----

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|                                                    GS Financial Corp.                                                                                                                        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                       2009 Annual Report |

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| To our Shareholders:  A Message from the President and CEO |
|----------------------------------------------------------------------|

| §   | Strategy: Prudently expand our branch network: |
|--------------------|------------------------------------------------|

| §   | Strategy: Grow residential mortgage banking loan production and secondary market income: |
|--------------------|------------------------------------------------------------------------------------------|

| §   | Strategy: Grow business banking, mortgage banking and consumer loans, interest, and fees: |
|--------------------|-------------------------------------------------------------------------------------------|

| §   | Strategy: Grow transactional NOW, MMDA and lower cost retail and business demand deposits. |
|--------------------|--------------------------------------------------------------------------------------------|

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| Index to Annual Report                                                                            |
|---------------------------------------------------------------------------------------------------|
|                                                                                              |
| Business Description                                                                         | 5 |
| Shareholder Information                                                                      | 5 |
| Selected Consolidated Financial Data                                                         | 6 |
| Management’s Discussion and Analysis of Financial Condition and Results of Operations  | 7 |
| Management’s Report on Internal Control Over Financial Reporting                            | 29  |
| Report of Independent Registered Public Accounting Firm                                      | 30 |
| Consolidated Balance Sheets                                                                  | 31 |
| Consolidated Statements of Income (Loss)                                                     | 32 |
| Consolidated Statements of Comprehensive Income (Loss)                                       | 33 |
| Consolidated Statements of Changes in Stockholders’ Equity                             | 34 |
| Consolidated Statements of Cash Flows                                                        | 35 |
| Notes to Consolidated Financial Statements                                                   | 37 |
| Board of Directors                                                                           | 70 |
| Executive Officers Who Are Not Directors                                                     | 70 |
| Banking Locations                                                                            | 71 |
|                                                                                              |   |

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| Business Description |
|----------------------|

| Shareholder Information |
|-------------------------|
|                    |

| TRANSFER AGENT, REGISTRAR, AND DIVIDEND PAYING                                                                                                                            |   | COMMON STOCK                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| AGENT FOR COMMON STOCK                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Registered shareholder inquiries related to stock transfers, address changes, lost stock certificates, dividend payments or account consolidations should be directed to: |   | GS Financial’s common stock is traded on The NASDAQ Global Market under the ticker symbol GSLA.  At December 31, 2009, the closing price was $14.99 per share and there were approximately 88 shareholders of record.                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Registrar and Transfer Company                                                                                                                                            |   | MARKET PRICES AND DIVIDENDS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|     10 Commerce Drive                                                                                                                                      |   | Set forth below are the high and low sales prices for  GS Financial’s  common                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|     Cranford, New Jersey 07016                                                                                                                             |   | stock on the NASDAQ Global  Market  and  dividends  paid  for  the  periods                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|     (800) 368-5948                                                                                                                                         |   | presented.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| www.rtco.com                                                                                                                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                      |   | Year 2009                                      Stock Price                                Dividends                                                                                                                                            |
| FORM 10-K AND OTHER FINANCIAL                                                                                                                                             |   | Quarter Ended                                High            Low                                                                                                                                                                                                                                                                                                  |
| INFORMATION                                                                                                                                                               |   | March 31                                  $     14.00      $   10.51            $                     0.10                                                                    |
| Shareholders are advised to  review  financial  information  and  other                                                                          |   | June 30                                             17.44           12.50                                   0.10  |
| disclosures about GS Financial  contained  in  its  Annual  Report  on                                                                      |   | September 30                                  17.10            13.80                                   0.10                                                                        |
| Form 10-K.  The Form 10-K  for  the  year  ended  December  31,  2009                                                        |   | December 31                                   16.20            12.90                                   0.10                                                              |
| and other financial reports  filed  by  GS  Financial  with  the  SEC  are                                                        |   | Year 2008                                      Stock Price                                Dividends                                                                                                                                  |
| available on the Company’s web site at www.gsfinancialcorp.com  or                                                                                             |   | Quarter Ended                                High            Low                                                                                                                                                                                                                                                                                                  |
| may be obtained  without  charge  by  calling  Lettie  Moll,  Corporate                                                                |   | March 31                                  $     18.94      $    14.25           $                      0.10                                                                   |
| Secretary, or Stephen Theriot, Chief  Financial  Officer,  at  (504)  457-                                                                  |   | June 30                                             18.50            14.35                                   0.10 |
| 6220 or by writing to:                                                                                                                                                    |   | September 30                                   16.75            12.00                                   0.10                                                             |
|                                                                                                                                                                      |   | December 31                                    16.72            10.75                                   0.10                                                        |
|                                                                                                                                                                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| GS Financial Corp.                                                                                                                                                        |   | INDEPENDENT REGISTERED PUBLIC                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Investor Relations                                                                                                                                                        |   | ACCOUNTANTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 3798 Veterans Boulevard                                                                                                                                                   |   | LaPorte, Sehrt, Romig and Hand                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Metairie, Louisiana 70002                                                                                                                                                 |   | A Professional Accounting Corporation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                      |   | 110 Veterans Boulevard, Suite 200                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                      |   | Metairie, Louisiana 70005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

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| GS Financial Corp. and Subsidiary    |
|--------------------------------------|
| Selected Consolidated Financial Data |

|                                    | At or For Years Ended December 31,                                                                  |                                                                                                                      |
|-----------------------------------------|-----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
| ($ in thousands, except per share data) | 2009                                                                                                | 2008                                                                                                                      | 2007 | 2006 | 2005 |
| BALANCE SHEET DATA                      |                                                                                                |                                                                                                                      |   |   |   |
| Total assets                            |  $      271,604                                                  |  $        221,870                                                            |  $          186,487 |  $      168,380 |  $        177,614 |
| Cash and cash equivalents               |            19,735                            |               3,205                                 |                 9,462 |               11,117 |              22,555 |
| Loans receivable, net                   |          185,500                                       |           158,523                                                       |              118,477 |               93,987 |              69,657 |
| Investment securities                   |            50,455                            |             47,617                                            |               47,747 |               55,090 |              77,344 |
| Deposit accounts                        |          201,493                                       |           140,115                                                       |              129,510 |             122,754 |            118,866 |
| Borrowings                              |            40,512                            |             52,002                                            |               26,986 |               17,042 |              32,106 |
| Stockholders' equity                    |            28,021                            |             27,558                                            |               28,164 |               27,164 |              25,407 |
| INCOME STATEMENT DATA                   |                                                                                                |                                                                                                                      |   |   |
| Interest income                         |  $        14,159                                       |  $         12,426                                                       |  $            11,248 |  $        11,000 |  $          10,466 |
| Interest expense                        |              6,084                 |               5,751                                 |                 5,547 |              4,904 |                4,856 |
| Net interest income                     |              8,075                 |               6,675                                 |                 5,701 |              6,096 |                5,610 |
| Provision (reversal) for loan losses    |                 500 |                    -       |                   (300) |            (1,981) |                4,793 |
| Non-interest income (loss)              |              1,330                 |                (994)                           |                    424 |                  51 |              (1,294) |
| Non-interest expense                    |              7,529                 |               5,673                                 |                 5,409 |              4,926 |                4,707 |
| Net income (loss) before taxes          |              1,376                 |                     8 |                 1,016 |              3,202 |              (5,184) |
| Net income (loss)                       |                 886 |                    (6)     |                    658 |              2,114 |              (3,676) |
| KEY RATIOS                              |                                                                                                |                                                                                                                      |   |   |   |
| Return on average assets                | 0.34%                                                                                               |  n/m                                                                                                                 | 0.38% | 1.21% | (1.96)% |
| Return on average stockholders' equity  | 3.13%                                                                                               | (0.02)%                                                                                                                   | 2.40% | 8.15% | (13.76)% |
| Net interest margin                     | 3.26%                                                                                               | 3.43%                                                                                                                     | 3.44% | 3.58% | 3.12% |
| Average loans to average deposits       | 97.37%                                                                                              | 104.88%                                                                                                                   | 88.35% | 70.74% | 71.74% |
| Interest-earning assets to              |                                                                                                |                                                                                                                      |   |   |   |
| Interest-bearing liabilities            | 113.13%                                                                                             | 117.05%                                                                                                                   | 118.86% | 117.88% | 115.04% |
| Efficiency ratio                        | 80.06%                                                                                              | 99.86%                                                                                                                    | 88.27% | 80.14% | 109.06% |
| Non-interest expense to average assets  | 2.89%                                                                                               | 2.73%                                                                                                                     | 3.12% | 2.82% | 2.51% |
| Allowance for loan losses to loans      | 1.27%                                                                                               | 1.69%                                                                                                                     | 2.82% | 3.82% | 7.58% |
| Stockholders' equity to total assets    | 10.32%                                                                                              | 12.42%                                                                                                                    | 15.10% | 16.16% | 14.30% |
| COMMON SHARE DATA                       |                                                                                                |                                                                                                                      |   |   |   |
| Earnings (loss) per share:              |                                                                                                |                                                                                                                      |   |   |   |
| Basic                                   |  $            0.70                 |  n/m                                                                                                                 |  $               0.53 |  $        1.74 |  $            (3.11) |
| Diluted                                 |                0.70      |  n/m                                                                                                                 |                   0.52 |            1.73 |                (3.11) |
| Dividends paid per share                |                0.40      |                 0.40                      |                   0.40 |               0.40 |                  0.40 |
| Dividend payout ratio                   | 57.56%                                                                                              |  n/m                                                                                                                 | 76.44% | 22.99% |  n/m |
| Book value per share                    |  $          22.19                            |  $           21.56                                            |  $             21.90 |  $          22.00 |  $            20.99 |
| Trading data:                           |                                                                                                |                                                                                                                      |   |   |   |
| High closing price                      |  $          17.44                            |  $           18.94                                            |  $             21.49 |  $      21.76 |  $            19.66 |
| Low closing price                       |              10.51                 |               10.75                                 |                 17.04 |          14.99 |                12.86 |
| End of period closing price             |              14.99                 |               12.50                                 |                 18.94 |          19.80 |                15.00 |
| Average shares outstanding:             |                                                                                                |                                                                                                                      |   |   |   |
| Basic                                   |       1,263,021                                                       |         1,278,292                                                                 |           1,243,655 |    1,212,173 |         1,181,313 |
| Diluted                                 |       1,263,021                                                       |         1,278,292                                                                 |           1,268,995 |    1,222,949 |         1,181,313 |
|                                    |                                                                                                |                                                                                                                      |   |   |   |

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

| ·   | expectations about the overall economy in the Company’s market area, |
|--------------------|----------------------------------------------------------------------------|

| ·   | expectations about the ability of the Bank’s borrowers to make payments on outstanding loans and the sufficiency of the allowance for loan losses, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | expectations about the current values of collateral securing the Bank’s outstanding loans, |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | expectations about the movement of interest rates, including actions that may be taken by the Federal Reserve Board in response to changing economic conditions, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | reliance on existing or anticipated changes in laws or regulations affecting the activities of the banking industry and other financial service providers, and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | expectations regarding the nature and level of competition, changes in customer behavior and preferences, and the Company’s ability to execute its plans to respond effectively. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

| TABLE 1. COMPOSITION OF LOAN PORTFOLIO   |                                                                                          |                                                                                    |                                                                                         |
|------------------------------------------|-----------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|
|                                     | At December 31,                                                                               |
| ($ in thousands)                         | 2009                                                                                          | 2008                                                                                    | 2007                                                                                         | 2006 | 2005 |
| Real estate loans - residential          |  $        78,160                                 |  $       69,405                                 |  $      59,530                                            |  $      47,654 |  $      36,777 |
| Real estate loans - commercial and other |           69,658                            |           67,616                      |         45,757                                       |         36,896 |         24,794 |
| Real estate loans - construction         |           19,728                            |           10,542                      |           9,074                            |           9,089 |         11,282 |
| Home equity lines of credit              |           12,760                            |             6,873           |           2,951                            |              956 |                23 |
| Commercial loans                         |             5,422                 |             4,807           |           3,625                            |           2,445 |           1,819 |
| Consumer loans                           |             1,728                 |             1,713           |              913            |              677 |              669 |
| Total loans at year-end                  |  $      187,456                                            |  $     160,956                                            |  $    121,850                                                       |  $      97,717 |  $      75,364 |
| Allowance for loan losses                |            (2,380)                     |           (2,719)                     |          (3,432)                                |          (3,732) |          (5,713) |
| Deferred loan origination costs          |                424 |               286 |                59 |                 2 |                 6 |
| Net loans at year end                    |          185,500                                 |         158,523                                 |        118,477                                            |         93,987 |         69,657 |
| Average total loans during year          |  $      178,780                                            |  $     141,892                                            |  $    107,785                                                       |  $      87,360 |  $      87,437 |
|                                     |                                                                                          |                                                                                    |                                                                                         |   |   |

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

| TABLE 2. LOAN ORIGINATIONS BY TYPE       |   |
|------------------------------------------|--------|
|                                     |   | Year Ended December 31, |   |
| ($ in thousands)                         |   | 2009 |   |   | 2008 |   |
| Real estate loans - residential          |   | $ | 74,724 |   |   | $ | 33,190 |   |
| Real estate loans - commercial and other |   |   | 20,229 |   |   |   | 31,228 |   |
| Real estate loans - construction         |   |   | 16,633 |   |   |   | 11,340 |   |
| Home equity lines of credit              |   |   | 7,807 |   |   |   | 4,955 |   |
| Commercial loans                         |   |   | 2,106 |   |   |   | 2,689 |   |
| Consumer loans                           |   |   | 1,461 |   |   |   | 2,323 |   |
| Total originations                       |   |   | 122,960 |   |   |   | 85,725 |   |
| Loan principal repayments                |   |   | (39,893 | ) |   |   | (25,106 | ) |
| Loans sold                               |   |   | (56,567 | ) |   |   | (19,723 | ) |
| Net portfolio activity                   |   | $ | 26,500 |   |   | $ | 40,896 |   |

| TABLE 3. LOAN MATURITIES BY TYPE               |                                                                        |                                                                                  |                                                                                                    |
|------------------------------------------------|-----------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|
|                                           | At December 31, 2009, Loans Maturing In                                     |
| ($ in thousands)                               |  One year or less                                                      | One through five years                                                                |  More than five years                                                                    |  Total |
| Real estate loans – residential          |  $      4,496                            |  $     18,544                                           |  $        54,204                                           |  $      77,244 |
| Real estate loans – commercial and other |          6,476                 |        46,776                                      |            16,934                                |          70,186 |
| Real estate loans – construction         |        19,779                            |               - |                  - |          19,779 |
| Home equity lines of credit                    |             238 |             181           |            12,340                                |          12,759 |
| Commercial loans                               |          2,346                 |          3,007                           |                406           |            5,759 |
| Consumer loans                                 |          1,012                 |             423           |                294           |            1,729 |
| Total                                          |  $     34,347                                 |  $     68,931                                           |  $        84,178                                           |  $     187,456 |
| Percentage                                     | 18.3%                                                                       | 36.8%                                                                                 | 44.9%                                                                                                   | 100.0% |
|                                           |                                                                        |                                                                                  |                                                                                                    |   |

