Exhibit 13

                                TABLE OF CONTENTS
                                                                        Page
                                                                       Number
                                                                       ------

Stockholders' Letter                                                      1

Selected Financial and Other Data                                         3

Management's Discussion and Analysis                                      5

Report of Independent Registered Public Accounting Firm                  19

Consolidated Balance Sheet                                               20

Consolidated Statement of Income                                         21

Consolidated Statement of Changes in Stockholders' Equity                22

Consolidated Statement of Cash Flows                                     23

Notes to the Consolidated Financial Statements                           24

Common Stock Market Price and Dividend Information                       52

Performance Graphs                                                       53

Corporate Information                                                    55


<page>

To Our Stockholders:

         Fiscal 2007 was another strong year for WVS Financial  Corp. Net income
for fiscal 2007  totaled $3.6  million - an $800  thousand or 28% increase  over
fiscal 2006.  The primary driver for our increased net income was a $1.5 million
increase in net interest  income which was  partially  offset by a $476 thousand
increase  in income  tax  expense.  Net  income  before  income  taxes has grown
steadily  over the past four fiscal  years.  Book  value,  and return on equity,
totaled  $13.49 per share and 12.14%.  While these  results  would be noteworthy
under most economic conditions,  we believe that they are especially  impressive
in today's volatile financial markets.

         Our financial results have been nationally recognized.  In the May 2007
issue of SNL Thrift  Investor  magazine  our Company was ranked #6 in the nation
         --- ------  --------
among the 110 smallest  thrifts by asset size ($104  million - $658  million) in
terms of financial performance. We believe that this national recognition of WVS
Financial  Corp.  validates the Board's  commitment  to  delivering  shareholder
value.

         During  fiscal  2007,  the Federal  Reserve was "on hold".  The Federal
Funds target rate remained  constant at 5.25%.  However,  due to weakness in the
residential  housing  sector,  the difference  between short,  intermediate  and
long-term  market  interest  rates further  narrowed.  The Treasury  yield curve
"inverted" - with  intermediate  and long-term  interest  rates being lower than
short  term  rates;  and then  "flattened"  - with  intermediate  and  long-term
interest  rates  about the same as short  term  rates.  These  changes to market
rates,  sometimes  called  "volatility",  directly impact earnings and financial
stock pricing multiples.

         There has been a significant  downward pricing  adjustment in financial
stocks due to lower  industry  earnings.  We believe that the Company's  Capital
Management  Strategy has served our stockholders  well by consistently  paying a
strong  current  dividend and enhancing  stock market  liquidity  with our stock
buyback programs. Over the past two fiscal years, our Company's common stock has
traded  in a range of $15.66 to  $18.09  and at all  times  maintained  a market
premium to book value.  While it is impossible to predict the future,  the Board
of Directors and  management are committed to seeking strong returns on invested
capital and growing book value per share.

<page>

         The  Company's  Capital  Management   Strategy  has  returned  cash  to
stockholders  in two ways:  an above market  common  dividend  yield and through
common  stock  buybacks.  Over the years,  the mix between both  strategies  has
probably been about 50-50.  We are pleased to report that the  Company's  eighth
stock  buyback  program  was  completed  early in  fiscal  2008 and the Board of
Directors  also  announced its ninth stock  buyback  program  targeting  125,000
shares or  approximately  5.5% of our common  stock.  Through  June 30, 2007 our
stock buyback  programs have returned about $22.3 million to our stockholders by
repurchasing 1,471,481 shares or about 39% of our issued shares.

         People  are the life blood of any  business.  Our  management  team and
employees  strive to serve each  customer  well,  pay  competitive  rates to our
depositors,  provide  reasonable terms to our borrowers and invest in technology
to  position  the  Company  for the  future.  We  would  like to  thank  you for
continuing to recommend West View Savings Bank with confidence.  During 2008, we
will be celebrating our 100th Birthday and a Century of Quality Banking.

         We would like to especially recognize and thank a retiring board member
- Mr.  Arthur  H.  ("Pete")  Brandt.  Pete  began  his  service  on the Board of
Directors of West View Savings and Loan in 1987.  As owner of Brandt  Excavating
and Paving,  Pete was instrumental in helping to build our construction and land
development loan portfolios.  Pete's working knowledge of our local markets, and
business contacts, have been invaluable over the years. At the board level, Pete
has chaired our Finance,  Asset  Classification  and Community  Reinvestment Act
committees.  Pete's  commitment to continual  process  improvement and financial
acumen will be missed. Thank you, Pete, for 20 years of dedicated service.

         Please accept our thanks to each  stockholder,  customer,  board member
and  employee  that helped to make fiscal 2007  successful.  We look  forward to
celebrating our Century of Quality Banking with each of you in 2008.



/S/ DAVID J. BURSIC                                           /S/ DONALD E. HOOK

DAVID J. BURSIC                                                   DONALD E. HOOK
President and                                              Chairman of the Board
Chief Executive Officer

                                       2
<page>
<table>
<caption>

                                    FIVE YEAR SUMMARY OF SELECTED CONSOLIDATED
                                             FINANCIAL AND OTHER DATA

                                                          As of or For the Year Ended June 30,
                                       --------------------------------------------------------------------------
                                          2007            2006            2005            2004            2003
                                       -----------    -----------     -----------     -----------     -----------

                                        <c>            <c>             <c>             <c>             <c>
                                                      (Dollars in Thousands, except per share data)
Selected Financial Data:
Total assets                           $   408,076    $   421,742     $   421,044     $   433,624     $   367,188
Net loans receivable                        60,350         55,702          60,151          67,968          91,669
Mortgage-backed securities                 121,517        155,753         162,151          75,590         111,879
Investment securities                      211,597        196,421         183,066         273,589         147,482
Savings deposit accounts                   158,364        150,701         163,589         159,318         169,316
FHLB advances                              130,579        161,729         155,036         149,736         153,390
Other borrowings                            82,950         76,048          69,680          91,639           9,453
Stockholders' equity                        31,293         29,418          29,201          29,199          30,618
Non-performing assets, troubled
 debt restructurings and potential
  problem loans(2)                           1,574          1,695           2,171           2,171           3,481

Selected Operating Data:
Interest income                        $    24,310    $    22,248     $    17,874     $    16,006     $    19,231
Interest expense                            15,985         15,460          11,844          10,987          11,810
                                       -----------    -----------     -----------     -----------     -----------
Net interest income                          8,325          6,788           6,030           5,019           7,421
Provision (Recovery) for loan losses            13           (161)            (46)           (794)           (228)
                                       -----------    -----------     -----------     -----------     -----------
Net interest income after provision
  for loan losses                            8,312          6,949           6,076           5,813           7,649
Non-interest income                            626            705             992             715             725
Non-interest expense                         3,529          3,521           3,532           3,607           3,956
                                       -----------    -----------     -----------     -----------     -----------

Income before income tax expense             5,409          4,133           3,536           2,921           4,418
Income tax expense                           1,763          1,287             627             619           1,070
                                       -----------    -----------     -----------     -----------     -----------
Net income                             $     3,646    $     2,846     $     2,909     $     2,302     $     3,348
                                       ===========    ===========     ===========     ===========     ===========

Per Share Information:
Basic earnings                         $      1.57    $      1.21     $      1.20     $      0.91     $      1.28
Diluted earnings                       $      1.57    $      1.21     $      1.19     $      0.90     $      1.28
Dividends per share                    $      0.64    $      0.64     $      0.64     $      0.64     $      0.64
Dividend payout ratio                        46.76%         52.89%          53.33%          70.33%          50.00%
Book value per share at period end     $     13.49    $     12.60     $     12.20     $     11.84     $     11.86
Average shares outstanding:
      Basic                              2,319,928      2,357,217       2,432,267       2,535,796       2,617,576
      Diluted                            2,321,536      2,359,996       2,437,647       2,544,404       2,624,395

                                                        3
</table>
<page>
<table>
<caption>

                                               As of or For the Year Ended June 30,
                                        ----------------------------------------------
                                         2007      2006      2005      2004      2003
                                        ------    ------    ------    ------    ------

                                      <c>       <c>       <c>       <c>       <c>
Selected Operating Ratios(1):
Average yield earned on interest-
  earning assets(3)                       6.15%     5.29%     4.61%     4.28%     5.36%
Average rate paid on interest-
  bearing liabilities                     4.46      4.01      3.27      3.13      3.57
Average interest rate spread(4)           1.69      1.28      1.34      1.14      1.79
Net interest margin(4)                    2.14      1.67      1.68      1.48      2.19
Ratio of interest-earning assets to
  interest-bearing liabilities          111.53    110.48    111.45    111.76    112.56
Non-interest expense as a percent of
  average assets                          0.87      0.82      0.87      0.91      1.05
Return on average assets                  0.90      0.66      0.71      0.58      0.89
Return on average equity                 12.14      9.87     10.03      7.64     10.97
Ratio of average equity to average
  assets                                  7.43      6.70      7.10      7.60      8.10
Full-service offices at end of period        5         5         5         5         5

Asset Quality Ratios(1):
Non-performing and potential problem
 loans and troubled debt
 restructurings as a percent of net
  total loans(2)                          2.60%     3.03%     3.49%     3.19%     3.80%
Non-performing assets as a percent
  of total assets(2)                      0.30      0.08      0.25      0.19      0.95
Non-performing assets, troubled debt
  restructurings and potential problem
  loans as a percent of total assets      0.39      0.40      0.52      0.50      0.95
Allowance for loan losses as a
  percent of total loans receivable       1.60      1.69      1.83      1.97      2.68
Allowance for loan losses as a
  percent of non-performing loans        81.89    310.71    113.58    163.48     72.68
Charge-offs to average loans
  receivable outstanding during the
  period                                  0.00      0.01      0.37      0.68      0.00

Capital Ratios(1):
Tier 1 risk-based capital ratio          22.41%    22.12%    20.99%    18.65%    14.30%
Total risk-based capital ratio           23.15     22.88     21.80     19.62     15.57
Tier 1 leverage capital ratio             8.13      6.78      7.14      6.92      8.42
</table>

----------------
(1)   Consolidated  asset  quality  ratios and capital  ratios are end of period
      ratios, except for charge-offs to average net loans. With the exception of
      end of period  ratios,  all ratios are based on average  monthly  balances
      during the indicated periods.
(2)   Non-performing  assets  consist of  non-performing  loans and real  estate
      owned  ("REO").  Non-performing  loans  consist of  non-accrual  loans and
      accruing loans greater than 90 days delinquent, while REO consists of real
      estate acquired through foreclosure and real estate acquired by acceptance
      of a deed in lieu of  foreclosure.  Potential  problem loans include loans
      where  management  has some  doubt as to the  ability of the  borrower  to
      comply with present loan repayment terms.
(3)   Interest and yields on tax-exempt  loans and  securities  (tax-exempt  for
      federal  income  tax  purposes)  are shown on a fully  taxable  equivalent
      basis.
(4)   Interest  rate spread  represents  the  difference  between  the  weighted
      average yield on interest-earning  assets and the weighted average cost of
      interest-bearing  liabilities,  and net  interest  margin  represents  net
      interest income as a percent of average interest-earning assets.

                                       4
<page>

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


MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS

FORWARD LOOKING STATEMENTS

When used in this Annual  Report,  or, in future filings by the Company with the
Securities  and Exchange  Commission,  in the Company's  press releases or other
public  or  shareholder  communications,  or in oral  statements  made  with the
approval of an authorized  executive officer,  the words or phrases "will likely
result",  "are expected to",  "will  continue",  "is  anticipated",  "estimate",
"project"  or similar  expressions  are  intended to identify  "forward  looking
statements" within the meaning of the Private  Securities  Litigation Reform Act
of 1995.  Such  statements  are  subject  to  certain  risks  and  uncertainties
including changes in economic  conditions in the Company's market area,  changes
in policies by regulatory  agencies,  fluctuations in interest rates, demand for
loans in the  Company's  market area and  competition  that could  cause  actual
results  to differ  materially  from  historical  earnings  and those  presently
anticipated  or projected.  The Company  wishes to caution  readers not to place
undue reliance on any such forward  looking  statements,  which speak only as of
the date made.  The Company  wishes to advise  readers  that the factors  listed
above  could  affect the  Company's  financial  performance  and could cause the
Company's  actual  results  for  future  periods to differ  materially  from any
opinions or statements  expressed  with respect to future periods in any current
statements.

The Company does not undertake,  and specifically  disclaims any obligation,  to
publicly  release  the  result of any  revisions  which  may be made to  forward
looking  statements  to  reflect  events  or  circumstances  after  the  date of
statements or to reflect the occurrence of anticipated or unanticipated events.

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,  FDIC-insured stock savings
bank  conducting  business  from six  offices  in the  North  Hills  suburbs  of
Pittsburgh.  The  Savings  Bank  converted  from the mutual to the stock form of
ownership in November  1993.  The Savings Bank had no  subsidiaries  at June 30,
2007.

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.

                                       5
<page>

CHANGES IN FINANCIAL CONDITION

                             Condensed Balance Sheet
                             -----------------------

                                    June 30,                   Change
                                                      --------------------------
                                2007        2006        Dollars       Percentage
                                ----        ----        -------       ----------
                                     (Dollars in Thousands)

Cash and interest-earning
     Deposits               $    2,675   $    1,196   $    1,479        123.7%

Investments (1)                339,454      360,035      (20,581)        -5.7

Net loans receivable            60,350       55,702        4,648          8.3

Total assets                   408,076      421,742      (13,666)        -3.2

Deposits                       159,377      151,713        7,664          5.1

Borrowed funds                 213,529      237,777      (24,248)       -10.2

Total liabilities              376,783      392,324      (15,541)        -4.0

Stockholders' equity            31,293       29,418        1,875          6.4

---------------
(1) Includes Federal Home Loan Bank stock.


Cash and Interest-Earning  Deposits. Cash on hand and interest-earning  deposits
represent cash equivalents. Cash equivalents increased $1.5 million or 123.7% to
$2.7  million at June 30, 2007 from $1.2  million at June 30,  2006.  Changes in
cash  equivalents are influenced by the timing of customer  transaction  account
deposits,   the  redeployment  of  funds  into  other  earning  assets  such  as
investments or loans, and the repayment of Company borrowings.

Investments.  The Company's investment and mortgage-backed  portfolios decreased
$20.6 million or 5.7% to $339.5  million at June 30, 2007 from $360.0 million at
June 30, 2006.  Investment  securities increased $13.7 million or 6.7% to $217.9
million at June 30, 2007.  This  increase was due primarily to purchases of U.S.
Government Agency  securities,  funded by early  redemptions of U.S.  Government
Agency   securities   and  cash   repayments   of  principal  on  floating  rate
mortgage-backed  securities.  Mortgage-backed securities decreased $34.2 million
or 22.0% to $121.5 million at June 30, 2007.  This decrease was due primarily to
repayments of floating rate  mortgage-backed  securities and the redeployment of
those proceeds into investment  securities.  See  "Quantitative  and Qualitative
Disclosures about Market Risk" beginning on page 13.

Net Loans  Receivable.  Net loans  receivable  increased $4.6 million or 8.3% to
$60.3 million at June 30, 2007. The increase in loans receivable was principally
the result of  increases in the  Company's  construction,  non-residential  real
estate and  commercial  loan  portfolios,  which have been areas the Company has
focused on for the past two fiscal  years.  The Savings Bank has  continued  its
partnership  with SCORE  (Service  Corps of Retired  Executives)  Pittsburgh  to
better  serve new business  owners and existing  Bank  business  customers  with
access to business counseling services.

Deposits.  Total  deposits  increased  $7.7 million or 5.1% to $159.4 million at
June 30, 2007.  Certificates of deposit increased  approximately $6.3 million or
9.3%. Transaction accounts increased approximately $1.7 million or 5.8%. Savings
accounts  decreased  $3.9 million or 10.6% and money market  accounts  increased
$3.6 million or 21.6%.

                                       6
<page>

Borrowed  Funds.  Borrowed  funds  decreased  $24.2  million  or 10.2% to $213.5
million at June 30, 2007.The Company repaid all of its FHLB short-term advances,
which totaled $23.2 million.  FHLB long-term  advances decreased $8.0 million or
5.8% to $130.6 million.  Other short-term  borrowings  increased $6.9 million or
9.1% to $82.9 million. The Company repositioned its borrowing mix as part of its
assets/liability management program.

Stockholders'  Equity. Total stockholders' equity increased $1.9 million or 6.4%
to $31.3  million  at June 30,  2007.  Company  earnings  of $3.6  million  were
partially  offset by $1.5 million of cash dividends paid on the Company's common
stock and $607  thousand for the  repurchase  of 36,875  shares of the Company's
common  stock.  The Company  believes  that the  repurchase  of its common stock
represented  an  attractive  investment   opportunity  and  favorably  added  to
secondary market liquidity.


