interest-earning assets to
   interest-bearing liabilities                              116%                              117%
                                                             ===                               ===
</TABLE>


Results of Operations - Comparison of Three Month and Nine Month Periods Ended
March 31, 2002 and 2001.

     Net income for the three months and nine months ended March 31, 2002 was
$817,557 and $2,719,325 as compared to $696,125 and $2,456,750 for the three
months and nine months ended March 31, 2001 which represents an increase in
earnings of $121,432 or 17% for the three month period, and an increase in
earnings of $262,575 or 11% for the nine month period. The increase in net
income for the three months and nine months ended can be attributed to several
factors which are discussed below.

Interest Income
---------------

     Total interest income for the three months and nine months ended March 31,
2002 decreased $677,855 or 10% and $854,412 or 4% as compared to the three
months and nine months ended March 31, 2001. For the three month and nine month
periods ended March 31, 2002 compared to the same periods in 2001, the average
yield on interest earning assets decreased 133 basis points to 6.61% and 111
basis points to 6.88% while the average balance of interest earnings assets
increased $28,623,000 and $38,105,000 respectively.

                                       13

<PAGE>

GUARANTY FEDERAL BANCSHARES, INC.
FORM 10-Q FOR MARCH 31, 2002

Interest Expense
----------------

     Total interest expense for the three months and nine months ended March 31,
2002, decreased $868,542 or 21% and $1,195,619 or 10% when compared to the three
months and nine months ended March 31, 2001. For the three month and nine month
periods ended March 31, 2002 compared to the same periods in 2001, the average
cost of interest bearing liabilities decreased 172 basis points to 3.96% and 112
basis points to 4.49% while the average balance increased $40,275,000 and
$36,362,000 respectively.

Net Interest Income
-------------------

     Net interest income for the three months ended March 31, 2002, increased
$190,687, or 7% and $341,207, or 4% for the nine months ended March 31, 2002,
when compared to the same period in 2001. The yield on interest earning assets
minus the cost on interest bearing liabilities increased by 37 basis points, to
2.64% and 1 basis point to 2.39% for the three months and nine months ended
March 31, 2002, respectively, when compared to the same periods one year ago.

Provision for Loan Losses
-------------------------

     Based on the decline of the loan portfolio at March 31, 2002, management
decided to decrease the allowance for loan loss. The provision for loan losses
was $66,000 and $216,000 for the three months and nine months ended March 31,
2002, respectively, compared to $115,000 and $215,000 for the same periods in
2001. The Bank will continue to monitor its allowance for loan losses and make
future additions based on economic and regulatory conditions. Although the Bank
maintains its allowance for loan losses at a level which it considers to be
sufficient to provide for potential losses, there can be no assurance that
future losses will not exceed internal estimates. In addition, the amount of the
allowance for loan losses is subject to review by regulatory agencies which can
order the establishment of additional loss provisions.

Noninterest Income
------------------

     Noninterest income increased $308,157, or 57% and $1,154,408, or 77% for
the three months and nine months ended March 31, 2002, when compared to the
three months and nine months ended March 31, 2001. For the three and nine month
periods, the gain on sale of loans and investment securities increased $229,400
and $959,494 respectively, when compared to the same period in 2001. The gain on
sale of loans is the result of mortgage banking activities related to the sale
of single family conforming residential loans. The gain on sale of investments
is primarily the result of the sale of 8,000 shares of FHLMC stock during the
nine month period. In addition, for the three and nine month periods, checking
account service charges increased $83,107 or 28% and $194,416 or 21%
respectively, compared to the same periods in 2001, due to the continued growth
in the number of customer checking accounts.

Noninterest Expense
-------------------

     Noninterest expense increased $354,297, or 18% for the three months ended
March 31, 2002, and increased $1,184,251, or 21% for the nine month period
ending March 31, 2002 when compared to the three months and nine months ended
March 31, 2001. Increases in salaries and employee benefits, occupancy and data
processing expense are principally attributable to the Company's recent
expansion through branch additions and an overall increase in accounts served.
There was approximately $183,000 in "one-time" costs in connection with the
Commercial Federal branch acquisition. There were also approximately $122,000 in
legal and professional expenses in connection with the settlement of a dispute
over the repurchase of the Company's stock.

