EXHIBIT 99




                         [GFSB BANCORP, INC. LETTERHEAD]



FOR IMMEDIATE RELEASE                  FOR FURTHER INFORMATION CONTACT:
- ---------------------                  -----------------------------------------
October 31, 2000                       Jerry R. Spurlin, Chief Financial Officer
                                       (505) 726-6500


                 GFSB BANCORP, INC. ANNOUNCES 25% STOCK DIVIDEND

         Gallup,  New Mexico -- GFSB  Bancorp,  Inc.  (Nasdaq  SmallCap:  GUPB),
parent  holding  company of Gallup  Federal  Savings Bank,  Gallup,  New Mexico,
announced  that the  Company's  Board of  Directors  has  declared  a 25%  stock
dividend.  The Company  intends to effect the issuance of the 25% stock dividend
on the  Company's  outstanding  common  stock,  payable on December 15, 2000, to
stockholders of record as of December 1, 2000.

         Richard C.  Kauzlaric,  President  and CEO of the Company,  stated that
"the Board of Directors  is very pleased to issue the stock  dividend to enhance
stockholder value and to increase the liquidity of the stock to potentially make
the stock more attractive to investors." As a result of the Board's action,  the
outstanding  shares of the Company's common stock will increase by approximately
280,600   shares,   from  936,000  shares   outstanding   to  1,216,600   shares
outstanding."

         Gallup Federal Savings Bank is a federally chartered stock savings bank
headquartered and operated through its office located in Gallup, New Mexico. The
Bank is a community oriented,  retail savings bank offering traditional mortgage
loan products,  primarily for the financing of real estate.  The Federal Deposit
Insurance  Corporation  insures  deposits at Gallup  Federal  Savings Bank up to
legal  maximum  limits.  The  Company's  common  stock is traded  in the  Nasdaq
SmallCap Market under the symbol "GUPB."