RESULTS OF OPERATIONS

                         Condensed Statements of Income
                         ------------------------------
<table>
<caption>
                                Year Ended               Year Ended               Year Ended
                                 June 30,                 June 30,                 June 30,
                                   2007       Change        2006        Change       2005
                                 --------    --------     --------     --------    --------

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

Interest income                  $ 24,310    $  2,062     $ 22,248     $  4,374    $ 17,874
                                                  9.3%                     24.5%

Interest expense                 $ 15,985    $    525     $ 15,460     $  3,616    $ 11,844
                                                  3.4%                     30.5%

Net interest income              $  8,325    $  1,537     $  6,788     $    758    $  6,030
                                                 22.6%                     12.6%

Provision (recovery) for loan    $     13    $    174     ($   161)    ($   115)   ($    46)
losses                                          108.1%                  -250.0%

Non-interest income              $    626    ($    79)    $    705     ($   287)   $    992
                                               -11.2%                    -28.9%

Non-interest expense             $  3,529    $      8     $  3,521     ($    11)   $  3,532
                                                  0.2%                    -0.3%

Income tax expense               $  1,763    $    476     $  1,287     $    660    $    627
                                                 37.0%                    105.3%

Net income                       $  3,646    $    800     $  2,846     ($    63)   $  2,909
                                                 28.1%                    -2.2%
</table>

General. WVS reported net income of $3.6 million,  $2.8 million and $2.9 million
for the fiscal years ended June 30, 2007, 2006 and 2005, respectively.  The $800
thousand or 28.1%  increase in net income  during  fiscal 2007 was primarily the
result of a $1.5 million  increase in net interest  income,  which was partially
offset by a $476  thousand  increase  in income  tax  expense,  a $174  thousand
increase in provisions for loan losses, a $79 thousand  decrease in non-interest
income and a $8 thousand  increase in non-interest  expense.  Earnings per share
totaled  $1.57  (basic and  diluted) for fiscal 2007 as compared to $1.21 (basic
and diluted)  for fiscal 2006.  The increase in earnings per share was due to an
increase in net income and a reduction in the weighted  average number of shares
outstanding due to the Company's stock repurchases during fiscal 2007.


                                       7
<page>

Average  Balances,  Net Interest  Income and Yields  Earned and Rates Paid.  The
following  average  balance  sheet  table  sets  forth  at and for  the  periods
indicated, information on the Company regarding: (1) the total dollar amounts of
interest income on interest-earning assets and the resulting average yields; (2)
the total dollar amounts of interest expense on interest-bearing liabilities and
the resulting average costs; (3) net interest income;  (4) interest rate spread;
(5) net  interest-earning  assets  (interest-bearing  liabilities);  (6) the net
yield  earned  on   interest-earning   assets;   and  (7)  the  ratio  of  total
interest-earning assets to total interest-bearing liabilities.

<table>
<caption>

                                                                        For the Years Ended June 30,
                                          -----------------------------------------------------------------------------------------
                                                      2007                          2006                          2005
                                          ----------------------------  ----------------------------   ----------------------------
                                                               Average                       Average                       Average
                                          Average               Yield/   Average              Yield/   Average              Yield/
                                          Balance   Interest     Rate    Balance  Interest    Rate     Balance   Interest    Rate
                                          --------  --------   -------  --------  --------   -------   --------  --------  --------

                                        <c>          <c>      <c>     <c>          <c>      <c>      <c>        <c>        <c>
                                                                              (Dollars in Thousands)
Interest-earning assets:
      Net loans receivable(1)             $ 59,030  $  4,350      7.37% $ 58,274  $  4,009      6.88%  $ 63,725  $  4,206      6.60%
      Mortgage-backed securities           139,683     8,748      6.26   169,844     8,919      5.25    103,307     3,981      3.85
      Investments - taxable                183,143    10,276      5.61   177,031     8,292      4.68    200,688     7,873      3.92
      Investments - tax-free(2)             10,359       556      7.67    13,276       737      8.00     27,142     1,626      8.74
      FHLB stock                             6,815       370      5.43     7,033       276      3.92      7,594       178      2.34
      Interest-bearing deposits                459        10      2.18       924        15      1.62      1,818        10      0.55
                                          --------  --------   -------  --------  --------   -------   --------  --------  --------
      Total interest-earning assets        399,489    24,310      6.15%  426,382    22,248      5.29%   404,274    17,874      4.61%
                                                    --------   =======            --------   =======             --------  ========
      Non-interest-earning assets            4,485                         3,897                          3,849
                                          --------                      --------                       --------
            Total assets                  $403,974                      $430,279                       $408,123
                                          ========                      ========                       ========

Interest-bearing liabilities:
      Interest-bearing deposits and       $143,406  $  4,190      2.92% $142,327  $  3,123      2.19%  $146,366  $  2,238      1.53%
      escrows
      FHLB long-term advances              133.532     7.409      5.55   141,558     7,828      5.53    147,780     8,040      5.44
      FHLB short-term advances               6,596       354      5.37     2,421       106      4.38      3,021        79      2.62
      Other short-term borrowings           74,659     4,032      5.40    99,634     4,403      4.42     65,579     1,487      2.27
                                          --------  --------   -------  --------  --------   -------   --------  --------  --------
      Total interest-bearing
      liabilities                          358,193    15,985      4.46%  385,940    15,460      4.01%   362,746    11,844      3.27%
                                                    --------   =======            --------   =======             --------  ========
      Non-interest-bearing accounts         12,927                        12,513                         12,774
                                          --------                      --------                       --------
      Total interest-bearing liabilities
        and non-interest-bearing accounts  371,120                       398,453                        375,520
      Non-interest-bearing liabilities       2,829                         2,976                          3,609
                                          --------                      --------                       --------
            Total liabilities              373,949                       141,558                        379,129
Equity                                      30,025                        28,850                         28,994
                                          --------                      --------                       --------
Total liabilities and equity              $403,974                      $430,279                       $408,123
                                          ========                      ========                       ========
Net interest income                                 $  8,325                      $  6,788                       $  6,030
                                                    ========                      ========                       ========
Interest rate spread                                    1.69%                         1.28%                                    1.34%
                                                    ========                      ========                                 ========
Net yield on interest-earning assets(3)                 2.14%                         1.67%                                    1.68%
                                                    ========                      ========                                 ========
Ratio of interest-earning assets to
   interest-bearing liabilities                       111.53%                       110.48%                                  111.45%
                                                    ========                      ========                                 ========
</table>

----------------
(1) Includes non-accrual loans.
(2) Yields on tax-exempt securities (tax-exempt for federal income tax purposes)
are shown on a fully  taxable  equivalent  basis  utilizing a  calculation  that
reflects the  tax-exempt  coupon,  a 20%  interest  expense  disallowance  and a
federal tax rate of 34%.
(3) Net interest income divided by average interest-earning assets.

                                       8
<page>

Rate/Volume Analysis.  The following table describes the extent to which changes
in  interest  rates  and  changes  in  volume  of  interest-related  assets  and
liabilities  have affected the Company's  interest income and expense during the
periods   indicated.   For  each   category  of   interest-earning   assets  and
interest-bearing  liabilities,  information is provided on changes  attributable
to: (1) changes in volume (change in volume  multiplied by prior year rate), (2)
changes in rate (change in rate multiplied by prior year volume),  and (3) total
change in rate and  volume.  The  combined  effect of  changes  in both rate and
volume  has been  allocated  proportionately  to the  change due to rate and the
change due to volume.

<table>
<caption>
                                                                                Year Ended June 30,
                                                 --------------------------------------------------------------------------------
                                                              2007 vs. 2006                            2006 vs. 2005
                                                 --------------------------------------    --------------------------------------
                                                     Increase (Decrease)                      Increase (Decrease)
                                                          Due to               Total                Due to               Total
                                                 ------------------------     Increase     ------------------------     Increase
                                                   Volume         Rate       (Decrease)      Volume         Rate       (Decrease)
                                                 ----------    ----------    ----------    ----------    ----------    ----------

                                                    <c>            <c>          <c>           <c>           <c>           <c>
                                                                              (Dollars in Thousands)
Interest-earning assets:
      Net loans receivable                       $       52    $      289    $      341    $     (370)   $      173    $     (197)
      Mortgage-backed securities                     (1,727)        1,556          (171)        3,156         1,782         4,938
      Investments - taxable                             289         1,695         1,984          (994)        1,413           419
      Investments - tax-free                           (139)          (42)         (181)         (709)         (180)         (889)
      FHLB stock                                         (9)          103            94           (14)          112            98
      Interest-bearing deposits                          (9)            4            (5)           (6)           11             5
                                                 ----------    ----------    ----------    ----------    ----------    ----------
            Total interest-earning assets            (1,543)        3,605         2,062         1,063         3,311         4,374
Interest-bearing liabilities:
      Interest-bearing deposits and
         Escrows                                        278           789         1,067            28           857           885
      FHLB long-term borrowings                        (447)           28          (419)         (343)          131          (212)
      FHLB short-term borrowings                        219            29           248           (17)           44            27
      Other short-term borrowings                    (1,232)          861          (371)        1,033         1,883         2,916
                                                 ----------    ----------    ----------    ----------    ----------    ----------
            Total interest-bearing liabilities       (1,182)        1,707           525           701         2,915         3,616
                                                 ----------    ----------    ----------    ----------    ----------    ----------
Change in net interest income                    $     (361)   $    1,898    $    1,537    $      362    $      396    $      758
                                                 ==========    ==========    ==========    ==========    ==========    ==========
</table>

Net Interest Income. Net interest income is determined by the Company's interest
rate  spread   (i.e.   the   difference   between  the  yields   earned  on  its
interest-earning assets and the rates paid on its interest-bearing  liabilities)
and  the  relative  amounts  of  interest-earning  assets  and  interest-bearing
liabilities.  Net interest  income  increased by $1.5 million or 22.6% in fiscal
2007 and $758 thousand or 12.6% in fiscal 2006.  The increase in fiscal 2007 was
the result of an increase in interest  and  dividend  income of $2.1  million or
9.3%,  which was  partially  offset by an increase  in interest  expense of $525
thousand or 3.4%.  The  increase in fiscal 2006 was the result of an increase in
interest  and  dividend  income of $4.4  million or 24.5%,  which was  partially
offset by an increase in interest expense of $3.6 million or 30.5%.

Interest Income.  Total interest income increased by $2.1 million or 9.3% during
fiscal 2007 and  increased  by $4.4 million or 24.5%  during  fiscal  2006.  The
increase  in fiscal 2007 was  primarily  the result of  increased  yields on the
Company's  interest-earning  assets which more than offset the decrease in total
interest  earning  assets.  Due to the  relatively  "flat" U. S. Treasury  yield
curve, the Company  adjusted its asset mix to improve net interest income.  Cash
repayments  on  interest   earning  assets  were  redeployed  to  repay  Company
borrowings.  Within the Company's investment portfolio, proceeds from repayments
on  mortgage-backed  securities were partially  redeployed to taxable investment
securities.  The increase in fiscal 2006 was  primarily  the result of increased
yields on the  Company's  interest-earning  assets and  increases in the average
balances of the mortgage-backed securities portfolio which were partially offset
by decreases in the average balances of the investment and loan portfolios.

Interest income on investment  securities increased $1.8 million or 20.0% during
fiscal 2007 and decreased $470 thousand or 4.9% during fiscal 2006. The increase
in fiscal 2007 was primarily  attributable  to an 81 basis point increase in the
weighted average yield on the Company's  investment  securities  portfolio and a
$3.2 million  increase in the average  balance of investments  outstanding.  The
decrease in fiscal 2006 was primarily the result of a $37.5 million  decrease in
the average balance of investments  outstanding  which was

                                       9
<page>

partially  offset by a 42 basis point increase in the weighted  average yield on
the Company's investment securities portfolio.

Interest income on  mortgage-backed  securities  decreased $171 thousand or 1.9%
during fiscal 2007 and increased $4.9 million or 124.06% during fiscal 2006. The
decrease in fiscal 2007 was primarily  attributable to a $30.2 million  decrease
in the average balance of the mortgage-backed  securities  portfolio,  which was
partially  offset by a 101 basis point increase in the weighted average yield on
the Company's mortgage-backed  securities portfolio. The increase in fiscal 2006
was primarily attributable to a $66.5 million increase in the average balance of
the mortgage-backed  securities  portfolio and a 140 basis point increase in the
weighted average yield on the mortgage-backed securities portfolio.

Interest income on net loans  receivable  increased $341 thousand or 8.5% during
fiscal 2007 and decreased $197 thousand or 4.7% during fiscal 2006. The increase
in fiscal  2007 was  primarily  the result of a 49 basis  point  increase in the
yield earned on the Company's loan  portfolio,  and a $756 thousand  increase in
the average  balance of net loans  outstanding.  The decrease in fiscal 2006 was
primarily  attributable to a $5.6 million decrease in the average balance of net
loans outstanding which was partially offset by a 28 basis point increase in the
yield earned on the Company's  loan  portfolio.  As part of its  asset/liability
management   strategy,   the  Company  previously  limited  its  origination  of
longer-term  fixed  rate  loans to  mitigate  its  exposure  to a rise in market
interest rates. The Company continued to offer longer-term fixed rate loans on a
correspondent  basis  during  fiscal  2007  and  2006,  as well as  focusing  on
multi-family  and  commercial  real  estate  loans,   construction  loans,  land
acquisition and development loans, consumer loans, small business and commercial
loans.

Dividend income on FHLB stock increased $94 thousand or 34.1% during fiscal 2007
and $98  thousand or 55.1% during  fiscal 2006.  The increase in fiscal 2007 was
primarily  attributable  to a 151 basis point  increase in the weighted  average
yield earned on the Company's  holdings of FHLB stock which was partially offset
by a $218 thousand  decrease in the average  balance of FHLB stock  outstanding.
The increase during fiscal 2006 was primarily  attributable to a 158 basis point
increase in the weighted average yield earned on the Company's  holdings of FHLB
stock  which was  partially  offset by a $561  thousand  decrease in the average
balance of FHLB stock outstanding.

Interest Expense.  Total interest expense increased $525 thousand or 3.4% during
fiscal 2007 and  increased  by $3.6 million or 30.5%  during  fiscal  2006.  The
increase  in fiscal  2007 was  primarily  attributable  to higher  rates paid on
interest-bearing  liabilities  due to higher  market  interest  rates which were
partially  offset  by  decreases  in the  average  balances  of  borrowed  funds
outstanding.  The increase in fiscal 2006 was primarily  attributable  to higher
rates  paid  on  interest-bearing  liabilities  due  to  the  Federal  Reserve's
continued  tightening of monetary  policy and higher levels of  interest-bearing
liabilities.

Interest expense on interest-bearing deposits and escrows increased $1.1 million
or 34.2% in fiscal 2007 and increased $885 thousand or 39.5% in fiscal 2006. The
increase in fiscal 2007 was  primarily  the result of higher  average rates paid
on, and higher average balances  outstanding,  of time deposits and money market
accounts  which were  partially  offset by lower  average  balances  in passbook
accounts.  Average  rates paid on time and money  market  deposits  increased by
ninety-two  and eighty basis points,  respectively.  The increase in fiscal 2006
was primarily  attributable to a 66 basis point increase in the weighted average
yield paid on deposits  and a $3.0 million  increase in the average  balances of
money market and time deposits,  which were  partially  offset by a $7.1 million
decrease  in the  average  balance  of  savings  accounts  and  interest-bearing
checking accounts.

Interest expense on FHLB advances  decreased $171 thousand or 2.2% during fiscal
2007 and $185 thousand or 2.3% during  fiscal 2006.  The decrease in fiscal 2007
was primarily  attributable to an $8.0 million  decrease in the average balances
of FHLB  long-term  advances  outstanding  which was partially  offset by a $4.2
million increase in the average balance of FHLB short-term advances outstanding,
a 99 basis point increase in the weighted  average rate paid on FHLB  short-term
advances and a 2 basis point increase in the weighted  average rate paid on FHLB
long-term advances.  The decrease in fiscal 2006 was primarily attributable to a
$6.2  million  decrease  in the  average  balance  of  FHLB  long-term  advances
outstanding  and a  $600  thousand  decrease  in the  average  balance  of  FHLB
short-term advances outstanding,  which were

                                       10
<page>

partially  offset by a 9 basis point  increase in the  weighted  average rate of
FHLB long-term  advances and a 176 basis point increase in the weighted  average
rate of FHLB  short-term  advances.  The  increase in the  average  rate on FHLB
short-term advances reflects higher short-term interest rates.

Interest expense on other short-term  borrowings decreased $371 thousand or 8.4%
during fiscal 2007 and increased  $2.9 million or 196.1% during fiscal 2006. The
decrease  during  fiscal  2007 was  primarily  attributable  to a $25.0  million
decrease in the average balance of other short-term borrowings outstanding which
was partially  offset by a 98 basis point increase in the weighted  average rate
paid on other short-term  borrowings.  The increase in fiscal 2006 was primarily
attributable to a 215 basis point increase in the weighted  average rate paid on
other short-term  borrowings and a $34.1 million increase in the average balance
of other short-term borrowings outstanding.  The increase in the average rate on
other short-term borrowings reflects higher short-term interest rates.

Recovery for Loan Losses.  A provision for loan losses is charged to earnings to
bring the total allowance to 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 periodic evaluations of the loan portfolio considering
past experience, current economic conditions, volume, growth, composition of the
loan portfolio and other relevant factors.  The Company recorded a provision for
loan  losses of $13  thousand  in fiscal  2007,  compared  to a recovery of $161
thousand in fiscal 2006. The provision for loan loss recorded in fiscal 2007 was
primarily  attributable  to  increased  loan  balances  outstanding.  The credit
provision for fiscal 2006 was primarily  attributable  to continued  paydowns of
non-accrual  loans and a reallocation  of $35 thousand of its allowance for loan
loss attributable to off-balance  sheet  liabilities  (builder letters of credit
and  undisbursed  lines of credit) to a separate  reserve  account for financial
reporting purposes.

