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x Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number: 0-22269

Louisiana	72-1341014
(State or Other Jurisdiction	(IRS Employer ID Number)
of Incorporation or Organization)

Registrant's Telephone Number: (504) 457-6220

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

As of August 12, 2002, there were 1,544,361 shares of the Registrant’s common stock outstanding, net of treasury shares. The financial statements contained within this Form 10-Q for the three and six months ended June 30, 2002 and 2001 represent the consolidated financial position and results of operations of GS Financial Corp.

Part I - Financial Information
Item 1	Financial Statements
	Consolidated Balance Sheets
	(as of June 30, 2002, Unaudited and December 31, 2001, Audited)	3
	Consolidated Statements of Income
	(For the three and six months ended June 30, 2002 and 2001, Unaudited)	4
	Consolidated Statements of Changes in Stockholders’ Equity
	(For the six months ended June 30, 2002 and 2001, Unaudited)	5
	Consolidated Statements of Cash Flows
	(For the six months ended June 30, 2002 and 2001, Unaudited)	6-7
	Notes to Consolidated Financial Statements	7-12
Item 2	Management’s Discussion and Analysis of Financial
	Condition and Results of Operations	12-16
Item 3	Quantitative and Qualitative Disclosures about Market Risk	16
Part II - Other Information		16
Item 1	Legal Proceedings	16
Item 2	Changes in Securities and Use of Proceeds	16
Item 3	Defaults Upon Senior Securities	17
Item 4	Submission of Matters to a Vote of Security Holders	17
Item 5	Other Information	17
Item 6	Exhibits and Reports on Form 8-K	17

GS FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
ASSETS
					June 30, 2002				December 31, 2001
					(Unaudited)				(Audited)
Cash and Due from Banks				$	897			$	376
Interest-Bearing Deposits in Other Banks					2,261				8,132
Federal Funds Sold					600				130
Investment Securities					29,261				35,820
Loans (Net)					83,847				81,611
Mortgage-Backed Securities					680				885
Collateralized Mortgage Obligations					67,113				52,087
FHLB Stock					5,383				5,304
Accrued Interest Receivable					798				883
Premises and Equipment					2,683				2,546
Other Assets					813				720
			Total Assets	$	194,336			$	188,494

LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
	Interest-Bearing Deposits			$	82,924	$	70,925
	Non-Interest Bearing Deposits				1,062		982
	Borrowings				72,409		79,265
	Other Liabilities				2,335		1,914
			Total Liabilities		158,730		153,086
STOCKHOLDERS' EQUITY
	Common Stock & Additional Paid in Capital				34,087		33,945
	Treasury Stock				(26,060)		(25,179)
	Accumulated Other Comprehensive Income				2,253		1,845
	Unearned ESOP Stock				(1,224)		(1,365)
	Unearned RRP Trust Stock				(1,477)		(1,477)
	Other Stockholders' Equity				28,027		27,639
			Total Stockholders' Equity		35,606		35,408
			Total Liabilities and Stockholders' Equity	$	194,336	$	188,494

GS FINANCIAL CORP. CONSOLIDATED STATEMENTS OF INCOME (Dollars in Thousands, except per share data) (Unaudited)
					For The Three Months Ended June 30,					For The Six Months Ended June 30,
					2002		2001			2002		2001
INTEREST INCOME (from)
	Loans			$	1,637	$	1,469		$	3,211	$	2,930
	Mortgage-Backed Securities				12		22			26		58
	Investment Securities				405		327			872		591
	Collateralized Mortgage Obligations				1,021		1,470			1,971		2,562
	Other Interest Income				60		157			125		393
			Total Interest Income		3,135		3,445			6,205		6,534
INTEREST EXPENSE (on)
	Deposits				646		714			1,276		1,429
	FHLB Advances				1,032		1,409			2,111		2,541
			Total Interest Expense		1,678		2,123			3,387		3,970
NET INTEREST INCOME BEFORE
	PROVISION FOR LOAN LOSSES				1,457		1,322			2,818		2,564
PROVISION FOR LOAN LOSSES					11		0			15		14
NET INTEREST INCOME AFTER
	PROVISION FOR LOAN LOSSES				1,446		1,322			2,803		2,550
NON-INTEREST INCOME
	Gain on Investments				20		-			20		591
	Other Income				17		6			41		12
			Total Non-Interest Income		37		6			61		603
OTHER EXPENSES
	Compensation and Benefits				660		566			1,290		1,168
	Net Occupancy Expense				104		91			213		173
	Other Expenses				263		265			493		463
			Total Other Expenses		1,027		922			1,996		1,804
INCOME BEFORE TAX EXPENSE					456		406			868		1,349
INCOME TAX EXPENSE					98		124			182		459
NET INCOME				$	358	$	282		$	686	$	890
BASIC EARNINGS PER SHARE				$	.25	$	.17		$	.48	$	.54
DILUTED EARNINGS PER SHARE				$	.25	$	.17		$	.48	$	.54

