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

                                    FORM 10-Q

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

         For the quarterly period ended  December 31, 2006

                                       or

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

         For the transition period from ______ to ______

                         Commission File Number: 0-22444

                               WVS Financial Corp.
      --------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

            Pennsylvania                                       25-1710500
----------------------------------------                -----------------------
   (State or other jurisdiction of                          (I.R.S. Employer
   incorporation or organization)                        Identification Number)

           9001 Perry Highway
        Pittsburgh, Pennsylvania                                 15237
----------------------------------------                -----------------------
(Address of principal executive offices)                       (Zip Code)

                                 (412) 364-1911
 -------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

         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 requirement for the past 90 days.
YES [X]   NO [_]

         Indicate by check mark whether the  registrant  is a large  accelerated
filer,  an accelerated  filer,  or a  non-accelerated  filer.  See definition of
"accelerated  filer and large accelerated  filer" in Rule 12 b-2 of the Exchange
Act. (Check one):

Large accelerated filer [_]    Accelerated filer [_]   Non-accelerated filer [X]

         Indicate by check mark whether the  registrant  is a shell  company (as
defined in Rule 12 b-2 of the Exchange Act).
YES [_]   NO [X]

         Shares  outstanding  as of February 02, 2007:  2,325,215  shares Common
Stock, $.01 par value.

<page>

                       WVS FINANCIAL CORP. AND SUBSIDIARY
                       ----------------------------------

                                      INDEX
                                      -----

PART I.       Financial Information                                      Page
-------       ---------------------                                      ----

Item 1.       Financial Statements

              Consolidated Balance Sheet as of
              December 31, 2006 and June 30, 2006
              (Unaudited)                                                  3

              Consolidated Statement of Income
              for the Three and Six Months Ended
              December 31, 2006 and 2005 (Unaudited)                       4

              Consolidated Statement of Changes in
              Stockholders' Equity for the Six Months
              Ended December 31, 2006 (Unaudited)                          5

              Consolidated Statement of Cash Flows
              for the Six Months Ended December 31,
              2006 and 2005 (Unaudited)                                    6

              Notes to Unaudited Consolidated
              Financial Statements                                         8

Item 2.       Management's Discussion and Analysis of
              Financial Condition and Results of
              Operations for the Three and Six Months
              Ended December 31, 2006                                     11

Item 3.       Quantitative and Qualitative Disclosures
              about Market Risk                                           18

Item 4.       Controls and Procedures                                     23

PART II.      Other Information                                          Page
--------      -----------------                                          ----

Item 1.       Legal Proceedings                                           24
Item 1A.      Risk Factors                                                24
Item 2.       Unregistered Sales of Equity Securities and
              Use of Proceeds                                             24
Item 3.       Defaults upon Senior Securities                             24
Item 4.       Submission of Matters to a Vote of Security Holders         25
Item 5.       Other Information                                           25
Item 6.       Exhibits                                                    25
              Signatures                                                  26

                                       2
<page>

                       WVS FINANCIAL CORP. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET
                                   (UNAUDITED)
                                 (In thousands)
<table>
<caption>
                                                                   December 31, 2006      June 30, 2006
                                                                   -----------------    -----------------

                                                                              <c>                <c>
          Assets
          ------
Cash and due from banks                                            $             784    $           1,099
Interest-earning demand deposits                                               1,637                   97
                                                                   -----------------    -----------------
Total cash and cash equivalents                                                2,421                1,196
Investment securities available-for-sale (amortized cost of
   $504 and $8,497)                                                              488                8,469
Investment securities held-to-maturity (market value of
   $205,963 and $185,680)                                                    206,167              187,952
Mortgage-backed securities available-for-sale (amortized cost of
   $2,209 and $2,229)                                                          2,279                2,292
Mortgage-backed securities held-to-maturity (market value of
   $136,800 and $152,706)                                                    136,365              153,461
Net loans receivable (allowance for loan losses of $955 and
   $957)                                                                      57,487               55,702
Accrued interest receivable                                                    3,651                2,921
Federal Home Loan Bank stock, at cost                                          6,579                7,861
Premises and equipment                                                           845                  864
Other assets                                                                   1,195                1,024
                                                                   -----------------    -----------------
          TOTAL ASSETS                                             $         417,477    $         421,742
                                                                   =================    =================

          Liabilities and Stockholders' Equity
          ------------------------------------
Liabilities:
Savings Deposits:
   Non-interest-bearing accounts                                   $          12,367    $          11,315
   NOW accounts                                                               19,460               18,083
   Savings accounts                                                           32,077               36,851
   Money market accounts                                                      16,803               16,562
   Certificates of deposit                                                    75,403               67,890
   Advance payments by borrowers for taxes and insurance                         616                1,012
                                                                   -----------------    -----------------
    Total savings deposits                                                   156,726              151,713
Federal Home Loan Bank advances: long-term                                   133,579              138,579
Federal Home Loan Bank advances: short-term                                       --               23,150
Other short-term borrowings                                                   92,900               76,048
Accrued interest payable                                                       1,767                1,451
Other liabilities                                                              2,494                1,383
                                                                   -----------------    -----------------
     TOTAL LIABILITIES                                                       387,466              392,324
                                                                   -----------------    -----------------

Stockholders' equity:
Preferred stock:
   5,000,000 shares, no par value per share, authorized; none
   Outstanding                                                                    --                   --
Common stock:
   10,000,000 shares, $.01 par value per share, authorized;
   3,769,838 and 3,769,838 shares issued                                          38                   38
Additional paid-in capital                                                    20,817               20,817
Treasury stock: 1,460,023 and 1,434,606 shares at cost,
    respectively                                                             (22,098)             (21,679)
Retained earnings, substantially restricted                                   31,221               30,221
Accumulated other comprehensive income                                            35                   23
Unreleased shares - Recognition and Retention Plans                               (2)                  (2)
                                                                   -----------------    -----------------
     TOTAL STOCKHOLDERS' EQUITY                                               30,011               29,418
                                                                   -----------------    -----------------
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY               $         417,477    $         421,742
                                                                   =================    =================
</table>

     See accompanying notes to unaudited consolidated financial statements.

                                       3
<page>

                       WVS FINANCIAL CORP. AND SUBSIDIARY
                        CONSOLIDATED STATEMENT OF INCOME
                                   (UNAUDITED)
                      (In thousands, except per share data)
<table>
<caption>
                                                   Three Months Ended           Six Months Ended
                                                      December 31,                December 31,
                                               -------------------------    --------------------------
                                                   2006         2005           2006            2005
                                               -----------   -----------    -----------    -----------

                                                  <c>           <c>            <c>            <c>
INTEREST AND DIVIDEND INCOME:
     Loans                                     $     1,046   $       999    $     2,098    $     2,051
     Investment securities                           2,860         1,966          5,426          3,822
     Mortgage-backed securities                      2,257         2,269          4,656          4,152
     Interest-earning deposits with other
         institutions                                    1             5              5              7
     Federal Home Loan Bank stock                       66            54            163            101
                                               -----------   -----------    -----------    -----------
          Total interest and dividend income         6,230         5,293         12,348         10,133
                                               -----------   -----------    -----------    -----------

INTEREST EXPENSE:
     Deposits                                        1,047           756          2,015          1,467
     Federal Home Loan Bank advances                 2,195         2,027          4,103          4,034
     Other short-term borrowings                     1,080         1,001          2,242          1,668
                                               -----------   -----------    -----------    -----------
          Total interest expense                     4,322         3,784          8,360          7,169
                                               -----------   -----------    -----------    -----------

NET INTEREST INCOME                                  1,908         1,509          3,988          2,964
PROVISION (RECOVERY) FOR LOAN LOSSES                    --           (45)            (9)          (111)
                                               -----------   -----------    -----------    -----------
NET INTEREST INCOME AFTER PROVISION
   (RECOVERY) FOR LOAN LOSSES                        1,908         1,554          3,997          3,075
                                               -----------   -----------    -----------    -----------

NON-INTEREST INCOME:
     Service charges on deposits                        93            92            181            186
     Investment securities gains                        --            --             --             30
     Other                                              68            75            132            157
                                               -----------   -----------    -----------    -----------
          Total non-interest income                    161           167            313            373
                                               -----------   -----------    -----------    -----------

NON-INTEREST EXPENSE:
     Salaries and employee benefits                    494           488            984            957
     Occupancy and equipment                           103           100            194            201
     Data processing                                    64            68            127            134
     Correspondent bank service charges                 27            32             65             68
     Other                                             202           180            422            396
                                               -----------   -----------    -----------    -----------
          Total non-interest expense                   890           868          1,792          1,756
                                               -----------   -----------    -----------    -----------

INCOME BEFORE INCOME TAXES                           1,179           853          2,518          1,692
INCOME TAXES                                           342           243            776            474
                                               -----------   -----------    -----------    -----------
NET INCOME                                     $       837   $       610    $     1,742    $     1,218
                                               ===========   ===========    ===========    ===========

EARNINGS PER SHARE:
     Basic                                     $      0.36   $      0.26    $      0.75    $      0.51
     Diluted                                   $      0.36   $      0.26    $      0.75    $      0.51

AVERAGE SHARES OUTSTANDING:
     Basic                                       2,310,596     2,356,470      2,318,890      2,372,062
     Diluted                                     2,312,838     2,359,671      2,320,980      2,375,483

</table>

     See accompanying notes to unaudited consolidated financial statements.