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

| TABLE 4. LOAN INTEREST RATES BY TYPE                    |                                                                                        |
|---------------------------------------------------------|---------------------------------------------------------------------------------------------|
| At December 31, 2009, Loans Due After December 31, 2010 |
| ($ in thousands)                                        | Variable rate                                                                               | Fixed rate | Total |
| Real estate loans – residential                   |  $      10,170                                           |  $      62,578 |  $        72,748 |
| Real estate loans – commercial and other          |              767           |          62,943 |            63,710 |
| Real estate loans – construction                  |                - |                - |                  - |
| Home equity lines of credit                             |          12,521                                |                - |            12,521 |
| Commercial loans                                        |              317           |            3,096 |              3,413 |
| Consumer loans                                          |              417           |              300 |                717 |
| Total                                                   |  $      24,192                                           |  $     128,917 |  $      153,109 |
| Percentage                                              | 15.8%                                                                                       | 84.2% | 100.0% |
|                                                    |                                                                                        |   |   |

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

| TABLE 5. SUMMARY OF ACTIVITY IN THE ALLOWANCE FOR LOSSES               |                                                                                                          |                                                                                                          |
|------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|
|                                                                   | Year Ended December 31,                                                                                       |
| ($ in thousands)                                                       | 2009                                                                                                          | 2008                                                                                                          | 2007 | 2006 | 2005 |
| Balance at the beginning of year                                       |  $       2,719                                                        |  $         3,432                                            |  $         3,732 |  $         5,713 |  $            920 |
| Provision (reversal) for loan losses charged to operations             |               500                       |                   - |              (300) |           (1,981) |             4,793 |
| Charge-offs:                                                           |                                                                                                          |                                                                                                          |   |   |   |
|      Real estate loans - residential          |             (817)                                 |              (293)                           |                   - |                   - |                   - |
|      Real estate loans - commercial and other |                (24)                |              (420)                           |                   - |                   - |                   - |
|      Real estate loans - construction         |                   - |                   - |                   - |                   - |                   - |
|      Home equity lines of credit              |                   - |                   - |                   - |                   - |                   - |
|      Commerical loans                         |                   - |                   - |                   - |                   - |                   - |
|      Consumer loans                           |                (13)                |                   - |                   - |                   - |                   - |
|         Total charge-offs      |             (854)                                 |              (713)                           |                   - |                   - |                   - |
| Recoveries of loans previously charged-off                             |                 15            |                   - |                   - |                   - |                   - |
| Balance at the end of year                                             |  $       2,380                                                        |  $         2,719                                            |  $         3,432 |  $         3,732 |  $         5,713 |
| Ratios:                                                                |                                                                                                          |                                                                                                          |   |   |   |
| Charge-offs to average total loans                                     | 0.48%                                                                                                         | 0.50%                                                                                                         | n/a |      n/a | n/a |
| Provision for loan losses to charge-offs                               | 58.55%                                                                                                        | n/a                                                                                                           | n/a |      n/a | n/a |
| Allowance for loan losses to nonperforming loans                       | 57.16%                                                                                                        | 135.21%                                                                                                       | 238.66% | 2084.92% | 159.49% |
| Allowance for loan losses to loans at end of year                      | 1.27%                                                                                                         | 1.69%                                                                                                         | 2.82% | 3.82% | 7.58% |
|                                                                   |                                                                                                          |                                                                                                          |   |   |   |

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

| TABLE 6. ALLOCATION OF THE ALLOWANCE FOR LOAN LOSSES |
|------------------------------------------------------|
|                                                 | At December 31, |
|                                                 | 2009 |   | 2008 |   | 2007 |   |   |   | 2006 |   |   |   | 2005 |   |   |
|                                                 |   |   | % of Loans |   | Allowance |   | % of Loans |   | Allowance |   | % of Loans |   | Allowance |   | % of Loans |   | Allowance |   | % of Loans |
|                                                 | Allowance for |   | by Type to |   | for Loan |   | by Type to |   | for Loan |   | by Type to |   | for Loan |   | by  Type to |   | for Loan |   | by Type to |
| ($ in thousands)                                     | Loan Losses |   | Total Loans |   | Losses |   | Total Loans |   | Losses |   | Total Loans |   | Losses |   | Total Loans |   | Losses |   | Total Loans |
| Real estate loans – residential                | $       618 |   | 41.7% |   | $       817 |   | 43.1% |   | $    1,115 |   | 48.9% |   | $    1,156 |   | 48.8% |   | $      3,330 |   | 48.8% |
| Real estate loans – commercial and other       | 1,065 |   | 37.2% |   | 1,478 |   | 42.0% |   | 1,802 |   | 37.6% |   | 1,963 |   | 37.8% |   | 1,805 |   | 32.9% |
| Real estate loans – construction               | 155 |   | 10.5% |   | 57 |   | 6.5% |   | 189 |   | 7.4% |   | 360 |   | 9.3% |   | 292 |   | 15.0% |
| Home equity lines of credit                          | 163 |   | 6.8% |   | 79 |   | 4.3% |   | 54 |   | 2.4% |   | 21 |   | 1.0% |   | 2 |   |             - |
| Commercial loans                                     | 343 |   | 2.9% |   | 274 |   | 3.0% |   | 272 |   | 3.0% |   | 232 |   | 2.5% |   | 284 |   | 2.4% |
| Consumer loans                                       | 36 |   | 0.9% |   | 14 |   | 1.1% |   |        - |   | 0.7% |   |        - |   | 0.7% |   | - |   | 0.9% |
|      Total                  | $    2,380 |   | 100.0% |   | $    2,719 |   | 100.0% |   | $    3,432 |   | 100.0% |   | $    3,732 |   | 100.1% |   | $      5,713 |   | 100.0% |

| TABLE 7. DELINQUENT LOANS                           |                                      |                                                  |                                      |
|-----------------------------------------------------|-------------------------------------------|-------------------------------------------------------|-------------------------------------------|
|                                                | At December 31,                           |
| ($ in thousands)                                    | 2009                                      | 2008                                                  | 2007                                      |
| 30-89 Days                                          |  $   3,401            |  $     5,231            |  $   3,305            |
| 90+ Days                                            |       4,164 |         2,011 |       1,438 |
| Total                                               |  $   7,565            |  $     7,242            |  $   4,743            |
| Ratios                                              |                                      |                                                  |                                      |
| Loans delinquent 90 days or more to total loans     | 2.22%                                     | 1.25%                                                 | 1.18%                                     |
| Total delinquent loans to total loans               | 4.04%                                     | 4.50%                                                 | 3.89%                                     |
| Allowance for loan losses to total delinquent loans | 31.46%                                    | 37.54%                                                | 72.36%                                    |

| TABLE 8. NON-PERFORMING ASSETS                            |                                                                                  |                                                                            |                                                                                  |                                                                                        |                                                                                        |
|-----------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|
|                                                      | At December 31,                                                                       |
| ($ in thousands)                                          | 2009                                                                                  | 2008                                                                            | 2007                                                                                  | 2006                                                                                        | 2005                                                                                        |
| Loans accounted for on a nonaccrual basis                 |  $   4,164                                                        |  $    2,011                                            |  $     1,438                                            |  $        179                                  |  $      3,582                                            |
| Foreclosed assets                                         |       2,489                                             |          461                       |  -                                                                               |  -                                                                                     |  -                                                                                     |
| Total non-performing assets                               |  $   6,653                                                        |  $    2,472                                            |  $     1,438                                            |  $        179                                  |  $      3,582                                            |
| Loans greater than 90 days past due and accruing interest |               - |              - |               - |                - |                - |
| Troubled debt restructurings                              |               - |              - |               - |                - |                - |
| Ratios                                                    |                                                                                  |                                                                            |                                                                                  |                                                                                        |                                                                                        |
| Non-performing assets to loans plus foreclosed assets     | 3.50%                                                                                 | 1.53%                                                                           | 1.18%                                                                                 | 0.18%                                                                                       | 4.75%                                                                                       |
| Non-performing assets to total assets                     | 2.45%                                                                                 | 1.11%                                                                           | 0.77%                                                                                 | 0.11%                                                                                       | 2.02%                                                                                       |
|                                                      |                                                                                  |                                                                            |                                                                                  |                                                                                        |                                                                                        |

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

| TABLE 9. COMPOSITION OF INVESTMENT SECURITIES PORTFOLIO |                                                                          |
|---------------------------------------------------------|-------------------------------------------------------------------------------|
|                                                    | At December 31,                                                               |
|                                                    | 2009                                                                          | 2008 | 2007 |
| ($ in thousands)                                        | Balance                                                                       | Percent | Balance | Percent | Balance | Percent |
| U.S. Treasury and agency securities                     |  $         6,937            | 13.7% |  $       10,070 | 21.1% |  $      18,421 | 38.6% |
| Mortgage-backed securities                              |           32,678            | 64.8% |           26,100 | 54.8% |            8,912 | 18.7% |
| Collateralized mortgage obligations                     |             1,433 | 2.8% |             8,039 | 16.9% |          14,633 | 30.6% |
| Municipal securities                                    |             7,013 | 13.9% |                 - | - |                - | - |
| Mutual funds                                            |             2,394 | 4.8% |             3,408 | 7.2% |            5,781 | 12.1% |
| Total investment securities at year end                 |           50,455            | 100.0% |           47,617 | 100.0% |          47,747 | 100.0% |
| Average investment securities during year               |  $       50,172                       |   |  $       49,113 |   |  $      50,452 |   |
|                                                    |                                                                          |   |   |   |   |   |

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

| TABLE 10. DISTRIBUTION OF INVESTMENT SECURITY MATURITIES |                                                                       |                       |                                                                                    |                       |
|----------------------------------------------------------|----------------------------------------------------------------------------|----------------------------|-----------------------------------------------------------------------------------------|----------------------------|
|                                                     | At December 31, 2009                                                       |
|  ($ in thousands)                                   |  One year or less                                                     | Over onethrough five years |  Over fivethrough ten years                                                        |   Over ten years |  Total |
|                                                     | Amount                                                                     | Yield                      | Amount                                                                                  | Yield                      |  Amount |  Yield |  Amount |  Yield |  Amount |  Yield |
| U.S. Treasury and Agency Securities                      |  $           - | -                          |  $              - |  -                    |  $      1,982 | 3.49% |  $      4,955 | 4.65% |  $      6,937 | 4.32% |
| Municipal Securities                                     |  $           - | -                          |  $         540                        | 4.50%                      |  $      3,915 | 4.26% |  $      2,558 | 4.42% |  $      7,013 | 4.34% |
| Total                                                    |  $           - | -                          |  $         540                        | 4.50%                      |  $      5,897 | 4.00% |  $      7,513 | 4.57% |  $    13,950 | 4.33% |
| Percentage of Total                                      |         -                          |                       | 3.9%                                                                                    |                       | 42.3% |   | 53.8% |   | 100.0% |   |
|                                                     |                                                                       |                       |                                                                                    |                       |   |   |   |   |   |   |

| TABLE 11. INVESTMENT SECURITIES GREATER THAN 10% OF STOCKHOLDERS' EQUITY |
|--------------------------------------------------------------------------|
|                                                                     |   | At December 31, 2009 |
|   ($ in thousands)                                             |   Type |  Total Investment |  % of Total Assets | % of Stockholders' Equity |
| Federal Home Loan Bank                                                   | Agency Bonds |  $          2,896 | 1.1% | 10.3% |
| Government National Mortgage Association                                 | Mortgage-Backed Securities |              7,233 | 2.7% | 25.8% |
| Federal National Mortgage Association                                    | Agency Bonds and |            20,228 | 7.4% | 72.2% |
|                                                                     | Mortgage-Backed Securities |   |   |   |
| Federal Home Loan Mortgage Corporation                                   | Mortgage-Backed Securities and |              9,326 | 3.4% | 33.3% |
|                                                                     | Collateralized Mortgage Obligations |   |   |
| Total                                                                    |   |  $        39,683 | 14.6% | 141.6% |
|                                                                     |   |   |   |   |

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

| TABLE 12.  DEPOSIT COMPOSITION |                                                                                       |                |                                                                                       |                |
|------------------------------------------|--------------------------------------------------------------------------------------------|---------------------|--------------------------------------------------------------------------------------------|---------------------|
|                                     | At December 31,                                                                            |
|                                     | 2009                                                                                       | 2008                | 2007                                                                                       |
| ($ in thousands)                         | Average Balances                                                                           |  % of Deposits | AverageBalances                                                                            |  % of Deposits | AverageBalances |  % of Deposits |
| Noninterest-bearing demand deposits      |  $           10,213            | 5.6%                |  $             8,915 | 6.6%                |  $             4,380 | 3.5% |
| NOW and MMDA account deposits            |               63,874 | 34.8%               |               26,134 | 19.3%               |               21,576 | 17.1% |
| Savings deposits                         |               13,693 | 7.4%                |               17,074 | 12.6%               |               20,511 | 16.2% |
| Certificates of deposit                  |               95,830 | 52.2%               |               83,167 | 61.5%               |               79,911 | 63.2% |
| Total                                    |  $         183,610                       | 100.0%              |  $         135,290                       | 100.0%              |  $         126,378 | 100.0% |
|                                     |                                                                                       |                |                                                                                       |                |   |   |

| TABLE 13. MATURITIES OF TIME DEPOSITS |                                                                           |
|---------------------------------------|--------------------------------------------------------------------------------|
|   At December 31, 2009           |
|  ($ in thousands)                | Less than $100,000                                                        | More than $100,000 |  Total |
|                                  |                                                                           |   |  Amount | Percentage |
| Three months or less                  |  $         20,137            |  $      11,094 |  $       31,231 | 31.3% |
| Over three months through six months  |             11,956 |            4,244 |           16,200 | 16.3% |
| Over six months through twelve months |             18,434 |            8,414 |           26,848 | 27.0% |
| Over twelve months                    |             17,612 |            7,698 |           25,310 | 25.4% |
| Total                                 |  $         68,139            |  $      31,450 |  $       99,589 | 100.0% |
|                                  |                                                                           |   |   |   |