GS FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
For The Six Months Ended June 30, 2002, and 2001
(Dollars in Thousands) (Unaudited)
												Unearned				Accumulated
					Additional				Unearned			RRP				Other		Total
				Common Stock		Paid in Capital		Treasury Stock		ESOP Stock		Trust Stock		Retained Earnings		Comprehensive Income (Loss)		Stockholders' Equity
BALANCE AT
DECEMBER 31, 2000				$ 34		$ 33,854		$ (20,568)		$ (1,646)		$ (1,754)		$ 26,583		$ 1,292		$ 37,795
Net Income for the six mths
	Ended June 30, 2001			-		-		-		-		-		890		-		890
Other Comprehensive
	Income Net of Applicable Deferred
	Income Taxes			-		-		-		-		-		-		(30)		(30)
Purchase of Treasury Stock				-		-		(2,480)		-		-		-		-		(2,480)
ESOP Compensation Earned				-		123		-		141		-		-		-		264
Distribution of RRP Stock				-		(21)		-		-		72		-		-		51
Cash Dividends Paid				-		-		-		-		-		(345)		-		(345)
BALANCE AT
June 30, 2001				$ 34		$ 33,956		$ (23,048)		$ (1,505)		$ (1,682)		$ 27,128		$ 1,262		$ 36,145
				==		=====		======		=====		=====		======		====		=====
BALANCE AT
DECEMBER 31, 2001				$ 34		$ 33,911		$ (25,179)		$ (1,365)		$ (1,477)		$ 27,639		$ 1,845		$ 35,408
Net Income for the six mths
	Ended June 30, 2002			-		-		-		-		-		686		-		686
Other Comprehensive
	Loss Net of Applicable Deferred
	Income Taxes			-		-		-		-		-		-		408		408
Purchase of Treasury Stock				-		-		(881)		-		-		-		-		(881)
ESOP Compensation Earned				-		142		-		141		-		-		-		283
Cash Dividends Paid				-		-		-		-		-		(298)		-		(298)
BALANCE AT
June 30, 2002				$ 34		$ 34,053		$ (26,060)		$ (1,224)		$ (1,477)		$ 28,027		$ 2,253		$ 35,606
				==		=====		======		=====		=====		======		====		=====