                                       4
<page>

                       WVS FINANCIAL CORP. AND SUBSIDIARY
            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                                   (UNAUDITED)
                                 (In thousands)
<table>
<caption>

                                                                                  Accumulated
                                                                       Retained      Other
                                             Additional                Earnings     Compre-    Unallocated
                                  Common      Paid-In     Treasury   Substantially  hensive    Shares Held
                                   Stock      Capital      Stock      Restricted    Income       by RRP        Total
                                 ---------   ---------   ---------    ----------   ---------    ---------    ---------

                               <c>         <c>         <c>          <c>          <c>          <c>          <c>
Balance at June 30, 2006         $      38   $  20,817   $ (21,679)   $  30,221    $      23    $      (2)   $  29,418


Comprehensive income:

   Net Income                                                             1,742                                  1,742
   Other comprehensive
     income:
      Change in unrealized
          holding gains on
          securities, net of
          income tax effect of
          $6                                                                              12                        12
                                                                                                             ---------

Comprehensive income                                                                                             1,754

Purchase of shares for
   treasury stock                                             (419)                                               (419)


Accrued compensation
   expense for Recognition
   and Retention Plans (RRP)                                                                           --           --

Exercise of stock options               --          --                                                              --

Cash dividends declared
   ($0.32 per share)                                                       (742)                                  (742)
                                 ---------   ---------   ---------    ---------    ---------    ---------    ---------

Balance at December 31, 2006     $      38   $  20,817   $ (22,098)   $  31,221    $      35    $      (2)   $  30,011
                                 =========   =========   =========    =========    =========    =========    =========
</table>

     See accompanying notes to unaudited consolidated financial statements.

                                       5
<page>

                       WVS FINANCIAL CORP. AND SUBSIDIARY
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (UNAUDITED)
                                 (In thousands)
<table>
<caption>

                                                                              Six Months Ended
                                                                                December 31,
                                                                            --------------------
                                                                              2006        2005
                                                                            --------    --------

                                                                             <c>          <c>
OPERATING ACTIVITIES

Net income                                                                  $  1,742    $  1,218
Adjustments to reconcile net income to cash provided by operating
 activities:
   Recovery for loan losses                                                       (9)       (111)
   Depreciation                                                                   70          87
   Investment securities gains                                                    --         (30)
   Amortization of discounts, premiums and deferred loan fees                    (93)       (120)
   (Decrease) increase in accrued and deferred taxes                            (138)        206
   Increase in accrued interest receivable                                      (730)       (156)
   Increase in accrued interest payable                                          316         227
   Other, net                                                                    138         170
                                                                            --------    --------
         Net cash provided by operating activities                             1,296       1,491
                                                                            --------    --------

INVESTING ACTIVITIES

Available-for-sale:
   Purchases of investments and mortgage-backed securities                        --        (700)
   Proceeds from repayments of investments and mortgage-backed securities      8,019       9,374
   Proceeds from sale of investment and mortgage-backed securities                --       1,016
Held-to-maturity:
   Purchases of investments                                                  (65,710)    (75,448)
   Purchases of mortgage-backed securities                                    (4,998)    (84,543)
   Proceeds from repayments of investments                                    47,563      56,981
   Proceeds from repayments of mortgage-backed securities                     22,123      65,973
(Increase) decrease in net loans receivable                                   (1,788)      4,430
Purchase of Federal Home Loan Bank stock                                      (3,936)     (4,057)
Redemption of Federal Home Loan Bank stock                                     5,218       4,033
Acquisition of premises and equipment                                            (51)        (21)
Other, net                                                                        --          60
                                                                            --------    --------
         Net cash provided by (used for) investing activities                  6,440     (22,902)
                                                                            --------    --------
</table>

                                       6
<page>

                       WVS FINANCIAL CORP. AND SUBSIDIARY
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (UNAUDITED)
                                 (In thousands)
<table>
<caption>

                                                                          Six Months Ended
                                                                            December 31,
                                                                        --------------------
                                                                          2006        2005
                                                                        --------    --------

                                                                        <c>        <c>
FINANCING ACTIVITIES

Net decrease in transaction and passbook accounts                         (1,169)     (8,518)
Net increase (decrease) in certificates of deposit                         7,513      (4,966)
Net (decrease) increase in FHLB short-term advances                      (23,150)     12,500
Net increase in other short-term borrowings                               16,852      24,424
Repayments of Federal Home Loan Bank long-term advances                   (5,000)         --
Net decrease in advance payments by borrowers for taxes and insurance       (396)       (349)
Cash dividends paid                                                         (742)       (760)
Funds used for purchase of treasury stock                                   (419)       (686)
                                                                        --------    --------
         Net cash (used for) provided by financing activities             (6,511)     21,645
                                                                        --------    --------

         Increase in cash and cash equivalents                             1,225         234

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD                       1,196       3,566
                                                                        --------    --------

CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                          $  2,421    $  3,800
                                                                        ========    ========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

   Cash paid during the period for:
      Interest on deposits, escrows and borrowings                      $  8,044    $  6,942
      Income taxes                                                      $    920    $    230

Non-cash item:
      Due to Federal Reserve Bank                                       $    935          --

</table>

     See accompanying notes to unaudited consolidated financial statements.

                                       7
<page>

                       WVS FINANCIAL CORP. AND SUBSIDIARY
                       ----------------------------------

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.       BASIS OF PRESENTATION
         ---------------------

         The accompanying  unaudited consolidated financial statements have been
prepared in accordance with the  instructions for Form 10-Q and therefore do not
include  information  or  footnotes  necessary  for a complete  presentation  of
financial  condition,  results of operations,  and cash flows in conformity with
U.S.  generally  accepted  accounting   principles.   However,  all  adjustments
(consisting  only of normal  recurring  adjustments)  which,  in the  opinion of
management,  are  necessary  for a fair  presentation  have been  included.  The
results of operations  for the three and six months ended December 31, 2006, are
not  necessarily  indicative of the results which may be expected for the entire
fiscal year.

2.       RECENT ACCOUNTING PRONOUNCEMENTS
         --------------------------------

         In  September   2006,   the  FASB  issued  FAS  No.  157,   Fair  Value
Measurements,  which provides  enhanced guidance for using fair value to measure
assets and liabilities. The standard applies whenever other standards require or
permit assets or liabilities to be measured at fair value. The Standard does not
expand the use of fair value in any new circumstances.  FAS No. 157 is effective
for financial  statements  issued for fiscal years  beginning after November 15,
2007 and interim periods within those fiscal years. Early adoption is permitted.
The adoption of this  standard is not expected to have a material  effect on the
Company's results of operations or financial position.

         In September 2006, the FASB issued FAS No. 158,  Employers'  Accounting
for Defined  Benefit  Pension and Other Post  Retirement  Plans, an amendment of
FASB Statements No. 87, 88, 106 and 132(R).  FAS No. 158 requires that a company
recognize  the  overfunded  or  underfunded  status of its defined  benefit post
retirement  plans (other than  multiemployer  plans) as an asset or liability in
its statement of financial  position and that it recognize changes in the funded
status  in the year in which  the  changes  occur  through  other  comprehensive
income. FAS No. 158 also requires the measurement of defined benefit plan assets
and obligations as of the fiscal year end, in addition to footnote  disclosures.
FAS No. 158 is effective  for fiscal years ending after  December 15, 2006.  The
Company is currently  evaluating  the impact the  adoption of the standard  will
have on the Company's financial position.

         In June 2006,  the FASB issued FASB  Interpretation  No. 48 ("FIN 48"),
Accounting for Uncertainty in Income Taxes. FIN 48 is an  interpretation  of FAS
No. 109,  Accounting  for Income Taxes,  and it seeks to reduce the diversity in
practice  associated  with certain  aspects of  measurement  and  recognition in
accounting for income taxes.  This  Interpretation  clarifies that management is
expected to evaluate  an income tax  position  taken or expected to be taken for
likelihood of realization  before recording any amounts for such position in the
financial  statement.  FIN 48 also requires expanded  disclosure with respect to
income  tax  positions  taken  that  are  not  certain  to  be  realized.   This
Interpretation  is effective for fiscal years beginning after December 15, 2006,
and will require  management to evaluate  every open tax position that exists in
every  jurisdiction  on the date of initial  adoption.  The Company is currently
evaluating  the impact the adoption of the standard  will have on the  Company's
results of operations.