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

| TABLE 14. SUMMARY OF ADVANCES                                                               |                                                                                 |   |                                                                                 |   |                                                                                 |
|---------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|
|                                                                                        | At or For the Year Ended December 31,                                                |
| ($ in thousands)                                                                            | 2009                                                                                 |   | 2008                                                                                 |   | 2007                                                                                 |
| FHLB advances and other borrowings:                                                         |                                                                                 |   |                                                                                 |   |                                                                                 |
|      Average balance outstanding                                   |              45,408 |   |              43,049 |   |              17,564 |
|      Maximum amount outstanding at any month-end during the period |              51,896 |   |              52,926 |   |              26,986 |
|      Balance outstanding at end of period                          |              40,512 |   |              52,002 |   |              26,986 |
|      Average interest rate during the period                       | 3.97%                                                                                |   | 4.11%                                                                                |   | 5.47%                                                                                |
|      Weighted average interest rate at end of period               | 4.10%                                                                                |   | 3.75%                                                                                |   | 5.07%                                                                                |
|                                                                                        |                                                                                 |   |                                                                                 |   |                                                                                 |

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

| TABLE 15. SUMMARY OF STOCK REPURCHASES                |
|-------------------------------------------------------|
|                                                  |   |   |   |   |   | Average Price |
| Year Ended December 31,                               |   | Shares |   | Cost ($000) |   | Per Share |
| 2005 and prior                                        |   |   2,154,469 |   | $32,193 |   | $14.94 |
| 2006                                                  |   |    17,763 |   |    300 |   |   16.87 |
| 2007                                                  |   |    10,468 |   |    188 |   |   18.00 |
| 2008                                                  |   | - |   |    - |   |  - |
| 2009                                                  |   |    27,862 |   |    387 |   |   13.87 |
|      Total Stock Repurchases |   |   2,210,562 |   | $33,068 |   | $14.96 |

| TABLE 16. CAPITAL AND RISK BASED CAPITAL RATIOS  |                                                                                                                                      |
|--------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|
|                                             | At December 31,                                                                                                                           |
| ($ in thousands)                                 | 2009                                                                                                                                      | 2008 | 2007 |
| Tier 1 regulatory capital                        |  $                 26,510                       |  $         25,611 |  $          27,107 |
| Tier 2 regulatory capital                        |                       1,613 |               1,772 |                1,260 |
| Total regulatory capital                         |  $                 28,123                       |  $         27,383 |  $          28,367 |
| Adjusted total assets                            |  $              270,920                                        |  $       221,614 |  $        184,660 |
| Risk-weighted assets                             |  $              164,373                                        |  $       141,772 |  $        104,027 |
| Ratios                                           |                                                                                                                                      |   |   |
| Tier 1 capital ratio                             | 9.79%                                                                                                                                     | 11.56% | 14.68% |
| Tier 1 risk-based capital ratio                  | 16.13%                                                                                                                                    | 18.06% | 26.06% |
| Total regulatory capital to risk-weighted assets | 17.11%                                                                                                                                    | 19.31% | 27.27% |
|                                             |                                                                                                                                      |   |   |

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

| TABLE 17. KEY LIQUIDITY INDICATORS           |                                                   |                                                         |
|----------------------------------------------|--------------------------------------------------------|--------------------------------------------------------------|
|                                         | At December 31,                                        |
| ($ in thousands)                             | 2009                                                   | 2008                                                         | 2007 |
| Cash and cash equivalents                    |  $     19,735            |  $        3,205 |  $       9,462 |
| Total loans                                  |       187,456            |        160,956            |       121,850 |
| Total deposits                               |       201,493            |        140,115            |       129,510 |
| Deposits $100,000 and over                   |         99,182 |          54,620 |         35,586 |
| Ratios                                       |                                                   |                                                         |   |
| Total loans to total deposits                | 93.03%                                                 | 114.87%                                                      | 94.09% |
| Deposits $100,000 and over to total deposits | 49.22%                                                 | 38.98%                                                       | 27.48% |
|                                         |                                                   |                                                         |   |

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

| TABLE 18. ECONOMIC VALUE AT RISK AND EARNINGS AT RISK |                                                     |                                                            |                                                    |
|-------------------------------------------------------|----------------------------------------------------------|-----------------------------------------------------------------|---------------------------------------------------------|
|                                                  | Change (Basis Point) in Interest Rates                   |
| ($ in thousands)                                      | Down 300                                                 | Down 200                                                        | Down 100                                                | Base Case | Up 100 | Up 200 | Up 300 |
|                                                  | At December 31, 2009                                     |
| Total assets                                          |  $  272,627                               |  $  270,772                                      |  $  268,752                              |  $  265,878 |  $  261,146 |  $  256,223 |  $  251,159 |
| Total liabilities                                     |      250,364                    |      248,377                           |      246,358                   |      244,278 |      241,456 |      239,347 |      237,314 |
| Economic value of equity                              |       22,263               |       22,395                      |       22,394              |       21,600 |       19,690 |       16,876 |       13,845 |
| EVE at risk                                           | 3.07%                                                    | 3.68%                                                           | 3.68%                                                   |  n/a | (8.84)% | (21.87)% | (35.90)% |
|                                                  | For the Year Ended December 31, 2010                     |
| Interest income                                       |      $    13,994 |        $    14,290 |     $    14,604 |     $    14,923 |   $    15,225 |      $    15,512 |    $    15,816 |
| Interest expense                                      |         4,061    |         4,157           |         4,423   |         4,806 |         5,132 |         5,515 |         5,904 |
| Net interest income                                   |         9,934    |       10,133                      |       10,180              |       10,118 |       10,093 |         9,998 |         9,912 |
| Earnings at risk                                      | (1.82)%                                                  | 0.15%                                                           | 0.62%                                                   |  n/a | (0.24)% | (1.19)% | (2.04)% |
|                                                  |                                                     |                                                            |                                                    |   |   |   |   |

| TABLE 19. NET PORTFOLIO VALUE          |                                       |                                                                                              |                                                                                        |                                       |                                                                                  |
|----------------------------------------|--------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|--------------------------------------------|---------------------------------------------------------------------------------------|
|                                   | At December 31,                            |
| ($ in thousands)                       | 2009                                       | 2008                                                                                              |
| Change (Basis Point) in Interest Rates | $ Value                                    | $ Change                                                                                          | % Change                                                                                    | $ Value                                    | $ Change                                                                              | % Change |
| 300                                    |  $   23,475            |  $   (11,455)                                                                 | (33)%                                                                                       |  $   19,357            |  $   (9,756)                                                      | (34)% |
| 200                                    |       27,826 |        (7,104)                                                 | (20)%                                                                                       |       23,237 |       (5,876)                                           | (20)% |
| 100                                    |       31,857 |        (3,074)                                                 | (9)%                                                                                        |       26,610 |       (2,503)                                           | (9)% |
| 50                                     |       33,572 |        (1,358)                                                 | (4)%                                                                                        |       27,564 |       (1,549)                                           | (5)% |
| 0                                      |       34,930 |                 - |                - |       29,113 |               - | - |
| -50                                    |       36,397 |          1,467                                       | 4%                                                                                          |       29,625 |           512                       | 2% |
| -100                                   |       37,961 |          3,030                                       | 9%                                                                                          |       30,756 |         1,643                                 | 6% |
|                                   |                                       |                                                                                              |                                                                                        |                                       |                                                                                  |   |

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

| TABLE 20. SUMMARY OF AVERAGE BALANCES, NET INTEREST INCOME AND INTEREST RATES |                                                        |
|-------------------------------------------------------------------------------|-------------------------------------------------------------|
| Year Ended December 31,                                                       | 2009                                                        | 2008 | 2007 |
| ($ in thousands)                                                              |  Average Balance                                       |   Interest | Average Yield/ Cost |  Average Balance |   Interest | Average Yield/ Cost |  Average Balance |   Interest | Average Yield/ Cost |
| ASSETS                                                                        |                                                        |   |   |   |   |   |   |   |   |
| INTEREST-EARNING ASSETS                                                       |                                                        |   |   |   |   |   |   |   |   |
| Loans1                                                                   |  $  178,780                                  |  $    11,804 | 6.60% |  $  141,892 |  $      9,579 | 6.75% |  $  107,785 |  $      8,043 | 7.46% |
| U.S. Treasury and Agency securities                                           |          9,118 |            388 | 4.26% |        15,110 |            887 | 5.87% |        22,103 |          1,301 | 5.89% |
| Mortgage-backed securities                                                    |        30,402            |          1,369 | 4.50% |        16,416 |            884 | 5.38% |          5,704 |            299 | 5.24% |
| Collateralized mortgage obligations                                           |          5,939 |            353 | 5.94% |        12,689 |            692 | 5.45% |        15,794 |            875 | 5.54% |
| Municipal securities2                                                    |          1,850 |              70 | 3.78% |              - |              - |           - |              - |              - |           - |
| Mutual funds                                                                  |          2,863 |            118 | 4.12% |          4,898 |            224 | 4.57% |          6,851 |            355 | 5.18% |
| Total investment in securities                                                |        50,172            |      2,298 | 4.58% |        49,113 |      2,687 | 5.47% |        50,452 |          2,830 | 5.61% |
| FHLB stock                                                                    |          2,350 |                6 | 0.26% |          1,931 |              44 | 2.28% |          1,008 |              53 | 5.26% |
| Federal funds sold and interest-bearing deposits in other banks               |         16,231      |              51 |  0.31% |          1,520 |            116 |  7.63% |          6,410 |            322 |  5.02% |
| Total interest-earning assets                                                 |      247,533                       |    14,159 | 5.72% |      194,456 |    12,426 | 6.39% |      165,655 |        11,248 | 6.79% |
| NONINTEREST-EARNING ASSETS                                                    |                                                        |   |   |   |   |   |   |   |
| Other assets                                                                  | 15,254                                                      |   |   | 16,660 |   |   |        10,523 |   |   |
| Allowance for loan losses                                                     |        (2,680)           |   |   |        (3,115) |   |   |        (3,580) |   |   |
| Total assets                                                                  |  $  260,107                                  |   |   |  $  208,001 |   |   |  $  172,598 |   |   |
|                                                                          |                                                        |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                          |                                                        |   |   |   |   |   |   |
| INTEREST-BEARING LIABILITIES                                                  |                                                        |   |   |   |   |   |   |   |
| NOW and MMDA account deposits                                                 |  $    63,874                       |  $       1,327 | 2.08% |  $    26,134 |  $         633 | 2.42% |  $    21,576 |  $         722 | 3.35% |
| Savings deposits                                                              |        13,693            |              68 | 0.50% |        17,074 |            130 | 0.76% |        20,511 |            247 | 1.20% |
| Time deposits                                                                 |        95,830            |          2,887 | 3.01% |        83,167 |          3,218 | 3.87% |        79,911 |          3,617 | 4.53% |
| Total interest-bearing deposits                                               |      173,397                       |      4,282 | 2.47% |      126,375 |      3,981 | 3.15% |      121,998 |      4,586 | 3.76% |
| Borrowings                                                                    |        45,408            |          1,802 | 3.97% |        43,049 |          1,770 | 4.11% |        17,564 |            961 | 5.47% |
| Total interest-bearing liabilities                                            |      218,805                       |      6,084 | 2.78% |      169,424 |      5,751 | 3.39% |      139,562 |      5,547 | 3.97% |
| NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS' EQUITY                      |                                                        |   |   |   |
| Demand deposits                                                               |        10,213            |   |   |          8,915 |   |   | 4,380 |   |   |
| Other liabilities                                                             |          2,757 |   |   |          1,845 |   |   | 1,230 |   |   |
| Stockholders' equity                                                          |        28,332            |   |   |        27,817 |   |   | 27,426 |   |   |
| Total liabilities and stockholders' equity                                    |  $  260,107                                  |   |   |  $  208,001 |   |   |  $  172,598 |   |   |
| Net interest income and margin3                                          |                                                        | $       8,075 | 3.26% |   | $      6,675 | 3.43% |   | $       5,701 | 3.44% |
| Net interest-earning assets and spread                                        | $    28,728                                  |   | 2.94% | $    25,032 |   | 3.00% | $    26,093 |   | 2.82% |
| Cost of funding interest-earning assets                                       |                                                        | 2.46% |   |   | 2.96% |   |   | 3.35% |
|                                                                          |                                                        |   |   |   |   |   |   |   |   |

| 1 |  Includes non-accrual loans during the respective periods. Calculated net of deferred fees and discounts, loans in process and allowance for loan losses. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Municipal securities for the 2009 period include $5.5 million tax-exempt municipal bonds. The tax-exempt income from such securities has not been calculated on a tax equivalent basis. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Net interest margin equals net interest income divided by average interest-earning assets. |
|---|--------------------------------------------------------------------------------------------|