GS FINANCIAL CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands) (Unaudited)
							For The Six Months Ended June 30,
							2002		2001
CASH FLOWS FROM OPERATING ACTIVITIES
	Net Income					$	686	$	890
	Adjustments to Reconcile Net Income to Net Cash
		Provided by Operating Activities:
			Depreciation				82		69
			Discount Accretion Net of Premiums Amortized				(460)		(194)
			Provision for Loan Losses				15		13
			Gain on Sale of Foreclosed Real Estate				(17)		(23)
			Net Loan Fees				(2)		-
			Dividend on ARM Fund				(313)		(106)
			Dividend on IMF Fund				(9)		(11)
			Dividend on UST Fund				(43)		-
			Non-Cash Dividend - FHLB				(79)		(111)
			ESOP Expense				235		215
			RRP Expense				74		116
			Gain on Sale of Investments				(20)		(591)
			Increase in Prepaid Income Taxes - Current				16		-
			Changes in Deferred Income Tax				278		190
			Changes in Operating Assets and Liabilities:
				Increase (Decrease) in Accrued Interest Receivable			85		(130)
				Increase in Deferred Charges			(80)		(27)
				Increase in Accrued Income Tax			-		47
				Increase in Other Liabilities			137		97
				Increase in Other Assets			(19)		(72)
					Net Cash Provided by Operating Activities		566		372
CASH FLOWS FROM INVESTING ACTIVITIES
	Proceeds from Sale of FHLMC Common Stock					$	-	$	632
	Redemption/(Investment) in Adjustable Rate Mutual Fund						6,663		(3,190)
	Redemption of UST Fund						4,255		-
	Purchase of CMOs						(41,799)		(32,431)
	Proceeds from Maturities of CMOs						26,970		8,241
	Investment in FHLMC Preferred Stock						(3,621)		(12,718)
	Sale/(Investment) in Other Equity Investments						299		(123)
	Proceeds from Maturities of Available-for-Sale Securities						-		786
	Proceeds from Maturities of Mortgage-Backed Securities						197		619
	Redemption of IMF Mutual Fund						-		27
	Proceeds from Sale of Mortgage-Backed Securities						-		2,321
	Net Loan (Originations)/Repayments						(2,248)		630
	Purchases of Premises and Equipment						(42)		(52)
	Purchase of Land for Future Branch Development						(171)		-
	Proceeds from Sales of Foreclosed Real Estate						51		140
	Investment in Real Estate Held for Investment						-		(389)
	Investment in Foreclosed Real Estate						(45)		-
	Purchase of FHLB Stock						-		(1,990)
					Net Cash Used in Investing Activities		(9,491)		(37,497)

GS FINANCIAL CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Dollars in Thousands) (Unaudited)
							For The Six Months Ended June 30,
							2002		2001
CASH FLOWS FROM FINANCING ACTIVITIES
	Net Increase in Deposits					$	12,234	$	3,887
	Purchase of Treasury Stock						(881)		(2,480)
	Net Decrease in Unapplied Loan Payments						-		(8)
	Payment of Cash Stock Dividends						(298)		(345)
	Net Decrease in Advance Payments by Borrowers for
		Taxes and Insurance					(154)		(180)
	Net (Decrease) Increase in FHLB Advances						(6,856)		43,762
					Net Cash Provided by Financing Activities		4,045		44,636
NET CASH EQUIVALENTS							(4,880)		7,511
CASH AND CASH EQUIVALENTS – January 1,							8,638		3,403
CASH AND CASH EQUIVALENTS – June 30,						$	3,758	$	10,914

(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

GS Financial Corp. (the Company) was organized and incorporated under the laws of the State of Louisiana on December 24, 1996, for the purpose of becoming the holding company of Guaranty Savings and Homestead Association (the Association). The Association is a state-chartered savings and loan association whose primary regulators are the Office of Thrift Supervision (OTS) and Louisiana Office of Financial Institutions (OFI).

The accompanying financial statements represent the consolidated financial position, results of operations and cash flows of the Company. The accompanying financial statements were prepared in accordance with instructions to Form 10-Q, and therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with generally accepted accounting principles. However, all adjustments, consisting only of normally recurring accruals, which, in the opinion of management are necessary for a fair presentation of the financial statements, have been included.

The results of operations for the three and six months ended June 30, 2002 are not necessarily indicative of the results to be expected for the year ending December 31, 2002. The unaudited consolidated financial statements and the notes included herein should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2001.

(2) EMPLOYEE STOCK OWNERSHIP PLAN

The GS Financial Employee Stock Ownership Plan (ESOP) purchased 275,080 shares of the Company's common stock on April 1, 1997 financed by a loan from the Company. The loan is secured by those shares not yet allocated to plan participants. At June 30, 2002, there were 136,451 unallocated shares and the balance of the loan was $1.5 million. The Association bears the cost of the ESOP as compensation expense which is based on principal and interest payments on the corresponding debt as well as the market value of the stock. Compensation expense related to the ESOP was $123,000 for the three months ended June 30, 2002, compared to $107,000 for the three months ended June 30, 2001. The increase was attributable to the rise in the market value of the stock.