         In September 2006, the FASB reached  consensus on the guidance provided
by Emerging Issues Task Force Issue 06-4 ("EITF 06-4"),  Accounting for Deferred
Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life
Insurance Arrangements.  The guidance is applicable to endorsement  split-dollar
life  insurance  arrangements,  whereby  the  employer  owns  and  controls  the
insurance policy, that are associated with a postretirement  benefit.  EITF 06-4
requires that for a split-dollar life insurance  arrangement within the scope of
the Issue,  an employer  should  recognize a  liability  for future  benefits in
accordance  with FAS No. 106 (if, in substance,  a  postretirement  benefit plan
exists) or Accounting Principles Board Opinion No. 12 (if the arrangement is, in
substance,   an  individual

                                       8
<page>

deferred  compensation  contract)  based on the  substantive  agreement with the
employee.  EITF 06-4 is effective for fiscal years  beginning after December 15,
2007.  The  Company is  currently  evaluating  the impact  the  adoption  of the
standard  will  have  on  the  Company's  results  of  operations  or  financial
condition.

         In September 2006, the FASB reached  consensus on the guidance provided
by Emerging Issues Task Force Issue 06-5("EITF 06-5"),  Accounting for Purchases
of Life  Insurance--Determining  the Amount That Could Be Realized in Accordance
with  FASB  Technical  Bulletin  No.  85-4,  Accounting  for  Purchases  of Life
Insurance.  EITF 06-5 states that a policyholder  should consider any additional
amounts included in the contractual terms of the insurance policy other than the
cash surrender  value in determining the amount that could be realized under the
insurance  contract.  EITF 06-5 also states that a policyholder should determine
the amount that could be realized under the life insurance contract assuming the
surrender of an  individual-life  by  individual-life  policy (or certificate by
certificate  in a  group  policy).  EITF  06-5 is  effective  for  fiscal  years
beginning  after  December 15, 2006.  The Company is  currently  evaluating  the
impact  the  adoption  of the  standard  will have on the  Company's  results of
operations or financial condition.

3.       EARNINGS PER SHARE
         ------------------

         The following table sets forth the computation of the  weighted-average
common shares used to calculate basic and diluted earnings per share.

<table>
<caption>
                                           Three Months Ended           Six Months Ended
                                               December 31,               December 31,
                                        ------------------------    ------------------------
                                           2006          2005          2006          2005
                                        ----------    ----------    ----------    ----------

                                      <c>           <c>           <c>           <c>
Weighted average common shares
   outstanding                           3,769,838     3,762,618     3,769,838     3,762,618

Average treasury stock shares           (1,459,242)   (1,406,148)   (1,450,948)   (1,390,556)
                                        ----------    ----------    ----------    ----------
Weighted average common shares
   and common stock equivalents
   used to calculate basic earnings
   per share                             2,310,596     2,356,470     2,318,890     2,372,062

Additional common stock
   equivalents (stock options) used
   to calculate diluted earnings per
   share                                     2,242         3,201         2,090         3,421
                                        ----------    ----------    ----------    ----------

Weighted average common shares
   and common stock equivalents
   used to calculate diluted earnings
   per share                             2,312,838     2,359,671     2,320,980     2,375,483
                                        ==========    ==========    ==========    ==========
</table>

         All options at December 31, 2006 and December 31, 2005 were included in
the computation of diluted earnings per share.

4.       STOCK BASED COMPENSATION DISCLOSURE
         -----------------------------------

         In December 2004,  the Financial  Accounting  Standards  Board ("FASB")
issued  Statement  of Financial  Accounting  Standards  No. 123 (revised  2004),
Share-Based Payment (FAS No. 123R). FAS No.

                                       9
<page>

123R  revised  FAS  No.  123,  Accounting  for  Stock-Based  Compensation,   and
supersedes APB Opinion No. 25, Accounting for Stock Issued to Employees, and its
related  implementation  guidance.  FAS No.  123R  requires  compensation  costs
related to share-based  payment  transactions  to be recognized in the financial
statement (with limited  exceptions).  The amount of  compensation  cost will be
measured  based  on the  grant-date  fair  value  of  the  equity  or  liability
instruments issued. Compensation cost will be recognized over the period that an
employee provides service in exchange for the award.

         The Statement  requires that  compensation cost relating to share-based
payment transactions be recognized in financial statements and that this cost be
measured based on the fair value of the equity or liability  instruments issued.
FAS No.  123R  covers a wide  range  of  share-based  compensation  arrangements
including share options, restricted share plans, performance-based awards, share
appreciation  rights, and employee share purchase plans. The Company adopted FAS
No. 123R on July 1, 2005.  Management  has  determined  that  unless  additional
options are granted,  there will be no impact on future  earnings as a result of
the adoption.

5.       COMPREHENSIVE INCOME
         --------------------

         Other comprehensive income primarily reflects changes in net unrealized
gains/losses on  available-for-sale  securities.  Total comprehensive  income is
summarized as follows (dollars in thousands):

<table>
<caption>
                                         Three Months Ended                        Six Months Ended
                                            December 31,                             December 31,
                              --------------------------------------    -------------------------------------
                                     2006                 2005                 2006                2005
                              -----------------    -----------------    -----------------   -----------------

                           <c>       <c>         <c>       <c>           <c>     <c>         <c>      <c>
                                                            (Dollars in Thousands)

Net income                              $   837              $   610              $ 1,742             $ 1,218
Other comprehensive
income (loss):
     Unrealized gains
     (losses) on
     available for sale                 $   (17)             $   (31)             $    18             $   (89)
     securities
      Less:
        Reclassification
        adjustment for gain
        included in net
        income                     --                   --                   --                 (30)
                              -------   -------    -------   -------    -------   -------   -------   -------
Other comprehensive
  gain (loss)  before tax                   (17)                 (31)                  18                (119)
Income tax (benefit) expense
 related to other
  comprehensive income (loss)                (6)                 (17)                   6                 (47)
                                        -------              -------              -------             -------
Other comprehensive gain
  (loss), net of tax                        (11)                 (14)                  12                 (72)
                                        -------              -------              -------             -------
Comprehensive income                    $   826              $   596              $ 1,754             $ 1,146
                                        =======              =======              =======             =======
</table>

                                       10
<page>

ITEM 2.

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2006

FORWARD LOOKING STATEMENTS

         In the  normal  course of  business,  we, in an effort to help keep our
shareholders and the public informed about our operations, may from time to time
issue or make  certain  statements,  either in writing  or  orally,  that are or
contain forward-looking  statements, as that term is defined in the U.S. federal
securities  laws.  Generally,  these  statements  relate  to  business  plans or
strategies, projected or anticipated benefits from acquisitions made by or to be
made by us, projections involving anticipated revenues, earnings,  profitability
or other  aspects of  operating  results  or other  future  developments  in our
affairs or the industry in which we conduct business. Forward-looking statements
may be  identified  by reference to a future  period or periods or by the use of
forward-looking   terminology  such  as  "anticipated,"   "believe,"   "expect,"
"intend," "plan," "estimate" or similar expressions.

         Although we believe that the anticipated  results or other expectations
reflected in our forward-looking statements are based on reasonable assumptions,
we can give no assurance  that those results or  expectations  will be attained.
Forward-looking statements involve risks, uncertainties and assumptions (some of
which are  beyond  our  control),  and as a result  actual  results  may  differ
materially  from those  expressed in  forward-looking  statements.  Factors that
could cause actual results to differ from  forward-looking  statements  include,
but are not  limited to, the  following,  as well as those  discussed  elsewhere
herein:

         o  our  investments in our businesses and in related  technology  could
            require  additional  incremental  spending,  and might  not  produce
            expected  deposit and loan growth and anticipated  contributions  to
            our earnings;

         o  general economic or industry conditions could be less favorable than
            expected,  resulting in a deterioration in credit quality,  a change
            in the allowance  for loan losses or a reduced  demand for credit or
            fee-based products and services;

         o  changes in the interest rate  environment  could reduce net interest
            income and could increase credit losses;

         o  the conditions of the securities  markets could change,  which could
            adversely affect, among other things, the value or credit quality of
            our assets,  the availability and terms of funding necessary to meet
            our liquidity needs and our ability to originate loans and leases;

         o  changes in the extensive laws,  regulations  and policies  governing
            financial holding companies and their  subsidiaries  could alter our
            business environment or affect our operations;

         o  the  potential  need to adapt to  industry  changes  in  information
            technology systems, on which we are highly dependent,  could present
            operational issues or require significant capital spending;

         o  competitive  pressures could intensify and affect our profitability,
            including  as a result  of  continued  industry  consolidation,  the
            increased   availability  of  financial   services  from  non-banks,
            technological  developments  such as the internet or bank regulatory
            reform;

         o  acquisitions  may result in  one-time  changes  to  income,  may not
            produce  revenue  enhancements  or cost  savings at levels or within
            time  frames  originally  anticipated  and may result in  unforeseen
            integration difficulties; and

                                       11
<page>

         o  acts or threats of terrorism  and actions taken by the United States
            or other governments as a result of such acts or threats,  including
            possible  military action,  could further  adversely affect business
            and economic  conditions in the United  States  generally and in our
            principal  markets,  which  could  have  an  adverse  effect  on our
            financial performance and that of our borrowers and on the financial
            markets and the price of our common stock.