Non-interest  Income.  Total  non-interest  income  decreased by $79 thousand or
11.2% in fiscal 2007 and decreased by $287 thousand or 28.9% in fiscal 2006. The
decrease  in fiscal  2007 was  primarily  attributable  to the  absence of a $30
thousand pre-tax gain on the sale of mortgage-backed  securities in fiscal 2006,
a decrease of deposit fee income and decreases in ATM and debit card fee income.
The  decrease  in fiscal  2006 was  primarily  attributable  to a $306  thousand
decrease  in  pre-tax  securities  gains,  which was  partially  offset by a $19
thousand increase in deposit account fee income.

Non-interest  Expense.  Total non-interest expense increased $8 thousand or 0.2%
in fiscal  2007,  and  decreased  $11 thousand or 0.3% during  fiscal 2006.  The
increase in fiscal 2007 was  primarily  attributable  to  increases  in employee
related costs which were  partially  offset by decreases in  correspondent  bank
service  charges  and other  operating  costs.  The  decrease in fiscal 2006 was
primarily  attributable  to a decrease  in fixed  asset  depreciation  which was
partially  offset by a reallocation of a portion of the Company's  allowance for
loan loss attributable to off-balance sheet liabilities as discussed above.

Income Taxes.  Income taxes  increased $476 thousand or 37.0% during fiscal 2007
and increased $660 thousand or 105.3% during fiscal 2006. The increase in fiscal
year 2007 was primarily  attributable  to higher levels of taxable  income.  The
increase for fiscal year 2006 was  primarily  attributable  to higher  levels of
taxable  income and lower levels of  tax-exempt  interest  income.  State mutual
thrift tax expense for both fiscal years 2007 and 2006 continued to be favorably
impacted by state tax-exempt holdings of FHLB bonds. The Company's effective tax
rate was 32.6% at June 30, 2007 and 31.1% at June 30, 2006.


LIQUIDITY AND CAPITAL RESOURCES

Liquidity is often analyzed by reviewing the cash flow statement.  Cash and cash
equivalents  increased by $1.5 million during fiscal 2007 primarily due to $16.0
million of net cash  provided by  investing  activities  and $3.2 million of net
cash  provided by operating  activities,  which were  partially  offset by $17.7
million of net cash used for financing activities.

Funds provided by operating  activities  totaled $3.2 million during fiscal 2007
as compared to $2.5 million  during fiscal 2006.  Net cash provided by operating
activities  was  primarily  comprised  of $3.6  million  of net

                                       11
<page>

income, a $218 thousand increase in accrued interest payable and a $137 thousand
in fixed  asset  depreciation  which were  partially  offset by a $793  thousand
increase in accrued interest receivable.

Funds provided by investing  activities totaled $16.0 million during fiscal 2007
as compared to $2.4 million used for  investing  activities  during fiscal 2006.
Primary  sources of funds during fiscal 2007 included  repayments of investment,
mortgage-backed  securities,  and FHLB  Stock  totaling  $130.7  million,  $39.3
million,  and  $5.7  million,  respectively,  which  were  partially  offset  by
purchases of  investments,  mortgage-backed  securities  and FHLB Stock totaling
$145.7 million, $5.0 million, and $4.2 million, respectively, and a $4.7 million
increase in net loans receivable.  Investment purchases were comprised primarily
of fixed rate callable U.S.  Government  agency bonds and short-term  commercial
paper. The mortgage-backed  securities  purchases were floating rate instruments
that reprice on a monthly basis.

Funds used for  financing  activities  totaled  $17.8 million for fiscal 2007 as
compared to $2.4 million in fiscal  2006.  Primary uses of funds for fiscal 2007
were a $23.2  million  decrease in  short-term  FHLB  advances,  a $8.0  million
decrease in long-term FHLB advances,  $1.5 million in cash dividends paid on the
Company's common stock and $607 thousand of treasury stock purchases, which were
partially offset by a $8.3 million increase in total deposits and a $6.9 million
increase in other  short-term  borrowings.  The $8.3  million  increase in total
deposits  consisted  of a $6.3  million  increase  in  certificates  of  deposit
primarily due to accounts opened by local county municipal  governments,  a $3.6
million  increase  in money  market  accounts  and a $1.7  million  increase  in
transaction accounts,  which were partially offset by a $3.9 million decrease in
passbook  accounts.  During fiscal 2007 the Company  purchased  36,875 shares of
Company common stock for approximately $607 thousand.  Management has determined
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,  repayments on existing
loans,   mortgage-backed  securities  and  investment  securities,   funds  from
operations,  and  funds  obtained  through  deposits,  FHLB  advances  and other
borrowings.  At June 30, 2007, the total approved loan  commitments  outstanding
amounted to $1.2 million. At the same date, commitments under unused letters and
lines  of  credit  amounted  to $7.4  million  and  the  unadvanced  portion  of
construction loans approximated $12.1 million. Certificates of deposit scheduled
to  mature  in one  year or  less  at June  30,  2007,  totaled  $56.6  million.
Management  believes that a significant portion of maturing deposits will remain
with the Company.

The Company's contractual obligations at June 30, 2007 were as follows:

<table>
<caption>
                                                   Contractual Obligations
                                                    (Dollars in Thousands)
                                            Less than                              More than
                                Total        1 year      1-3 years    3-5 years     5 years
                              ----------   ----------   ----------   ----------   ----------

                           <c>          <c>          <c>          <c>          <c>
Long-term debt                $  130,579   $       --   $   26,079   $   97,000   $    7,500
Operating lease obligations          392           50           85           80          177
                              ----------   ----------   ----------   ----------   ----------
                              $  130,971   $       50   $   26,164   $   97,080   $    7,677
</table>

See also Note 13 of the Company's Consolidated Financial Statements.

Historically,  the  Company  used its  sources  of funds  primarily  to meet its
ongoing  commitments  to  pay  maturing  certificates  of  deposit  and  savings
withdrawals,  fund loan  commitments  and  maintain a  substantial  portfolio of
investment  securities.  The Company has been able to generate  sufficient  cash
through FHLB advances and other borrowings and through the retail deposit market
to provide the cash utilized in investing activities.  The Company 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 July 31, 2007, the Company's  Board of Directors  declared a cash dividend of
$0.16 per share  payable on August  23,  2007 to  shareholders  of record at the
close of business on August 13, 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 the future or that, if paid,  such dividends
will not be reduced or eliminated in future periods.

                                       12
<page>

As of June 30,  2007,  WVS  Financial  Corp.  exceeded  all  regulatory  capital
requirements and maintained Tier I and total  risk-based  capital equal to $31.3
million  or  22.4%  and  $32.3   million  or  23.2%,   respectively,   of  total
risk-weighted  assets;  and Tier I leverage  capital of $31.3 million or 8.1% of
average total assets.

Non-performing assets consist of non-accrual loans and real estate owned. A loan
is placed on  non-accrual  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 non-accrual  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.  The Company's
non-performing  assets at June 30, 2007  totaled  approximately  $1.2 million or
0.3% of total assets  compared to $318 thousand or 0.08% of total assets at June
30, 2006.  Non-performing  assets at June 30, 2007  consisted of one  commercial
real estate loan totaling $972 thousand,  three  single-family real estate loans
totaling  $214  thousand,  two lines of credit  totaling $18  thousand,  and one
single-family  real estate owned property with a book value of  approximately $2
thousand.  Non-performing  assets  increased  $888  thousand  or  279.2% to $1.2
million of total assets, at June 30, 2007. The increase was primarily the result
of $972 thousand in loans classified as non-performing  during the quarter ended
March  31,  2007,   which  were  partially  offset  by  $75  thousand  in  loans
reclassified as performing due to improved economic performance.

Impact of Inflation and Changing Prices. The consolidated  financial  statements
of the  Company  and  related  notes  presented  herein  have been  prepared  in
accordance with U.S. generally accepted accounting  principles which require the
measurement of financial  condition and operating results in terms of historical
dollars,  without  considering changes in the relative purchasing power of money
over time due to inflation.

Unlike  most  industrial   companies,   substantially  all  of  the  assets  and
liabilities  of a financial  institution  are  monetary in nature.  As a result,
interest  rates  have a more  significant  impact on a  financial  institution's
performance  than the effects of general levels of inflation.  Interest rates do
not  necessarily  move in the same  direction  or in the same  magnitude  as the
prices of goods and  services  since such prices are  affected by inflation to a
larger degree than interest  rates.  In the current  interest rate  environment,
liquidity and the maturity structure of the Company's assets and liabilities are
critical to the maintenance of acceptable performance levels.

Recent  Accounting and Regulatory  Pronouncements.  The Company's  discussion of
recent  accounting and regulatory  pronouncements  can be found in Note 1 of the
Company's Consolidated Financial Statements.

QUANTATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

                                       13
<page>

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 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 fiscal 2007, 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 June 30, 2006,  December 31,
2006, March 31, 2007 and June 30, 2007. The difference in yields on the ten year
and two year  Treasury's  is often used to determine  the steepness of the yield
curve and to assess the term premium of market interest rates.


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

    June 30, 2006      5.25%         5.16%        5.15%            Flat
December 31, 2006      5.25%         4.82%        4.71%          Inverted
   March 31, 2007      5.25%         4.58%        4.65%     Slightly Positive
    June 30, 2007      5.25%         4.87%        5.03%     Slightly Positive

These changes in intermediate  and long-term market interest rates, the changing
slope of the Treasury  yield curve,  and continued  high levels of interest rate
volatility  have impacted  prepayments  on the Company's  loan,  investment  and
mortgage-backed  securities  portfolios and have caused a marked  compression of
industry-wide  net  interest  margins.  Due  to its  asset/liability  management
initiatives,  the Company was able to increase both its interest rate spread and
net interest margin during fiscal 2007.

The term  premium  of  market  interest  rates is often  used to  determine  the
relative  merits  of taking on  additional  interest  rate risk and to gauge the
market's  expectation  of future  interest  rates.  Due to  changes  in the term
premium of market  interest  rates  experienced in fiscal year 2007, the Company
adjusted its  asset/liability  strategy in several ways. The Company's  proceeds
from  repayments on  mortgage-backed  securities  were used  primarily to reduce
short-term borrowings and, to a lesser extent,  purchase U. S. Government agency
bonds and investment  grade  short-term  commercial  paper. The Company believes
that by  strategically  reducing the balance sheet, it was able to substantially
improve net interest  income,  various capital ratios and better position itself
in light of high levels of interest rate volatility.

Principal  repayments  on the Company's  loan,  investment  and  mortgage-backed
securities  portfolios  for the fiscal year ended June 30, 2007,  totaled  $20.6
million,  $130.7  million  and  $39.3  million,  respectively.  Due to a  marked
compression of Treasury yields,  high market volatility and the changing spreads
available on mortgage-backed and investment securities, the Company chose to use
some  principal

                                       14
<page>

repayments to reduce short and long-term  debt during most of fiscal 2007.  This
strategy  has  allowed the  Company to  increase  operating  margins and capital
ratios while reducing overall interest rate risk.

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),  and
commercial loans on business assets to partially  increase interest income while
limiting  interest rate risk. The Company has also  emphasized  higher  yielding
commercial  and  small  business  loans  to  existing   customers  and  seasoned
prospective customers.

The Company purchased fixed rate callable U. S. Government Agency bonds in order
to earn a spread against the Company's  long-term FHLB advances,  and investment
grade  short-term  commercial  paper,  to limit  interest  rate risk  within the
portfolio.   Within  the  mortgage-backed   securities  portfolio,  the  Company
redeployed  repayments to reduce short-term  borrowings,  and augment investment
purchases in order to provide  current  income and in response to changing  term
premiums of market interest rates.  Each of the  aforementioned  strategies also
helped to better match the interest-rate and liquidity risks associated with the
Savings  Bank's  customers'   liquidity  preference  for  shorter  term  deposit
products.

During fiscal 2007 principal  investment  purchases were comprised of:  callable
fixed rate government agency bonds with initial lock-out periods as follows: 0 -
12 months - $87.6 million with a weighted average yield to call of approximately
6.06%,  13 - 24 months - $39.4 million with a weighted  average yield to call of
approximately 6.01%; short-term commercial paper - $18.6 million with a weighted
average yield of approximately 5.57%; and floating rate collateralized  mortgage
obligations  which  reprice  monthly - $5.0  million  with an original  weighted
average yield of 6.19%.  Major investment  proceeds  received during fiscal 2007
were:  callable government agency bonds - $115.5 million with a weighted average
yield  of  approximately  4.90%;  mortgage-backed  securities  - $39.3  million;
short-term  commercial  paper - $12.0  million with a weighted  average yield of
5.54%;  tax-free municipal bonds - $2.3 million with a weighted average yield of
approximately 5.61%; and taxable municipal bonds - $135 thousand with a weighted
average yield of 6.61%.

As of June 30, 2007, the implementation of these asset and liability  management
initiatives resulted in the following:

   1)    $119.3 million or 98.2% 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)    $25.0  million  or  11.8% 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 - $10.0 million;  and 6 - 12
         months - $15.0 million.  Management currently believes that these bonds
         are likely to be repaid during the intervals shown.
   3)    $156.5  million  or 74.0% 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 - $25.7 million;  3 - 6 months -
         $17.0  million;  6 - 12  months  - $52.3  million;  1 - 2 years - $58.5
         million;  and over 2 years - $3.0  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)    $14.6  million  or  6.9%  of the  Company's  investment  portfolio  was
         comprised of investment  grade commercial paper with maturities of less
         than thirty days.
   5)    $4.7  million  or  2.2%  of  the  Company's  investment  portfolio  was
         comprised of U.S. Government Agency Step-up bonds which will reprice as
         follows:  6 - 12 months - $4.7 million from 4.70% to 6.00%. These bonds
         may or may not actually be redeemed  prior to maturity  depending  upon
         the level of market interest rates at their respective step-up dates.
   6)    An  aggregate  of $35.0  million  or 57.0%  of the  Company's  net loan
         portfolio had  adjustable  interest rates or maturities of less than 12
         months; and

                                       15
<page>

   7)    The maturity  distribution of the Company's borrowings is as follows: 1
         month or less - $66.3 million or 31.1%; 2 - 3 months - $13.6 million or
         6.4%; 3 - 12 months - $3.0 million or 1.4%; 1 - 3 years - $26.1 million
         or 12.2%; 3 - 5 years - $97.0 million or 45.4%; and over 5 years - $7.5
         million or 3.5%.

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 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.

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.

                                                          June 30,
                                              --------------------------------
                                                2007        2006        2005
                                              --------    --------    --------
                                                    (Dollars in Thousands)
Interest-earning assets maturing or
   repricing within one year                  $206,136    $273,884    $318,015
Interest-bearing liabilities maturing or
   repricing within one year                   187,494     194,509     181,085
                                              --------    --------    --------

Interest sensitivity gap                      $ 18,642    $ 79,375    $136,930
                                              ========    ========    ========
Interest sensitivity gap as a percentage of
   total assets                                   4.57%      18.82%       32.5%
Ratio of assets to liabilities
   maturing or repricing within one year        109.94%     140.81%      175.6%

During fiscal 2007, 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;  (3) reducing
its  short  and  long-term   borrowings  with  repayments  from  mortgage-backed
securities;  and  (4)  adjusting  its  investment  portfolio  to  include  U. S.
Government  Agency bonds,  with more varied call dates,  and to include modestly
higher holdings of investment grade commercial paper.

                                       16
<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
June 30, 2007. The table estimates the impact of an upward or downward change in
market interest rates of 100 and 200 basis points.

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

                         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 ($'s)               35,215      22,436      16,865        (195)     (21,631)    (119,128)      29,898
% of Total
  Assets                     8.6%        5.3%        4.1%        0.0%       -5.3%       -29.2%          7.3%
Base Case Up 100 bp
-------------------
Cummulative
  Gap ($'s)               35,393      22,768      17,445         570      (20,823)    (118,296)      29,898
% of Total
  Assets                     8.7%        5.6%        4.3%        0.1%       -5.1%       -29.0%          7.3%
Base Case No Change
-------------------
Cummulative
  Gap ($'s)               35,995      23,662      18,642       5,904      (12,396)     (93,338)      29,898
% of Total
  Assets                     8.8%        5.8%        4.6%        1.4%       -3.0%       -22.9%          7.3%
Base Case Down 100 bp
---------------------
Cummulative
  Gap ($'s)               61,155      66,607     115,978     159,883      144,972       47,514       29,898
% of Total
  Assets                    15.0%       16.3%       28.4%       39.2%        35.5%        11.6%         7.3%
Base Case Down 200 bp
---------------------
Cummulative
  Gap ($'s)               69,857      72,450     121,289     166,457      151,117       50,149       29,898
% of Total
  Assets                    17.1%       17.8%       29.7%       40.8%        37.0%        12.3%         7.3%

</table>

The Company  utilizes 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.