(3) EARNINGS PER SHARE AND PAYMENTS OF DIVIDENDS

Earnings per share are computed using the weighted average number of shares outstanding as prescribed in Statement of Financial Accounting Standard ("SFAS") 128. In accordance with SFAS 128, the average weighted shares outstanding were approximately 1.4 million for the three months ended June 30, 2002, and 1.6 million shares for the three months ended June 30, 2001, basic and diluted. For the three months ended June 30, 2002, earnings per common share were $.25 compared to $.17 for the three months ended June 30, 2001 (basic and diluted). During the three months ended June 30, 2002 and 2001, the Company declared and paid cash dividends in the amount of $.09 per common share in each period.

(4) INVESTMENT SECURITIES

(Dollars in thousands)		June 30, 2002				December 31, 2001
		Amortized		Market		Amortized		Market
AVAILABLE FOR SALE		Cost		Value		Cost		Value
US Government and
	Agency Obligations	$	801	$	891	$	801	$	886
ARM Mutual Fund			5,818		5,848		12,481		12,513
IMF Mutual Fund			403		408		394		397
UST Mutual Fund			-		-		4,255		4,251
FHLMC Common Stock			16		979		16		1,047
FHLMC Preferred Stock			19,846		21,135		16,224		16,550
Equity Investments-Other			-		-		173		176
TOTAL INVESTMENTS		$	26,884	$	29,261	$	34,344	$	35,820

(5) LOANS

	June 30,		December 31,
(Dollars in thousands)	2002		2001
Total Loans	$ 84,286		$ 82,037
Allowance for Loan Losses	(450)		(435)
Net Unearned Fees	11		9
	--------		--------
TOTAL NET LOANS	$ 83,847		$ 81,611
	=====		=====
Permanent Mortgages (1-4 family)	$ 65,188		$ 69,863
Construction	1,760		1,056
Commercial Mortgages	6,821		3,431
Other Mortgages	8,753		6,750
Commercial	1,396		683
Consumer (secured by deposits)	368		254
	--------		--------
TOTAL LOANS	$ 84,286		$ 82,037
	=====		=====
ALLOWANCE FOR LOAN LOSSES
For the Three Months Ended		June 30,
(Dollars in thousands)	2002		2001
	-----		-----
Beginning Balance, April 1,	$ 439		$ 433
Provision for Losses	11		-
Loans Charged Off	-		10
	-----		-----
Ending Balance, June 30,	$ 450		$ 423
	===		===

(6) MORTGAGE-BACKED SECURITIES

(Dollars in thousands)		June 30, 2002				December 31, 2001
		Amortized		Market		Amortized		Market
AVAILABLE FOR SALE		Cost		Value		Cost		Value
GNMA Fixed Rate (1-4 family)		$	656	$	680	$	857	$	885
TOTAL MORTGAGE-
	BACKED SECURITIES	$	656	$	680	$	857	$	885

(7) COLLATERALIZED MORTGAGE OBLIGATIONS

(Dollars in thousands)			June 30, 2002		December 31, 2001
			Amortized	Market	Amortized	Market
AVAILABLE FOR SALE			Cost	Value	Cost	Value
FNMA			$ 3,558	$ 3,559	$ 1,283	$ 1,274
GNMA			4,793	4,808	-	-
FHLMC			35,805	35,911	13,702	13,790
Private Issue			21,933	22,835	35,810	37,023
			--------	--------	--------	-------
TOTAL COLLATERALIZED MORTGAGE
	OBLIGATIONS		$ 66,089	$ 67,113	$ 50,795	$ 52,087
			=====	=====	=====	=====

(8) INTEREST-BEARING DEPOSITS

	June 30,	December 31,
(Dollars in thousands)	2002	2001
Passbook Savings	$ 27,575	$ 20,042
Certificates of Deposit	49,272	43,217
NOW Accounts	6,077	7,666
	--------	--------
TOTAL INTEREST-BEARING DEPOSITS	$ 82,924	$ 70,925
	=====	=====