         You should not put undue  reliance on any  forward-looking  statements.
Forward-looking  statements  speak  only as of the date  they are  made,  and we
undertake no  obligation  to update them in light of new or future events except
to the extent required by federal securities laws.


GENERAL

         WVS Financial  Corp.  ("WVS" or the  "Company")  is the parent  holding
company of West View  Savings  Bank ("West  View" or the  "Savings  Bank").  The
Company was  organized  in July 1993 as a  Pennsylvania-chartered  unitary  bank
holding  company and  acquired  100% of the common  stock of the Savings Bank in
November 1993.

         West View Savings Bank is a Pennsylvania-chartered,  SAIF-insured stock
savings bank conducting  business from six offices in the North Hills suburbs of
Pittsburgh.  The  Savings  Bank  converted  to the stock  form of  ownership  in
November 1993. The Savings Bank had no subsidiaries at December 31, 2006.

         The  operating  results of the Company  depend  primarily  upon its net
interest  income,  which is  determined  by the  difference  between  income  on
interest-earning  assets,  principally  loans,  mortgage-backed  securities  and
investment  securities,  and interest expense on  interest-bearing  liabilities,
which consist primarily of deposits and borrowings.  The Company's net income is
also  affected by its  provision  for loan  losses,  as well as the level of its
non-interest   income,   including  loan  fees  and  service  charges,  and  its
non-interest expenses, such as compensation and employee benefits, income taxes,
deposit insurance and occupancy costs.


FINANCIAL CONDITION

         The Company's  assets  totaled  $417.5 million at December 31, 2006, as
compared to $421.7  million at June 30, 2006.  The $4.2 million or 1.0% decrease
in total assets was primarily  comprised of a $17.1 million or 10.9% decrease in
mortgage-backed  securities  and a $1.3 million or 16.3% decrease in FHLB stock,
which was  partially  offset by a $10.2  million or 5.2%  increase in investment
securities, a $1.8 million or 3.2% increase in net loans receivable,  and a $1.2
million  or  102.4%  increase  in cash and cash  equivalents.  The  increase  in
investment  securities is attributable to purchases of fixed-rate  callable U.S.
government agency bonds,  while the decrease in  mortgage-backed  securities was
attributable  to  repayments  on  the  Company's   portfolio  of  floating  rate
collateralized mortgage obligations. See "Asset and Liability Management".

         The  Company's  total  liabilities  decreased  $4.8  million or 1.2% to
$387.5 million as of December 31, 2006, from $392.3 million as of June 30, 2006.
The $4.8 million  decrease in total  liabilities  was  primarily  comprised of a
$23.2 million or 100.0%  decrease in short-term FHLB advances and a $5.0 million
or 3.6% decrease in long-term  FHLB  advances,  which was partially  offset by a
$16.9 million or 22.2% increase in other short-term  borrowings,  a $5.0 million
or 3.3% increase in total savings  deposits and a $1.1 million or 80.3% increase
in other  liabilities.  Certificates of deposit  increased $7.5 million,  demand
deposits  increased $2.4 million while savings  accounts  decreased $4.8 million
and  advanced  payments by  borrowers  for taxes and  insurance  decreased  $396
thousand.  The increase in certificates of deposit was principally  attributable
to investments by local  governments and school districts.  Management  believes
that the changes in savings accounts and advance payments by borrowers for taxes
and insurance  were  primarily  attributable  to seasonal  payments of local and
school real estate taxes.

                                       12
<page>

         Total  stockholders'  equity  increased  $593 thousand or 2.0% to $30.0
million as of December 31, 2006, from approximately $29.4 million as of June 30,
2006.  Company  net  income of $1.7  million  was  partially  offset by  capital
expenditures for the Company's stock repurchase program and cash dividends which
totaled $419 thousand and $742 thousand,  respectively, for the six months ended
December 31, 2006.


RESULTS OF OPERATIONS

         General.  WVS  reported  net income of $837  thousand or $0.36  diluted
earnings per share and $1.7 million or $0.75 diluted  earnings per share for the
three and six months ended December 31, 2006, respectively. Net income increased
$227 thousand or 37.2% and diluted  earnings per share  increased $0.10 or 38.5%
for the three months ended  December 31, 2006,  when compared to the same period
in 2005.  The increase in net income for the quarter was primarily  attributable
to a $399 thousand  increase in net interest income,  which was partially offset
by a $99  thousand  increase in income tax expense,  a $45 thousand  decrease in
recovery for loan losses, a $22 thousand increase in non-interest  expense and a
$6 thousand decrease in non-interest  income.  For the six months ended December
31, 2006, net income  increased $524 thousand or 43.0% and diluted  earnings per
share  increased  $0.24 or 47.1% when  compared to the same period in 2005.  The
increase  for the six month  period was  primarily  the result of a $1.0 million
increase in net interest  income,  which was partially offset by a $302 thousand
increase in income tax expense,  a $102 thousand  decrease in credit  provisions
for loan  losses,  a $60  thousand  decrease  in  non-interest  income and a $36
thousand increase in non-interest expense.

         Net Interest  Income.  The Company's net interest  income  increased by
$399  thousand  or 26.4% and $1.0  million or 34.6% for the three and six months
ended  December 31,  2006,  respectively,  when  compared to the same periods in
2005.  The increases in net interest  income for the three and six month periods
were  primarily   attributable   to  higher  rates  received  on  the  Company's
interest-earning  assets,  which more than offset by higher  rates paid on other
short-term  borrowings and time deposits.  The increases in both rates earned on
interest-earning assets and rates paid on interest-bearing  liabilities reflects
the higher levels of short and intermediate term market interest rates fueled by
the Federal Reserve Board's increases in its targeted Federal Funds Rate.

         Interest  Income.  Interest  on  net  loans  receivable  increased  $47
thousand  or 4.7% and $47  thousand  or 2.3% for the three and six months  ended
December 31, 2006,  when compared to the same periods in 2005. An increase of 39
basis points in the weighted  average yield earned on net loans  receivable  was
partially  offset by a decrease of $570  thousand in the average  balance of net
loans receivable  outstanding for the three months ended December 31, 2006, when
compared to the same period in 2005,  and an increase of 43 basis  points in the
weighted  average yield earned on net loans receivable was partially offset by a
decrease of $2.2 million in the average balance of net loans  receivable for the
six months ended December 31, 2006 when compared to the same period in 2005. The
decreases in the average loan balances  outstanding for the three and six months
ended   December  31,  2006  were   attributable   in  part  to  the   Company's
asset/liability  management  strategy.  The Company  has  limited its  portfolio
origination of  longer-term  fixed rate loans to mitigate its exposure to a rise
in market  interest  rates.  The Company will continue to originate  longer-term
fixed  rate loans for sale on a  correspondent  basis to  increase  non-interest
income and to contribute to net income.

         Interest on mortgage-backed  securities  decreased $12 thousand or 0.5%
for the three months ended  December 31, 2006,  when compared to the same period
in 2005. The decrease for the three months ended December 31, 2006 was primarily
attributable  to a $37.1  decrease  in the  average  balance of  mortgage-backed
securities outstanding for the period, which was partially offset by a 126 basis
point  increase  in  the  weighted  average  yield  earned  on   mortgage-backed
securities outstanding for the period, when compared to the same period in 2005.
Interest on mortgage-backed  securities increased $504 thousand or 12.1% for the
six months ended  December 31, 2006,  when  compared to the same period in 2005.
The  increase  for  the  six  months  ended  December  31,  2006  was  primarily
attributable to a 148 basis point increase in the weighted  average yield earned
on  mortgage-backed  securities for the period,  which was partially offset by a
$24.9  million  decrease in the average  balance of  mortgage-backed  securities
outstanding  for the six months ended  December 31, 2006,  when  compared to the
same period in 2005. The increase in

                                       13
<page>

the weighted average yield earned on  mortgage-backed  securities was consistent
with higher market  interest  rates for the three and six months ended  December
31, 2006.  The decrease in the average  balances of  mortgage-backed  securities
during  the  three  and  six  months  ended  December  31,  2006  was  primarily
attributable  to paydowns on floating  rate  mortgage-backed  securities  in the
Company's portfolio.

