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

                                    FORM 10-Q

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

         For the quarterly period ended March 31, 2008

                                       or

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

         For the transition period from ______ to ______

                         Commission File Number: 0-22444

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

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

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

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

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirement for the past 90 days.
YES [X]   NO [ ]

         Indicate by check mark whether the  registrant  is a large  accelerated
filer, an accelerated  filer, a  non-accelerated  filer, or a smaller  reporting
company.  See the definitions of "large accelerated filer,"  "accelerated filer"
and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer [ ]                     Accelerated filer [ ]
Non-accelerated filer   [ ]                     Smaller reporting company [X]
(Do not check if a smaller reporting company)

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

         Shares  outstanding as of May 01, 2008:  2,225,676 shares Common Stock,
$.01 par value.


<PAGE>

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

                                      INDEX
                                      -----

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

Item 1.         Financial Statements

                Consolidated Balance Sheet as of
                March 31, 2008 and June 30, 2007
                (Unaudited)                                                3

                Consolidated Statement of Income
                for the Three and Nine Months Ended
                March 31, 2008 and 2007 (Unaudited)                        4

                Consolidated Statement of Changes in
                Stockholders' Equity for the Nine Months
                Ended March 31, 2008 (Unaudited)                           5

                Consolidated Statement of Cash Flows
                for the Nine Months Ended March 31,
                2008 and 2007 (Unaudited)                                  6

                Notes to Unaudited Consolidated
                Financial Statements                                       8

Item 2.         Management's Discussion and Analysis of
                Financial Condition and Results of
                Operations for the Three and Nine Months
                Ended March 31, 2008                                      11

Item 3.         Quantitative and Qualitative Disclosures
                about Market Risk                                         18

Item 4.         Controls and Procedures                                   25

Item 4T.        Controls and Procedures                                   25

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

Item 1.         Legal Proceedings                                         26
Item 1A.        Risk Factors                                              26
Item 2.         Unregistered Sales of Equity Securities and
                Use of Proceeds                                           26
Item 3.         Defaults Upon Senior Securities                           26
Item 4.         Submission of Matters to a Vote of Security Holders       26
Item 5.         Other Information                                         27
Item 6.         Exhibits                                                  27
                Signatures                                                28

                                       2
<PAGE>
<TABLE>
<CAPTION>

                                  WVS FINANCIAL CORP. AND SUBSIDIARY
                                      CONSOLIDATED BALANCE SHEET
                                             (UNAUDITED)
                                           (In thousands)
                                                                    March 31, 2008     June 30, 2007
                                                                   ---------------    ---------------
<S>                                                                          <C>                <C>
          Assets
          ------
Cash and due from banks                                            $           518    $           630
Interest-earning demand deposits                                             1,393              2,045
                                                                   ---------------    ---------------
Total cash and cash equivalents                                              1,911              2,675
Certificates of deposit                                                      7,221                 --
Investment securities available-for-sale (amortized cost of
   $25,418 and $8,957)                                                      25,421              8,933
Investment securities held-to-maturity (market value of
   $121,981 and $201,510)                                                  119,806            202,664
Mortgage-backed securities available-for-sale (amortized cost of
   $2,111 and $2,186)                                                        2,232              2,246
Mortgage-backed securities held-to-maturity (market value of
   $207,549 and $119,646)                                                  208,926            119,271
Net loans receivable (allowance for loan losses of $978 and
   $986)                                                                    57,485             60,350
Accrued interest receivable                                                  2,219              3,714
Federal Home Loan Bank stock, at cost                                       11,670              6,340
Premises and equipment                                                         796                813
Other assets                                                                 1,125              1,070
                                                                   ---------------    ---------------
          TOTAL ASSETS                                             $       438,812    $       408,076
                                                                   ===============    ===============

          Liabilities and Stockholders' Equity
          ------------------------------------
Liabilities:
Savings Deposits:
   Non-interest-bearing accounts                                   $        12,012    $        12,363
   NOW accounts                                                             17,371             18,741
   Savings accounts                                                         30,346             32,937
   Money market accounts                                                    23,251             20,146
   Certificates of deposit                                                  67,869             74,177
   Advance payments by borrowers for taxes and insurance                       727              1,013
                                                                   ---------------    ---------------
    Total savings deposits                                                 151,576            159,377
Federal Home Loan Bank advances: long-term                                 135,579            130,579
Federal Home Loan Bank advances: short-term                                114,325                 --
Other short-term borrowings                                                     --             82,950
Accrued interest payable                                                     1,701              1,669
Other liabilities                                                            3,741              2,208
                                                                   ---------------    ---------------
     TOTAL LIABILITIES                                             $       406,922    $       376,783
                                                                   ---------------    ---------------

Stockholders' equity:
Preferred stock:
   5,000,000 shares, no par value per share, authorized; none
   Outstanding                                                     $            --    $            --
Common stock:
   10,000,000 shares, $.01 par value per share, authorized;
     3,804,533 and 3,790,336 shares issued                                      38                 38
Additional paid-in capital                                                  21,360             21,137
Treasury stock: 1,570,916 and 1,471,481 shares at cost,
    Respectively                                                           (23,914)           (22,286)
Retained earnings, substantially restricted                                 34,330             32,382
Accumulated other comprehensive income                                          77                 23
Unallocated shares - Recognition and Retention Plans                            (1)                (1)
                                                                   ---------------    ---------------
     TOTAL STOCKHOLDERS' EQUITY                                    $        31,890    $        31,293
                                                                   ---------------    ---------------
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY               $       438,812    $       408,076
                                                                   ===============    ===============

               See accompanying notes to unaudited consolidated financial statements.