(9) BORROWINGS

	June 30,	December 31,
(Dollars in thousands)	2002	2001
Amounts maturing within 1 year	$ 22,595	$ 17,241
Amounts maturing over 1 year	49,814	62,024
	--------	--------
TOTAL BORROWINGS	$ 72,409	$ 79,265
	=====	=====

(10) STOCK OPTION PLAN

On October 15, 1997, the stockholders approved the adoption of the GS Financial Corp. 1997 Stock Option Plan for the benefit of directors, officers and other key employees. Under this plan, 343,850 shares of common stock have been reserved for issuance pursuant to the exercise of stock options with 275,076 shares granted to vest over five years. To date no options have been exercised.

(11) RECOGNITION AND RETENTION PLAN

On October 15, 1997 the Company established the Recognition and Retention Plan and Trust (RRP) as an incentive to retain personnel of experience and ability in key positions. Stockholders approved a total of 137,540 shares of stock to be granted pursuant to the RRP. The Company acquired a total of 137,500 shares of common stock for issuance under the RRP. The Company is accruing this expense over the ten-year vesting period based on the price of the stock ($12.50/share) when the plan was modified in September, 1998. As of June 30, 2002, 125,028 shares had been awarded of which 53,544 had been earned and issued.

(12) TREASURY STOCK

As of June 30, 2002, the Company had repurchased approximately 1.8 million shares at an average price of $14.26 per share. During the quarter ended June 30, 2002, the Company repurchased 39,076 shares at a cost of $688,578. During the second quarter of 2002, the Company announced a new buyback program to purchase up to 350,000 shares of common stock. The following table summarizes the repurchase of shares of the Company's common stock by year and for the six months ended June 30, 2002:

GS Financial Corp.

Common Stock Repurchases

	Shares	Average
Year	Repurchased	Price
1998	491,054	$ 16.95
1999	299,000	12.22
2000	679,600	12.64
2001	305,684	15.09
2002	51,776	17.00
	------------	-------
Total	1,827,114	$ 14.26

Due to the highly capitalized condition of the Company, management felt that these purchases, most of which were at a discount to book value, were an effective way to reduce capital while still enhancing shareholder value. Management believes that reducing capital through stock repurchases is a more conservative use of capital than alternatives such as expanding the banking activities of the Company’s subsidiary through acquisitions. These shares have not been retired and could potentially serve as a source of capital funding should the need arise in the future.

(13) OTHER EXPENSES

Listed below are major recurring components comprising Other Expenses.

	For the Three Months
	Ended June 30,
	2002		2001
Office Supplies and Telephone	$	39,782	$	47,373
Bank Shares and Franchise Tax		90,464		74,088
Data Processing		32,570		33,136
Advertising		21,908		28,085
Supervisory Fees		22,989		17,640

Item 2

FORWARD-LOOKING STATEMENTS

In addition to the historical information contained herein, the following discussion contains forward-looking statements that involve risk and uncertainties. Economic circumstances, the Company’s operations, and actual results could differ significantly from those discussed in the forward-looking statements. The major factors that could cause or contribute to such differences include, but are not limited to, changes in the local economy as well as fluctuations in prevailing interest rates. Other forward-looking statements are made concerning the amount and adequacy of the allowance for loan losses.

GENERAL

The Company’s principal business is conducted through its wholly owned subsidiary, Guaranty Savings and Homestead Association. The Association, founded in New Orleans, Louisiana in 1937, provides financial services primarily to individuals. It’s principal products include residential and non-residential mortgage loans, commercial term and line of credit loans, passbook savings accounts, certificates of deposit, and demand deposit accounts. The Association also invests in short-term and long-term investments such as overnight Federal Funds, United States Treasury and Agency issued securities, CMOs and mortgage-backed securities.

The following discussion compares the financial condition of GS Financial Corp. at June 30, 2002 to December 31, 2001 and the results of operations for the three and six months ended June 30, 2002 and 2001.