         Interest on investment  securities  increased by $894 thousand or 45.5%
and $1.6 million or 42.0% for the three and six months ended  December 31, 2006,
respectively,  when  compared to the same periods in 2005.  The increase for the
three  months  ended  December  31,  2006 was  attributable  to a 89 basis point
increase  in the  weighted  average  yield  earned on the  Company's  investment
securities.  The  increase  for the six  months  ended  December  31,  2006  was
primarily  attributable  to a 97 basis point  increase in the  weighted  average
yield  earned  on  investment  securities  for the  period  and a $24.7  million
increase in the average  balance of investments  outstanding  for the six months
ended  December 31, 2006 when compared to the same period in 2005. The increases
in yields earned were consistent  with increases in market  interest rates.  The
increases in average  balances  for the six months ended  December 31, 2006 were
associated  with the  Company's  reinvestment  of proceeds  from  floating  rate
mortgage-backed  securities  into fixed rate  callable  U.S.  Government  Agency
securities.

         Dividends received on FHLB stock increased by $12 thousand or 22.2% and
$62  thousand or 61.4% for the three and six months  ended  December  31,  2006,
respectively,  when  compared  to the same  period  in 2005.  The  increase  was
primarily  attributable  to increases of 48 and 170 basis points in the dividend
rates  received for the three and six month  periods  ending  December 31, 2006,
respectively when compared to the same periods in 2005.

         Interest  Expense.  Interest expense on deposits and escrows  increased
$291  thousand  or 38.5% for the  three  months  ended  December  31,  2006 when
compared  to the same  period in 2005.  The  increase  in  interest  expense  on
deposits  for the three  months  ended  December  31, 2006 was  attributable  to
increases of 104 and 91 basis point increases in the weighted  average rate paid
on time and money market deposits,  respectively,  increases of $6.8 million and
$2.6  million  in the  average  balances  of time  and  money  market  deposits,
respectively, for the three months ended December 31, 2006, when compared to the
same period in 2005.  Interest  expense on deposits and escrows  increased  $548
thousand or 37.4% for the six months ended  December 31, 2006,  when compared to
the same period in 2005. The increase in interest expense on deposit and escrows
was primarily attributable to a 108 and 103 basis point increase in the weighted
average rate paid on time and money market  deposits,  respectively,  and a $3.9
million  and $2.6  million  increase  in the  average  balance of time and money
markets deposits, respectively, for the six months ended December 31, 2006, when
compared to the same period in 2005. The average yield paid on  interest-bearing
deposits  reflects  higher  market  interest  rates  for time and  money  market
deposits for the three and six months ended December 31, 2006.

         Interest paid on FHLB advances  increased $168 thousand or 8.3% for the
three months ended  December 31, 2006 when  compared to the same period in 2005.
The  increase  for the  three  months  ended  December  31,  2006 was  primarily
attributable  to a  $20.7  million  increase  in the  average  balances  of FHLB
short-term  advances,  which was partially  offset by a $9.2 million decrease in
the average balances of FHLB long-term advances when compared to the same period
in 2005.  Interest paid on FHLB advances  increased $69 thousand or 1.7% for the
six months ended December 31, 2006 when compared to the same period in 2005. The
increase  for the six  months  was  primarily  attributable  to a $10.2  million
increase  in the  average  balances  of FHLB  short-term  advances,  which  were
partially  offset by a decrease of $8.5 million in the average  balances of FHLB
long-term  advances  when  compared to the same period in 2005.  The increase in
FHLB short-term  advances was the result of the Company's  repositioning  of its
liability  structure  to take  advantage  of  lower  rates  on  FHLB  short-term
advances, as compared to other short-term funding sources, while the decrease in
FHLB long-term advances was a result of payoffs of such advances.

         Interest paid on other short-term  borrowings increased $79 thousand or
7.9% and $574 thousand or 34.4% for the three and six months ended  December 31,
2006 when  compared  to the same  periods in 2005.  The  increase  for the three
months ended December 31, 2006 was attributable to a 126 basis point increase in
rates paid, which was partially offset by a $16.4 million decrease in associated
average  balances.  The increase for the six months ended  December 31, 2006 was
primarily attributable to a 154 basis point

                                       14
<page>

increase in the average rate paid,  which was partially offset by a $3.0 million
decrease in the average  balances of other  borrowings when compared to the same
period in 2005.  The  increase in rates paid was  consistent  with  increases in
short-term   market  interest  rates.   The  decrease  in  average  balances  is
attributable  to the  repositioning  of a  portion  of the  Company's  liability
structure to take advantage of lower rates on FHLB short-term advances.

         Provision  (Recovery) for Loan Losses. A provision  (recovery) for loan
losses is charged  (credited)  to earnings to maintain the total  allowance at a
level  considered  adequate  by  management  to absorb  potential  losses in the
portfolio.  Management's determination of the adequacy of the allowance is based
on an evaluation of the portfolio considering past experience,  current economic
conditions,  volume,  growth and  composition of the loan  portfolio,  and other
relevant factors.

         The Company  recorded no  provision or recovery for loan losses for the
three months ended December 31, 2006 compared to a recovery for loan loss of $45
thousand  for the same  period in 2005.  The $45  thousand  recovery  during the
quarter ended  December 31, 2005 was primarily  attributable  to the paydowns on
non-accrual  loans. The Company recorded a recovery for loan loss of $9 thousand
for the six months ended  December 31, 2006 compared to a recovery for loan loss
of $111 thousand for the same period in 2005. During the quarter ended September
30, 2005, the Company  reallocated a portion of its allowance for loan and lease
losses  attributable to off-balance  sheet  liabilities  (primarily  undisbursed
lines of credit  and  letters  of credit)  to a  separate  reserve  account  for
financial reporting purposes.  The provision for loan losses was reduced by, and
a  non-interest  expense  was  charged,  $35  thousand in  connection  with this
reallocation of allowances.  At December 31, 2006, the Company's total allowance
for loan losses  amounted to $955 thousand or 1.6% of the  Company's  total loan
portfolio, as compared to $957 thousand or 1.7% at June 30, 2006.

         Non-Interest  Income.  Non-interest  income decreased by $6 thousand or
3.6% and $60 thousand or 16.1% for the three and six months  ended  December 31,
2006 when compared to the same periods in 2005. The decrease for the three month
period  ended  December  31, 2006 was  primarily  attributable  to a $7 thousand
decrease in ATM and debit card fee income. The decrease for the six months ended
December 31, 2006 was  primarily  attributable  to a decrease of $30 thousand in
pre-tax gains on the sale of investment  securities,  a $5 thousand  decrease in
service charges on deposits,  a $12 thousand  decrease in ATM and debit card fee
income, and a $8 thousand decrease in correspondent loan fees.

         Non-Interest  Expense.  Non-interest  expense increased $22 thousand or
2.5% and $36  thousand or 2.1% for the three and six months  ended  December 31,
2006 when compared to the same period in 2005.  The increase for the three month
period ended  December  31, 2006 was  primarily  attributable  to a $40 thousand
increase  in  charitable  contributions  eligible  for  Pennsylvania  state  tax
credits,  which  was  partially  offset  by a $15  thousand  increase  in credit
provisions for losses on off-balance sheet liabilities. The increase for the six
months ended December 31, 2006 was  principally  attributable  to a $40 thousand
increase  in  charitable  contributions  eligible  for  Pennsylvania  state  tax
credits,  which were partially offset by a $7 thousand decrease in occupancy and
equipment costs when compared to the same period in 2005.

         Income Tax Expense.  Income tax expense increased $99 thousand or 40.7%
and $302 thousand or 63.7% for the three and six months ended  December 31, 2006
when  compared  to the  same  period  in  2005.  The  increases  were  primarily
attributable  to an  increased  level of  taxable  income  for the three and six
months ended December 31, 2006 when compared to the same period in 2005.


LIQUIDITY AND CAPITAL RESOURCES

         Net cash provided by operating  activities  totaled $1.3 million during
the six  months  ended  December  31,  2006.  Net  cash  provided  by  operating
activities  was  primarily  comprised  of $1.7  million  of net  income,  a $316
thousand  increase in accrued  interest  payable and $70 thousand in fixed asset
depreciation, which were partially offset by a $730 increase in accrued interest
receivable, and a $138 decrease in accrued and deferred taxes.

                                       15
<page>

         Funds provided by investing  activities totaled $6.4 million during the
six months  ended  December 31,  2006.  Primary  sources of funds during the six
months  ended  December  31,  2006,   included   maturities  and  repayments  of
investment,  mortgage-backed  securities  and FHLB Stock totaling $55.6 million,
$22.1 million and $5.2 million,  respectively,  which were  partially  offset by
purchases of  investments,  mortgage-backed  securities  and FHLB Stock totaling
$65.7 million, $5.0 million and $3.9 million,  respectively,  and a $1.8 million
increase in net loans receivable.