Provision for Income Taxes
--------------------------

     There was a $72,115 and $47,789 increase in the provision for income taxes
for the three months and nine months ended March 31, 2002, as compared to the
same period in 2001. This increase was due to the increase in before tax income
for the three months and nine months ended March 31, 2002, compared to the same
periods in 2001.

                                       14

<PAGE>

GUARANTY FEDERAL BANCSHARES, INC.
FORM 10-Q FOR MARCH 31, 2002

Liquidity and Capital Resources

         The Bank's primary sources of funds are deposits, principal and
interest payments on loans and securities and extensions of credit from the
Federal Home Loan Bank of Des Moines. While scheduled loan and security
repayments and the maturity of short-term investments are somewhat predictable
sources of funding, deposit flows are influenced by many factors, which make
their cash flows difficult to anticipate.

         The Bank uses its liquidity resources principally to satisfy its
ongoing commitments which include funding loan commitments, funding maturing
certificates of deposit as well as deposit withdrawals, maintaining liquidity,
purchasing investments, and meeting operating expenses. As of March 31, 2002,
the Bank had approximately $4,114,000 in commitments to originate mortgage loans
and $16,332,000 in mortgage loans-in-process. These commitments will be funded
through existing cash balances, cash flow from operations and, if required, FHLB
advances . Management believes that anticipated cash flows and deposit growth
will be adequate to meet the Bank's liquidity needs.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

Nonperforming Assets

         The allowance for loan losses is calculated based upon an evaluation of
pertinent factors underlying the various types and quality of the loans.
Management considers such factors as the repayment status of a loan, the
estimated net realizable value of the underlying collateral, the borrower's
intent and ability to repay the loan, local economic conditions and the Bank's
historical loss ratios. The Bank's allowance for loan losses as of March 31,
2002, was $2,607,423 or 0.83% of loans receivable. Total assets classified as
substandard or loss as of March 31, 2002 were $1,935,096 or 0.49% of total
assets. Management has considered nonperforming and total classified assets in
evaluating the adequacy of the Bank's allowance for loan losses.

         The ratio of nonperforming assets to total assets is another useful
tool in evaluating exposure to credit risk. Nonperforming assets of the Bank
include nonperforming loans (nonaccruing loans) and assets which have been
acquired as a result of foreclosure or deed-in-lieu of foreclosure. All dollar
amounts are in thousands.

<TABLE>
<CAPTION>
                                                                                3/31/02      6/30/01      6/30/00
                                                                               ---------    ---------    ---------
<S>                                                                           <C>          <C>           <C>
Nonperforming loans                                                            $   2,306        4,948        4,757
Real estate acquired in settlement of loans                                          531            4            2
                                                                               ---------    ---------    ---------
Total nonperforming assets                                                     $   2,837        4,952        4,759
                                                                               =========    =========    =========


Total nonperforming assets as a percentage of total assets                          0.72%        1.32%        1.39%
Allowance for loan losses                                                      $   2,607        2,697        2,520
Allowance for loan losses as a percentage of average net loans                      0.80%        0.87%        0.89%
</TABLE>


Asset/Liability Management

         The goal of the Bank's asset/liability policy is to manage interest
rate risk so as to maximize net interest income over time in changing interest
rate environments. Management monitors the Bank's net interest spreads (the
difference between yields received on assets and paid on liabilities) and,
although constrained by market conditions, economic conditions, and prudent
underwriting standards, it offers deposit rates and loan rates designed to
maximize net interest income. Management also attempts to fund the Bank's assets
with liabilities of a comparable duration to minimize the impact of changing
interest rates on the Bank's net interest income. Since the relative spread
between financial assets and liabilities is constantly changing, the Bank's
current net interest income may not be an indication of future net interest
income.

         The Bank's initial efforts to manage interest rate risk included
implementing an adjustable rate mortgage loan ("ARM") program beginning in the
early 1980s. The ARMs have met with excellent customer acceptance. As

                                       15

<PAGE>

GUARANTY FEDERAL BANCSHARES, INC.
FORM 10-Q FOR MARCH 31, 2002

of June 30, 2001 and March 31, 2002, ARMs constituted 58% and 55% of the Bank's
loan portfolio, respectively. Of the ARMs originated during fiscal year 2002,
borrowers preferred initial fixed rate periods of three or five years.

         The Bank is also managing interest rate risk by the origination of
construction loans. As of March 31, 2002, such loans made up 13% of the Bank's
loan portfolio. In general, these loans have higher yields, shorter maturities
and greater interest rate sensitivity than other real estate loans.