CHANGES IN FINANCIAL CONDITION

At June 30, 2002, the assets of the Company totaled $194.3 million, increasing $5.8 million from December 31, 2001, when total assets were $188.5 million. The Company has experienced $12 million in growth in customer deposits during 2002. This cash has been used to reduce the Company's debt to FHLB and increase both loans and CMOs. During April and May of 2002, the Company was able to reposition some of its short-term investments to higher yielding CMOs and FHLMC preferred stock.

Loans increased $2.2 million to $83.8 million at June 30, 2002, compared to $81.6 million at December 31, 2001. Residential mortgage loans have decreased while construction loans, non-residential mortgage loans and commercial loans have gone up.

Collateralized mortgage obligations increased $15.0 million, or 29%, to $67.1 million at June 30, 2002 compared to $52.1 million at December 31, 2001. During the second quarter of 2002, the Company purchased $36.2 million of CMOs issued by FHLMC, FNMA and GNMA. It should be noted that the rapid repayment of these investments which was prevalent throughout 2001 has slowed during 2002. This additional investment was funded through the redemption of some of the Company's short-term investments and new retail customer deposits.

The Company's investment in mortgage-backed securities consists of fixed-rate GNMA bonds. During 2002, the Company's investment in these instruments decreased $.2 million due to regularly scheduled paydowns.

Investment securities decreased $6.5 million to $29.3 million at June 30, 2002 compared to $35.8 million at December 31, 2001. The decrease was the net result of the redemption of short-term mutual funds and other equity investments, offset by purchases of FHLMC preferred stock.

The Company’s overall cash position decreased approximately $4.8 million. Cash and cash equivalents decreased from $8.6 million at December 31, 2001, compared to $3.8 million at June 30, 2002. Balances of interest-bearing deposits in Federal Home Loan Bank decreased while cash on hand and Federal Funds Sold increased.

During the second quarter of 2002, the Company acquired a parcel of land for the construction of a full service branch in Ponchatoula, Louisiana, pending regulatory approval. Since May, 2001, the Company has operated a loan production office in Ponchatoula.

Interest-bearing deposits increased $12.0 million to $82.9 million at June 30, 2002, compared to $70.9 million at December 31, 2001. This change was made up of increases in passbook savings and certificates of deposit, offset by some decreases in NOW accounts.

The Company’s borrowings from the Federal Home Loan Bank decreased $6.9 million from $79.3 million at December 31, 2001 compared to $72.4 million at June 30, 2002. The Company's borrowings consisted of $43.6 million of fully amortizing advances from the Federal Home Loan Bank (FHLB), $24.1 in bullet (interest only until maturity) advances, and $4.7 million in balloon obligations from the FHLB. The decrease was due to regularly scheduled monthly amortization payments.

Stockholders’ equity increased $.2 million to $35.6 million at June 30, 2002 compared to $35.4 million at December 31, 2001. Increases in stockholders' equity were attributed to net income, retirement of ESOP debt and increases in other comprehensive income. Decreases in stockholders' equity were from payment of dividends and purchases of treasury stock.

RESULTS OF OPERATIONS

GENERAL

Net income for the three months ended June 30, 2002 was $358,000 compared to $282,000 for the three months ended June 30, 2001. Basic earnings per common share were $.25 for the three months ended June 30, 2002 on average shares outstanding of 1,414,133 compared to $.17 per common share for the three months ended June 30, 2001 on average shares outstanding of 1,611,168. For the six months ended June 30, 2002, net income was $686,000, or $.48 per common share on average shares outstanding of 1,424,441, compared to net income of $890,000 or $.54 per common share based on average shares outstanding of 1,648,943 for the six months ended June 30, 2001. It should be noted that the results in 2001 included the effects from a one time gain of $600,000 on the sale of investment securities. While the yield on earning assets decreased, the Company's cost of funds decreased even more, creating an increase in the Company's net interest margin.