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

| TABLE 21. SUMMARY OF CHANGES IN NET INTEREST INCOME            |                                                                                                           |                                                                                                                      |                                                                                                           |
|----------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|
|                                                           | 2009 Compared to 2008                                                                                          | 2008 Compared to 2007                                                                                                     |
|                                                           |  Due to Change in                                                                                         | Total Increase                                                                                                            |  Due to Change in                                                                                         | Total Increase |
| ($ in thousands)                                               | Volume                                                                                                         | Rate                                                                                                                      |   (Decrease)                                                                                              | Volume | Rate |   (Decrease) |
| INTEREST INCOME                                                |                                                                                                           |                                                                                                                      |                                                                                                           |   |   |   |
| Loans                                                          |  $          2,490                                       |  $            (265)                                      |  $          2,225                                       |  $          2,545 |  $         (1,009) |  $          1,536 |
| U.S. Treasury and Agency securities                            |               (352)                      |                (147)                           |                (499)                |                (412) |                    (2) |                (414) |
| Mortgage-backed securities                                     |                 753            |                (268)                           |                 485            |                 562 |                    23 |                 585 |
| Collateralized mortgage obligations                            |               (368)                      |                    29      |                (339)                |                (172) |                  (11) |                (183) |
| Municipal Securities                                           |                   70 |                     - |                   70 |                    - |                     - |                    - |
| Mutual funds                                                   |                 (93)           |                  (13)                |                (106)                |                (101) |                  (30) |                (131) |
| Total investment in securities                                 |                   10 |                (399)                           |                (389)                |                (123) |                  (20) |                (143) |
| FHLB stock                                                     |                   10 |                  (48)                |                  (38)     |                   49 |                  (58) |                    (9) |
| Federal funds sold andinterest-bearing deposits in other banks |              1,123                            |             (1,188)                                           |                  (65)     |                (246) |                    40 |                (206) |
| Total interest income                                          |              3,633                            |         (1,900)                                                                   |              1,733                            |              2,225 |         (1,047) |              1,178 |
|                                                           |                                                                                                           |                                                                                                                      |                                                                                                           |   |   |   |
| INTEREST EXPENSE                                               |                                                                                                           |                                                                                                                      |                                                                                                           |   |   |   |
| NOW and MMDA account deposits                                  |                 914            |                (220)                           |                 694            |                 153 |                (242) |                  (89) |
| Savings deposits                                               |                 (26)           |                  (36)                |                  (62)     |                  (41) |                  (76) |                (117) |
| Time deposits                                                  |                 490            |                (821)                           |                (331)                |                 147 |                (546) |                (399) |
| Total interest-bearing deposits                                |              1,378                            |         (1,077)                                                                   |                 301            |                 259 |            (864) |                (605) |
| Borrowings                                                     |                   97 |                  (65)                |                   32 |              1,394 |                (585) |                 809 |
| Total interest expense                                         |              1,475                            |         (1,142)                                                                   |                 333            |              1,653 |         (1,449) |                 204 |
| Change in net interest income                                  |  $          2,158                                       |  $        (758)                                                              |  $          1,400                                       |  $             572 |  $         402 |  $             974 |
|                                                           |                                                                                                           |                                                                                                                      |                                                                                                           |   |   |   |

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

| TABLE 22. NON-INTEREST INCOME                           |   |   |   |   |   |   |
|---------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| ($ in thousands)                                        |   | 2009   |   |   | 2008   |   |
| Service charges on deposit accounts                     |   | $      | 64     |   |   | $      | 34 |   |
| ATM fees                                                |   |   | 23     |   |   |   | 16 |   |
| Early closing penalties                                 |   |   | 12     |   |   |   | 7 |   |
| Income from real estate held for investment             |   |   | 56     |   |   |   | 56 |   |
| Gain on sales of mortgage loans                         |   |   | 1,034  |   |   |   | 277 |   |
| Gain on sales and income from foreclosed assets         |   |   | 35     |   |   |   | 4 |   |
| Gain on sales of premises & equipment               |   |   | 134    |   |   |   | 17 |   |
| Mortgage servicing fees, net                            |   |   | (43    | )      |   |   | (13 | ) |
| Miscellaneous                                           |   |   | 11     |   |   |   | (37 | ) |
| Total noninterest income before securities transactions |   | $      | 1,326  |   |   | $      | 361 |   |
| Net gain/(loss) on securities transactions              |   |   | 4      |   |   |   | (1,355 | ) |
| Total noninterest income (loss)                         |   | $      | 1,330  |   |   | $      | (994 | ) |
|                                                    |   |   |   |   |   |   |   |   |

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| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

| TABLE 23. NON-INTEREST EXPENSE          |                                                                                 |                                                                                                                |
|-----------------------------------------|--------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|
| ($ in thousands)                        | 2009                                                                                 | 2008                                                                                                                |
| Employee compensation and benefits      |  $            3,855 |  $            3,365                                |
| Net occupancy expense                   | 878                                                                                  | 792                                                                                                                 |
| Ad Valorem taxes                        | 187                                                                                  | 191                                                                                                                 |
| Data processing costs                   | 394                                                                                  | 340                                                                                                                 |
| Advertising                             | 90                                                                                   | 51                                                                                                                  |
| ATM expense                             | 52                                                                                   | 37                                                                                                                  |
| Professional fees                       | 566                                                                                  | 259                                                                                                                 |
| Deposit insurance and supervisory fees  | 400                                                                                  | 151                                                                                                                 |
| Printing and office supplies            | 136                                                                                  | 102                                                                                                                 |
| Telephone and security expense          | 120                                                                                  | 84                                                                                                                  |
| Loss on write-down of other real estate | 436                                                                                  |                    - |
| Other real estate owned expense         | 70                                                                                   |                    - |
| Other operating expenses                | 345                                                                                  | 301                                                                                                                 |
| Total non-interest expense              |  $            7,529 |  $            5,673                                |
| Efficiency Ratio                        | 80.06%                                                                               | 99.86%                                                                                                              |
|                                    |                                                                                 |                                                                                                                |

----

| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

| TABLE 24. CONTRACTUAL OBLIGATIONS       |                                                                                                            |                                                                                                                       |                                        |                                                                                               |                                                                                                                 |
|-----------------------------------------|-----------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|---------------------------------------------|----------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|
| ($ in thousands)                        | Payments Due By Period From December 31, 2009                                                                   |
|                                    |                                                                                                            | Less Than                                                                                                                  |                                        |                                                                                               | More Than                                                                                                            |
|                                    |   Total                                                                                                    | 1 Year                                                                                                                     |   1 to 3 Years                         |   3 to 5 Years                                                                                |  5 Years                                                                                                        |
| Federal Home Loan Bank advances         |  $         40,512                                             |  $          15,958                                                  |  $     21,063 |  $        3,491                                       |  $                  - |
| Operating leases on banking facilities  |                   267 |                     67 | 120                                         |                 80 |  -                                                                                                              |
| Purchase obligation on banking facility |                   812 |                   812            |  -                                     |  -                                                                                            |  -                                                                                                              |
| Total obligations                       |  $         41,591                                             |  $          16,837                                                  |  $     21,183 |  $        3,571                                       |  $                  - |
|                                    |                                                                                                            |                                                                                                                       |                                        |                                                                                               |                                                                                                                 |

----

| GS Financial Corp. and Subsidiary                                                           |
|---------------------------------------------------------------------------------------------|
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |

| TABLE 25. OFF-BALANCE SHEET OBLIGATIONS |
|-----------------------------------------|
| ($ in thousands)                        |   | Commitments Due By Period From December 31, 2009 |
|                                    |   |   |   | Less Than |   |   |   |   |   | More Than |
|                                    |   | Total |   | 1 Year |   | 1 to 3 Years |   | 3 to 5 Years |   | 5 Years |
|                                    |   |   |   |   |   |   |   |   |   |   |
| Mortgage loan commitments               |   | $  5,269 |   | $5,269 |   | $                         - |   | $                         - |   | $                        - |
| Construction loan commitments           |   |  4,107 |   |   4,107 |   | - |   | - |   | - |
| Unused portions of lines of credit      |   |   10,092 |   | 10,092 |   | - |   | - |   | - |
| Letters of credit                       |   | 269 |   |  269 |   | - |   | - |   | - |
| Commercial loan commitments             |   | 200 |   |  200 |   | - |   | - |   | - |
| Consumer loan commitments               |   | - |   |  - |   | - |   | - |   | - |
| Total Obligations                       |   | $19,937 |   |   $19,937 |   | $                          - |   | $                          - |   | $                        - |

----

| Management’s Report on Internal Control Over Financial Reporting |
|------------------------------------------------------------------------|

----

----

| GS FINANCIAL CORP. AND SUBSIDIARY                              |
|----------------------------------------------------------------|
| CONSOLIDATED BALANCE SHEETS                                    |
|                                                           |   |   |   |   |
|                                                           |   | December 31, |
|                                                           |   | 2009 |   | 2008 |
| ASSETS                                                         |   |  (In Thousands) |
| Cash and Cash Equivalents                                      |   |   |   |   |
| Cash and Amounts Due from Depository Institutions              |   |  $          7,158 |   |  $          2,313 |
| Interest-Bearing Deposits in Other Banks                       |   |             9,293 |   |                569 |
| Federal Funds Sold                                             |   |             3,284 |   |                323 |
| Total Cash and Cash Equivalents                                |   |            19,735 |   |             3,205 |
|                                                           |   |   |   |   |
| Securities Available-for-Sale, at Fair Value                   |   |            50,455 |   |            47,617 |
| Loans, Net of Allowance for Loan Losses of $2,380 and          |   |   |   |   |
| $2,719, Respectively                                           |   |          185,500 |   |          158,523 |
| Accrued Interest Receivable                                    |   |             1,518 |   |             1,612 |
| Other Real Estate                                              |   |             2,489 |   |                461 |
| Premises and Equipment, Net                                    |   |             5,934 |   |             5,756 |
| Stock in Federal Home Loan Bank, at Cost                       |   |             2,354 |   |             2,300 |
| Real Estate Held-for-Investment, Net                           |   |                427 |   |                436 |
| Other Assets                                                   |   |             3,192 |   |             1,960 |
|                                                           |   |   |   |   |
| Total Assets                                                   |   |  $      271,604 |   |  $      221,870 |
|                                                           |   |   |   |   |
| LIABILITIES                                                    |   |   |   |   |
| Deposits                                                       |   |   |   |   |
| Noninterest-Bearing                                            |   |  $        14,812 |   |  $          7,970 |
| Interest-Bearing                                               |   |          186,681 |   |          132,145 |
| Total Deposits                                                 |   |          201,493 |   |          140,115 |
|                                                           |   |   |   |   |
| Advance Payments by Borrowers for Taxes and Insurance          |   |                249 |   |                167 |
| FHLB Advances                                                  |   |            40,512 |   |            52,002 |
| Other Liabilities                                              |   |             1,329 |   |             2,028 |
|                                                           |   |   |   |   |
| Total Liabilities                                              |   |          243,583 |   |          194,312 |
|                                                           |   |   |   |   |
| STOCKHOLDERS' EQUITY                                           |   |   |   |   |
| Preferred Stock - $.01 Par Value; 5,000,000 Shares Authorized, |   |   |   |
| None Issued                                                    |   |    - |   |   - |
| Common Stock - $.01 Par Value; 20,000,000 Shares Authorized    |   |   |   |
| 3,438,500 Shares Issued; 1,257,938 Shares Outstanding          |   |   |   |   |
| in 2009 and 1,285,800 Shares Outstanding in 2008               |   |                  34 |   |                  34 |
| Additional Paid-In Capital                                     |   |            34,550 |   |            34,546 |
| Unearned RRP Trust Stock                                       |   |              (132) |   |              (143) |
| Treasury Stock (2,180,562 Shares in 2009, and                  |   |   |   |   |
| 2,152,700 Shares in 2008) at Cost                              |   |          (32,449) |   |          (32,062) |
| Retained Earnings                                              |   |            25,780 |   |            25,404 |
| Accumulated Other Comprehensive Income (Loss)                  |   |                238 |   |              (221) |
|                                                           |   |   |   |   |
| Total Stockholders' Equity                                     |   |            28,021 |   |            27,558 |
|                                                           |   |   |   |   |
| Total Liabilities and Stockholders' Equity                     |   |  $      271,604 |   |  $      221,870 |
|                                                           |   |   |   |   |

----

|  GS FINANCIAL CORP. AND SUBSIDIARY                                          |
|----------------------------------------------------------------------------------|
|  CONSOLIDATED STATEMENTS OF INCOME (LOSS)                                   |
|                                                                             |   |   |   |   |   |
|                                                                             |   | For the Years Ended |   |
|                                                                             |   | December 31, |   |
|                                                                             |   | 2009 |   | 2008 |   |
|                                                                             |   |          (In Thousands, Except Per Share Data) |
| INTEREST AND DIVIDED INCOME                                                      |   |   |   |   |   |
| Loans, Including Fees                                                            |   |  $        11,804 |   |  $          9,579 |   |
| Investment Securities                                                            |   |              2,298 |   |              2,687 |   |
| Other Interest Income                                                            |   |                  57 |   |                160 |   |
|                                                                             |   |   |   |   |   |
| Total Interest Income                                                            |   |            14,159 |   |            12,426 |   |
|                                                                             |   |   |   |   |   |
| INTEREST EXPENSE                                                                 |   |   |   |   |   |
| Deposits                                                                         |   |              4,282 |   |              3,981 |   |
| Advances from Federal Home Loan Bank                                             |   |              1,802 |   |              1,770 |   |
|                                                                             |   |   |   |   |   |
| Total Interest Expense                                                           |   |              6,084 |   |              5,751 |   |
|                                                                             |   |   |   |   |   |
| NET INTEREST INCOME                                                              |   |              8,075 |   |              6,675 |   |
|                                                                             |   |   |   |   |   |
| PROVISION FOR LOAN LOSSES                                                        |   |                500 |   |                    - |   |
|                                                                             |   |   |   |   |   |
| NET INTEREST INCOME AFTER PROVISION                                              |   |   |   |   |
| FOR LOAN LOSSES                                                                  |   |              7,575 |   |              6,675 |   |
|                                                                             |   |   |   |   |   |
| NON-INTEREST INCOME (LOSS)                                                       |   |   |   |   |   |
| Loss on Write-Down of Investments                                                |   |                    - |   |            (1,281) |   |
| Gain (Loss) on Sale of Investments                                               |   |                    4 |   |                (74) |   |
| Gain on Sale of Loans                                                            |   |              1,034 |   |                277 |   |
| Customer Service Fees                                                            |   |                  99 |   |                  57 |   |
| Other Income                                                                     |   |                193 |   |                  27 |   |
|                                                                             |   |   |   |   |   |
| Total Non-Interest Income (Loss)                                                 |   |              1,330 |   |               (994) |   |
|                                                                             |   |   |   |   |   |
| NON-INTEREST EXPENSE                                                             |   |   |   |   |   |
| Salaries and Employee Benefits                                                   |   |              3,855 |   |              3,365 |   |
| Occupancy Expense                                                                |   |                878 |   |                792 |   |
| Ad Valorem Taxes                                                                 |   |                187 |   |                191 |   |
| Other Expenses                                                                   |   |              2,609 |   |              1,325 |   |
|                                                                             |   |   |   |   |   |
| Total Non-Interest Expense                                                       |   |              7,529 |   |              5,673 |   |
|                                                                             |   |   |   |   |   |
| INCOME  BEFORE INCOME TAX EXPENSE                                      |   |              1,376 |   |                    8 |   |
|                                                                             |   |   |   |   |   |
| INCOME TAX EXPENSE                                                               |   |                490 |   |                  14 |   |
|                                                                             |   |   |   |   |   |
| NET INCOME (LOSS)                                                                |   |  $            886 |   |  $              (6) |   |
| EARNINGS (LOSS) PER SHARE - BASIC                                                |   |  $           0.70 |   |  n/m |   |
| EARNINGS (LOSS) PER SHARE - DILUTED                                              |   |  $           0.70 |   |  n/m |   |
|                                                                             |   |   |   |   |   |
|  The accompanying notes are an integral part of these financial statements. |   |
|                                                                             |   |   |   |   |   |