                                       17
<page>

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

<table>
<caption>
                            Analysis of Sensitivity to Changes in Market Interest Rates
                            -----------------------------------------------------------

                                                        Modeled Change in Market Interest Rates
                        -------------------------------------------------------------------------------------------------
                                         June 30, 2007                                     June 30, 2006
                        ------------------------------------------------  -----------------------------------------------
Estimated impact on:     -200      -100        0       +100       +200      -200      -100       0        +100      +200
--------------------     ----      ----        -       ----       ----      ----      ----       -        ----      ----

                     <c>       <c>       <c>       <c>       <c>       <c>       <c>       <c>       <c>       <c>
Change in net
interest income          -16.6%     -6.0%     0.00%      1.8%     -7.4%    -28.0%    -11.0%      0.00%   -11.4%    -46.1%

Return on average         9.31%    11.07%    12.05%    12.31%    10.86%     7.83%    10.74%    12.59%    10.69%     4.65%
equity

Return on average
assets                    0.70%     0.83%     0.92%     0.93%     0.81%     0.59%     0.78%     0.92%     0.78%     0.32%

Market value of
equity (in thousands)   $31,575   $36,391   $36,168   $24,967   $8,142    $28,869   $33,371   $33,690   $25,363   $5,881

</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 June 30,
2007.


                                Anticipated Transactions
    --------------------------------------------------------------------------
                                                        (Dollars in Thousands)
    Undisbursed construction and development loans
          Fixed rate                                          $    6,608
                                                                    8.15%

          Adjustable rate                                     $    5,482
                                                                    8.81%

    Undisbursed lines of credit
          Adjustable rate                                     $    6,457
                                                                    8.48%

    Loan origination commitments
          Fixed rate                                          $      296
                                                                    8.25%

          Adjustable rate                                     $      900
                                                                    8.75%

    Letters of credit
          Adjustable rate                                     $      990
                                                                    9.26%



                                                              ----------
                                                              $   20,733
                                                              ==========

                                       18
<page>


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



Board of Directors and Stockholders
WVS Financial Corp.

We have audited the  accompanying  consolidated  balance  sheet of WVS Financial
Corp. and subsidiary as of June 30, 2007 and 2006, and the related  consolidated
statements of income, stockholders' equity, and cash flows for each of the years
in the three-year period ended June 30, 2007. These financial statements are the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion, the consolidated  financial statements referred to above present
fairly, in all material respects,  the financial position of WVS Financial Corp.
and subsidiary as of June 30, 2007 and 2006, and the results of their operations
and their cash flows for each of the years in the  three-year  period ended June
30, 2007, in conformity with U.S. generally accepted accounting principles.


/s/ S.R. Snodgrass, A.C.


Wexford, PA
August 22, 2007

                                       19
<page>
<table>
<caption>

                                     WVS FINANCIAL CORP.
                                 CONSOLIDATED BALANCE SHEET
                            (In thousands, except per share data)

                                                                             June 30,
                                                                        2007         2006
                                                                     ---------    ---------

                                                                      <c>          <c>
ASSETS
      Cash and due from banks                                        $     630    $   1,099
      Interest-earning demand deposits                                   2,045           97
                                                                     ---------    ---------
      Total cash and cash equivalents                                    2,675        1,196
      Investment securities available for sale (amortized
         cost of $8,957 and $8,497)                                      8,933        8,469
      Investment securities held to maturity (market value
         of $201,510 and $185,680)                                     202,664      187,952
      Mortgage-backed securities available for sale
         (amortized cost of $2,186 and $2,229)                           2,246        2,292
      Mortgage-backed securities held to maturity
         (market value of $119,646 and $152,706)                       119,271      153,461
      Net loans receivable (allowance for loan losses of
         $986 and $957)                                                 60,350       55,702
      Accrued interest receivable                                        3,714        2,921
      Federal Home Loan Bank stock, at cost                              6,340        7,861
      Premises and equipment                                               813          864
      Other assets                                                       1,070        1,024
                                                                     ---------    ---------

              TOTAL ASSETS                                           $ 408,076    $ 421,742
                                                                     =========    =========

LIABILITIES
      Deposits                                                       $ 159,377    $ 151,713
      Federal Home Loan Bank advances: long-term                       130,579      138,579
      Federal Home Loan Bank advances: short-term                           --       23,150
      Other borrowings                                                  82,950       76,048
      Accrued interest payable                                           1,669        1,451
      Other liabilities                                                  2,208        1,383
                                                                     ---------    ---------
TOTAL LIABILITIES                                                      376,783      392,324
                                                                     ---------    ---------

STOCKHOLDERS' EQUITY
      Preferred stock, no par value; 5,000,000 shares authorized;
         none outstanding                                                   --           --
      Common stock, par value $0.01; 10,000,000 shares authorized;
          3,790,336 and 3,769,838 shares issued                             38           38
      Additional paid-in capital                                        21,137       20,817
      Treasury stock (1,471,481 and 1,434,606 shares at cost)          (22,286)     (21,679)
      Retained earnings - substantially restricted                      32,382       30,221
      Accumulated other comprehensive income                                23           23
      Unallocated shares - Recognition and Retention Plans                  (1)          (2)
                                                                     ---------    ---------
TOTAL STOCKHOLDERS' EQUITY                                              31,293       29,418
                                                                     ---------    ---------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                           $ 408,076    $ 421,742
                                                                     =========    =========


See accompanying notes to the consolidated financial statements.

                                             20
</table>
<page>
<table>
<caption>

                                   WVS FINANCIAL CORP.
                            CONSOLIDATED STATEMENT OF INCOME
                          (In thousands, except per share data)

                                                         Year Ended June 30,
                                                   2007          2006           2005
                                               -----------   -----------    -----------

                                                    <c>           <c>            <c>
INTEREST AND DIVIDEND INCOME
      Loans                                    $     4,350   $     4,009    $     4,206
      Investment securities                         10,832         9,029          9,499
      Mortgage-backed securities                     8,748         8,919          3,981
      Interest-earning demand deposits                  10            15             10
      Federal Home Loan Bank stock                     370           276            178
                                               -----------   -----------    -----------
          Total interest and dividend income        24,310        22,248         17,874
                                               -----------   -----------    -----------

INTEREST EXPENSE
      Deposits                                       4,190         3,123          2,238
      Federal Home Loan Bank advances                7,763         7,934          8,119
      Other borrowings                               4,032         4,403          1,487
                                               -----------   -----------    -----------
          Total interest expense                    15,985        15,460         11,844
                                               -----------   -----------    -----------

NET INTEREST INCOME                                  8,325         6,788          6,030
Provision (recovery) for loan losses                    13          (161)           (46)
                                               -----------   -----------    -----------
NET INTEREST INCOME AFTER PROVISION
      (RECOVERY) FOR LOAN LOSSES                     8,312         6,949          6,076
                                               -----------   -----------    -----------

NONINTEREST INCOME
      Service charges on deposits                      359           380            361
      Investment securities gains                       --            30            336
      Other                                            267           295            295
                                               -----------   -----------    -----------
          Total noninterest income                     626           705            992
                                               -----------   -----------    -----------

NONINTEREST EXPENSE
      Salaries and employee benefits                 2,011         1,970          1,971
      Occupancy and equipment                          380           387            438
      Data processing                                  270           271            267
      Correspondent bank charges                       118           132            134
      Other                                            750           761            722
                                               -----------   -----------    -----------
          Total noninterest expense                  3,529         3,521          3,532
                                               -----------   -----------    -----------

Income before income taxes                           5,409         4,133          3,536

Income taxes                                         1,763         1,287            627
                                               -----------   -----------    -----------

NET INCOME                                     $     3,646   $     2,846    $     2,909
                                               ===========   ===========    ===========

EARNINGS PER SHARE:
      Basic                                    $      1.57   $      1.21    $      1.20
      Diluted                                         1.57          1.21           1.19

AVERAGE SHARES OUTSTANDING:
      Basic                                      2,319,928     2,357,217      2,432,267
      Diluted                                    2,321,536     2,359,996      2,437,647


See accompanying notes to the consolidated financial statements.

                                           21
</table>
<page>
<table>
<caption>

                                                         WVS FINANCIAL CORP.
                                           CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                                                (In thousands, except per share data)

                                                                                 Retained
                                                                                 Earnings-    Accumulated
                                                       Additional                Substan-        Other     Unallocated
                                             Common     Paid-in     Treasury      tially     Comprehensive Shares Held
                                              Stock     Capital      Stock      Restricted   Income (Loss)    by RRP        Total
                                            ---------  ----------  ----------   -----------  ------------  ------------   ---------

                                        <c>        <c>         <c>          <c>          <c>           <c>            <c>
Balance June 30, 2004                       $      38  $   20,727  $  (19,377)  $    27,535  $        281  $         (5)  $  29,199

Net income                                                                            2,909                                   2,909
Unrealized loss on available-
  for-sale securities, net of taxes of $68                                                           (132)                     (132)
Purchase of treasury stock (71,964)                                    (1,217)                                               (1,217)
Cash dividends declared ($0.64 per share)                                            (1,559)                                 (1,559)
Other, net                                                     (1)                                                    2           1
                                            ---------  ----------  ----------   -----------  ------------  ------------   ---------

Balance June 30, 2005                              38      20,726     (20,594)       28,885           149            (3)     29,201
Net income                                                                            2,846                                   2,846
Unrealized loss on available-
  for-sale securities, net of taxes of $65                                                           (126)                     (126)
Exercise of stock options (7,320)                              91                                                                91
Purchase of treasury stock (66,098)                                    (1,085)                                               (1,085)
Cash dividends declared ($0.64 per share)                                            (1,510)                                 (1,510)
Other, net                                                                                                                        1
                                            ---------  ----------  ----------   -----------  ------------  ------------   ---------

Balance June 30, 2006                              38      20,817     (21,679)       30,221            23            (2)     29,418

Net income                                                                            3,646                                   3,646
Exercise of stock options (20,498)                            320                                                               320
Purchase of treasury stock (36,875)                                      (607)                                                 (607)
Cash dividends declared ($0.64 per share)                                            (1,485)                                 (1,485)
Other, net                                                                                                            1           1
                                            ---------  ----------  ----------   -----------  ------------  ------------   ---------

Balance June 30, 2007                       $      38  $   21,137  $  (22,286)  $    32,382  $         23  $         (1)  $  31,293
                                            =========  ==========  ==========   ===========  ============  ============   =========


See accompanying notes to the consolidated financial statements.


                                                                 22
</table>
<page>
<table>
<caption>

                                                WVS FINANCIAL CORP.
                                       CONSOLIDATED STATEMENT OF CASH FLOWS
                                                  (In thousands)
                                                                                      Year Ended June 30,
                                                                                 2007         2006         2005
                                                                              ---------    ---------    ---------

                                                                                 <c>          <c>          <c>
OPERATING ACTIVITIES
      Net income                                                              $   3,646    $   2,846    $   2,909
      Adjustments to reconcile net income to net cash
        provided by operating activities:
           Provision (recovery) for loan losses                                      13         (161)         (46)
           Depreciation                                                             137          154          193
             Investment securities gains                                             --          (30)        (336)
           Amortization (accretion) of discounts, premiums, and
             deferred loan fees                                                    (188)        (234)        (415)
           Sale of trading securities                                                --           --        1,000
           Deferred income taxes                                                    (26)         181           73
           Decrease (increase) in accrued interest receivable                      (793)        (864)         399
           Increase in accrued interest payable                                     218          191           63
           Other, net                                                               211          377          (43)
                                                                              ---------    ---------    ---------
                 Net cash provided by operating activities                        3,218        2,460        3,797
                                                                              ---------    ---------    ---------

INVESTING ACTIVITIES
      Available for sale:
           Purchase of investment and mortgage-backed
             securities                                                         (12,440)      (8,690)     (26,145)
           Proceeds from repayments of investment and
             mortgage-backed securities                                          12,042        9,395       20,364
           Proceeds from sales of investment and
               mortgage-backed securities                                            --        1,016        1,409
      Held to maturity:
           Purchase of investment and mortgage-backed
             securities                                                        (138,272)    (202,891)    (368,064)
           Proceeds from repayments of investment and
             mortgage-backed securities                                         157,938      194,306      377,002
      Net (increase) decrease in net loans receivable                            (4,681)       4,581        7,733
      Purchase of Federal Home Loan Bank stock                                   (4,227)      (5,994)      (8,761)
      Redemption of Federal Home Loan Bank stock                                  5,748        5,902        8,524
      Acquisition of premises and equipment                                         (86          (79)         (55)
      Other, net                                                                     --           60           --
                                                                              ---------    ---------    ---------
                 Net cash provided by (used for) investing activities            16,022       (2,394)      12,007
                                                                              ---------    ---------    ---------

FINANCING ACTIVITIES
      Net increase (decrease) in deposits                                         8,259      (12,993)       4,143
      Net increase (decrease) in Federal Home Loan Bank short-term advances     (23,150)      10,850       12,300
      Net increase (decrease) in other borrowings                                 6,902        6,368      (21,959)
      Proceeds from Federal Home Loan Bank long-term advances                        --           --           --
      Repayments of Federal Home Loan Bank long-term advances                    (8,000)      (4,157)      (7,000)
      Net proceeds from exercise of stock options                                   320           91           --
      Cash dividends paid                                                        (1,485)      (1,510)      (1,559)
      Purchase of treasury stock                                                   (607)      (1,085)      (1,217)
                                                                              ---------    ---------    ---------
                 Net cash used for financing activities                         (17,761)      (2,436)     (15,292)
                                                                              ---------    ---------    ---------

Increase (decrease) in cash and cash equivalents                                  1,479       (2,370)         512

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                                    1,196        3,566        3,054
                                                                              ---------    ---------    ---------

CASH AND CASH EQUIVALENTS AT END OF YEAR                                      $   2,675    $   1,196    $   3,566
                                                                              =========    =========    =========

SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the year for:
          Interest                                                            $  15,767    $  15,269    $  11,782
          Taxes                                                                   1,764          915          655
Non cash item
          Due to Federal Reserve Bank                                               595           --           --


See accompanying notes to the consolidated financial statements.


                                                        23
</table>
<page>

                               WVS FINANCIAL CORP.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                      (In thousands, except per share data)


1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         Organization
         ------------

         WVS    Financial    Corp.    ("WVS"    or   the    "Company")    is   a
         Pennsylvania-chartered  unitary  bank  holding  company  which owns 100
         percent of the common  stock of West View  Savings Bank ("West View" or
         the  "Savings  Bank").  The  operating  results of the  Company  depend
         primarily  upon the  operating  results of the  Savings  Bank and, to a
         lesser extent, income from  interest-earning  assets such as investment
         securities.

         West View is a Pennsylvania-chartered,  FDIC-insured stock savings bank
         conducting  business  from six  offices in the North  Hills  suburbs of
         Pittsburgh.  The Savings Bank's principal  sources of revenue originate
         from its portfolio of residential  real estate and commercial  mortgage
         loans as well as income from investment and mortgage-backed securities.

         The  Company is  supervised  by the Board of  Governors  of the Federal
         Reserve  System,  while the Savings Bank is subject to  regulation  and
         supervision by the Federal Deposit Insurance  Corporation  ("FDIC") and
         the Pennsylvania Department of Banking.

         Basis of Presentation
         ---------------------

         The consolidated  financial  statements include the accounts of WVS and
         its wholly owned subsidiary,  West View. All intercompany  transactions
         have been  eliminated in  consolidation.  The  accounting and reporting
         policies  of WVS and  West  View  conform  to U.S.  generally  accepted
         accounting  principles.  The  Company's  fiscal  year-end for financial
         reporting is June 30. For regulatory and income tax reporting purposes,
         WVS reports on a December 31 calendar year basis.

         In preparing  the  consolidated  financial  statements,  management  is
         required to make  estimates  and  assumptions  that affect the reported
         amounts  of assets and  liabilities  as of the  balance  sheet date and
         revenues  and expenses for that  period.  Actual  results  could differ
         significantly from those estimates.

         Investment and Mortgage-Backed Securities
         -----------------------------------------

         Investment  securities  are  classified  at the  time  of  purchase  as
         securities  held to maturity or securities  available for sale based on
         management's  ability and intent. Debt and  mortgage-backed  securities
         acquired  with the ability and intent to hold to maturity are stated at
         cost  adjusted for  amortization  of premium and accretion of discount,
         which are  computed  using the  level-yield  method and  recognized  as
         adjustments of interest income.  Amortization rates for mortgage-backed
         securities  are  periodically   adjusted  to  reflect  changes  in  the
         prepayment  speeds of the  underlying  mortgages.  Certain  other debt,
         equity,  and   mortgage-backed   securities  have  been  classified  as
         available  for sale to serve  principally  as a  source  of  liquidity.
         Unrealized holding gains and losses for  available-for-sale  securities
         are reported as a separate  component of stockholders'  equity,  net of
         tax, until realized.  Realized securities gains and losses are computed
         using the specific  identification  method.  Interest and  dividends on
         investment and mortgage-backed securities are recognized as income when
         earned.

         Common  stock of the  Federal  Home Loan Bank (the  "FHLB")  represents
         ownership in an  institution,  which is wholly owned by other financial
         institutions.  This  equity  security  is  accounted  for at  cost  and
         reported separately on the accompanying Consolidated Balance Sheet.