INTEREST INCOME

Total interest income for the quarter ended June 30, 2002 was $3.1 million, compared to $3.4 million for the quarter ended June 30, 2001. For the three months ended June 30, 2002, average interest-earning assets were $185.8 million with an annualized yield of 6.7%. For the same period in 2001 average total interest-earning assets were $192.1 million yielding 7.2%. For the six months ended June 30, 2002, the Company's average earning assets were $185.2 yielding 6.7%. For the six months ended June 30, 2001, average earning assets were $182.3 yielding 7.2%.

Interest income from loans was $1.6 million for the three months ended June 30, 2002, compared to $1.5 million for the three months ended June 30, 2001. During the second quarter of 2002, the average loan portfolio balance was $82.2 million and yielded 7.8%. The average balance of the loan portfolio for the second quarter of 2001 was $74.2 million which yielded 7.9%.

Interest income from mortgage-backed securities was $12,000 for the three months ended June 30, 2002, compared to $22,000 for the three months ended June 30, 2001. The average balance of mortgage-backed securities during the three months ended June 30, 2002, was $.7 million which yielded 7.1%. For the same period in 2001, the average balance of mortgage-backed securities was $1.3 million which yielded 6.9%.

Interest income from CMOs decreased to $1.0 million for the three months ended June 30, 2002, compared to $1.5 million for the three months ended June 30, 2001. During the three months ended June 30, 2002 the average balance of the Company’s portfolio of CMOs was $54.5 million with an annualized yield of 7.5%. For the same period in 2001, the average balance was $79.3 million which yielded 7.4%.

Interest income from investment securities was $405,000 for the three months ended June 30, 2002 compared to $327,000 for the three months ended June 30, 2001. The average balance of investment securities was $38.1 million which yielded 4.3% during the three months ended June 30, 2002 compared to $22.8 million yielding 5.8% for the three months ended June 30, 2001.

Other interest income, consisting of interest income on overnight Federal Funds Sold, interest-bearing deposits in other banks, and dividends on FHLB stock, decreased from $157,000 for the three months ended June 30, 2001, to $60,000 for the three months ended June 30, 2002. The change was due to the reduced yield and decrease in average balance of these money market type investments. For the three months ended June 30, 2002, the average balance of such investments was $10.2 million compared to $14.6 million for the three months ended June 30, 2001.

PROVISION FOR LOAN LOSSES

The Company had an allocation to provision for loan losses of $11,000 for the three months ended June 30, 2002 and $0 for the three months ended June 30, 2001. The provision made in the second quarter of 2002 represents an increase due to the Company's shift to a higher percentage of non-residential mortgage loans as a percentage of the entire portfolio and the growth of the overall portfolio. According to the policies and procedures of the Company, non-residential mortgages and commercial loans are allocated a higher provision than loans secured by one-to-four family dwellings. Asset quality remains strong with non-performing assets in 2002 remaining low. Over the last ten years, repossessions and charge-offs have been very low for the Company due to the strength of the local economy and real estate market and the high underwriting standards maintained by management. The allowance for loan loss stood at .54% of the entire loan portfolio at June 30, 2002, compared to .53% at December 31, 2001. Loans classified as substandard, for which a specific potential for loss has been identified are considered "special assets." Special assets were $179,000 at December 31, 2001 with an allocated allowance for loan loss (ALL) of $56,000 compared to $254,000 at June 30, 2002 with an allocated ALL of $49,000.

INTEREST EXPENSE

The Company’s total interest expense decreased $.4 million to $1.7 million for the three months ended June 30, 2002 compared to $2.1 million for the three months ended June 30, 2001. The average balance of total interest-bearing liabilities was $153.1 million at a cost of 4.4% for the three months ended June 30, 2002. For the same period in 2001 the average balance of interest-bearing liabilities was $157.6 million costing 5.4%. The decrease in cost of funds was due to the effects of lower rates paid on certificates of deposit, passbook savings and NOW accounts and less reliance on wholesale funds borrowed from the FHLB.