         Funds used for  financing  activities  totaled $6.5 million for the six
months  ended  December  31, 2006.  The primary  uses  included a $23.2  million
decrease in short-term FHLB advances,  a $5.0 million decrease in long-term FHLB
advances, $742 thousand in cash dividends paid on the Company's common stock and
$419 thousand in treasury  stock  purchases,  which were  partially  offset by a
$16.9  million  increase  in  other  short-term  borrowings  and a $6.3  million
increase in deposits. The $6.3 million increase in total deposits consisted of a
$7.5  million  increase in  certificates  of deposit  primarily  due to accounts
opened by local county  municipal  governments and school  districts,  which was
partially offset by a $1.2 million decrease in transaction and passbook accounts
and a $396 thousand  decrease in mortgage escrow accounts.  Management  believes
that it currently  is  maintaining  adequate  liquidity  and  continues to match
funding sources with lending and investment opportunities.

         The  Company's  primary  sources of funds are  deposits,  amortization,
repayments  and  maturities of existing  loans,  mortgage-backed  securities and
investment  securities,  funds from operations,  and funds obtained through FHLB
advances and other  borrowings.  At December 31, 2006,  the total  approved loan
commitments  outstanding  amounted to approximately  $439 thousand.  At the same
date,  commitments under unused lines of credit amounted to $7.3 million and the
unadvanced   portion  of   construction   loans   approximated   $12.5  million.
Certificates of deposit  scheduled to mature in one year or less at December 31,
2006 totaled $52.7 million.  Management  believes that a significant  portion of
maturing deposits will remain with the Company.

         Historically,  the Company used its sources of funds  primarily to meet
its  ongoing  commitments  to pay  maturing  savings  certificates  and  savings
withdrawals,  fund loan  commitments  and  maintain a  substantial  portfolio of
investment  securities.  The Company has been able to generate  sufficient  cash
through the retail deposit market,  its traditional  funding source, and through
FHLB  advances and other  borrowings,  to provide the cash utilized in investing
activities.  The Company  also has access to the Federal  Reserve  Bank  Primary
Credit  Program.  Management  believes  that the Company  currently has adequate
liquidity available to respond to liquidity demands.

         On January 30, 2007, the Company's  Board of Directors  declared a cash
dividend of $0.16 per share payable February 15, 2007, to shareholders of record
at the  close of  business  on  February  5,  2007.  Dividends  are  subject  to
determination and declaration by the Board of Directors, which take into account
the  Company's  financial  condition,  statutory  and  regulatory  restrictions,
general  economic  conditions and other factors.  There can be no assurance that
dividends will in fact be paid on the Common Stock in future periods or that, if
paid, such dividends will not be reduced or eliminated.

         As of December 31, 2006,  WVS Financial  Corp.  exceeded all regulatory
capital requirements and maintained Tier I and total risk-based capital equal to
$30.0  million  or 23.6% and $31.0  million  or  24.4%,  respectively,  of total
risk-weighted  assets,  and Tier I leverage capital of $30.0 million or 7.06% of
average quarterly assets.

         Nonperforming assets consist of nonaccrual loans and real estate owned.
A loan is placed on nonaccrual  status when, in the judgment of management,  the
probability of collection of interest is deemed  insufficient to warrant further
accrual.  When a loan is placed on  nonaccrual  status,  previously  accrued but
uncollected interest is deducted from interest income. The Company normally does
not accrue interest on loans past due 90 days or more, however,  interest may be
accrued if management believes that it will collect on the loan.

                                       16
<page>

         The  Company's  nonperforming  assets  at  December  31,  2006  totaled
approximately  $276  thousand  or 0.07%  of total  assets  as  compared  to $318
thousand  or 0.08% of total  assets at June 30,  2006.  Nonperforming  assets at
December 31, 2006  consisted of: four  single-family  real estate loans totaling
$257 thousand,  one line of credit secured by single-family real estate totaling
$17 thousand and one single-family  real estate owned property with a book value
of approximately $2 thousand.

         The $42 thousand decrease in nonperforming assets during the six months
ended December 31, 2006 was primarily  attributable to the  reclassification  of
two single-family real estate loans totaling $75 thousand from non-performing to
performing  and an $8  thousand  charge off  related to the  single-family  real
estate  owned  property,   which  were  partially  offset  by  the  addition  to
non-accrual status of one single-family real estate loan totaling  approximately
$41 thousand.  The loans are in various  stages of  collection  activity and the
real estate owned parcel is being marketed.

         At December 31, 2006, the Company had one previously  restructured  and
potential problem commercial real estate loan to a retirement village located in
the North Hills totaling $973 thousand. The Savings Bank's outstanding principal
balance on this loan totaled  $2.0 million at June 30, 2003.  During the quarter
ended   September  30,  2003,   the  Savings  Bank  redeemed  $388  thousand  of
participating  interests.  During the quarter ended  December 31, 2003, the Bank
sold a forty percent participating  interest to another financial institution at
par resulting in proceeds totaling $979 thousand. The Savings Bank's outstanding
principal  balance  totaled  $984  thousand  at June 30,  2006.  The Company had
recorded  interest  received  on this  credit  on a cost  recovery  basis  until
September  30, 2003 and is now  recording  interest  income on a cash basis.  At
December  31,  2006,  this  credit was less than three  payments  past due.  The
project is experiencing  lower than desired levels of occupancy and the borrower
is working to increase occupancy.

         At December 31, 2006, the Company had one previously  restructured loan
secured  by   undeveloped   land  totaling  $341  thousand  and  one  previously
restructured  unsecured loan totaling $40 thousand to two borrowers.  During the
fourth  quarter of fiscal 2004,  the  Bankruptcy  Court approved a secured claim
totaling $440 thousand and an unsecured  claim  totaling $76 thousand be paid on
these loans in accordance  with a Bankruptcy Plan of  Reorganization.  All Court
ordered plan payments have been received in a timely manner.  In accordance with
generally  accepted  accounting  principles,  the Company had recorded  interest
payments  received  on a cost  recovery  basis  until  June 30,  2006 and is now
recording interest income.

         During  the six  months  ended  December  31,  2006,  approximately  $6
thousand of interest income would have been recorded on loans accounted for on a
non-accrual  basis if such loans had been current according to the original loan
agreements  for the  entire  period.  These  amounts  were not  included  in the
Company's  interest  income for the six months  ended  December  31,  2006.  The
Company  continues to work with the borrowers in an attempt to cure the defaults
and is also pursuing various legal avenues in order to collect on these loans.


                                       17
<page>

ITEM 3.


QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ASSET AND LIABILITY MANAGEMENT

         The Company's  primary  market risk exposure is interest rate risk and,
to a lesser  extent,  liquidity  risk.  All of the  Company's  transactions  are
denominated  in US dollars  with no  specific  foreign  exchange  exposure.  The
Savings  Bank has no  agricultural  loan assets and  therefore  would not have a
specific  exposure to changes in commodity  prices.  Any impacts that changes in
foreign  exchange  rates and commodity  prices would have on interest  rates are
assumed to be exogenous and will be analyzed on an ex post basis.
                                                   -- ----

         Interest rate risk ("IRR") is the exposure of a banking  organization's
financial condition to adverse movements in interest rates.  Accepting this risk
can be an important  source of  profitability  and shareholder  value,  however,
excessive levels of IRR can pose a significant  threat to the Company's earnings
and capital base.  Accordingly,  effective risk management that maintains IRR at
prudent levels is essential to the Company's safety and soundness.

         Evaluating  a financial  institution's  exposure to changes in interest
rates includes  assessing  both the adequacy of the  management  process used to
control  IRR  and  the  organization's  quantitative  level  of  exposure.  When
assessing  the  IRR  management  process,  the  Company  seeks  to  ensure  that
appropriate policies,  procedures,  management  information systems and internal
controls are in place to maintain  IRR at prudent  levels with  consistency  and
continuity.  Evaluating  the  quantitative  level of IRR  exposure  requires the
Company  to assess  the  existing  and  potential  future  effects of changes in
interest  rates  on its  consolidated  financial  condition,  including  capital
adequacy, earnings, liquidity, and, where appropriate, asset quality.

         Financial institutions derive their income primarily from the excess of
interest  collected  over interest  paid.  The rates of interest an  institution
earns  on its  assets  and owes on its  liabilities  generally  are  established
contractually  for a period of time.  Since  market  interest  rates change over
time, an institution is exposed to lower profit margins (or losses) if it cannot
adapt to interest-rate changes. For example, assume that an institution's assets
carry  intermediate  or long-term  fixed rates and that those assets were funded
with  short-term  liabilities.  If market  interest  rates  rise by the time the
short-term  liabilities  must be refinanced,  the increase in the  institution's
interest  expense on its liabilities  may not be  sufficiently  offset if assets
continue  to  earn  interest  at the  long-term  fixed  rates.  Accordingly,  an
institution's  profits could decrease on existing assets because the institution
will either have lower net interest income or, possibly,  net interest  expense.
Similar  risks  exist when  assets  are  subject  to  contractual  interest-rate
ceilings,  or rate  sensitive  assets  are  funded  by  longer-term,  fixed-rate
liabilities in a decreasing-rate environment.