                                                  3
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

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

                                                    Three Months Ended           Nine Months Ended
                                                        March 31,                    March 31,
                                               --------------------------   --------------------------
                                                  2008            2007         2008            2007
                                               -----------    -----------   -----------    -----------
<S>                                                  <C>            <C>           <C>            <C>
INTEREST AND DIVIDEND INCOME:
     Loans                                     $     1,077    $     1,120   $     3,308    $     3,218
     Investment securities                           2,245          2,708         8,596          8,135
     Mortgage-backed securities                      2,231          2,110         6,457          6,766
     Certificates of deposit                            17             --            18             --
     Interest-earning deposits with other
         institutions                                    1              2             3              7
     Federal Home Loan Bank stock                      119            111           342            274
                                               -----------    -----------   -----------    -----------
          Total interest and dividend income         5,690          6,051        18,724         18,400
                                               -----------    -----------   -----------    -----------

INTEREST EXPENSE:
     Deposits                                          948          1,054         3,143          3,068
     Federal Home Loan Bank advances                 2,374          1,829         7,133          5,932
     Other short-term borrowings                       278            984         1,723          3,227
                                               -----------    -----------   -----------    -----------
          Total interest expense                     3,600          3,867        11,999         12,227
                                               -----------    -----------   -----------    -----------

NET INTEREST INCOME                                  2,090          2,184         6,725          6,173
PROVISION (RECOVERY) FOR LOAN LOSSES                   (57)            34           (64)            25
                                               -----------    -----------   -----------    -----------
NET INTEREST INCOME AFTER PROVISION
   (RECOVERY) FOR LOAN LOSSES                        2,147          2,150         6,789          6,148
                                               -----------    -----------   -----------    -----------

NON-INTEREST INCOME:
     Service charges on deposits                        80             86           249            267
     Investment securities gains                        --             --             1             --
     Other                                              58             66           190            198
                                               -----------    -----------   -----------    -----------
          Total non-interest income                    138            152           440            465
                                               -----------    -----------   -----------    -----------

NON-INTEREST EXPENSE:
     Salaries and employee benefits                    520            499         1,545          1,483
     Occupancy and equipment                            88             94           264            289
     Data processing                                    63             63           190            190
     Correspondent bank service charges                 26             25            76             90
     Other                                             151            151           670            573
                                               -----------    -----------   -----------    -----------
          Total non-interest expense                   848            832         2,745          2,625
                                               -----------    -----------   -----------    -----------

INCOME BEFORE INCOME TAXES                           1,437          1,470         4,484          3,988
INCOME TAXES                                           475            515         1,450          1,291
                                               -----------    -----------   -----------    -----------
NET INCOME                                     $       962    $       955   $     3,034    $     2,697
                                               ===========    ===========   ===========    ===========

EARNINGS PER SHARE:
     Basic                                     $      0.43    $      0.41   $      1.34    $      1.16
     Diluted                                   $      0.43    $      0.41   $      1.34    $      1.16

AVERAGE SHARES OUTSTANDING:
     Basic                                       2,238,670      2,322,962     2,261,324      2,320,227
     Diluted                                     2,238,758      2,324,278     2,261,724      2,322,059

               See accompanying notes to unaudited consolidated financial statements.

                                                  4
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

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

                                                                                     Accumulated
                                                                          Retained      Other
                                               Additional                 Earnings      Compre-   Unallocated
                                  Common        Paid-In     Treasury   Substantially    hensive   Shares Held
                                   Stock        Capital       Stock      Restricted     Income       by RRP        Total
                                   -----        -------       -----      ----------     ------       ------        -----
<S>                              <C>          <C>          <C>           <C>          <C>          <C>           <C>
Balance at June 30, 2007         $       38   $   21,137   $  (22,286)   $   32,382   $       23   $       (1)   $   31,293

Comprehensive income:

   Net Income                                                                 3,034                                   3,034
   Other comprehensive
     income:
      Change in unrealized
          holding gains on
          securities, net of
          income tax effect of
          $28                                                                                 54                         54
                                                                                                                 ----------

Comprehensive income                                                                                                  3,088

Purchase of 99,435 shares
   for treasury stock                                          (1,628)                                               (1,628)

Exercise of 14,197 stock
   options                               --          219                                                                219

Cash dividends declared
   ($0.48 per share)                                                         (1,086)                                 (1,086)
Other, net                                             4                                                                  4
                                 ----------   ----------   ----------    ----------   ----------   ----------    ----------

Balance at March 31, 2008        $       38   $   21,360   $  (23,914)   $   34,330   $       77   $       (1)   $   31,890
                                 ==========   ==========   ==========    ==========   ==========   ==========    ==========

                          See accompanying notes to unaudited consolidated financial statements.