----

| GS FINANCIAL CORP. AND SUBSIDIARY                      |
|--------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) |
|                                                   |   |   |   |   |   |
|                                                   |   |   |   |   |   |
|                                                   |   | For the Years Ended |   |
|                                                   |   | December 31, |   |
|                                                   |   | 2009 |   | 2008 |   |
|                                                   |   |  (In Thousands) |   |
|                                                   |   |   |   |   |   |
| NET INCOME (LOSS)                                      |   |  $            886 |   |  $               (6) |   |
|                                                   |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME (LOSS),                     |   |   |   |   |   |
| NET OF TAX                                             |   |   |   |   |   |
| Unrealized Holding Gains                               |   |   |   |   |   |
| Arising During the Period                              |   |                456 |   |                788 |   |
| Reclassification Adjustment for Gains (Losses)         |   |   |   |   |   |
| Included in Net Income                                 |   |                    3 |   |               (894) |   |
|                                                   |   |   |   |   |   |
| Total Other Comprehensive Income (Loss)                |   |                459 |   |               (106) |   |
|                                                   |   |   |   |   |   |
| COMPREHENSIVE INCOME (LOSS)                            |   |  $         1,345 |   |  $           (112) |   |
|                                                   |   |   |   |   |   |

----

| GS FINANCIAL CORP. AND SUBSIDIARY                          |   |
|------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY |   |
| For the Years Ended December 31, 2009 and 2008             |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                       |   |   |   |   | Additional |   |   |   |   |   | Unearned |   |   |   |   |   | Other |   |   | Total |   |
|                                                       |   | Common |   | Paid-In |   |   | Treasury |   |   | RRP Trust |   | Retained |   |   | Comprehensive |   |   | Stockholders' |   |
|                                                       |   | Stock |   |   | Capital |   |   | Stock |   |   | Stock |   |   | Earnings |   |   | Income (Loss) |   |   | Equity |   |
|                                                       |   |   |   |   |   |   |   |  (In Thousands) |   |   |   |   |   |   |   |
| BALANCES AT JANUARY 1, 2008                                |   | $ | 34 |   |   | $ | 34,546 |   |   | $ | (32,062 | ) |   | $ | (158 | ) |   | $ | 25,919 |   |   | $ | (115 | ) |   | $ | 28,164 |   |
| Distribution of RRP Trust Stock                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 15 |   |   |   | - |   |   |   | - |   |   |   | 15 |   |
| Dividends Declared                                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (509 | ) |   |   | - |   |   |   | (509 | ) |
| Net Loss - Year Ended December 31, 2008                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (6 | ) |   |   | - |   |   |   | (6 | ) |
| Other Comprehensive Loss, Net of Applicable                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred Income Taxes                                      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (106 | ) |   |   | (106 | ) |
| BALANCES AT DECEMBER 31, 2008                              |   |   | 34 |   |   |   | 34,546 |   |   |   | (32,062 | ) |   |   | (143 | ) |   |   | 25,404 |   |   |   | (221 | ) |   |   | 27,558 |   |
| Distribution of RRP Trust Stock                            |   |   | - |   |   |   | 4 |   |   |   | - |   |   |   | 11 |   |   |   | - |   |   |   | - |   |   |   | 15 |   |
| Purchase of Treasury Stock                                 |   |   | - |   |   |   | - |   |   |   | (387 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (387 | ) |
| Dividends Declared                                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (510 | ) |   |   | - |   |   |   | (510 | ) |
| Net Income - Year Ended December 31, 2009                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 886 |   |   |   | - |   |   |   | 886 |   |
| Other Comprehensive Gain, Net of Applicable                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred Income Taxes                                      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 459 |   |   |   | 459 |   |
| BALANCES AT DECEMBER 31, 2009                              |   | $ | 34 |   |   | $ | 34,550 |   |   | $ | (32,449 | ) |   | $ | (132 | ) |   | $ | 25,780 |   |   | $ | 238 |   |   | $ | 28,021 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| GS FINANCIAL CORP. AND SUBSIDIARY                                |   |
|------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                            |   |
|                                                             |   |   |   |   |   |   |
|                                                             |   | For the Years Ended |   |
|                                                             |   | December 31, |   |
|                                                             |   | 2009 |   |   | 2008 |   |
|                                                             |   | (In Thousands) |   |
|                                                             |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                            |   |   |   |   |
| Net Income (Loss)                                                |   | $ | 886 |   |   | $ | (6 | ) |
| Adjustments to Reconcile Net Income (Loss) to Net Cash           |   |   |   |   |   |
| Provided by Operating Activities:                                |   |   |   |   |   |   |   |   |
| Depreciation and Amortization                                    |   |   | 290 |   |   |   | 284 |   |
| Premium Amortization, Net                                        |   |   | 166 |   |   |   | 6 |   |
| Amortization of Mortgage Servicing Rights                        |   |   | 166 |   |   |   | 60 |   |
| Provision for Loan Losses                                        |   |   | 500 |   |   |   | - |   |
| Non-Cash Dividend - FHLB Stock                                   |   |   | (6 | ) |   |   | (43 | ) |
| RRP Expense                                                      |   |   | 15 |   |   |   | 15 |   |
| Gain on Sales of Loans, Net                                      |   |   | (1,034 | ) |   |   | (277 | ) |
| Gain on Sales of Other Real Estate, Net                          |   |   | (35 | ) |   |   | (4 | ) |
| (Gain) Loss on Sales of Investments, Net                         |   |   | (4 | ) |   |   | 74 |   |
| Gain on Sales of Premises and Equipment                          |   |   | (134 | ) |   |   | (17 | ) |
| Loss on Write-Down of Investments                                |   |   | - |   |   |   | 1,281 |   |
| Loss on Write-Down of Other Real Estate                          |   |   | 436 |   |   |   | - |   |
| Proceeds from Loans Held for Sale                                |   |   | 56,948 |   |   |   | 19,723 |   |
| Originations of Loans Held for Sale                              |   |   | (56,565 | ) |   |   | (19,667 | ) |
| Deferred Income Tax Benefit                                      |   |   | (51 | ) |   |   | (103 | ) |
| Changes in Operating Assets and Liabilities:                     |   |   |   |   |   |   |   |   |
|    Accrued Interest Receivable and Other Assets   |   |   | (919 | ) |   |   | (56 | ) |
|    Accrued Interest Payable and Other Liabilities |   |   | (616 | ) |   |   | 320 |   |
| Net Cash Provided by Operating Activities                        |   |   | 43 |   |   |   | 1,590 |   |
|                                                             |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                            |   |   |   |   |   |
| Proceeds from Maturities of Investment Securities                |   |   | 21,280 |   |   |   | 16,838 |   |
| Proceeds from Sales of Investment Securities                     |   |   | 5,522 |   |   |   | 5,003 |   |
| Purchases of Investment Securities                               |   |   | (30,107 | ) |   |   | (24,262 | ) |
| Redemption of Mutual Funds, Net                                  |   |   | 1,000 |   |   |   | 1,084 |   |
| Loan Originations and Principal Collections, Net                 |   |   | (30,039 | ) |   |   | (40,952 | ) |
| Purchases of Premises and Equipment                              |   |   | (516 | ) |   |   | (277 | ) |
| Proceeds from Sales of Premises and Equipment                    |   |   | 191 |   |   |   | 142 |   |
| Proceeds from Sales of Other Real Estate                         |   |   | 131 |   |   |   | 670 |   |
| Purchase of Federal Home Loan Bank Stock                         |   |   | (48 | ) |   |   | (1,037 | ) |
| Net Cash Used in Investing Activities                            |   |   | (32,586 | ) |   |   | (42,791 | ) |
|                                                             |   |   |   |   |   |   |   |   |

----

| GS FINANCIAL CORP. AND SUBSIDIARY                      |   |
|--------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)      |   |
|                                                   |   |   |   |   |   |   |
|                                                   |   | For the Years Ended |   |
|                                                   |   | December 31, |   |
|                                                   |   | 2009 |   |   | 2008 |   |
|                                                   |   | (In Thousands) |   |
|                                                   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                  |   |   |   |   |   |   |
| Purchase of Treasury Stock                             |   | $ | (387 | ) |   | $ | - |   |
| Proceeds from Stock Option Exercise                    |   |   | - |   |   |   | - |   |
| (Decrease) Increase in Federal Home Loan Bank Advances |   |   | (11,490 | ) |   |   | 25,016 |   |
| Payment of Cash Stock Dividends                        |   |   | (510 | ) |   |   | (509 | ) |
| Increase in Deposits                                   |   |   | 61,378 |   |   |   | 10,605 |   |
| Increase (Decrease) in Deposit for Insurance and Taxes |   |   | 82 |   |   |   | (168 | ) |
|                                                   |   |   |   |   |   |   |   |   |
| Net Cash Provided by Financing Activities              |   |   | 49,073 |   |   |   | 34,944 |   |
|                                                   |   |   |   |   |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   |   |   | 16,530 |   |   |   | (6,257 | ) |
|                                                   |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR           |   |   | 3,205 |   |   |   | 9,462 |   |
|                                                   |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS, END OF YEAR                 |   | $ | 19,735 |   |   | $ | 3,205 |   |
|                                                   |   |   |   |   |   |   |   |   |
|                                                   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION      |   |   |   |   |
| Cash Paid During the Year for:                         |   |   |   |   |   |   |   |   |
| Interest                                               |   | $ | 6,107 |   |   | $ | 5,690 |   |
| Income Taxes                                           |   |   | 664 |   |   |   | - |   |
| Loans Transferred to Other Real Estate                 |   |   |   |   |   |   |   |   |
| During the Year                                        |   |   | 2,560 |   |   |   | 1,472 |   |
| Market Value Adjustment for (Loss) Gain                |   |   |   |   |   |   |   |   |
| on Securities Available-for-Sale                       |   |   | 695 |   |   |   | (160 | ) |

----

| GS Financial Corp. and Subsidiary          |
|--------------------------------------------|
| Notes to Consolidated Financial Statements |

|   |      GS FINANCIAL CORP. (“Company”) was organized as a Louisiana corporation on December 24, 1996, for the purpose of becoming the holding company of Guaranty Savings and Homestead Association (“Association”) in anticipation of converting the Association from a Louisiana chartered mutual savings and loan association to a Louisiana chartered stock savings and loan association.  In June 2006, the Association changed its name to Guaranty Savings Bank (Bank).  The Bank operates in the banking/savings and loan industry and, as such, provides financial services to individuals, corporate entities, and other organizations through the origination of loans and the acceptance of deposits in the form of savings accounts, certificates of deposit, money market accounts, and demand deposit accounts. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |      The Bank is subject to competition from other financial institutions and is subject to the regulations of Federal agencies.  The Bank undergoes periodic examinations by those regulatory authorities. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|   |     The Company expenses advertising costs as incurred.  Advertising costs were $90,000, and $51,000 for the years ended December 31, 2009 and 2008, respectively. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|   |     Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income.  Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of stockholders’ equity in the balance sheets; such items, along with net income, are components of comprehensive income. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

| ·   | the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the disclosures that an entity should make about events or transactions that occurred after the balance sheet date. |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|                                                                    |                                            | December 31, 2009                               |
|-------------------------------------------------------------------------|-------------------------------------------------|-------------------------------------------------|
|                                                                    |                                            |                                            |   | Gross |   | Gross |   |   |
|                                                                    |                                            |      Amortized              |       Unrealized |      Unrealized | Fair |
|                                                                    |                                            |  Cost                                      |   |  Gains |   |  Losses |   |  Value |
|                                                                    |                                            | (In Thousands)                                  |
| Debt Securities:                                                        |                                            |                                            |   |   |   |   |   |   |
| U.S. Government and Federal Agencies                                    |  $   7,132                  |                                            |  $          - |   |  $       195 |   |  $    6,937 |
| Mortgage-Backed Securities                                              |                                            |     31,913                  |   |           875 |   |           110 |   |      32,678 |
| Collateralized Mortgage Obligations                                     |        1,612 |                                            |                 - |   |           179 |   |        1,433 |
| Municipal Funds                                                         |                                            |        7,044 |   |              24 |   |              55 |   |        7,013 |
|       Total Debt Securities               |                                            |     47,701                  |   |           899 |   |           539 |   |      48,061 |
| Marketable Equity Securities:                                           |                                            |                                            |   |   |   |   |   |   |
| Mutual Funds                                                            |                                            |        2,394 |   |                 - |   |                 - |   |        2,394 |
|       Total Securities Available-for-Sale |  $ 50,095                                  |                                            |  $       899 |   |  $       539 |   |  $  50,455 |
|                                                                    |                                            |                                            |   |   |   |   |   |   |