         During the quarter  ended  December 31,  2006,  the Federal Open Market
Committee held its targeted  federal funds rate at 5.25%.  The table below shows
the targeted  federal  funds rate and the  benchmark  two and ten year  treasury
yields at December 31, 2005, June 30, 2006 and December 31, 2006.

                                              Yield on:
                                         --------------------
                           Targeted       Two (2)    Ten (10)
                            Federal        Year        Year
                             Funds       Treasury    Treasury
                          -----------    --------    --------

       December 31, 2005     4.25%         4.38%       4.37%
           June 30, 2006     5.25%         5.16%       5.15%
       December 31, 2006     5.25%         4.70%       4.60%

         These  changes in short,  intermediate  and long-term  market  interest
rates,  the inversion of the Treasury  yield curve and continued  high levels of
interest rate  volatility  have  impacted  prepayments  in the  Company's  loan,

                                       18
<page>

investment and mortgage-backed securities portfolios and a marked compression of
industry-wide net interest margins.

         Principal   repayments   on  the   Company's   loan,   investment   and
mortgage-backed  securities  portfolios  for the six months  ended  December 31,
2006, totaled $47.6 million, $22.1 million and $11.1 million,  respectively.  In
response to higher  levels of liquidity  the Company  continued to rebalance its
loan, investment and mortgage-backed securities portfolios.

         Due to the  term  structure  of  market  interest  rates,  the  Company
continued to reduce its portfolio originations of long-term fixed rate mortgages
while continuing to offer such loans on a correspondent  basis. The Company also
makes available for origination  residential  mortgage loans with interest rates
which adjust pursuant to a designated index,  although  customer  acceptance has
been  somewhat  limited in the Savings  Bank's  market  area.  The Company  will
continue to selectively  offer  commercial  real estate,  land  acquisition  and
development,  and  shorter-term  construction  loans,  primarily on  residential
properties,  to partially  increase interest income while limiting interest rate
risk.  The Company has also  emphasized  higher  yielding  home equity and small
business loans to existing customers and seasoned prospective customers.

         During the  quarter  ended  December  31,  2006,  principal  investment
purchases were comprised of callable fixed rate government agency bonds with ten
year final  maturities  and initial  lock-out  periods as  follows:  less than 3
months - $17.3 million with  weighted  average  yields to call of  approximately
6.42%; 3 thru 12 months - $15.0 million with a weighted average yield to call of
approximately  6.05%; 13 thru 24 months - $15.1 million with a weighted  average
yield to call of 6.08%.  Major investment  proceeds  received during the quarter
ended  December  31,  2006  were:  mortgage-backed  securities  - $9.5  million;
callable  government  agency bonds - $41.4 million with a weighted average yield
of approximately 4.52%; and Small Business Association pool - $189 thousand with
a weighted average yield of approximately 5.87%.

         As of  December  31,  2006,  the  implementation  of  these  asset  and
liability management initiatives resulted in the following:

     1)   $136.4 million or 98.4% of the Company's  portfolio of mortgage-backed
          securities  (including  collateralized  mortgage obligations - "CMOs")
          were comprised of floating rate  instruments that reprice on a monthly
          basis.
     2)   $50.0  million  or 24.2% of the  Company's  investment  portfolio  was
          comprised of fixed to floating rate U.S. Government Agency bonds which
          will  reprice as  follows:  3 months or less - $25.0  million;  6 - 12
          months - $10.0 million;  and over 1 year - $15.0  million.  Management
          currently believes that these bonds are likely to be repaid during the
          intervals shown.
     3)   $128.7  million or 62.4% of the  Company's  investment  portfolio  was
          comprised of fixed-rate  callable U.S.  Government  Agency bonds which
          are  callable  as  follows:  3 months or less - $24.3  million;  3 - 6
          months - $20.3 million;  6 - 12 months - $15.0 million;  1 - 2 years -
          $58.8 million;  and over 2 years - $10.3  million.  These bonds may or
          may not actually be redeemed prior to maturity (i.e. called) depending
          upon the  level of  market  interest  rates at their  respective  call
          dates.
     4)   $15.2  million  or  7.4% of the  Company's  investment  portfolio  was
          comprised of U.S.  Government  Agency Step-up bonds which will reprice
          as follows:  3 months or less - $8.5 million  with coupons  increasing
          from 4.00% to 7.00%,  $2.0 million with coupons  increasing from 4.40%
          to 7.00%;  and 3 - 12 months - $4.7 million  with  coupons  increasing
          from 4.70% to 6.00%.  Management  believes that  substantially  all of
          these bonds are likely to be repaid during the intervals shown.
     5)   An  aggregate  of $32.7  million  or 56.9% of the  Company's  net loan
          portfolio had adjustable  interest rates or maturities of less than 12
          months; and
     6)   The maturity distribution of the Company's borrowings is as follows: 1
          month or less - $92.9 million or 41.0%;  1 - 3 years - $8.5 million or
          3.8%; 3 - 5 years - $117.6  million or 51.9%;  and over 5 years - $7.5
          million or 3.3%.

     The effect of interest rate changes on a financial institution's assets and
liabilities may be analyzed by examining the "interest rate  sensitivity" of the
assets  and  liabilities  and  by  monitoring  an  institution's  interest  rate
sensitivity  "gap".  An asset or liability is said to be interest rate sensitive
within a specific time

                                       19
<page>

period  if it will  mature  or  reprice  within a given  time  period.  A gap is
considered  positive  (negative)  when  the  amount  of  rate  sensitive  assets
(liabilities) exceeds the amount of rate sensitive liabilities (assets).  During
a period of falling  interest  rates,  a negative gap would tend to result in an
increase in net interest  income.  During a period of rising  interest  rates, a
positive gap would tend to result in an increase in net interest income.

     As part of its asset/liability  management strategy, the Company maintained
an asset sensitive financial position. An asset sensitive financial position may
benefit  earnings  during a period of rising  interest rates and reduce earnings
during a period of declining interest rates.

     The following  table sets forth certain  information at the dates indicated
relating  to  the  Company's   interest-earning   assets  and   interest-bearing
liabilities which are estimated to mature or are scheduled to reprice within one
year.

<table>
<caption>

                                              December 31,             June 30,
                                              ------------   ----------------------------
                                                  2006           2006            2005
                                              ------------   ------------    ------------

                                                    <c>        <c>        <c>
                                                     (Dollars in Thousands)
Interest-earning assets maturing or
   repricing within one year                  $    251,966   $    273,884    $    318,015
Interest-bearing liabilities maturing or
   repricing within one year                       191,011        194,509         181,085
                                              ------------   ------------    ------------
Interest sensitivity gap                      $     60,955   $     79,375    $    136,930
                                              ============   ============    ============
Interest sensitivity gap as a percentage of
   total assets                                      14.60%         18.82%           32.5%
Ratio of assets to liabilities
   maturing or repricing within one year            131.91%        140.81%          175.6%

</table>

         During the quarter ended December 31, 2006, the Company managed its one
year  interest  sensitivity  gap by: (1) limiting the portfolio  origination  of
long-term fixed rate  mortgages;  (2) emphasizing  loans with  shorter-terms  or
repricing frequencies; and (3) purchasing investments with call protection.

                                       20
<page>

         The  following  table  illustrates  the  Company's  estimated  stressed
cumulative repricing gap - the difference between the amount of interest-earning
assets and interest-bearing  liabilities expected to reprice at a given point in
time - at December  31,  2006.  The table  estimates  the impact of an upward or
downward change in market interest rates of 100 and 200 basis points.

                        Cumulative Stressed Repricing Gap
                        ---------------------------------
<table>
<caption>

                         Month 3       Month 6       Month 12      Month 24      Month 36       Month 60      Long Term
                         -------       -------       --------      --------      --------       --------      ---------

                      <c>           <c>           <c>           <c>           <c>            <c>           <c>
                                                          (Dollars in Thousands)
Base Case Up 200 bp
-------------------
Cummulative
  Gap ($'s)              (82,781)      (99,025)      (111,282)     (106,231)     (106,908)      (111,341)       17,935
% of Total
  Assets                   -19.8%        -23.7%         -26.7%        -25.4%        -25.6%         -26.7%          4.3%
Base Case Up 100 bp
-------------------
Cummulative
  Gap ($'s)              (82,582)      (98,652)      (105,972)     (105,339)     (105,953)      (110,339)       17,935
% of Total
  Assets                   -19.8%        -23.6%         -25.4%        -25.2%        -25.4%         -26.4%          4.3%
Base Case No Change
-------------------
Cummulative
  Gap ($'s)               65,759        50,215         60,955        59,423        76,159         (4,324)       17,935
% of Total
  Assets                    15.8%         12.0%          14.6%         14.2%         18.2%          -1.0%          4.3%
Base Case Down 100 bp
---------------------
Cummulative
  Gap ($'s)               76,443        77,847         92,957       151,387       149,778         36,938        17,935
% of Total
  Assets                    18.3%         18.6%          22.3%         36.3%         35.9%           8.8%          4.3%
Base Case Down 200 bp
---------------------
Cummulative
  Gap ($'s)               83,927        87,138         98,253       156,901       153,745         37,512        17,935
% of Total
  Assets                    20.1%         20.9%          23.5%         37.6%         36.8%           9.0%          4.3%

</table>

         Beginning  in the third  quarter of fiscal 2001,  the Company  began to
utilize an income  simulation  model to measure interest rate risk and to manage
interest rate sensitivity.  The Company believes that income simulation modeling
may enable the Company to better  estimate the possible  effects on net interest
income  due to  changing  market  interest  rates.  Other key  model  parameters
include:  estimated  prepayment  rates on the  Company's  loan,  mortgage-backed
securities and investment  portfolios;  savings decay rate assumptions;  and the
repayment terms and embedded options of the Company's borrowings.