                                       24
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

         Trading Securities
         ------------------

         Trading  securities are held for resale in  anticipation  of short-term
         (generally  90 days or less)  fluctuations  in market  prices.  Trading
         securities are stated at fair value.  Realized and unrealized gains and
         losses are  included in  noninterest  income as  investment  securities
         gains.

         Net Loans Receivable
         --------------------

         Net loans receivable are reported at their principal amount, net of the
         allowance for loan losses and deferred loan fees. Interest on mortgage,
         consumer, and commercial loans is recognized on the accrual method. The
         Company's  general  policy is to stop accruing  interest on loans when,
         based upon relevant factors, the collection of principal or interest is
         doubtful,  regardless of the contractual  status.  Interest received on
         nonaccrual  loans is  recorded as income or applied  against  principal
         according to  management's  judgment as to the  collectibility  of such
         principal.

         Loan origination and commitment  fees, and all incremental  direct loan
         origination  costs,  are deferred and recognized  over the  contractual
         remaining lives of the related loans on a level-yield basis.

         Allowance for Loan Losses
         -------------------------

         The allowance for loan losses  represents  the amount which  management
         estimates  is adequate to provide for probable  losses  inherent in its
         loan  portfolio.  The  allowance  method is used in providing  for loan
         losses. Accordingly,  all loan losses are charged to the allowance, and
         all  recoveries  are credited to it. The  allowance  for loan losses is
         established  through a provision for loan losses charged to operations.
         The  provision  for  loan  losses  is based  on  management's  periodic
         evaluation  of  individual  loans,  economic  factors,  past  loan loss
         experience, changes in the composition and volume of the portfolio, and
         other relevant factors.  The estimates used in determining the adequacy
         of the allowance  for loan losses,  including the amounts and timing of
         future  cash  flows  expected  on  impaired  loans,   are  particularly
         susceptible to changes in the near term.

         Impaired  loans are  commercial  and  commercial  real estate loans for
         which  it is  probable  the  Company  will not be able to  collect  all
         amounts due according to the  contractual  terms of the loan agreement.
         The Company  individually  evaluates such loans for impairment and does
         not aggregate  loans by major risk  classifications.  The definition of
         "impaired  loans"  is not the  same as the  definition  of  "nonaccrual
         loans," although the two categories overlap.  The Company may choose to
         place  a loan  on  nonaccrual  status  due to  payment  delinquency  or
         uncertain collectibility, while not classifying the loan as impaired if
         the loan is not a commercial  or commercial  real estate loan.  Factors
         considered by  management in  determining  impairment  include  payment
         status and collateral  value.  The amount of impairment for these types
         of impaired loans is determined by the  difference  between the present
         value of the  expected  cash  flows  related  to the  loan,  using  the
         original  interest  rate,  and its  recorded  value,  or as a practical
         expedient in the case of collateralized  loans, the difference  between
         the fair value of the collateral and the recorded  amount of the loans.
         When foreclosure is probable,  impairment is measured based on the fair
         value of the collateral.

         Mortgage loans on one-to-four  family properties and all consumer loans
         are large groups of smaller-balance  homogeneous loans and are measured
         for  impairment  collectively.   Loans  that  experience  insignificant
         payment delays, which are defined as 90 days or less, generally are not
         classified  as impaired.  Management  determines  the  significance  of
         payment delays on a case-by-case  basis taking into  consideration  all
         circumstances  surrounding  the loan and the  borrower,  including  the
         length of the delay,  the  borrower's  prior  payment  record,  and the
         amount of shortfall in relation to the principal and interest owed.

                                       25
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

         Real Estate Owned
         -----------------

         Real estate owned acquired through  foreclosure is carried at the lower
         of cost or fair value minus estimated costs to sell.  Costs relating to
         development  and improvement of the property are  capitalized,  whereas
         costs of holding such real estate are  expensed as incurred.  Valuation
         allowances for estimated losses are provided when the carrying value of
         the real estate acquired exceeds the fair value.

         Premises and Equipment
         ----------------------

         Premises  and   equipment   are  stated  at  cost,   less   accumulated
         depreciation. Depreciation is principally computed on the straight-line
         method over the  estimated  useful lives of the related  assets,  which
         range from 3 to 10 years for furniture and equipment and 25 to 50 years
         for building  premises.  Leasehold  improvements are amortized over the
         shorter  of their  estimated  useful  lives or their  respective  lease
         terms, which range from 7 to 15 years. Expenditures for maintenance and
         repairs  are  charged  against  income  as  incurred.  Costs  of  major
         additions and improvements are capitalized.

         Income Taxes
         ------------

         Deferred  tax  assets  and   liabilities  are  computed  based  on  the
         difference between the financial  statement and the income tax basis of
         assets and liabilities  using the enacted marginal tax rates.  Deferred
         income  taxes or benefits  are based on the changes in the deferred tax
         asset or liability from period to period.

         The Company files a consolidated  federal  income tax return.  Deferred
         tax assets and  liabilities  are reflected at currently  enacted income
         tax rates  applicable to the period in which such items are expected to
         be realized or settled.  As changes in tax rates are enacted,  deferred
         tax assets and  liabilities  are  adjusted  through the  provision  for
         income taxes.

         Earnings Per Share
         ------------------

         The Company  provides dual  presentation of basic and diluted  earnings
         per share.  Basic  earnings  per share are  calculated  by dividing net
         income available to common stockholders by the weighted-average  number
         of common shares  outstanding  during the period.  Diluted earnings per
         share  are  calculated  by  dividing  net  income  available  to common
         stockholders,  adjusted for the effects of any dilutive securities,  by
         the weighted-average number of common shares outstanding,  adjusted for
         the effects of any dilutive securities.

         Stock Options
         -------------

         The Company  accounts for  stock-based  compensation in accordance with
         Financial  Accounting  Standard  (FAS)  No.  123R.  FAS  123R  requires
         compensation  costs related to share-based  payment  transactions to be
         recognized in the financial statements (with limited  exceptions).  The
         amount of  compensation  cost is measured based on the grant-date  fair
         value of the equity or liability instruments issued.  Compensation cost
         is  recognized  over the period  that an employee  provides  service in
         exchange for the award.  The Company did not have any non-vested  stock
         options  outstanding  during the periods ended June 30, 2007, 2006, and
         2005.  There were no options  issued  during the periods ended June 30,
         2007, 2006, and 2005.

                                       26
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

         Comprehensive Income
         --------------------

         The  Company  is  required  to  present  comprehensive  income  and its
         components in a full set of general- purpose  financial  statements for
         all  periods  presented.   Other   comprehensive   income  is  composed
         exclusively   of  net   unrealized   holding  gains   (losses)  on  its
         available-for-sale  securities  portfolio.  The  Company has elected to
         report the effects of its other comprehensive income as part of Note 3.

         Cash Flow Information
         ---------------------

         Cash  and  cash  equivalents  include  cash  and  due  from  banks  and
         interest-earning demand deposits.

         Reclassification of Comparative Figures
         ---------------------------------------

         Certain  comparative  amounts for prior years have been reclassified to
         conform to current-year  presentations.  Such reclassifications did not
         affect net income or stockholders' equity.

         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
         adoption of this standard is not expected to have a material  effect on
         the Company's financial position.

         In February  2007,  the FASB issued FAS No. 159,  The Fair Value Option
         for Financial Assets and Financial Liabilities - Including an amendment
         of FASB  Statement No. 115,  which provides all entities with an option
         to report selected  financial assets and liabilities at fair value. The
         objective  of the FAS No.  159 is to  improve  financial  reporting  by
         providing  entities  with the  opportunity  to mitigate  volatility  in
         earnings caused by measuring related assets and liabilities differently
         without having to apply the complex provisions of hedge accounting. FAS
         No. 159 is  effective as of the  beginning of an entity's  first fiscal
         year beginning after November 15, 2007.  Early adoption is permitted as
         of the beginning of a fiscal year that begins on or before November 15,
         2007 provided the entity also elects to apply the provisions of FAS No.
         157,  Fair Value  Measurements.  The  adoption of this  standard is not
         expected  to  have a  material  effect  on  the  Company's  results  of
         operations or financial position.

                                       27
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

         Recent Accounting Pronouncements
         --------------------------------

         In September  2006,  the SEC issued Staff  Accounting  Bulletin No. 108
         ("SAB 108"),  Considering the Effects of Prior Year  Misstatements When
         Quantifying   Misstatements  in  Current  Year  Financial   Statements,
         providing guidance on quantifying financial statement  misstatement and
         implementation  when first applying this  guidance.  Under SAB No. 108,
         companies  should  evaluate a  misstatement  based on its impact on the
         current  year income  statement,  as well as the  cumulative  effect of
         correcting such  misstatements  that existed in prior years existing in
         the current  year's  ending  balance  sheet.  SAB 108 is effective  for
         fiscal  years ending  after  November  15,  2006.  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 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  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 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 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  adoption of this  standard is not expected to
         have a  material  effect on the  Company's  results  of  operations  or
         financial position.

         In March 2007, the FASB ratified  Emerging  Issues Task Force Issue No.
         06-10 ("EITF 06-10"), Accounting for Collateral Assignment Split-Dollar
         Life Insurance Agreements. EITF 06-10 provides guidance for determining
         a  liability  for  the  postretirement  benefit  obligation  as well as
         recognition and measurement of the associated asset on the basis of the
         terms of the collateral assignment  agreement.  EITF 06-10 is effective
         for fiscal years  beginning  after  December 15, 2007.  The adoption of
         this  standard  is not  expected  to  have  a  material  effect  on the
         Company's results of operations or financial position.

         In June 2007,  the FASB ratified  Emerging  Issues Task Force Issue No.
         06-11 ("EITF  06-11"),  Accounting for Income Tax Benefits of Dividends
         on  Share-Based  Payment  Awards.  EITF 06-11  applies  to  share-based
         payment  arrangements  with dividend  protection  features that entitle
         employees  to receive  (a)  dividends  on  equity-classified  nonvested
         shares, (b) dividend equivalents on  equity-classified  nonvested share
         units,  or (c) payments  equal to the dividends  paid on the underlying
         shares while an  equity-classified  share option is  outstanding,  when
         those  dividends  or  dividend  equivalents  are  charged  to  retained
         earnings  under FAS No.  123R,  Share-Based  Payment,  and result in an
         income tax deduction  for the employer.  A consensus was reached that a
         realized income tax benefit from dividends or dividend equivalents that
         are  charged  to  retained  earnings  and  are  paid to  employees  for
         equity-classified  nonvested  equity  shares,  nonvested  equity  share
         units, and outstanding  equity share options should be recognized as an
         increase in  additional  paid-in  capital.  EITF 06-11 is effective for
         fiscal years  beginning  after December 15, 2007,  and interim  periods
         within  those  fiscal  years.  The  adoption  of this  standard  is not
         expected  to  have a  material  effect  on  the  Company's  results  of
         operations or financial position.

                                       28
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

2.       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>
                                                            2007          2006          2005
                                                         ----------    ----------    ----------

                                                       <c>           <c>           <c>
         Weighted-average common shares
               issued                                     3,778,561     3,765,511     3,762,892

         Average treasury stock shares                   (1,458,633)   (1,408,294)   (1,330,625)
                                                         ----------    ----------    ----------

         Weighted-average common shares and
               common stock equivalents used to
               calculate basic earnings per share         2,319,928     2,357,217     2,432,267

         Additional common stock equivalents
               (stock options) used to calculate
               diluted earnings per share                     1,608         2,779         5,380
                                                         ----------    ----------    ----------

         Weighted-average common shares and
               common stock equivalents used
               to calculate diluted earnings per share    2,321,536     2,359,996     2,437,647
                                                         ==========    ==========    ==========
</table>

         There are no convertible  securities that would affect the numerator in
         calculating basic and diluted earnings per share; therefore, net income
         as presented on the Consolidated Statement of Income is used.

3.       COMPREHENSIVE INCOME

         Other comprehensive income primarily reflects changes in net unrealized
         gains (losses) on  available-for-sale  securities.  Total comprehensive
         income for the years ended June 30 is summarized as follows:

<table>
<caption>
                                                                       2007      2006       2005
                                                                     -------   -------    -------

                                                                  <c>       <c>        <c>
         Net Income                                                  $ 3,646   $ 2,846    $ 2,909
         Other comprehensive income:
                Unrealized losses on available-for-sale securities        --      (221)      (536)
                Reclassification adjustment for gains included
                in net income                                             --        30        336
                                                                     -------   -------    -------
         Other comprehensive loss before tax                              --      (191)      (200)
         Income tax benefit related to other
                comprehensive loss                                        --       (65)       (68)
                                                                     -------   -------    -------
         Other comprehensive loss, net of tax                             --      (126)      (132)
                                                                     -------   -------    -------
         Comprehensive income                                        $ 3,646   $ 2,720    $ 2,777
                                                                     =======   =======    =======
</table>

                                       29
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

4.       INVESTMENT SECURITIES

         The amortized cost and fair values of investments are as follows:
<table>
<caption>
                                                                 Gross          Gross
                                                Amortized      Unrealized     Unrealized         Fair
                                                   Cost          Gains          Losses           Value
                                               ------------   ------------   ------------    ------------

                                                   <c>              <c>             <c>         <c>
         2007
         ----
         AVAILABLE FOR SALE
         Corporate debt securities             $      8,402   $         --   $         --    $      8,402
         Equity securities                              555             --            (24)            531
                                               ------------   ------------   ------------    ------------

               Total                           $      8,957   $         --   $        (24)   $      8,933
                                               ============   ============   ============    ============

         HELD TO MATURITY
         U.S. government agency securities     $    186,667   $         17   $     (1,567)   $    185,117
         Corporate debt securities                    6,198             --             --           6,198
         Obligations of states and political
           subdivisions                               9,799            399             (3)         10,195
                                               ------------   ------------   ------------    ------------

               Total                           $    202,664   $        416   $     (1,570)   $    201,510
                                               ============   ============   ============    ============
<caption>
                                                                 Gross          Gross
                                                Amortized      Unrealized     Unrealized         Fair
                                                   Cost          Gains          Losses           Value
                                               ------------   ------------   ------------    ------------

                                                   <c>              <c>             <c>         <c>
         2006
         ----
         AVAILABLE FOR SALE
         Corporate debt securities             $      7,997   $         --   $         --    $      7,997
         Equity securities                              500             --            (28)            472
                                               ------------   ------------   ------------    ------------

               Total                           $      8,497   $         --   $        (28)   $      8,469
                                               ============   ============   ============    ============

         HELD TO MATURITY
         U.S. government agency securities     $    175,755   $         21   $     (2,771)   $    173,005
         Obligations of states and political
           subdivisions                              12,197            482             (4)         12,675
                                               ------------   ------------   ------------    ------------

               Total                           $    187,952   $        503   $     (2,775)   $    185,680
                                               ============   ============   ============    ============
</table>

In 2007,  2006,  and 2005, the Company  recorded  realized  investment  security
gains,  and  unrealized  holding gains and losses for trading  securities of $0,
$30, and $336.  Proceeds from sales of investment  securities during 2007, 2006,
and 2005 were $0, $1,016, and $1,409.

                                       30
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

4.       INVESTMENT SECURITIES (Continued)

         The amortized cost and fair values of debt securities at June 30, 2007,
         by  contractual  maturity,  are shown below.  Expected  maturities  may
         differ from the  contractual  maturities  because  issuers may have the
         right to call securities prior to their final maturities.

<table>
<caption>
                                Due in        Due after       Due after
                               One year      one through     five through    Due after
                                or less       five years      ten years      ten years        Total
                              ------------   ------------   ------------   ------------   ------------

                                  <c>            <c>          <c>             <c>           <c>
         AVAILABLE FOR SALE
            Amortized cost    $      8,402   $         --   $         --   $         --   $      8,402
            Fair value               8,402             --             --             --          8,402

         HELD TO MATURITY
            Amortized cost    $      6,298   $      1,395   $    118,497   $     76,474   $    202,664
            Fair value               6,297          1,466        117,681         76,066        201,510
</table>

         Investment  securities  with amortized costs of $96,460 and $88,229 and
         fair  values  of  $95,797  and  $86,703  at June  30,  2007  and  2006,
         respectively,  were  pledged  to  secure  public  deposits,  repurchase
         agreements, and for other purposes as required by law.