|                                                                    |                                            | December 31, 2008                               |
|-------------------------------------------------------------------------|-------------------------------------------------|-------------------------------------------------|
|                                                                    |                                            |                                            |   | Gross |   | Gross |   |   |
|                                                                    |                                            |      Amortized              |      Unrealized |      Unrealized | Fair |
|                                                                    |                                            |  Cost                                      |   |  Gains |   |  Losses |   |  Value |
|                                                                    |                                            |  (In Thousands)                            |
| Debt Securities:                                                        |                                            |                                            |   |   |   |   |   |   |
| U.S. Government and Federal Agencies                                    |  $ 10,010                                  |                                            |  $       121 |   |  $         61 |   |  $  10,070 |
| Mortgage-Backed Securities                                              |                                            |     25,484                  |   |           714 |   |              98 |   |      26,100 |
| Collateralized Mortgage Obligations                                     |        9,035 |                                            |                 - |   |           996 |   |        8,039 |
|       Total Debt Securities               |                                            |     44,529                  |   |           835 |   |        1,155 |   |      44,209 |
| Marketable Equity Securities:                                           |                                            |                                            |   |   |   |   |   |   |
| Mutual Funds                                                            |                                            |        3,408 |   |                 - |   |                 - |   |        3,408 |
|       Total Securities Available-for-Sale |  $ 47,937                                  |                                            |  $       835 |   |  $    1,155 |   |  $  47,617 |
|                                                                    |                                            |                                            |   |   |   |   |   |   |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|                                                   |   Securities                                                                                                                                                |
|--------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                   |   Available for Sale                                                                                                                                        |
|                                                   |   Amortized                                                                                                                                                 |    |   Fair |
|                                                   |   Cost                                                                                                                                                      |   |   Value |
|                                                   | (In Thousands)                                                                                                                                                   |
| Amounts Maturing in:                                   |                                                                                                                                                             |
|     Less than One Year             |               $              - |     |  $             - |
|     One to Five Years              |             534                                                                                      |     |             540 |
|     Five to Ten Years              |          5,949                                                                                                      |     |          5,897 |
|     Greater than Ten Years              |     7,693                                                                                                                                    |     |          7,513 |
|                                                   |        14,176                                                                                                                 |   |        13,950 |
|     Mortgage-Backed Securities          |     31,913                                                                                                                                   |   |        32,678 |
|     Collateralized Mortgage Obligations |     1,612                                                                                                                                    |   |          1,433 |
|                                                   |  $    47,701                                                                                                                            |     |  $    48,061 |
|                                                   |                                                                                                                                                             |   |   |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|              |   |                         |  Less Than Twelve Months |                   |  Over Twelve Months |
|-------------------|--------|------------------------------|-------------------------------|------------------------|--------------------------|
| December 31, 2009 |   | Gross Unrealized Losses |                          |   Fair Value |                     | Gross Unrealized Losses |   |   Fair Value |
|              |   |                         | (In Thousands)                |
| U.S. Government and Federal         |     |                                                                                                          |                                                                         |                                                                                               |                                                         |                                                                                                          |                                                                                                |                                                                                              |
|-------------------------------------|----------|---------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|
|                                | Agencies |                                                                                                          |  $           195 |                                                                                               |  $        6,937 |                                                                                                          |  $                - |                                                                                              |  $               - |
| Mortgage-Backed Securities          |     |               105                       |                                                                         |            9,923                            |                                                         |                   5 |                                                                                                |               616           |
| Collateralized Mortgage Obligations |     |                   1 |                                                                         |                 69 |                                                         |               178                       |                                                                                                |            1,364                           |
| Municipal Funds                     |     |                 55            |                                                                         |            3,564                            |                                                         |                 -             |                                                                                                |                 - |
| Total Securities                    |     |  $           356                                  |                                                                         |  $      20,493                                                  |                                                         |  $           183                                  |                                                                                                |  $        1,980                                      |
|                                |     |                                                                                                          |                                                                         |                                                                                               |                                                         |                                                                                                          |                                                                                                |                                                                                              |   |

|              |   |                              |  Less Than Twelve Months |                   |  Over Twelve Months |
|-------------------|--------|-----------------------------------|-------------------------------|------------------------|--------------------------|
| December 31, 2008 |   | Gross Unrealized Losses |                          |   Fair Value |                     | Gross Unrealized Losses |   |   Fair Value |
|              |   |                              | (In Thousands)                |
| U.S. Government and Federal         |     |                                                                                               |                                                                                    |                                                                    |                                                         |                                                                                               |                                                                                                |                                                                    |
|-------------------------------------|----------|----------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-------------------------------------------------------------------------|--------------------------------------------------------------|----------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|
|                                | Agencies |                                                                                               |  $             61 |                                                                    |  $        4,939 |                                                                                               |  $                - |                                                                    |  $                - |
| Mortgage-Backed Securities          |     |                 54 |                                                                                    |            2,150 |                                                         |                 44 |                                                                                                |            1,014 |
| Collateralized Mortgage Obligations |     |               482            |                                                                                    |            4,263 |                                                         |               514            |                                                                                                |            3,776 |
| Total Securities                    |     |  $           597                       |                                                                                    |  $      11,352                       |                                                         |  $           558                       |                                                                                                |  $        4,790            |
|                                |     |                                                                                               |                                                                                    |                                                                    |                                                         |                                                                                               |                                                                                                |                                                                    |   |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|                                       |   | December 31,   |    |
|--------------------------------------------|--------|----------------|---------|
|                                       |   | 2009           |    |   | 2008 |   |
|                                       |   | (In Thousands) |    |
| Loans Secured by Mortgages on Real Estate: |   |           |    |   |
| 1-4 Family Residential                     |   | $              | 78,160  |   |   | $ | 69,405 |   |
| Commercial Real Estate                     |   |           | 54,640  |   |   |   | 53,952 |   |
| Construction                               |   |           | 19,728  |   |   |   | 10,542 |   |
| Home Equity Lines of Credit                |   |           | 12,760  |   |   |   | 6,873 |   |
| Other Real Estate                          |   |           | 15,018  |   |   |   | 13,664 |   |
| Total Real Estate Loans                    |   |           | 180,306 |   |   |   | 154,436 |   |
| Consumer Loans                             |   |           | 1,728   |   |   |   | 1,713 |   |
| Commercial Loans                           |   |           | 5,422   |   |   |   | 4,807 |   |
| Total Loans                                |   |           | 187,456 |   |   |   | 160,956 |   |
| Allowance for Loan Losses                  |   |           | (2,380  | ) |   |   | (2,719 | ) |
| Net Deferred Loan Origination Costs        |   |           | 424     |   |   |   | 286 |   |
| Loans, Net                                 |   | $              | 185,500 |   |   | $ | 158,523 |   |
|                                       |   |           |    |   |   |   |   |   |

|                       |   | Years Ended December 31, |   |
|----------------------------|--------|--------------------------|--------|
|                       |   | 2009                     |   |   | 2008 |   |
|                       |   | (In Thousands)           |   |
| Balance, Beginning of Year |   | $                        | 2,719  |   |   | $ | 3,432 |   |
| Charge-offs                |   |                     | (854   | ) |   |   | (713 | ) |
| Recoveries                 |   |                     | 15     |   |   |   | - |   |
| Provision for Loan Losses  |   |                     | 500    |   |   |   | - |   |
| Balance, End of Year       |   | $                        | 2,380  |   |   | $ | 2,719 |   |
|                       |   |                     |   |   |   |   |   |   |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|   |                       | December 31,   |   |
|--------|----------------------------|----------------|--------|
|   |                       | 2009           |   |   | 2008 |   |
|   |                       | (In Thousands) |   |
|   |                       |           |   |   |   |   |
|   | Balance, Beginning of Year | $              | 405    |   |   | $ | 560 |   |
|   | Additions                  |           | -      |   |   |   | 50 |   |
|   | Payments and Renewals      |           | (359   | ) |   |   | (205 | ) |
|   | Balance, End of Year       | $              | 46     |   |   | $ | 405 |   |
|   |                       |           |   |   |   |   |   |   |

|   |                   | December 31,   |   |
|--------|------------------------|----------------|--------|
|   |                   | 2009           |   |   | 2008 |   |
|   |                   | (In Thousands) |   |
|   |                   |           |   |   |   |   |
|   | Loans                  | $              | 1,197  |   |   | $ | 1,219 |   |
|   | Securities             |           | 321    |   |   |   | 393 |   |
|   | Total Accrued Interest | $              | 1,518  |   |   | $ | 1,612 |   |
|   |                   |           |   |   |   |   |   |   |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|                                 |                                                             |   |  December 31, |   |
|--------------------------------------|------------------------------------------------------------------|--------|--------------------|--------|
|                                 |                                                             |   |  2009         |   |   | 2008 |   |
|                                 |                                                             |   | (In Thousands)     |   |
|                                 | Land                                                             |   | $                  | 2,618  |   |   | $ | 2,629 |   |
|                                 | Buildings and Improvements                                       |   |               | 3,546  |   |   |   | 3,339 |   |
|                                 | Furniture, Fixtures, and Equipment                               |   |               | 1,678  |   |   |   | 1,514 |   |
|        |       Total Premises and Equipment      |   |               | 7,842  |   |   |   | 7,482 |   |
|                                 | Accumulated Depreciation and Amortization         |   |               | (1,908 | )  |   |   | (1,726 | ) |
|        |       Total Premises and Equipment, Net |   | $                  | 5,934  |   |   | $ | 5,756 |   |
|                                 |                                                             |   |               |   |   |   |   |   |   |

|   |      Depreciation expense for the years ended December 31, 2009 and 2008, was approximately $281,000 and $270,000, respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                             | December 31,   |   |
|--------|--------------------------------------------------|----------------|--------|
|   |                                             | 2009           |   |   | 2008 |   |
|   |                                             | (In Thousands) |   |
|   | Land                                             | $              | 226    |   |   | $ | 226 |   |
|   | Buildings and Improvements                       |           | 320    |   |   |   | 320 |   |
|   |  Total Real Estate Held-for-Investment      |           | 546    |   |   |   | 546 |   |
|   | Accumulated Depreciation and Amortization        |           | (119   |  ) |   |   | (110 | ) |
|   |  Total Real Estate Held-for-Investment, Net |  $        | 427    |   |   | $ | 436 |   |

|   |       Depreciation expense for each of the years ended December 31, 2009 and 2008, was $9,000 and $14,000, respectively. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|                            | Weighted Average |   |                             |   |                                                  |   |         |   |   |                                                  |
|---------------------------------|------------------|--------|----------------------------------|--------|-------------------------------------------------------|--------|--------------|--------|--------|-------------------------------------------------------|
|                            | Rate at          |   | Account Balances at December 31, |
|                            | December 31,     |   | 2009                             |   | 2008                                                  |
|                            | 2009             |   | 2008                             |   |   Amount                                         |   | Percent      |   | Amount |                                                  | Percent |
|                            |             |   |                             |   |                                                  |   |         |   |   |                                                  |   |   |
| Balance by Interest Rate:       |             |   |                             |   |                                                  |   |         |   |   |                                                  |   |   |
| NOW and MMDA Accounts           | 1.36%            |   | 2.44%                            |   |  $   74,260                       |   | 39.8%        |   |   |  $   32,841                       |   | 24.8% |
| Savings Accounts                | 0.50%            |   | 0.50%                            |   |       12,832            |   | 6.9%         |   |   |       15,305            |   | 11.6% |
| Certificates of Deposit         | 2.57%            |   | 3.49%                            |   |       99,589            |   | 53.3%        |   |   |       83,999            |   | 63.6% |
|                            |             |   |                             |   |  $ 186,681                                       |   | 100.0%       |   |   |  $  132,145                            |   | 100.0% |
|                            |             |   |                             |   |                                                  |   |    |   |   |                                                  |   |    |
| Certificates Accounts Maturing: |             |   |                             |   |                                                  |   |         |   |   |                                                  |   |   |
| One Year or Less                |             |   |                             |   |  $   74,278                       |   | 74.6%        |   |   |  $   61,129                       |   | 72.8% |
| One to Two Years                |             |   |                             |   |       15,461            |   | 15.5%        |   |   |       16,287            |   | 19.4% |
| Two to Three Years              |             |   |                             |   |         7,319 |   | 7.4%         |   |   |         3,973 |   | 4.7% |
| Three to Five Years             |             |   |                             |   |         2,531 |   | 2.5%         |   |   |         2,610 |   | 3.1% |
|                            |             |   |                             |   |  $   99,589                       |   | 100.0%       |   |   |  $   83,999                       |   | 100.0% |
|                            |             |   |                             |   |                                                  |   |         |   |   |                                                  |   |   |

|   |                    |                     |   |   |   |   |   |
|--------|-------------------------|--------------------------|--------|--------|--------|--------|--------|
|   |                    | Years Ended December 31, |   |
|   |                    |                     | 2009   |   |   | 2008   |   |
|   |                    | (In Thousands)           |   |
|   | NOW and MMDA Accounts   |                     | $      | 1,327  |   |   | $      | 633 |   |
|   | Savings Accounts        |                     |   | 68     |   |   |   | 130 |   |
|   | Certificates of Deposit |                     |   | 2,887  |   |   |   | 3,218 |   |
|   |                    |                     | $      | 4,282  |   |   | $      | 3,981 |   |
|   |                    |                     |   |   |   |   |   |   |   |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|          |   | FHLB Advance Total                                          |
|---------------|--------|-------------------------------------------------------------|
| Contract Rate |   | 2009                                                        |   | 2008 |
|          |   | (In Thousands)                                              |
| 0.00% - 2.99% |   |  $      1,684            |   |  $      8,100 |
| 3.00% - 3.99% |   |        16,750            |   |        21,750 |
| 4.00% - 4.99% |   |        17,750            |   |        17,750 |
| 5.00% - 5.99% |   |          4,328 |   |          4,402 |
|          |   |  $    40,512                       |   |  $    52,002 |
|          |   |                                                        |   |   |

|  Year EndingDecember 31, |   | AmountMaturing |   |
|-------------------------------|--------|----------------|--------|
|                          |   | (In Thousands) |   |
| 2010                          |   | $              | 15,958 |   |
| 2011                          |   |           | 12,967 |   |
| 2012                          |   |           | 8,096  |   |
| 2013                          |   |           | 3,418  |   |
| 2014                          |   |           | 73     |   |
|                          |   | $              | 40,512 |   |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|   |                           |   | Years Ended December 31, |
|--------|--------------------------------|--------|--------------------------|
|   |                           |   | 2009                     |   |   | 2008 |   |
|   |                           |   | (In Thousands)           |
|   | Current Tax Expense (Benefit)  |   | $                        | 541 |   |   | $ | 242 |   |
|   | Deferred Tax (Benefit) Expense |   |                     | (51 | ) |   |   | (228 | ) |
|   |                           |   | $                        | 490 |   |   | $ | 14 |   |
|   |                           |   |                     |   |   |   |   |   |   |