                                       21
<page>

         The  following  table  presents the  simulated  impact of a 100 and 200
basis point upward or downward  (parallel) shift in market interest rates on net
interest  income,  return on average  equity,  return on average  assets and the
market value of portfolio  equity at December 31, 2006.  This  analysis was done
assuming that the interest-earning  asset and interest-bearing  liability levels
at December 31, 2006 remained constant.

           Analysis of Sensitivity to Changes in Market Interest Rates
           -----------------------------------------------------------

<table>
<caption>
                                            Modeled Change in Market Interest Rates
                                  ---------------------------------------------------------

                                   <c>         <c>           <c>       <c>         <c>
Estimated impact on:                 -200        -100           0        +100        +200
-------------------
  Change in net interest income     -19.1%       -5.7%        0.00%      -6.5%      -28.2%

  Return on average equity            9.19%      11.46%      12.41%      11.39%       7.77%

  Return on average assets            0.67%       0.84%       0.92%       0.84%       0.55%

  Market value of equity (in
    thousands)                    $ 28,798    $ 33,634    $ 35,329    $ 28,247    $ 14,091

</table>

         The table below provides  information  about the Company's  anticipated
transactions comprised of firm loan commitments and other commitments, including
undisbursed  letters  and  lines  of  credit.  The  Company  used no  derivative
financial instruments to hedge such anticipated  transactions as of December 31,
2006.


                            Anticipated Transactions
            --------------------------------------------------------------
                                                    (Dollars in Thousands)
            Undisbursed construction and
                land development loans
                  Fixed rate                                $ 5,964
                                                               8.10%

                  Adjustable rate                           $ 6,551
                                                               8.77%

            Undisbursed lines of credit
                  Adjustable rate                           $ 7,330
                                                               8.41%

            Loan origination commitments
                  Fixed rate                                $   374
                                                               7.56%

                  Adjustable rate                           $    65
                                                               6.25%

            Letters of credit
                  Adjustable rate                           $ 1,085
                                                               9.26%

                                                            $21,369
                                                            =======

                                       22
<page>

         In the  ordinary  course  of its  construction  lending  business,  the
Savings Bank enters into performance standby letters of credit.  Typically,  the
standby  letters of credit are issued on behalf of a builder to a third party to
ensure the timely  completion of a certain aspect of a  construction  project or
land development.  At December 31, 2006, the Savings Bank had eleven performance
standby letters of credit outstanding totaling approximately $1.1 million. Three
letters  of credit are  secured  by  deposits  with the  Savings  Bank and eight
letters of credit are  secured by  developed  property.  Seven of the letters of
credit will mature  within  twelve  months,  one will mature  within twenty four
months,  two will  mature  within  thirty six months and one letter of credit is
open-ended.  In the event that the obligor is unable to perform its  obligations
as specified in the standby letter of credit  agreement,  the Savings Bank would
be obligated to disburse funds up to the amount  specified in the standby letter
of credit agreement.  The Savings Bank maintains adequate  collateral that could
be liquidated to fund this contingent obligation.

ITEM 4.

CONTROLS AND PROCEDURES

         Our management evaluated, with the participation of our Chief Executive
Officer  and  Chief  Financial  Officer,  the  effectiveness  of our  disclosure
controls and procedures (as defined in Rules  13a-15(e) and 15d-15(e)  under the
Securities  Exchange  Act of  1934)  as of  December  31,  2006.  Based  on such
evaluation,  our Chief  Executive  Officer  and  Chief  Financial  Officer  have
concluded  that our  disclosure  controls and  procedures are designed to ensure
that  information  required to be disclosed by us in the reports that we file or
submit  under  the  Securities  Exchange  Act of  1934 is  recorded,  processed,
summarized and reported within the time periods specified in the SEC's rules and
regulations and are operating in an effective manner.

         No change in our internal control over financial  reporting (as defined
in Rules  13a-15(f) and 15(d)-15(f)  under the Securities  Exchange Act of 1934)
occurred during the second quarter of fiscal 2007 that has materially  affected,
or is  reasonably  likely  to  materially  affect,  our  internal  control  over
financial reporting.



                                       23
<page>

PART II - OTHER INFORMATION

ITEM 1.  Legal Proceedings
         -----------------

         The Company is  involved  with  various  legal  actions  arising in the
ordinary  course of business.  Management  believes the outcome of these matters
will have no material  effect on the  consolidated  operations  or  consolidated
financial condition of WVS Financial Corp.

ITEM 1A. Risk Factors
         ------------

         There are no material  changes to the risk factors  included in Item 1A
of the  Company's  Annual Report on Form 10-K for the fiscal year ended June 30,
2006.

ITEM 2.  Unregistered Sales of Equity Securities and Use of Proceeds
         -----------------------------------------------------------

         (a)      Not applicable.

         (b)      Not applicable.

         (c)      The  following  table sets forth  information  with respect to
                  purchases  of common stock of the Company made by or on behalf
                  of the Company  during the three  months  ended  December  31,
                  2006.
<table>
<caption>
         --------------------------------------------------------------------------------------------------
                                       ISSUER PURCHASES OF EQUITY SECURITIES
         --------------------------------------------------------------------------------------------------
                                                                    Total Number of      Maximum Number of
                                    Total                          Shares Purchased     Shares that May Yet
                                  Number of                       as Part of Publicly     Be Repurchased
                                    Shares      Average Price      Announced Plans or   Under the Plans or
               Period             Purchased    Paid per Share ($)     Programs (1)         Programs (2)
         --------------------------------------------------------------------------------------------------

                                     <c>                   <c>                 <c>                  <c>
         10/01/06 - 10/31/06         10,532                16.46               10,532               58,428
         --------------------------------------------------------------------------------------------------
         11/01/06 - 11/30/06             --                 0.00                   --               58,428
         --------------------------------------------------------------------------------------------------
         12/01/06 - 12/31/06             --                 0.00                   --               58,428
         --------------------------------------------------------------------------------------------------
              Total                  10,532                16.46               10,532               58,428
         --------------------------------------------------------------------------------------------------
</table>

--------------------

         (1) All shares  indicated  were  purchased  under the Company's  Eighth
             Stock Repurchase Program.
         (2) Eighth Stock Repurchase Program
                  (a) Announced September 27, 2005.
                  (b) 125,000 common shares approved for repurchase.
                  (c) No fixed date of expiration.
                  (d) This  program  had  not  expired  and has  58,428  shares
                      remaining to be purchased at December 31, 2006.
                  (e) Not applicable.

ITEM 3.  Defaults Upon Senior Securities
         -------------------------------

         Not applicable.


                                       24
<page>

ITEM 4.  Submission of Matters to a Vote of Security Holders
         ---------------------------------------------------

         The  results  of the  stockholder  vote at the 2006  Annual  Meeting of
Stockholders held on October 31, 2006 were previously reported.

ITEM 5.  Other Information
         -----------------

         Not applicable.

ITEM 6.  Exhibits
         --------

         The  following  exhibits are filed as part of this Form 10-Q,  and this
         list includes the Exhibit Index.

    Number      Description                                              Page
    ------      ---------------------------------------------------    --------
     31.1       Rule 13a-14(a) / 15d-14(a) Certification of the          E-1
                Chief Executive Officer
     31.2       Rule 13a-14(a) / 15d-14(a) Certification of the          E-2
                Chief Accounting Officer
     32.1       Section 1350 Certification of the Chief
                Executive Officer                                        E-3
     32.2       Section 1350 Certification of the Chief Accounting
                Officer                                                  E-4
      99        Report of Independent Registered Public Accounting
                Firm                                                     E-5

                                       25
<page>


                                   SIGNATURES


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



                         WVS FINANCIAL CORP.



February 06, 2007    BY:  /s/ David J. Bursic
                          ------------------------------------------------------
Date                      David J. Bursic
                          President and Chief Executive Officer
                          (Principal Executive Officer)


February 06, 2007    BY:  /s/ Keith A. Simpson
                          ------------------------------------------------------
Date                      Keith A. Simpson
                          Vice-President, Treasurer and Chief Accounting Officer
                          (Principal Accounting Officer)


                                       26