         The Bank constantly monitors its deposits in an effort to decrease
their interest rate sensitivity. Rates of interest paid on deposits at the Bank
are priced competitively in order to meet the Bank's asset/liability management
objectives and spread requirements. As of June 30, 2001, the Bank's savings
accounts, checking accounts, and money market deposit accounts totaled
$58,644,912 or 34% of its total deposits. As of March 31, 2002, these accounts
totaled $90,927,442 or 40% of total deposits. The Bank believes, based on
historical experience, that a substantial portion of such accounts represents
non-interest rate sensitive, core deposits.

         The value of the Bank's loan portfolio will change as interest rates
change. Rising interest rates will decrease the Bank's net portfolio value,
while falling interest rates increase the value of that portfolio.

Interest Rate Sensitivity Analysis
----------------------------------

         The following table sets forth as of December 31, 2001 (the most recent
available), the Office of Thrift Supervision ("OTS") estimate of the projected
changes in net portfolio value ("NPV") in the event of 100, 200, and 300 basis
point ("bp") instantaneous and permanent increases and 100 basis point
instantaneous decrease in market interest rates. Dollar amounts are expressed in
thousands.

   BP Change       Estimated Net Portfolio Value        NPV as % of PV of Assets
                -----------------------------------    -------------------------
    in Rates    $ Amount      $ Change     % Change    NPV Ratio         Change
    --------    --------      --------     --------    ---------         ------
        +300      56,672      $ (1,470)          -3%       14.04%          0.19%
        +200      57,670          (471)          -1%       14.09%          0.24%
        +100      58,130           (11)           0%       14.01%          0.16%
          NC      58,141             -            0%       13.85%          0.00%
        -100      57,241          (900)          -2%       13.50%         -0.35%

         Computations of prospective effects of hypothetical interest rate
changes are calculated by the OTS from data provided by the Bank and are based
on numerous assumptions, including relative levels of market interest rates,
loan repayments and deposit run-offs, and should not be relied upon as
indicative of actual results. Further, the computations do not contemplate any
actions the Bank may undertake in response to changes in interest rates.

         Management cannot predict future interest rates or their effect on the
Bank's NPV in the future. Certain shortcomings are inherent in the method of
analysis presented in the computation of NPV. For example, although certain
assets and liabilities may have similar maturities or periods to repricing, they
may react in differing degrees to changes in market interest rates.
Additionally, certain assets, such as adjustable rate loans, which represent the
Bank's primary loan product, have an initial fixed rate period typically from
one to five years and over the remaining life of the asset changes in the
interest rate are restricted. In addition, the proportion of adjustable rate
loans in the Bank's portfolio could decrease in future periods due to
refinancing activity if market interest rates remain unchanged or decrease in
the future. Further, in the event of a change in interest rates, prepayment and
early withdrawal levels could deviate significantly from those assumed in the
table. Finally, the ability of many borrowers to service their adjustable-rate
debt may decrease in the event of an interest rate increase.

         The Bank's Board of Directors is responsible for reviewing the asset
and liability policies. The Board meets quarterly to review interest rate risk
and trends, as well as liquidity and capital ratios and requirements. The Bank's
management is responsible for administering the policies and determinations of
the Board of Directors with respect to the Bank's asset and liability goals and
strategies.

                                       16

<PAGE>

GUARANTY FEDERAL BANCSHARES, INC.
FORM 10-Q FOR MARCH 31, 2002


                                     PART II

Item 1.  Legal Proceedings
         None.

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 Vote of Security Holders
         None

Item 5.  Other Information
         None.

Item 6.  Exhibits and Reports on Form 8-K
         a)       Exhibits
         b)       Reports on Form 8-K
                  March 26, 2002




<PAGE>

GUARANTY FEDERAL BANCSHARES, INC.
FORM 10-Q FOR MARCH 31, 2002

                                   SIGNATURES

         In accordance with the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.

         Guaranty Federal Bancshares, Inc.


         Signature and Title                                        Date

         /s/ Don M. Gibson                                          May 6, 2002
         ------------------                                         -----------
         Don M. Gibson
         President and Chief Executive Officer
         (Principal Executive Officer)


         /s/ Bruce Winston                                          May 6, 2002
         -----------------                                          -----------
         Bruce Winston
         Vice President and Chief Financial Officer
         (Principal Financial and Accounting Officer)