|   |                                 |           | Years Ended December 31, |   |
|--------|--------------------------------------|----------------|--------------------------|--------|
|   |                                 |           | 2009                     |   |   | 2008 |   |
|   |                                 | (In Thousands) |                     |
|   | Expected Tax Provision at a 34% Rate |           | $                        | 468    |   |   | $ | 3 |   |
|   | Expected State Corporate Tax         |           |                     | -      |   |   |   | - |   |
|   | Employee Stock Ownership Plan        |           |                     | -      |   |   |   | - |   |
|   | Other                                |           |                     | 22     |   |   |   | 11 |   |
|   |                                 |           | $                        | 490    |   |   | $ | 14 |   |
|   |                                 |           |                     |   |   |   |   |   |   |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|                                                     |   | December 31,   |   |
|----------------------------------------------------------|--------|----------------|--------|
|                                                     |   | 2009           |   |   | 2008 |   |
|                                                     |   | (In Thousands) |   |
| Deferred Tax Assets                                      |   |           |   |   |   |   |
| Recognition and Retention Plan                           |   | $              | 5      |   |   | $ | 5 |   |
| Credits Carryforward                                     |   |           | 148    |   |   |   | 63 |   |
| Recognition of Other-than-Temporary Decline in           |   |           |   |   |   |   |   |   |
| Market Value of Available-for-Sale Securities            |   |           | 266    |   |   |   | 529 |   |
| Market Value Adjustment to Available-for-Sale Securities |   |           | 121    |   |   |   | 327 |   |
| Capital Loss Carryforward                                |   |           | 502    |   |   |   | 356 |   |
| Allowance for Loan Losses                                |   |           | 366    |   |   |   | 93 |   |
| Other                                                    |   |           | -      |   |   |   | - |   |
| Total Deferred Tax Assets                                |   |           | 1,408  |   |   |   | 1,373 |   |
|                                                     |   |           |   |   |   |   |   |   |
| Deferred Tax Liabilities                                 |   |           |   |   |   |   |   |   |
| Premises and Equipment                                   |   |           | (291   | ) |   |   | (319 | ) |
| Section 585 Bad Debt Deduction                           |   |           | -      |   |   |   | (358 | ) |
| FHLB Stock Dividends                                     |   |           | (277   | ) |   |   | (275 | ) |
| Mortgage Servicing Rights                                |   |           | (274   | ) |   |   | - |   |
| Other                                                    |   |           | (172   | ) |   |   | (371 | ) |
| Total Deferred Tax Liabilities                           |   |           | (1,014 | ) |   |   | (1,323 | ) |
|                                                     |   |           |   |   |   |   |   |   |
| Valuation Allowance                                      |   |           | (768   | ) |   |   | (241 | ) |
|                                                     |   |           |   |   |   |   |   |   |
| Net Deferred Tax Liability                               |   | $              | (374   | ) |   | $ | (191 | ) |
|                                                     |   |           |   |   |   |   |   |   |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|   |                              | Unawarded Shares |   |   | Awarded Shares |   |
|--------|-----------------------------------|------------------|--------|--------|----------------|--------|
|   |                              | 2009             |   |   | 2008           |   |   | 2009 |   |   | 2008 |   |
|   |   Balance, Beginning of Year |             | -      |   |           |   | - |   |   |   | 7,334 |   |   |   | 8,248 |   |
|   | Purchased by Plan                 |             | -      |   |           |   | - |   |   |   | - |   |   |   | - |   |
|   | Granted                           |             | -      |   |           |   | - |   |   |   | - |   |   |   | - |   |
|   | Forfeited/Expired                 |             | -      |   |           |   | - |   |   |   | - |   |   |   | - |   |
|   | Earned and Issued                 |             | -      |   |           |   | - |   |   |   | (912 | ) |   |   | (914 | ) |
|   |                              |             |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
|   | Balance, End of Year              |             | -      |   |           |   | - |   |   |   | 6,422 |   |   |   | 7,334 |   |
|   |                              |             |   |   |           |   |   |   |   |   |   |   |   |   |   |   |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|                                            |   | Years Ended December 31, |   |
|-------------------------------------------------|--------|--------------------------|--------|
|                                            |   | 2009                     |   |   | 2008 |   |
|                                            |   | (In Thousands)           |   |
| Unrealized Holding Gains                        |   |                     |   |   |   |   |
| Arising During the Period                       |   | $                        | 691    |   |   | $ | 1,195 |   |
| Tax Expense                                     |   |                     | 235    |   |   |   | 407 |   |
|                                            |   |                     | 456    |   |   |   | 788 |   |
| Reclassification Adjustments for Gains (Losses) |   |                     |   |   |   |
| Included in Net Income                          |   |                     | 4      |   |   |   | (1,355 | ) |
| Tax Expense (Benefit)                           |   |                     | 1      |   |   |   | (461 | ) |
|                                            |   |                     | 3      |   |   |   | (894 | ) |
|                                            |   |                     |   |   |   |   |   |   |
| Net Unrealized Holding Gains (Losses)           |   |                     |   |   |   |   |   |   |
| Arising During the Period                       |   | $                        | 459    |   |   | $ | (106 | ) |
|                                            |   |                     |   |   |   |   |   |   |

|   | REGULATORY MATTERS |
|--------|--------------------|

|   |      Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of the following as defined in the regulations:  total risk-based capital and Tier I capital to risk-weighted assets, Tier I capital to adjusted total assets, and tangible capital to adjusted total assets.  As of December 31, 2009, the Bank met all of the capital requirements to which it is subject and is, therefore, deemed to be well capitalized. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|   | REGULATORY MATTERS (Continued) |
|--------|--------------------------------|

|                      | Actual |                                              |   Minimum |                         | Well Capitalized |                                             |
|---------------------------|--------|---------------------------------------------------|----------------|------------------------------|------------------|--------------------------------------------------|
|                      | Amount |                                         |  Ratio    |                         |   Amount    |                                        |  Ratio |   | Amount |    |  Ratio |   |
|                      |   | (In Thousands)                                    |
| December 31, 2009    |   |                                              |           |                         |             |                                             |   |   |   |   |   |   |   |   |
| Tangible Capital          |   |  $      26,510 |      |     9.79 | %                |  $      4,064 |    |     1.50 | % |   | N/A |    | N/A |   |
| Tier 1 Capital            |   | 26,510                                            |      |     9.79 | %                | 8,128                                            |    |     3.00 | % |   |  $  13,546 |    |     5.00 | % |
| Tier 1 Risk-Based Capital |   | 26,510                                            |      |   16.13            | %                | 6,575                                            |    |     4.00 | % |   | 9,862 |    |     6.00 | % |
| Total Risk-Based Capital  |   | 28,123                                            |      |   17.11            | %                | 13,150                                           |    |     8.00 | % |   | 16,437 |    |   10.00 | % |
|                      |   |                                              |           |                         |             |                                             |   |   |   |   |   |   |   |   |
| December 31, 2008    |   |                                              |           |                         |             |                                             |   |   |   |   |   |   |   |   |
| Tangible Capital          |   |  $      25,611 |      |   11.56            | %                |  $      3,324 |    |     1.50 | % |   | N/A |    | N/A |   |
| Tier 1 Capital            |   | 25,611                                            |      |   11.56            | %                | 6,648                                            |    |     3.00 | % |   |  $  11,081 |    |     5.00 | % |
| Tier 1 Risk-Based Capital |   | 25,611                                            |      |   18.06            | %                | 5,671                                            |    |     4.00 | % |   | 8,506 |    |     6.00 | % |
| Total Risk-Based Capital  |   | 27,383                                            |      |   19.31            | %                | 11,342                                           |    |     8.00 | % |   | 14,177 |    |   10.00 | % |
|                      |   |                                              |           |                         |             |                                             |   |   |   |   |   |   |   |   |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|                                                                                                         | December 31, 2009                                             |                                                           | December 31, 2008 |
|--------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------|----------------------------------------------------------------|-------------------|
|                                                                                                         | Level 1                                                       |                                                           | Level 2           |   | Level 3 |   | Level 1 |   | Level 2 |   | Level 3 |
|                                                                                                         | (In Thousands)                                                |                                                           | (In Thousands)    |
| Available for Sale Securities:1                                                                              |                                                          |                                                           |              |   |   |   |   |   |   |   |
| Mortgage Backed Securities                                                                                   |  $       -            | $          32,678 |              |  $       - |  $       - | $           26,100 |   |  $       - |
| Collateralized Mortgage                                                                                      |                                                          |                                                           |              |   |   |   |   |   |   |   |   |
|    Obligations                                                                                |           - | 1,433                                                          |              |           - |           - | 8,039 |   |           - |
| U.S. Government and                                                                                          |                                                          |                                                           |              |   |   |   |   |   |   |   |           - |
|    Agency Securities                                                                          |           - | 6,937                                                          |              |           - |           - | 10,070 |   |   |
| Mutual Funds                                                                                                 |           - | 2,394                                                          |              |           - |           - | 3,408 |   |           - |
| Municipal Securities                                                                                         |           - | 7,013                                                          |              |           - |           - |                          - |           - |
| Loans2                                                                                                       |           - | 5,505                                                          |              |           - |           - | 2,410 |   |           - |
| Other Real Estate3                                                                                           |           - | 2,489                                                          |              |           - |           - | 461 |   |           - |
|                                                                                                         |                                                          |                                                           |              |   |   |   |   |   |   |   |   |
| 1 Securities are measured at fair value on a recurring basis, generally monthly.                             |                                                          |                                                           |
| 2 Includes impaired loans that have been measured for impairment at the fair value of the loan's collateral. |
| 3 Other real estate is transferred from loans to REO at the lower of cost or market.                         |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

| NOTE Q |   |
|--------|--------|

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|   |                          |              |    |   |              |   |    |     |   |   |    |   |
|--------|-------------------------------|-------------------|---------|--------|-------------------|--------|---------|----------|--------|--------|---------|--------|
|   |                          | December 31, 2009 |    |   | December 31, 2008 |   |
|   |                          | Carrying          |    |   | Fair              |   |    | Carrying |   |   | Fair    |   |
|   |                          | Value             |    |   | Value             |   |    | Value    |   |   | Value   |   |
|   |                          | (In Thousands)    |    |
|   | Financial Assets:             |              |    |   |              |   |    |     |   |   |    |   |
|   | Cash and Cash Equivalents     | $                 | 19,735  |   |              | $      | 19,735  |     |   | $      | 3,205   |   |   | $ | 3,205 |   |
|   | Securities Available-for-Sale |              | 50,455  |   |              |   | 50,455  |     |   |   | 47,617  |   |   |   | 47,617 |   |
|   | Loans, Net                    |              | 185,500 |   |              |   | 194,118 |     |   |   | 158,523 |   |   |   | 162,434 |   |
|   | FHLB Stock                    |              | 2,354   |   |              |   | 2,354   |     |   |   | 2,300   |   |   |   | 2,300 |   |
|   | Accrued Interest Receivable   |              | 1,518   |   |              |   | 1,518   |     |   |   | 1,612   |   |   |   | 1,612 |   |
|   |                          |              |    |   |              |   |    |     |   |   |    |   |   |   |   |   |
|   | Financial Liabilities:        |              |    |   |              |   |    |     |   |   |    |   |   |   |   |   |
|   | Deposits                      | $                 | 201,493 |   |              | $      | 203,972 |     |   | $      | 140,115 |   |   | $ | 144,044 |   |
|   | Borrowings                    |              | 40,512  |   |              |   | 42,039  |     |   |   | 52,002  |   |   |   | 54,115 |   |
|   | Accrued Interest Payable      |              | 141     |   |              |   | 141     |     |   |   | 164     |   |   |   | 164 |   |
|   |                          |              |    |   |              |   |    |     |   |   |    |   |   |   |   |   |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|                                                                                           |   | First                                 |   |   | Second  |   |   | Third   |   |   | Fourth  |   |
|------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
|                                                                                           |   | Quarter                               |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |
|                                                                                           |   | (In Thousands, Except Per Share Data) |   |
| 2009                                                                                           |   |                                  |   |   |    |   |   |    |   |   |    |   |
| Interest and Dividend Income                                                                   |   | $                                     | 3,388  |   |    | $      | 3,610  |    |   | $      | 3,600   |   |   | $ | 3,561 |   |
| Interest Expense                                                                               |   |                                  | 1,513  |   |    |   | 1,663  |    |   |   | 1,548   |   |   |   | 1,360 |   |
| Net Interest Income                                                                            |   |                                  | 1,875  |   |    |   | 1,947  |    |   |   | 2,052   |   |   |   | 2,201 |   |
| Provision for Loan Losses                                                                      |   |                                  | -      |   |    |   | -      |    |   |   | 200     |   |   |   | 300 |   |
| Other Income                                                                                   |   |                                  | 373    |   |    |   | 481    |    |   |   | 245     |   |   |   | 231 |   |
| Other Expense                                                                                  |   |                                  | 1,676  |   |    |   | 1,773  |    |   |   | 1,928   |   |   |   | 2,152 |   |
| Income Tax Expense                                                                             |   |                                  | 194    |   |    |   | 152    |    |   |   | 65      |   |   |   | 79 |   |
| Net Income (Loss)                                                                              |   | $                                     | 378    |   |    | $      | 503    |    |   | $      | 104     |   |   | $ | (99 | ) |
|                                                                                           |   |                                  |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Net Income (Loss) per Common Share1                                                       |   |                                  |   |   |    |   |   |    |   |   |    |   |   |
| Basic                                                                                          |   | $                                     | 0.30   |   |    | $      | 0.40   |    |   | $      | 0.08    |   |   | $ | (0.08 | ) |
| Diluted                                                                                        |   | $                                     | 0.30   |   |    | $      | 0.40   |    |   | $      | 0.08    |   |   | $ | (0.08 | ) |
| Dividends Per Share                                                                            |   | $                                     | 0.10   |   |    | $      | 0.10   |    |   | $      | 0.10    |   |   | $ | 0.10 |   |
|                                                                                           |   |                                  |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| 2008                                                                                           |   |                                  |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Interest and Dividend Income                                                                   |   | $                                     | 2,987  |   |    | $      | 3,019  |    |   | $      | 3,214   |   |   | $ | 3,206 |   |
| Interest Expense                                                                               |   |                                  | 1,495  |   |    |   | 1,380  |    |   |   | 1,413   |   |   |   | 1,463 |   |
| Net Interest Income                                                                            |   |                                  | 1,492  |   |    |   | 1,639  |    |   |   | 1,801   |   |   |   | 1,743 |   |
| Provision for Loan Losses                                                                      |   |                                  | -      |   |    |   | -      |    |   |   | -       |   |   |   | - |   |
| Other Income (Loss)                                                                            |   |                                  | 115    |   |    |   | (525   | )       |   |   | 53      |   |   |   | (637 | ) |
| Other Expense                                                                                  |   |                                  | 1,416  |   |    |   | 1,465  |    |   |   | 1,448   |   |   |   | 1,344 |   |
| Income Tax Expense (Benefit)                                                                   |   |                                  | 65     |   |    |   | (119   | )       |   |   | 136     |   |   |   | (68 | ) |
| Net Income (Loss)                                                                              |   | $                                     | 126    |   |    | $      | (232   | )       |   | $      | 270     |   |   | $ | (170 | ) |
|                                                                                           |   |                                  |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Net Income (Loss) per Common Share1                                                       |   |                                  |   |   |    |   |   |    |   |   |    |   |   |
| Basic                                                                                          |   | $                                     | 0.10   |   |    | $      | (0.18  | )       |   | $      | 0.21    |   |   | $ | (0.13 | ) |
| Diluted                                                                                        |   | $                                     | 0.10   |   |    | $      | (0.18  | )       |   | $      | 0.21    |   |   | $ | (0.13 | ) |
| Dividends Per Share                                                                            |   | $                                     | 0.10   |   |    | $      | 0.10   |    |   | $      | 0.10    |   |   | $ | 0.10 |   |
|                                                                                           |   |                                  |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |
| 1 Quarterly per share amounts do not add to the total for the year ended due to rounding. |   |
|                                                                                           |   |                                  |   |   |    |   |   |    |   |   |    |   |   |   |   |   |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|                                                                       |   | Years Ended December 31,              |      |
|----------------------------------------------------------------------------|--------|---------------------------------------|-----------|
|                                                                       |   | 2009                                  |      |   | 2008 |   |
| Numerator:                                                                 |   | (In Thousands, Except Per Share Data) |      |
| Net Income (Loss)                                                          |   | $                                     | 886       |   |   | $ | (6 | ) |
| Effect of Dilutive Securities                                              |   |                                  | -         |   |   |   | - |   |
| Numerator for Diluted Earnings (Loss) Per Share                            |   | $                                     | 886       |   |   | $ | (6 | ) |
| Denominator                                                                |   |                                  |      |   |   |   |   |   |
| Weighted-Average Shares Outstanding                                        |   |                                  | 1,263,021 |   |   |   | 1,278,292 |   |
| Effect of Potentially Dilutive Securities and Contingently Issuable Shares |   |                                  | -         |   |   |   | - |   |
| Denominator for Diluted Earnings Per Share                                 |   |                                  | 1,263,021 |   |   |   | 1,278,292 |   |
| Earnings (Loss) Per Share                                                  |   |                                  |      |   |   |   |   |   |
| Basic                                                                      |   | $                                     | 0.70      |   |   |   | n/m |   |
| Diluted                                                                    |   | $                                     | 0.70      |   |   |   | n/m |   |
| Cash Dividends Per Share                                                   |   | $                                     | 0.40      |   |   | $ | 0.40 |   |
|                                                                       |   |                                  |      |   |   |   |   |   |