5.       MORTGAGE-BACKED SECURITIES

         The amortized cost and fair values of mortgage-backed securities are as
         follows:
<table>
<caption>
                                                                  Gross         Gross
                                                Amortized      Unrealized     Unrealized         Fair
                                                   Cost           Gains         Losses          Value
                                               ------------   ------------   ------------    ------------

                                            <c>            <c>            <c>             <c>
         2007
         ----
         AVAILABLE FOR SALE

         Government National Mortgage
           Association certificates            $      2,137   $         58   $         --    $      2,195
         Collateralized mortgage obligations             49              2             --              51
                                               ------------   ------------   ------------    ------------

              Total                            $      2,186   $         60   $         --    $      2,246
                                               ============   ============   ============    ============

         HELD TO MATURITY

         Government National Mortgage
           Association certificates            $         --   $         --   $         --    $         --
         Collateralized mortgage obligations        119,271            582           (207)        119,646
                                               ------------   ------------   ------------    ------------

              Total                            $    119,271   $        582   $       (207)   $    119,646
                                               ============   ============   ============    ============
</table>

                                       31
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

5.       MORTGAGE-BACKED SECURITIES (Continued)

<table>
<caption>
                                                                 Gross          Gross
                                                Amortized      Unrealized     Unrealized         Fair
                                                   Cost          Gains          Losses           Value
                                               ------------   ------------   ------------    ------------

                                                 <c>                <c>           <c>          <c>
         2006
         ----
         AVAILABLE FOR SALE

         Government National Mortgage
           Association certificates            $      2,171   $         61   $         --    $      2,232
         Collateralized mortgage obligations             58              2             --              60
                                               ------------   ------------   ------------    ------------

              Total                            $      2,229   $         63   $         --    $      2,292
                                               ============   ============   ============    ============

         HELD TO MATURITY

         Government National Mortgage
           Association certificates            $         --   $         --   $         --    $         --
         Collateralized mortgage obligations        153,461            216           (971)        152,706
                                               ------------   ------------   ------------    ------------

              Total                            $    153,461   $        216   $       (971)   $    152,706
                                               ============   ============   ============    ============
</table>

         The amortized cost and fair value of mortgage-backed securities at June
         30, 2007, by contractual maturity, are shown below. Expected maturities
         may differ from the contractual  maturities  because borrowers may have
         the  right  to call or  prepay  obligations  with  or  without  call or
         prepayment penalties.

<table>
<caption>
                                Due in        Due after       Due after
                               one year      one through     five through    Due after
                                or less       five years      ten years      ten years        Total
                              ------------   ------------   ------------   ------------   ------------

                                  <c>            <c>          <c>             <c>           <c>
         AVAILABLE FOR SALE
            Amortized cost    $         --   $         --   $         --   $      2,186   $      2,186
            Fair value                  --             --             --          2,246          2,246

         HELD TO MATURITY
            Amortized cost    $         --   $         --   $         --   $    119,271   $    119,271
            Fair value                  --             --             --        119,646        119,646
</table>

         At June 30, 2007 and 2006, mortgage-backed securities with an amortized
         cost of $120,435 and $138,349 and fair values of $120,873 and $137,827,
         were pledged to secure borrowings with the Federal Home Loan Bank.

                                       32
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

6.       UNREALIZED LOSSES ON SECURITIES

         The following  table shows the Company's  gross  unrealized  losses and
         fair  value,  aggregated  by  category  and  length  of time  that  the
         individual  securities  have  been  in  a  continuous  unrealized  loss
         position, at June 30, 2007 and 2006.
<table>
<caption>
                                                                                2007
                                      -----------------------------------------------------------------------------------------
                                        Less Than Twelve Months        Twelve Months or Greater               Total
                                      ---------------------------    ---------------------------    ---------------------------
                                                        Gross                          Gross                          Gross
                                          Fair        Unrealized         Fair        Unrealized         Fair        Unrealized
                                         Value          Losses          Value          Losses          Value          Losses
                                      ------------   ------------    ------------   ------------    ------------   ------------

                                   <c>            <c>             <c>            <c>             <c>            <c>
         U.S. government agencies
           securities                 $    102,015   $       (817)   $     59,108   $       (750)   $    161,123   $     (1,567)
         Obligations of states and
             political subdivisions             99             (1)          1,300             (2)          1,399             (3)
         Corporate debt securities              --             --             476            (24)            476            (24)
            Collateralized mortgage
           obligations                      10,108            (35)         53,415           (172)         63,523           (207)
                                      ------------   ------------    ------------   ------------    ------------   ------------

               Total                  $    112,222   $       (853)   $    114,299   $       (948)   $    226,521   $     (1,801)
                                      ============   ============    ============   ============    ============   ============
<caption>
                                                                                2006
                                      -----------------------------------------------------------------------------------------
                                        Less Than Twelve Months        Twelve Months or Greater               Total
                                      ---------------------------    ---------------------------    ---------------------------
                                                        Gross                          Gross                          Gross
                                          Fair        Unrealized         Fair        Unrealized         Fair        Unrealized
                                         Value          Losses          Value          Losses          Value          Losses
                                      ------------   ------------    ------------   ------------    ------------   ------------

                                   <c>            <c>             <c>            <c>             <c>            <c>
         U.S. government agencies
           securities                 $    104,620   $     (1,929)   $     38,389   $       (842)   $    143,009   $     (2,771)
         Obligations of states and
             political subdivisions             --             --           1,315             (4)          1,315             (4)
         Corporate debt securities             472            (28)             --             --             472            (28)
            Collateralized mortgage
           obligations                     101,260           (648)         18,316           (323)        119,576           (971)
                                      ------------   ------------    ------------   ------------    ------------   ------------

               Total                  $    206,352   $     (2,605)   $     58,020   $     (1,169)   $    264,372   $     (3,774)
                                      ============   ============    ============   ============    ============   ============
</table>

         The  policy of the  Company  is to  recognize  an  other-than-temporary
         impairment  of securities  where the fair value has been  significantly
         below  cost  for  three  consecutive   quarters.   For   fixed-maturity
         investments  with  unrealized  losses due to  interest  rates where the
         Company has the positive  intent and ability to hold the investment for
         a period of time  sufficient  to allow a market  recovery,  declines in
         value below cost are not assumed to be other than temporary.  There are
         68  positions  that are  temporarily  impaired  at June 30,  2007.  The
         Company  reviews its position  quarterly  and has asserted that at June
         30, 2007, the declines outlined in the above table represent  temporary
         declines and the Company does have the intent and ability to hold those
         securities to maturity or to allow a market recovery.

         The  Company  has  concluded  that  any  impairment  of its  investment
         securities  portfolio is not other than  temporary but is the result of
         interest  rate  changes,  sector credit  changes,  or  Company-specific
         rating changes that are not expected to result in the  noncollection of
         principal and interest during the period.

                                       33
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

7.       NET LOANS RECEIVABLE

Major classifications of loans are summarized as follows:

                                                                 2007      2006
                                                               -------   -------
         First mortgage loans:
               1 - 4 family dwellings                          $17,102   $17,702
               Construction                                     25,679    20,964
               Land acquisition and development                  2,195     3,221
               Multi-family dwellings                            6,458     4,339
               Commercial                                        7,699     7,574
                                                               -------   -------
                                                                59,133    53,800
                                                               -------   -------
         Consumer loans:
               Home equity                                       6,852     6,483
               Home equity lines of credit                       3,006     2,961
               Other                                               551       962
                                                               -------   -------
                                                                10,409    10,406
                                                               -------   -------

         Commercial loans                                        3,988     2,050
                                                               -------   -------

         Less:
               Undisbursed construction and land development    12,090     9,512
               Net deferred loan fees                              104        85
               Allowance for loan losses                           986       957
                                                               -------   -------
                                                                13,180    10,554
                                                               -------   -------

         Net loans receivable                                  $60,350   $55,702
                                                               =======   =======

         The  Company's  primary  business  activity is with  customers  located
         within its local trade area of Northern  Allegheny and Southern  Butler
         counties.  The Company has concentrated its lending efforts by granting
         residential and construction mortgage loans to customers throughout its
         immediate   trade  area.  The  Company  also   selectively   funds  and
         participates  in commercial and  residential  mortgage loans outside of
         its immediate trade area, provided such loans meet the Company's credit
         policy  guidelines.  At  June  30,  2007  and  2006,  the  Company  had
         approximately $17 million and $15 million, respectively, of outstanding
         loans for land  development  and  construction in the local trade area.
         Although the Company had a diversified  loan portfolio at June 30, 2007
         and 2006, loans outstanding to individuals and businesses are dependent
         upon the local economic conditions in its immediate trade area.

                                       34
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

7.       NET LOANS RECEIVABLE (Continued)

         Total nonaccrual loans and troubled debt restructurings and the related
         interest income recognized for the years ended June 30 are as follows:

                                       2007     2006     2005
                                      ------   ------   ------

         Principal outstanding        $1,204   $  308   $2,101
                                      ------   ------   ------
         Interest income that would
           have been recognized           82       23      150
         Interest income recognized       81       10       99
                                      ------   ------   ------

         Interest income foregone     $    1   $   13   $   51
                                      ======   ======   ======

         The following table is a summary of the loans considered to be impaired
         as of June 30:

                                                         2007     2006     2005
                                                        ------   ------   ------

         Impaired loans with an allocated allowance     $  972   $   --   $   --
         Impaired loans without an allocated allowance      --       --       --
                                                        ------   ------   ------
               Total impaired loans                     $  972   $   --   $   --
                                                        ======   ======   ======
         Allocated allowance on impaired loans          $  341   $   --   $   --
         Average impaired loans                            245       --       --
         Income recognized on impaired loans                23       --       --

         Certain  officers,  directors,  and their associates were customers of,
         and had  transactions  with,  the  Company  in the  ordinary  course of
         business.  A summary of loan  activity for those  directors,  executive
         officers, and their associates with aggregate loan balances outstanding
         of at least $120,000 during the years ended June 30 are as follows:

                                    2007       2006
                                  -------    -------

         Balance, July 1          $   373    $   512
              Additions             2,163        152
              Amounts collected       (81)      (291)
                                  -------    -------

         Balance, June 30         $ 2,455    $   373
                                  =======    =======

8.       ALLOWANCE FOR LOAN LOSSES

         Changes in the allowance for loan losses are as follows:

                                                       2007     2006      2005
                                                     -------  -------   -------

         Balance, July 1                             $   957  $ 1,121   $ 1,370
         Add:
               Provision (recovery) for loan losses       13     (161)      (46)
               Recoveries                                 16        4        34
         Less:
               Loans charged off                          --        7       237
                                                     -------  -------   -------

         Balance, June 30                            $   986  $   957   $ 1,121
                                                     =======  =======   =======

                                       35
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

9.       ACCRUED INTEREST RECEIVABLE

         Accrued interest receivable consists of the following:

                                                      2007     2006
                                                     ------   ------

         Investment and mortgage-backed securities   $3,398   $2,633
         Loans receivable                               316      288
                                                     ------   ------

               Total                                 $3,714   $2,921
                                                     ======   ======

10.      FEDERAL HOME LOAN BANK STOCK

         The Savings Bank is a member of the FHLB System. As a member, West View
         maintains an  investment in the capital stock of the FHLB of Pittsburgh
         in an amount not less than 0.65 percent of the outstanding  unused FHLB
         borrowing capacity and 4.65 percent of its outstanding FHLB borrowings,
         as calculated throughout the year.

11.      PREMISES AND EQUIPMENT

         Major  classifications  of premises and  equipment  are  summarized  as
         follows:

                                               2007     2006
                                              ------   ------

         Land and improvements                $  246   $  246
         Buildings and improvements            2,015    1,994
         Furniture, fixtures, and equipment      993      928
                                              ------   ------
                                               3,254    3,168
         Less accumulated depreciation         2,441    2,304
                                              ------   ------
              Total                           $  813   $  864
                                              ======   ======

         Depreciation  charged to operations  was $137,  $154, and $193, for the
         years ended June 30, 2007, 2006, and 2005, respectively.

                                       36
<page>


         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

12.      DEPOSITS

         Deposit accounts are summarized as follows:
<table>
<caption>
                                                    2007                           2006
                                         ---------------------------    ---------------------------
                                                          Percent of                     Percent of
                                            Amount        Portfolio        Amount        Portfolio
                                         ------------   ------------    ------------   ------------

                                            <c>              <c>           <c>              <c>
         Non-interest-earning checking   $     12,363            7.8%   $     11,315            7.5%
         Interest-earning checking             18,741           11.8          18,083           11.9
         Savings accounts                      32,937           20.7          36,851           24.3
         Money market accounts                 20,146           12.6          16,562           10.9
         Advance payments by borrowers
            for taxes and insurance             1,013            0.6           1,012            0.7
                                         ------------   ------------    ------------   ------------
                                               85,200           53.5          83,823           55.3
                                         ------------   ------------    ------------   ------------
         Savings certificates:
               2.00% or less                       --             --              --             --
               2.01 - 4.00%                    11,815            7.4          31,786           20.9
               4.01 - 6.00%                    62,277           39.0          35,945           23.7
               6.01 - 6.95%                        85            0.1             159            0.1
                                         ------------   ------------    ------------   ------------
                                               74,177           46.5          67,890           44.7
                                         ------------   ------------    ------------   ------------

               Total                     $    159,377          100.0%   $    151,713          100.0%
                                         ============   ============    ============   ============
</table>

         The maturities of savings certificates at June 30, 2007, are summarized
         as follows:

         Within one year                           $56,626
         Beyond one year but within two years        9,907
         Beyond two years but within three years     4,124
         Beyond three years                          3,520
                                                   -------

              Total                                $74,177
                                                   =======

         Savings  certificates  with  balances of  $100,000 or more  amounted to
         $15,937 and $10,999 on June 30, 2007 and 2006, respectively.

Interest expense by deposit category for the years ended June 30 are as follows:

                                                    2007     2006     2005
                                                   ------   ------   ------

         Interest-earning checking accounts        $   11   $   11   $   14
         Savings accounts                             236      280      311
         Money market accounts                        624      413      166
         Savings certificates                       3,308    2,408    1,734
         Advance payments by borrowers for taxes
           and insurance                               11       11       13
                                                   ------   ------   ------

              Total                                $4,190   $3,123   $2,238
                                                   ======   ======   ======

                                       37
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

13.      FEDERAL HOME LOAN BANK ADVANCES

         The following table presents  contractual  maturities of FHLB long-term
         advances as of June 30:
<table>
<caption>
                                                            Weighted-        Stated interest
                                   Maturity range            average            rate range
         Description            from            to         interest rate      from      to         2007           2006
         -----------------    ------------  ------------  ----------------  --------  --------  -----------   -----------

                            <c>           <c>              <c>            <c>       <c>     <c>           <c>
         Convertible           03/19/09      06/22/16          5.49%          4.96%     6.10%   $   129,500   $   137,500
         Fixed rate            03/12/09      05/03/10          3.24           2.91      3.53          1,079         1,079
                                                                                                -----------   -----------

                               Total                                                            $   130,579   $   138,579
                                                                                                ===========   ===========
</table>

         Maturities of FHLB long-term  advances at June 30, 2007, are summarized
         as follows:
                                                           Weighted-
           Maturing During                                  Average
          Fiscal Year Ended                                Interest
              June 30:                    Amount             Rate
         -------------------           ------------      ------------

                2008                   $         --                --%
                2009                          5,500              4.99
                2010                         20,579              5.86
                2011                         92,000              5.45
                2012                          5,000              5.03
         2013 and thereafter                  7,500              5.32
                                       ------------

                Total                  $    130,579              5.47%
                                       ============

         The terms of the convertible  advances reset to the three-month  London
         Interbank  Offered Rate  ("LIBOR")  and have  various  spreads and call
         dates ranging from three months to seven years.  The FHLB has the right
         to convert from a fixed rate to a  predetermined  floating  rate on its
         conversion  date  or  quarterly  thereafter.   Should  the  advance  be
         converted,  the Company  has the right to pay off the  advance  without
         penalty.  The FHLB advances are secured by the Company's FHLB stock and
         investment  securities  and  are  subject  to  substantial   prepayment
         penalties.

         The Company also  utilized  revolving  and  short-term  FHLB  advances.
         Short-term  FHLB  advances  generally  mature  within  90  days,  while
         revolving FHLB advances may be repaid by the Company  without  penalty.
         The following table presents information  regarding such advances as of
         June 30:

                                                            2007       2006
                                                           -------    -------

         FHLB revolving and short-term advances:
               Ending balance                              $    --    $23,150
               Average balance during the year               6,598      2,421
               Maximum month-end balance during the year    67,235     24,800
               Average interest rate during the year          5.37%      4.37%
               Weighted-average rate at year-end                --%      5.32%

         At June 30, 2007, the Company had remaining borrowing capacity with the
         FHLB of approximately $108 million.

         The  FHLB  advances  are  secured  by  the  Company's  FHLB  stock  and
         investment and  mortgage-backed  securities  held in safekeeping at the
         FHLB, and are subject to substantial prepayment penalties.

                                       38
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

14.      OTHER BORROWINGS

         Other borrowings include securities sold under agreements to repurchase
         with  securities  brokers.   The  outstanding   repurchase   agreements
         generally  mature  within 1 to 90 days  from the  transaction  date and
         qualifying   collateral  has  been   delivered.   The  Company  pledged
         investment  securities  with a carrying value of $83,564 and $78,259 at
         June 30, 2007 and 2006, respectively,  as collateral for the repurchase
         agreements  as  explained  in  Note 4.  The  following  table  presents
         information regarding other borrowings as of June 30:

                                                       2007        2006
                                                     --------    --------

         Ending balance                              $ 82,950    $ 76,048
         Average balance during the year               74,659      99,633
         Maximum month-end balance during the year     92,900     122,185
         Average interest rate during the year           5.40%       4.42%
         Weighted-average rate at year-end               5.30%       5.35%

15.      COMMITMENTS AND CONTINGENT LIABILITIES

         Loan Commitments

         In the normal course of business,  there are various  commitments  that
         are not reflected in the Bank's financial statements. These instruments
         involve, to varying degrees,  elements of credit and interest rate risk
         in excess of the amount  recognized in the consolidated  balance sheet.
         The Bank's  exposure to credit loss in the event of  nonperformance  by
         the other parties to the financial  instruments  is  represented by the
         contractual  amounts as disclosed.  Losses,  if any, are charged to the
         allowance for loan losses.  Management minimizes its exposure to credit
         loss under these  commitments  by subjecting  them to credit  approval,
         review  procedures,  and collateral  requirements as deemed  necessary.
         Various loan commitments  totaling $20,733 and $18,630 at June 30, 2007
         and  2006,   respectively,   represent   financial   instruments   with
         off-balance  sheet risk. The commitments  outstanding at June 30, 2007,
         contractually mature in less than one year.