The average balance of interest-bearing deposits was $79.4 million for the three months ended June 30, 2002 costing 3.3%. Average interest-bearing deposits for the three months ended June 30, 2001 was $59.4 million costing 4.8%. Interest expense on interest bearing deposits was $.6 million for the three months ended June 30, 2002, compared to $.7 million for the three months ended June 30, 2001.

The average balance of FHLB advances was $73.7 million at an annualized cost of 5.6% for the three months ended June 30, 2002. The average balance of FHLB advances for the three months ended June 30, 2001 was $98.2 million with an annualized cost of 5.7%.

OTHER EXPENSES

Total other expenses for the three months ended June 30, 2002 were $1.0 million compared to $.9 million for the three months ended June 30, 2001. The increase in expenses was primarily attributable to the compensation costs of additional personnel necessitated by the expansion of services and locations.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity measures the Company’s ability to meet its short-term obligations with ready cash. These commitments and obligations include loan disbursements, savings withdrawals by customers, the payment of dividends, cash letters and the daily operating expenses of the Company. Liquidity management involves the daily monitoring of cash on hand, non-interest bearing operating accounts, overnight Federal Funds Sold, short-term investments, and the Company's ability to convert these assets into cash without incurring a loss. Monthly paydowns on mortgage loans, mortgage-backed securities and CMOs are anticipated and channeled to either cash on hand, overnight Federal Funds Sold or short-term investments in order to meet the Company's demands and maximize interest earned on these funds.

The Company’s primary sources of funds are interest-bearing customer deposits, FHLB advances and maturities of existing investments including mortgage loans, mortgage-backed securities, investment securities and collateralized mortgage obligations. The Company does not utilize brokered deposits nor does it offer special rates for "jumbo" deposits of $100,000 or more.

The Association is required to maintain regulatory capital sufficient to meet all three of the regulatory capital requirements, those being tangible capital (1.5%), core capital (3.0%), and risk-based capital (8.0%). As of June 30, 2002, the Association’s tangible and core capital amounted to $27.3 million, or 14.5% of adjusted total assets, while the Association’s risk-based capital was $27.8 million, or 29.7% of total adjusted risk-weighted assets.

Item 3 – Quantitative and Qualitative Disclosures about Market Risk

Quantitative and qualitative disclosures about market risk are presented at December 31, 2001 in the Company’s Annual Report on Form 10-K, filed with the SEC on March 28, 2002. Management believes there have been no material changes in the Company’s market risk since December 31, 2001.

Part II - Other Information

Item 1 - Legal Proceedings

There are no matters required to be reported under this item.

Item 2 - Changes in Securities and Use of Proceeds

There are no matters required to be reported under this item.

Item 3 - Defaults Upon Senior Securities

There are no matters required to be reported under this item.

Item 4 - Submission of Matters to a Vote of Security Holders

There are no matters required to be reported under this item.

Item 5 - Other Information

There are no matters required to be reported under this item.

Item 6 - Exhibits and Reports on Form 8-K:

1. Exhibits

3.1*	Articles of Incorporation of GS Financial Corp.
3.2*	Bylaws of GS Financial Corp.
4.1*	Stock Certificate of GS Financial Corp.
10.1**	GS Financial Corp. Stock Option Plan
10.2**	GS Financial Corp. Recognition and Retention Plan and Trust
		Agreement for Employees and Non-Employee Directors
99.1	Certification Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section
		906 of the Sarbanes-Oxley Act of 2002
99.2	Certification Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section
		906 of the Sarbanes-Oxley Act of 2002

* Incorporated herein by reference from the Registration Statement on Form SB-2 (Registration number 333-18841) filed by the Registrant with the SEC on December 26, 1996, as subsequently amended.

** Incorporated herein by reference from the definitive proxy statement, dated September 16, 1997, filed by the Registrant with the SEC (Commission File No. 000-22269)

(b) No Form 8-K reports were filed during the quarter.

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

Date: August 12, 2002	By:	/s/ Donald C. Scott
		Donald C. Scott, Chairman Board, President and Chief Executive Officer

Date: August 12, 2002	By:	/s/ Glenn R. Bartels
		Glenn R. Bartels Controller