|                              |   | December 31, |       |
|-----------------------------------|--------|--------------|------------|
|                              |   | 2009         |       |   | 2008 |   |
| Average Common Shares Issued      |   |         | 3,438,500  |   |   |   | 3,438,500 |   |
| Average Treasury Shares           |   |         | (2,168,882 | ) |   |   | (2,152,700 | ) |
| Average Unearned ESOP Shares      |   |         | -          |   |   |   | - |   |
| Average Unearned RRP Trust Shares |   |         | (6,597     | ) |   |   | (7,508 | ) |
|                              |   |         | 1,263,021  |   |   |   | 1,278,292 |   |
|                              |   |         |       |   |   |   |   |   |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

| CONDENSED BALANCE SHEETS                       |   |
|------------------------------------------------|--------|
|                                           |   |   |   |   |   |   |
|                                           |   | December 31, |   |
|                                           |   | 2009 |   |   | 2008 |   |
|                                           |   | (In Thousands) |   |
| ASSETS                                         |   |   |   |   |   |   |
|                                           |   |   |   |   |   |   |
| Cash and Cash Equivalents                      |   | $ | 665 |   |   | $ | 1,736 |   |
| Securities - Available-for-Sale, at Fair Value |   |   | 30 |   |   |   | 46 |   |
| Investment in Subsidiary                       |   |   | 26,745 |   |   |   | 25,391 |   |
| Other Assets                                   |   |   | 831 |   |   |   | 662 |   |
| Total Assets                                   |   | $ | 28,271 |   |   | $ | 27,835 |   |
|                                           |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY           |   |   |   |   |   |
| Other Liabilities                              |   | $ | 72 |   |   | $ | 101 |   |
| Stockholders’ Equity                     |   |   | 28,199 |   |   |   | 27,734 |   |
| Total Liabilities and Stockholders' Equity     |   | $ | 28,271 |   |   | $ | 27,835 |   |
|                                           |   |   |   |   |   |   |   |   |

| CONDENSED STATEMENTS OF INCOME                         |           |
|--------------------------------------------------------|----------------|
|                                                   |           |   |   |   |   |   |
|                                                   |           | Years Ended December 31, |   |
|                                                   |           | 2009 |   |   | 2008 |   |
|                                                   | (In Thousands) |   |
| Income:                                                |           |   |   |   |   |   |
| Dividends from Guaranty Savings Bank                   |           | $ | - |   |   | $ | 1,600 |   |
| Interest Income                                        |           |   | 3 |   |   |   | 14 |   |
| Other Income                                           |           |   | 237 |   |   |   | 92 |   |
| Total Income                                           |           |   | 240 |   |   |   | 1,706 |   |
| Operating Expenses                                     |           |   | 382 |   |   |   | 277 |   |
| (Loss) Income Before Income Taxes and Equity in        |           |   |   |   |   |   |   |   |
| Undistributed Earnings (Loss) of Guaranty Savings Bank |           |   | (142 | ) |   |   | 1,429 |   |
| Applicable Income Tax Benefit                          |           |   | (146 | ) |   |   | (42 | ) |
| Equity in Undistributed Earnings (Loss) of             |           |   |   |   |   |   |   |   |
|  Guaranty Savings Bank                            |           |   | 882 |   |   |   | (1,477 | ) |
| Net Income (Loss)                                      |           | $ | 886 |   |   | $ | (6 | ) |
|                                                   |           |   |   |   |   |   |   |   |

----

| GS Financial Corp. and Subsidiary                      |
|--------------------------------------------------------|
| Notes to Consolidated Financial Statements (Continued) |

|   | NOTE U |
|--------|--------|

| CONDENSED STATEMENTS OF CASH FLOWS                                          |           |
|-----------------------------------------------------------------------------|----------------|
|                                                                        |           |   |   |   |   |   |
|                                                                        |           | Years Ended December 31, |   |
|                                                                        |           | 2009 |   |   | 2008 |   |
|                                                                        | (In Thousands) |   |
| OPERATING ACTIVITIES                                                        |           |   |   |   |   |   |
| Net Income (Loss)                                                           |           | $ | 886 |   |   | $ | (6 | ) |
| Adjustments to Reconcile Net Income (Loss) to Net Cash (Used in)            |           |   |   |   |   |
| Provided by Operating Activities                                            |           |   |   |   |   |   |   |   |
| Depreciation Expense                                                        |           |   | 10 |   |   |   | 14 |   |
| Loss on Sale of Investments                                                 |           |   | - |   |   |   | 12 |   |
| Gain on Sale of Premises and Equipment                                      |           |   | (134 | ) |   |   | - |   |
| Equity in Undistributed (Earnings) Loss of Subsidiary                       |           |   | (882 | ) |   |   | 1,477 |   |
| Deferred Income Tax Benefit                                                 |           |   | (42 | ) |   |   | (41 | ) |
| (Increase) Decrease in Other Assets                                         |           |   | (225 | ) |   |   | 84 |   |
| Decrease in Other Liabilities                                               |           |   | - |   |   |   | (74 | ) |
|     Net Cash (Used in) Provided by Operating Activities |           |   | (387 | ) |   |   | 1,466 |   |
|                                                                        |           |   |   |   |   |   |   |   |
| INVESTING ACTIVITIES                                                        |           |   |   |   |   |   |   |   |
| Redemption of Mutual Funds                                                  |           |   | - |   |   |   | 23 |   |
| Proceeds from Sale of Premises and Equipment                                |           |   | 191 |   |   |   | - |   |
| Proceeds from Maturites of Investment Securities                            |           |   | 22 |   |   |   | 1 |   |
|     Net Cash Provided by Investing Activities           |           |   | 213 |   |   |   | 24 |   |
|                                                                        |           |   |   |   |   |   |   |   |
| FINANCING ACTIVITIES                                                        |           |   |   |   |   |   |   |   |
| Purchases of Treasury Stock                                                 |           |   | (387 | ) |   |   | - |   |
| Payment of Dividends                                                        |           |   | (510 | ) |   |   | (509 | ) |
|     Net Cash Used in Financing Activities          |           |   | (897 | ) |   |   | (509 | ) |
|                                                                        |           |   |   |   |   |   |   |   |
| (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                            |           |   | (1,071 | ) |   |   | 981 |   |
| CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                                |           |   | 1,736 |   |   |   | 755 |   |
| CASH AND CASH EQUIVALENTS, END OF YEAR                                      |           | $ | 665 |   |   | $ | 1,736 |   |
|                                                                        |           |   |   |   |   |   |   |   |

----

| Board of Directors |
|--------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Albert J. Zahn, Jr.Mr. Zahn (age 58) has served as Chairman of the Board of GS Financial and Guaranty Savings Bank since April 2005. Mr. Zahn is a certified public accountant and President of the firm Al Zahn CPA, a Professional Accounting Corp-oration in Mandeville, Louisiana. He has been a director since 1992. Edward J. BourgeoisMr. Bourgeois (age 53) is a certified public accountant in the State of Louisiana and currently serves as President and Chief Executive Officer of Centergy Consulting, LLC, New Orleans, Louisiana, a consulting firm specializing in the banking and financial industry. Mr. Bourgeois also serves as the President and Chief Executive Officer of My EZ Car Care LLC, an automotive services limited liability company. Mr. Bourgeois was formerly the Executive Vice President/Chief Operating Officer of Crescent Bank and Trust, New Orleans, Louisiana from 2001 to 2004. He is a member of the American Institute of Certified Public Accountants and Louisiana Society of Certified Public Accountants and Board member of the National Automotive Finance Association. He has been a director since 2004. Stephen L. CoryMr. Cory (age 60) is an insurance agent and President of Cory, Tucker & Larrowe, Inc. in Metairie, Louisiana. He has been a director since 1995.Bradford A. GlazerMr. Glazer (age 54) is President of Glazer Enterprises, Inc., a freight agency representing Park Transport, Inc., as well as other carriers as the need arises. Mr. Glazer also serves as President of Park Transport, a logistics services provider.  Glazer Enterprises, located in Cincinnati, Ohio, is also a real estate management and development company.Bruce A. ScottMr. Scott (age 57) is an attorney and has served as Executive Vice President of GS Financial since its formation in February 1997 and Executive Vice President of Guaranty Savings Bank since 1985. Mr. Scott has served as Vice Chairman of the Board since 1990. Mr. Scott also serves as legal counsel of Guaranty Savings Bank. He has been a director since 1982.Paul D. Cordes, Jr.Mr. Cordes (age 56) is a member of the law firm of Guarisco & Cordes, LLC, New Orleans, Louisiana, specializing primarily in tax and related business and estate planning matters.  From 2002 to 2003, Mr. Cordes operated a solo law practice and prior thereto, served as a tax consulting partner with Ernst & Young LLP.  He has been a director since 2010.              |   |   Hayden W. Wren IIIMr. Wren (age 61) is the Director of Commercial/ Investment Brokerage of Corporate Realty, Inc., New Orleans, Louisiana. Mr. Wren is a Certified Commercial Investment Member (“CCIM”), a member of the Society of Industrial and Office Realtors (“SIOR”), and a licensed certified public accountant having membership affiliations with the American Institute of Certified Public Accountants and the Louisiana Society of Certified Public Accountants. He has been a director since 2003. Executive Officers Who Are Not Directors Stephen E. WesselMr. Wessel (age 47) has served as President and Chief Executive Officer of GS Financial and Guaranty Savings Bank since December 2005. Since December 2007, he has served as a Director of Guaranty Savings Bank. Previously he served as Senior Vice President/South Louisiana Business Banking Manager for AmSouth Bank, a regional commercial bank, New Orleans, Louisiana since August 2001. Prior thereto, Mr. Wessel served as Vice President/ Regional Business Banking Manager for Whitney National Bank, New Orleans, Louisiana from December 1991 to August 2001. Lettie R. MollMs. Moll (age 56) has served as Vice President and Corporate Secretary of GS Financial since its formation in 1997 and Senior Vice President and Corporate Secretary of Guaranty Savings since July 2009 and March 1982, respectively. Prior to July 2009, Ms. Moll served as Vice President and Corporate Secretary of Guaranty Savings. Ms. Moll currently also serves as Guaranty Savings Bank's Branch Administrator and manages the deposit products.Stephen F. TheriotMr. Theriot (age 36) has served as Senior Vice President and Chief Financial Officer of GS Financial and Guaranty Savings since December 2008. Prior thereto, Mr. Theriot served as the Vice President and Chief Operating Officer of Guaranty Savings Bank since February 2007 and assumed the additional duties of principal financial officer of GS Financial and Guaranty Savings Bank in September 2008. Mr. Theriot previously served as Controller of Mutual Savings and Loan Association, in Metairie, Louisiana. Prior thereto, Mr. Theriot served as a Senior Auditor in the Audit and Assurance Business Services Department of Ernst & Young LLP.                    |

----

| Banking Locations |
|-------------------|

| Main Office3798 Veterans Memorial Blvd.Metairie, LA   70002(504) 457-6220 West Bank Branch1800 Manhattan Blvd.Harvey, LA    70058(504) 361-3391Mid City Branch3915 Canal StreetNew Orleans, LA  70119(504) 483-7146Elmwood Branch5700 Citrus BoulevardSuite KHarahan, LA  70123(504) 733-8176 |   |   Mandeville Branch2111 N. Causeway BlvdMandeville, LA  70471(985) 626-6229Ponchatoula Branch1515 Hwy 51 SouthPonchatoula, LA  70454(985) 370-7051Mortgage Production Office1700 Veterans Memorial Blvd.Metairie, LA  70002(504) 828-4327                                                |
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