         Loan commitments  involve,  to varying degrees,  elements of credit and
         interest  rate  risk  in  excess  of  the  amount   recognized  in  the
         Consolidated Balance Sheet. The same credit policies are used in making
         commitments  and  conditional   obligations  as  for  on-balance  sheet
         instruments. Generally, collateral, usually in the form of real estate,
         is required to support financial instruments with credit risk.

         Commitments  to extend  credit are  agreements to lend to a customer as
         long as there is no violation of any condition  established in the loan
         agreement.  These commitments are composed primarily of the undisbursed
         portion  of  construction   and  land   development   loans  (Note  7),
         residential, commercial real estate, and consumer loan originations.

         The exposure to loss under these  commitments  is limited by subjecting
         them to credit approval and monitoring  procedures.  Substantially  all
         commitments to extend credit are contingent upon customers  maintaining
         specific credit  standards at the time of the loan funding.  Management
         assesses the credit risk associated with certain  commitments to extend
         credit in determining the level of the allowance for loan losses.

         Litigation

         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
         financial condition of WVS.

                                       39
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

16.      REGULATORY CAPITAL

         Federal  regulations  require the Company and Savings  Bank to maintain
         minimum amounts of capital. Specifically,  each is required to maintain
         certain  minimum  dollar amounts and ratios of Total and Tier I Capital
         to Risk-Weighted Assets and of Tier I Capital to Average Total Assets.

         In addition to the capital requirements,  the Federal Deposit Insurance
         Corporation   Improvement  Act  ("FDICIA")   established  five  capital
         categories    ranging    from   well    capitalized    to    critically
         undercapitalized.  Should any institution fail to meet the requirements
         to be considered adequately  capitalized,  it would become subject to a
         series of increasingly restrictive regulatory actions.

         As of June 30, 2007 and 2006, the FDIC  categorized the Savings Bank as
         well capitalized  under the regulatory  framework for prompt corrective
         action. To be classified as a well capitalized  financial  institution,
         Total Risk-Based, Tier 1 Risk-Based, and Tier 1 Leverage Capital Ratios
         must be at least 10 percent, 6 percent, and 5 percent, respectively.

         The Company's and Savings Bank's actual capital ratios are presented in
         the following tables,  which show that both met all regulatory  capital
         requirements.

<table>
<caption>
                                                                June 30, 2007
                                                    --------------------------------------
                                                           WVS              West View
                                                    -----------------    -----------------
                                                     Amount    Ratio      Amount    Ratio
                                                    -------   -------    -------   -------

                                                  <c>        <c>       <c>        <c>
         Total Capital (to Risk-Weighted Assets)
         ---------------------------------------

         Actual                                     $32,282     23.15%   $29,786     21.69%
         To Be Well Capitalized                      13,943     10.00     13,734     10.00
         For Capital Adequacy Purposes               11,155      8.00     10,987      8.00

         Tier I Capital (to Risk-Weighted Assets)
         ----------------------------------------

         Actual                                     $31,254     22.41%   $28,758     20.94%
         To Be Well Capitalized                       8,366      6.00      8,241      6.00
         For Capital Adequacy Purposes                5,577      4.00      5,494      4.00

         Tier I Capital (to Average Total Assets)
         ----------------------------------------

         Actual                                     $31,254      8.13%   $28,758      7.48%
         To Be Well Capitalized                      19,214      5.00     19,224      5.00
         For Capital Adequacy Purposes               15,371      4.00     15,379      4.00
</table>

                                       40
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

16.      REGULATORY CAPITAL (Continued)

<table>
<caption>
                                                                June 30, 2006
                                                    --------------------------------------
                                                           WVS              West View
                                                    -----------------    -----------------
                                                     Amount    Ratio      Amount    Ratio
                                                    -------   -------    -------   -------

                                                  <c>        <c>       <c>        <c>

         Total Capital (to Risk-Weighted Assets)
         ---------------------------------------

         Actual                                     $30,382     22.88%   $28,786     21.69%
         To Be Well Capitalized                      13,279     10.00     13,273     10.00
         For Capital Adequacy Purposes               10,623      8.00     10,619      8.00

         Tier I Capital (to Risk-Weighted Assets)
         ----------------------------------------

         Actual                                     $29,377     22.12%   $27,781     20.93%
         To Be Well Capitalized                       7,967      6.00      7,964      6.00
         For Capital Adequacy Purposes                5,311      4.00      5,309      4.00

         Tier I Capital (to Average Total Assets)
         ----------------------------------------

         Actual                                     $29,377      6.78%   $27,781      6.40%
         To Be Well Capitalized                      21,679      5.00     21,713      5.00
         For Capital Adequacy Purposes               17,343      4.00     17,370      4.00
</table>

         Prior to the enactment of the Small  Business Job  Protection  Act, the
         Company  accumulated  approximately  $3.9 million of retained earnings,
         which  represent  allocations of income to bad debt  deductions for tax
         purposes only. Since there is no amount that represents the accumulated
         bad debt reserves  subsequent to 1987, no provision for federal  income
         tax has been made for such  amount.  If any  portion of this  amount is
         used other than to absorb loan losses (which is not  anticipated),  the
         amount will be subject to federal  income tax at the current  corporate
         rate.

17.      STOCK BENEFIT PLANS

         Stock Option Plan

         The Company maintains a Stock Option Plan for the directors,  officers,
         and employees.  The stock options  typically have an expiration term of
         ten years,  subject to certain extensions and early  terminations.  The
         per  share  exercise  price of an  incentive  stock  option  shall at a
         minimum  equal the fair market  value of a share of common stock on the
         date  the  option  is  granted.  The  per  share  exercise  price  of a
         compensatory  stock option  granted shall at least equal the greater of
         par value or 85 percent of the fair  market  value of a share of common
         stock on the date the option is granted.  Proceeds from the exercise of
         the stock  options are credited to common stock for the  aggregate  par
         value and the excess is credited to paid-in capital.

                                       41
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

17.      STOCK BENEFIT PLANS (Continued)

         Stock Option Plan (Continued)

         The following  table presents  information  related to the  outstanding
         options:

                                    Officers' and                 Weighted-
                                      Employees'    Directors'     Average
                                        Stock         Stock        Exercise
                                       Options       Options        Price
                                      ----------    ----------    ----------

         Outstanding, June 30, 2004       39,312         4,414    $    14.99

               Granted                        --            --
               Exercised                      --            --
               Forfeited                      --            --
                                      ----------    ----------

         Outstanding, June 30, 2005       39,312         4,414    $    14.99

               Granted                        --            --
               Exercised                  (7,320)           --         12.41
               Forfeited                      --            --
                                      ----------    ----------

         Outstanding, June 30, 2006       31,992         4,414    $    15.51

               Granted                        --            --
               Exercised                 (19,698)         (800)        15.61
               Forfeited                      --            --
                                      ----------    ----------

         Outstanding, June 30, 2007       12,294         3,614    $    15.39
                                      ==========    ==========

         Exercisable at year-end          12,294         3,614    $    15.39
                                      ==========    ==========

         Available for future grant           --            --
                                      ==========    ==========

         At June 30, 2007, for officers and employees  there were 12,294 options
         outstanding,  exercisable  at  a  weighted-average  exercise  price  of
         $15.63,  and a  weighted-average  remaining  contractual  life  of 0.42
         years.

         There were also 3,614 options outstanding and exercisable for directors
         with   a   weighted-average   exercise   price   of   $14.59,   and   a
         weighted-average remaining contractual life of 2.83 years.

                                       42
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

17.      STOCK BENEFIT PLANS (Continued)

         Recognition and Retention Plans ("RRP")
         ---------------------------------------

         The Company  also  maintains  an RRP for  substantially  all  officers,
         employees,  and directors of the Company.  The objective of the RRPs is
         to enable the Company to retain its corporate officers,  key employees,
         and directors who have the experience  and ability  necessary to manage
         WVS and the Savings Bank. Officers and key employees of the Company who
         were selected by members of a Board-appointed committee are eligible to
         receive benefits under the RRPs.  Non-employee directors of the Company
         are eligible to participate in the RRP for directors.

         An aggregate  of 300,000  shares of common stock of WVS was acquired at
         conversion  for future  issuance  under these  plans,  of which  60,000
         shares are  subject to the RRP for  directors  and  240,000  shares are
         subject to the RRP for officers and key employees.

         The RRP expired during 2004, and all unissued shares were retired.  RRP
         costs are accrued to operations and added back to stockholders'  equity
         over a four- to  ten-year  vesting  period.  Net  compensation  expense
         attributed  to the RRPs amounted to $1 for each of the years ended June
         30, 2007, 2006, and 2005.

         Employee Stock Ownership Plan ("ESOP")
         --------------------------------------

         WVS  maintains  an ESOP for the  benefit of officers  and Savings  Bank
         employees who have met certain eligibility  requirements related to age
         and  length of  service.  Compensation  expense  for the ESOP was $113,
         $100,  and $100 for the years  ended  June 30,  2007,  2006,  and 2005,
         respectively.  Total  ESOP  shares as of June 30,  2007 and 2006,  were
         227,113 and 220,264, respectively.

18.      DIRECTOR, OFFICER, AND EMPLOYEE BENEFITS

         Profit Sharing Plan

         The Company  maintains a  non-contributory  profit  sharing 401(k) plan
         (the "Plan") for its officers  and  employees  who have met the age and
         length of service requirements. The Plan is a defined contribution plan
         with the  contributions  based on a percentage  of salaries of the Plan
         participants.  The Company  made no  contributions  to the Plan for the
         three years ended June 30, 2007, 2006, and 2005.

         Directors' Deferred Compensation Plan

         The Company  maintains a deferred  compensation  plan (the  "Plan") for
         directors who elect to defer all or a portion of their directors' fees.
         Deferred fees are paid to the  participants in installments  commencing
         in the year  following the year the individual is no longer a member of
         the Board of Directors.

         The Plan allows for the deferred amounts to be paid in shares of common
         stock at the prevailing  market price on the date of distribution.  For
         fiscal years ended June 30, 2007, 2006, and 2005,  29,341,  25,841, and
         29,979 shares, respectively, were held by the Plan.

                                       43
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

19.      INCOME TAXES

         The provision for income taxes consists of:

                                2007       2006      2005
                              -------    -------   -------
         Currently payable:
               Federal        $ 1,644    $   978   $   475
               State              145        128        79
                              -------    -------   -------
                                1,789      1,106       554
         Deferred                 (26)       181        73
                              -------    -------   -------

               Total          $ 1,763    $ 1,287   $   627
                              =======    =======   =======

         The following  temporary  differences gave rise to the net deferred tax
         assets at June 30:
<table>
<caption>
                                                                      2007    2006
                                                                     ------  ------

                                                                     <c>     <c>
         Deferred tax assets:
               Allowance for loan losses                             $  335  $  325
               Deferred compensation                                    339     324
               Reserve for uncollected interest                         187     183
               Reserve for off-balance sheet commitments                 14      16
               Other                                                     63      60
                                                                     ------  ------
                       Total gross deferred tax assets                  938     908
                                                                     ------  ------

         Deferred tax liabilities:
               Net unrealized gain on securities available for sale      12      35
               Deferred origination fees, net                           177     188
               Depreciation reserve                                      57      42
               Other                                                      1       1
                                                                     ------  ------
                       Total gross deferred tax liabilities             247     266
                                                                     ------  ------

               Net deferred tax assets                               $  691  $  642
                                                                     ======  ======
</table>

         No valuation  allowance was  established  at June 30, 2007 and 2006, in
         view of the  Company's  ability to  carryback to taxes paid in previous
         years,  future  anticipated  taxable income,  which is evidenced by the
         Company's earnings potential, and deferred tax liabilities at June 30.

                                       44
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

19.      INCOME TAXES (Continued)

         The  following is a  reconciliation  between the actual  provision  for
         income  taxes and the  amount of income  taxes  which  would  have been
         provided at federal statutory rates for the years ended June 30:

<table>
<caption>
                                                    2007                     2006                    2005
                                            --------------------     --------------------     --------------------
                                                          % of                     % of                     % of
                                                         Pretax                   Pretax                   Pretax
                                             Amount      Income       Amount      Income       Amount      Income
                                            --------    --------     --------    --------     --------    --------

                                             <c>         <c>          <c>         <c>          <c>        <c>
         Provision at statutory rate        $  1,839        34.0%    $  1,405        34.0%    $  1,202        34.0%
         State income tax, net of federal
           tax benefit                            96         1.8           84         2.0           52         1.5
         Tax exempt income                      (189)       (3.5)        (251)       (6.1)        (553)      (15.6)
         Other, net                               17         0.3           49         1.2          (74)       (2.2)
                                            --------    --------     --------    --------     --------    --------

         Actual tax expense and
           effective rate                   $  1,763        32.6%    $  1,287        31.1%    $    627        17.7%
                                            ========    ========     ========    ========     ========    ========
</table>

         The Bank is subject to the Pennsylvania Mutual Thrift Institutions Tax,
         which is calculated at 11.5 percent of earnings.

20.      REGULATORY MATTERS

         Cash and Due From Banks

         The  Federal  Reserve  requires  the Savings  Bank to maintain  certain
         reserve  balances.  The  required  reserves  are  computed  by applying
         prescribed  ratios to the Savings  Bank's average  deposit  transaction
         account  balances.  As of June 30, 2007 and 2006,  the Savings Bank had
         required reserves of $669 and $667, respectively. The required reserves
         are  held  in  the  form  of  vault  cash  and  a  non-interest-bearing
         depository balance maintained directly with the Federal Reserve.

         Loans

         Federal law prohibits the Company from  borrowing from the Savings Bank
         unless the loans are secured by  specific  obligations.  Further,  such
         secured loans are limited in amount to 10 percent of the Savings Bank's
         capital surplus.

         Dividend Restrictions

         The Savings Bank is subject to the  Pennsylvania  Banking  Code,  which
         restricts the  availability of surplus for dividend  purposes.  At June
         30, 2007, surplus funds of $3,363 were not available for dividends.

                                       45
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

21.      FAIR VALUE OF FINANCIAL INSTRUMENTS

         The  carrying  amounts  and  estimated  fair  values  at June 30 are as
         follows:
<table>
<caption>
                                                2007                   2006
                                       ---------------------   ---------------------
                                       Carrying      Fair      Carrying      Fair
                                        Amount       Value      Amount       Value
                                       ---------   ---------   ---------   ---------

                                      <c>         <c>         <c>         <c>
         FINANCIAL ASSETS
         Cash and cash equivalents     $   2,675   $   2,675   $   1,196   $   1,196
         Investment securities           211,597     210,443     196,421     194,149
         Mortgage-backed securities      121,517     121,892     155,753     154,998
         Net loans receivable             60,350      61,399      55,702      54,280
         Accrued interest receivable       3,714       3,714       2,921       2,921
         FHLB stock                        6,340       6,340       7,861       7,861

         FINANCIAL LIABILITIES
         Deposits                      $ 159,377   $ 159,224   $ 151,713   $ 151,263
         FHLB advances                   130,579     131,582     161,729     161,748
         Other borrowings                 82,950      82,950      76,048      76,048
         Accrued interest payable          1,669       1,669       1,451       1,451
</table>

         Financial  instruments  are defined as cash,  evidence of an  ownership
         interest in an entity,  or a contract  which  creates an  obligation or
         right to receive or deliver cash or another  financial  instrument from
         or to a second entity on potentially favorable or unfavorable terms.

         Fair value is defined  as the  amount at which a  financial  instrument
         could be exchanged in a current  transaction  between willing  parties,
         other than in a forced or liquidation sale. If a quoted market price is
         available for a financial instrument, the estimated fair value would be
         calculated  based  upon  the  market  price  per  trading  unit  of the
         instrument.

         If no readily  available  market exists,  the fair value  estimates for
         financial  instruments  should  be  based  upon  management's  judgment
         regarding  current economic  conditions,  interest rate risk,  expected
         cash flows,  future estimated losses, and other factors,  as determined
         through various option pricing formulas or simulation modeling. As many
         of these  assumptions  result from judgments  made by management  based
         upon estimates, which are inherently uncertain, the resulting estimated
         values may not be indicative of the amount  realizable in the sale of a
         particular   financial   instrument.   In  addition,   changes  in  the
         assumptions  on  which  the  estimated  values  are  based  may  have a
         significant impact on the resulting estimated values.

         As  certain  assets  and  liabilities,  such as  deferred  tax  assets,
         premises and equipment, and many other operational elements of WVS, are
         not considered  financial  instruments,  but have value, this estimated
         fair value of financial instruments would not represent the full market
         value of WVS.

         Estimated  fair  values  have  been  determined  by WVS  using the best
         available data, as generally  provided in internal Savings Bank reports
         and regulatory reports,  using an estimation  methodology  suitable for
         each category of financial  instruments.  The estimation  methodologies
         used are as follows:

                                       46
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

21.      FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)

         Cash and Cash Equivalents, Accrued Interest Receivable and Payable, and
         -----------------------------------------------------------------------
         Other Borrowings
         ----------------

         The fair value approximates the current book value.

         Investment Securities, Mortgage-Backed Securities, and FHLB Stock
         -----------------------------------------------------------------

         The fair value of investment and mortgage-backed securities is equal to
         the  available  quoted  market  price.  If no  quoted  market  price is
         available,  fair value is estimated  using the quoted  market price for
         similar  securities.  Since the FHLB stock is not actively  traded on a
         secondary market and held exclusively by member financial institutions,
         the estimated fair market value approximates the carrying amount.

         Net Loans Receivable and Deposits
         ---------------------------------

         Fair value for consumer mortgage loans is estimated using market quotes
         or  discounting   contractual  cash  flows  for  prepayment  estimates.
         Discount rates were obtained from secondary market sources, adjusted to
         reflect differences in servicing, credit, and other characteristics.

         The estimated  fair values for  consumer,  fixed-rate  commercial,  and
         multi-family real estate loans are estimated by discounting contractual
         cash  flows for  prepayment  estimates.  Discount  rates are based upon
         rates   generally   charged   for  such  loans  with   similar   credit
         characteristics.

         The estimated fair value for nonperforming loans is the appraised value
         of the underlying collateral adjusted for estimated credit risk.

         Demand, savings, and money market deposit accounts are reported at book
         value.  The fair  value of  certificates  of  deposit is based upon the
         discounted  value of the contractual  cash flows.  The discount rate is
         estimated  using average market rates for deposits with similar average
         terms.

         FHLB Advances
         -------------

         The fair values of fixed-rate  advances are estimated using  discounted
         cash flows,  based on current  incremental  borrowing rates for similar
         types of borrowing  arrangements.  The carrying amount on variable rate
         advances approximates their fair value.

         Commitments to Extend Credit
         ----------------------------

         These  financial  instruments  are generally  not subject to sale,  and
         estimated fair values are not readily  available.  The carrying  value,
         represented  by the net  deferred  fee  arising  from the  unrecognized
         commitment, and the fair value, determined by discounting the remaining
         contractual  fee over the term of the  commitment  using fees currently
         charged to enter into similar  agreements with similar credit risk, are
         not considered  material for  disclosure.  The  contractual  amounts of
         unfunded  commitments  are  presented  in  Note 15 to  these  financial
         statements.

                                       47
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

22.      PARENT COMPANY

         Condensed financial information of WVS Financial Corp. is as follows:

                               CONDENSED BALANCE SHEET

                                                                 June 30,
                                                               2007      2006
                                                             -------   -------
         ASSETS
            Interest-earning deposits with subsidiary bank   $   424   $ 1,561
            Investment securities available for sale              57         2
            Investment securities held to maturity             2,000        --
            Investment in subsidiary bank                     28,800    27,822
            Accrued interest receivable and other assets          58        53
                                                             -------   -------

         TOTAL ASSETS                                        $31,339   $29,438
                                                             =======   =======

         LIABILITIES AND STOCKHOLDERS' EQUITY
            Other liabilities                                $    46   $    20
            Stockholders' equity                              31,293    29,418
                                                             -------   -------

         TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY          $31,339   $29,438
                                                             =======   =======
<table>
<caption>
                                    CONDENSED STATEMENT OF INCOME

                                                                    Year Ended June 30,
                                                                 2007       2006      2005
                                                               -------    -------   -------

                                                              <c>        <c>       <c>
         INCOME
              Investment and mortgage-backed securities        $     1    $    16   $    52
              Dividend from subsidiary                           2,700      2,400     1,600
              Investment securities gains, net                      --         --       332
              Interest-earning deposits with subsidiary bank        58         27         3
                                                               -------    -------   -------

         Total income                                            2,759      2,443     1,987
                                                               -------    -------   -------


         OTHER OPERATING EXPENSE                                    98         98       101
                                                               -------    -------   -------

              Income before equity in undistributed
                earnings of subsidiary                           2,661      2,345     1,886
              Equity in undistributed earnings of subsidiary       978        501     1,114
                                                               -------    -------   -------

              Income before income taxes                         3,639      2,846     3,000
              Income tax expense (benefit)                          (7)        --        91
                                                               -------    -------   -------

         NET INCOME                                            $ 3,646    $ 2,846   $ 2,909
                                                               =======    =======   =======
</table>

                                       48
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

22.      PARENT COMPANY (Continued)

<table>
<caption>
                                        CONDENSED STATEMENT OF CASH FLOWS

                                                                           Year Ended June 30,
                                                                       2007        2006        2005
                                                                     --------    --------    --------

                                                                        <c>        <c>          <c>
         OPERATING ACTIVITIES
              Net income                                             $  3,646    $  2,846    $  2,909
              Adjustments to reconcile net income to net cash
                provided by operating activities:
                  Undistributed net income of subsidiary                 (978)       (501)     (1,114)
                   Investment securities gains                             --          --        (332)
                  Other, net                                               21         (13)         62
                                                                     --------    --------    --------
              Net cash provided by operating activities                 2,689       2,332       1,525
                                                                     --------    --------    --------

         INVESTING ACTIVITIES
              Available for sale:
                  Purchase of investment and
                    mortgage-backed securities                            (55)       (611)     (1,550)
                  Proceeds from repayments of investment and
                    mortgage-backed securities                             --       1,942       1,422
                  Proceeds from sales of investment securities             --          --         913
              Held to maturity:
                  Purchases of investment and mortgage-backed
                    securities                                         (1,999)         --          --
                                                                     --------    --------    --------
              Net cash provided by (used for) investing activities     (2,054)      1,331         785
                                                                     --------    --------    --------

         FINANCING ACTIVITIES
              Net proceeds from exercise of stock options                 320          91          --
              Cash dividends paid                                      (1,485)     (1,510)     (1,559)
              Purchases of treasury stock                                (607)     (1,085)     (1,217)
                                                                     --------    --------    --------
              Net cash used for financing activities                   (1,772)     (2,504)     (2,776)
                                                                     --------    --------    --------

              Increase (decrease) in cash and cash equivalents         (1,137)      1,159        (466)

         CASH AND CASH EQUIVALENTS
           BEGINNING OF YEAR                                            1,561         402         868
                                                                     --------    --------    --------

         CASH AND CASH EQUIVALENTS
           END OF YEAR                                               $    424    $  1,561    $    402
                                                                     ========    ========    ========
</table>

                                       49
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

23.      SELECTED QUARTERLY FINANCIAL DATA (unaudited)

<table>
<caption>
                                                                   Three Months Ended
                                                  ------------------------------------------------------
                                                   September      December       March          June
                                                     2006           2006          2007          2007
                                                  -----------    -----------   -----------   -----------

                                                     <c>            <c>           <c>           <c>
         Total interest and dividend income       $     6,118    $     6,230   $     6,051   $     5,911
         Total interest expense                         4,038          4,322         3,867         3,758
                                                  -----------    -----------   -----------   -----------

         Net interest income                            2,080          1,908         2,184         2,153
         Provision (recovery) for loan losses              (9)            --            34           (12)
                                                  -----------    -----------   -----------   -----------

         Net interest income after
           provision (recovery) for loan losses         2,089          1,908         2,150         2,165

         Total noninterest income                         152            161           152           161
         Total noninterest expense                        902            890           832           905
                                                  -----------    -----------   -----------   -----------

         Income before income taxes                     1,339          1,179         1,470         1,421
         Income taxes                                     435            342           515           471
                                                  -----------    -----------   -----------   -----------

         Net income                               $       904    $       837   $       955   $       950
                                                  ===========    ===========   ===========   ===========

         Per share data:
         Net income
               Basic                              $      0.39    $      0.36   $      0.41   $      0.41
               Diluted                                   0.39           0.36          0.41          0.41
         Average shares outstanding
               Basic                                2,327,183      2,310,596     2,322,962     2,322,962
               Diluted                              2,329,120      2,312,838     2,324,278     2,324,278
</table>

                                       50
<page>

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
         (In thousands, except per share data)

23.      SELECTED QUARTERLY FINANCIAL DATA (unaudited) (Continued)

<table>
<caption>
                                                                Three Months Ended
                                              --------------------------------------------------------
                                               September       December         March          June
                                                  2005           2005           2006           2006
                                              -----------    -----------    -----------    -----------

                                                 <c>            <c>            <c>            <c>
         Total interest and dividend income   $     4,840    $     5,293    $     5,954    $     6,162
         Total interest expense                     3,385          3,784          4,091          4,200
                                              -----------    -----------    -----------    -----------

         Net interest income                        1,455          1,509          1,863          1,962
         Recovery for loan losses                     (66)           (45)           (38)           (12)
                                              -----------    -----------    -----------    -----------

         Net interest income after
           recovery for loan losses                 1,521          1,554          1,901          1,974

         Total noninterest income                     207            167            171            160
         Total noninterest expense                    889            868            872            893
                                              -----------    -----------    -----------    -----------

         Income before income taxes                   839            853          1,200          1,241
         Income taxes                                 231            243            412            401
                                              -----------    -----------    -----------    -----------

         Net income                           $       608    $       610    $       788    $       840
                                              ===========    ===========    ===========    ===========

         Per share data:
         Net income
               Basic                          $      0.25    $      0.26    $      0.34    $      0.36
               Diluted                               0.25           0.26           0.34           0.36
         Average shares outstanding
               Basic                            2,387,653      2,356,470      2,346,959      2,337,349
               Diluted                          2,391,294      2,359,671      2,348,619      2,339,962
</table>

                                       51
<page>

COMMON STOCK MARKET PRICE AND DIVIDEND INFORMATION

WVS Financial Corp.'s common stock is traded on the Nasdaq Global MarketSM under
the symbol "WVFC".

The  following  table sets  forth the high and low  market  prices of a share of
common stock, and cash dividends declared per share, for the periods indicated.

                                    Market Price
                             ---------------------------  Cash Dividends
        Quarter Ended            High           Low          Declared
      ------------------     ------------   ------------   ------------
      June 2007              $     17.200         16.400   $       0.16
      March 2007                   17.200         16.330           0.16
      December 2006                17.950         16.300           0.16
      September 2006               16.990         16.190           0.16

      June 2006              $     18.080   $     16.400   $       0.16
      March 2006                   17.750         16.000           0.16
      December 2005                16.870         16.000           0.16
      September 2005               17.000         15.660           0.16

There were eight Nasdaq Market  Makers in the Company's  common stock as of June
30, 2007:  Boenning & Scattergood Inc.; Sandler O'Neill & Partners;  Ryan Beck &
Co., Inc.;  Morgan Stanley & Co., Inc; UBS Securities LLC; Ferris,  Baker Watts,
Inc.; Citigroup Global Markets and Knight Equity Markets, L.P.

According  to  the  records  of  the  Company's   transfer  agent,   there  were
approximately  677  shareholders  of record at September 12, 2007. This does not
include any persons or entities who hold their stock in nominee or "street name"
through various brokerage firms.

Dividends  are  subject  to  determination  and  declaration  by  the  Board  of
Directors, which takes into account the Company's financial condition, statutory
and regulatory restrictions, general economic condition and other factors.


                                       52
<page>


Performance Graphs


The following  graphs compare the yearly  cumulative  total return on the common
stock over the  fourteen  and five years ended June 30, 2007 with (i) the NASDAQ
Stock  Market Bank Stocks  Total  Return  index,  (ii) the NASDAQ  Stock  Market
Financial  Stocks Total Return Index,  and (iii) the CRSP Total Return Index for
the NASDAQ  Stock Market (for United  States  companies).  The NASDAQ  Financial
Stocks index was added in order to include a broader range of financial  service
companies,  such as savings  institutions  that are not commercial banks. All of
these cumulative  returns are computed assuming the reinvestment of dividends at
the frequency with which dividends were paid during the applicable years.

                              WVS FINANCIAL CORP.
                         Comparative Performance Graph

                                [GRAPH OMITTED]


<table>
<caption>

                                                                       PERIOD ENDING
     INDEX                  11/30/1993   6/30/1994    6/30/1995    6/30/1996    6/30/1997    6/30/1998    6/30/1999    6/30/2000
----------------------------------------------------------------------------------------------------------------------------------

                           <c>          <c>          <c>          <c>          <c>          <c>          <c>          <c>
WVS FINANCIAL CORP.           100.00       155.44       170.78       235.27       326.33       430.73       419.68       332.35
NASDAQ FINANCIAL STOCKS       100.00       107.50       122.98       160.16       234.56       305.16       314.50       247.75
NASDAQ BANK STOCKS            100.00       109.99       124.25       161.86       253.05       351.03       346.73       284.42
CRSP TOTAL NASDAQ (US)        100.00        93.91       125.31       160.87       195.66       257.60       369.92       546.87

<caption>
                                                                       PERIOD ENDING
     INDEX                  6/30/2001    6/30/2002    6/30/2003    6/30/2004    6/30/2005    6/30/2006     06/30/07
---------------------------------------------------------------------------------------------------------------------

                           <c>          <c>          <c>          <c>          <c>          <c>          <c>
WVS FINANCIAL CORP.           416.60       483.51       564.29       564.38       546.14       551.81       563.22
NASDAQ FINANCIAL STOCKS       334.40       374.07       393.12       483.03       535.39       589.46       639.13
NASDAQ BANK STOCKS            394.95       443.12       449.75       539.03       575.54       614.26       625.52
CRSP TOTAL NASDAQ (US)        296.92       202.26       224.56       283.05       286.12       304.24       362.66

</table>

                                       53
<page>


                              WVS FINANCIAL CORP.
                         Comparative Performance Graph

                                [GRAPH OMITTED]

<table>
<caption>
                                                             PERIOD ENDING
                               ---------------------------------------------------------------------------
     INDEX                     6/30/2002    6/30/2003    6/30/2004    6/30/2005    6/30/2006    6/30/2007
----------------------------------------------------------------------------------------------------------

                              <c>          <c>          <c>          <c>          <c>          <c>
WVS FINANCIAL CORP.              100.00       118.25       119.58       116.99       119.52       123.26
NASDAQ FINANCIAL STOCKS          100.00       105.09       129.13       143.13       157.58       170.86
NASDAQ BANK STOCKS               100.00       101.50       121.65       129.88       138.62       141.16
CRSP TOTAL NASDAQ (US)           100.00       111.02       139.94       141.46       150.42       179.30

</table>

                                       54
<page>

<table>
<caption>

                                          WVS FINANCIAL CORP.
                                         CORPORATE INFORMATION
-------------------------------------------------------------------------------------------------------
                                           CORPORATE OFFICES
                              WVS FINANCIAL CORP. o WEST VIEW SAVINGS BANK
                                9001 Perry Highway Pittsburgh, PA 15237
                                              412-364-1911


                                                                      <c>
                  COMMON STOCK                                           BOARD OF DIRECTORS
The common stock of WVS Financial Corp. is traded on
 The Nasdaq Global MarketSM under the symbol "WVFC".                      David L. Aeberli
                                                                          Funeral Director
           TRANSFER AGENT & REGISTRAR                            McDonald-Aeberli Funeral Home, Inc.
         Registrar and Transfer Company
                10 Commerce Drive                                         Arthur H. Brandt
               Cranford, NJ 07016                                     Former President and CEO
                 1-800-368-5948                                       Brandt Excavating, Inc. and
                                                                           Brandt Paving, Inc.
             CORPORATE SECRETARY AND
               INVESTOR RELATIONS                                          David J. Bursic
                 Pamela M. Tracy                                President and Chief Executive Officer
                  412-364-1911                                         WVS Financial Corp. and
                                                                       West View Savings Bank

                 SPECIAL COUNSEL                                           Donald E. Hook
      Elias, Matz, Tiernan & Herrick L.L.P.                                   Chairman
                  Washington, DC                                      Pittsburgh Cut Flower Co.

                                                                          Lawrence M. Lehman
             WEST VIEW SAVINGS BANK                                        Sole Proprietor
               9001 Perry Highway                                  Newton-Lehman Insurance Agency
              Pittsburgh, PA  15237
                   412-364-1911                                           Margaret VonDerau
                                                                    Former Senior Vice President
                WEST VIEW OFFICE                                       and Corporate Secretary
                456 Perry Highway                                      WVS Financial Corp. and
                  412-931-2171                                         West View Savings Bank

                CRANBERRY OFFICE
               20531 Perry Highway                                       EXECUTIVE OFFICERS
            412-931-6080/724-776-3480
                                                                           Donald E. Hook
              FRANKLIN PARK OFFICE                                            Chairman
             2566 Brandt School Road
                  724-935-7100                                             David J. Bursic
                                                                            President and
                 BELLEVUE OFFICE                                       Chief Executive Officer
               572 Lincoln Avenue
                  412-761-5595                                           Jonathan D. Hoover
                                                                       Senior Vice President
              SHERWOOD OAKS OFFICE
              Serving Sherwood Oaks                                       Bernard P. Lefke
                 Cranberry Twp.                                       Vice President of Savings

                LENDING DIVISION                                          Keith A. Simpson
             2566 Brandt School Road                               Vice President, Treasurer and
                  724-935-7400                                        Chief Accounting Officer


The members of the Board of Directors serve in that capacity for both the Company and the Savings Bank.

</table>

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