                                                             5
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

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

                                                                               Nine Months Ended
                                                                                   March 31,
                                                                            ----------------------
                                                                               2008         2007
                                                                            ---------    ---------
<S>                                                                                <C>         <C>
OPERATING ACTIVITIES

Net income                                                                  $   3,034    $   2,697
Adjustments to reconcile net income to cash provided by operating
 activities:
  (Recovery) Provision for loan losses                                            (64)          25
   Depreciation                                                                    94          105
   Investment securities gains                                                     (1)          --
   Amortization of discounts, premiums and deferred loan fees                    (273)        (143)
   Accretion of discounts - commercial paper                                     (712)         (13)
   Increase in accrued and deferred taxes                                         428          379
   Decrease (Increase) in accrued interest receivable                           1,495         (154)
   Increase in accrued interest payable                                            32          238
   Other, net                                                                      98           60
                                                                            ---------    ---------
         Net cash provided by operating activities                              4,131        3,194
                                                                            ---------    ---------

INVESTING ACTIVITIES

Available-for-sale:
   Purchases of investments securities                                       (138,620)      (3,992)
   Proceeds from repayments of investments and mortgage-backed securities     122,603        8,032
   Proceeds from sale of mortgage-backed securities                                49           --
Held-to-maturity:
   Purchases of investment securities                                         (43,030)     (91,303)
   Purchases of mortgage-backed securities                                   (103,353)      (4,998)
   Proceeds from repayments of investments                                    126,313       98,943
   Proceeds from repayments of mortgage-backed securities                      13,643       30,101
   Proceeds from sale of investments and mortgage-backed securities               216           --
Purchases of certificates of deposit                                           (7,221)          --
Decrease (increase) in net loans receivable                                     2,904       (4,886)
Purchase of Federal Home Loan Bank stock                                      (18,841)      (4,063)
Redemption of Federal Home Loan Bank stock                                     13,511        5,423
Acquisition of premises and equipment                                             (77)         (83)
Other, net                                                                          3           --
                                                                            ---------    ---------
         Net cash provided by (used for) investing activities                 (31,900)      33,174
                                                                            ---------    ---------



                                                 6
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

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

                                                                          Nine Months Ended
                                                                              March 31,
                                                                        ----------------------
                                                                          2008          2007
                                                                        ---------    ---------
<S>                                                                       <C>          <C>
FINANCING ACTIVITIES

Net decrease in transaction and savings accounts                             (281)        (676)
Net (decrease) increase in certificates of deposit                         (6,308)       6,602
Net increase (decrease) in FHLB short-term advances                       114,325      (23,150)
Net decrease in other borrowings                                          (82,950)     (11,548)
Proceeds from Federal Home Loan Bank long-term advances                    10,000           --
Repayments of Federal Home Loan Bank long-term advances                    (5,000)      (5,000)
Net decrease in advance payments by borrowers for taxes and insurance        (286)        (279)
Cash dividends paid                                                        (1,086)      (1,114)
Funds used for purchase of treasury stock                                  (1,628)        (534)
Net proceeds from exercise of stock options                                   219          256
                                                                        ---------    ---------
         Net cash provided by (used for) financing activities              27,005      (35,443)
                                                                        ---------    ---------

         (Decrease) increase in cash and cash equivalents                    (764)         925

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD                        2,675        1,196
                                                                        ---------    ---------

CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                          $   1,911    $   2,121
                                                                        =========    =========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

   Cash paid during the period for:
      Interest on deposits, escrows and borrowings                      $  11,967    $  11,989
      Income taxes                                                      $   1,048    $     920

   Non cash items:
      Due to Federal Reserve Bank                                       $   1,520    $   1,062
      Educational Improvement Tax Credit                                $     135    $      42


            See accompanying notes to unaudited consolidated financial statements.


                                               7
</TABLE>
<PAGE>

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

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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

         The accompanying  unaudited consolidated financial statements have been
prepared in accordance with the  instructions for Form 10-Q and therefore do not
include  information  or  footnotes  necessary  for a complete  presentation  of
financial  condition,  results of operations,  and cash flows in conformity with
U.S.  generally  accepted  accounting   principles.   However,  all  adjustments
(consisting  only of normal  recurring  adjustments)  which,  in the  opinion of
management,  are  necessary  for a fair  presentation  have been  included.  The
results of  operations  for the three and nine months ended March 31, 2008,  are
not  necessarily  indicative of the results which may be expected for the entire
fiscal year.

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

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

         In December 2007, the FASB issued FAS No. 141 (revised 2007),  Business
Combinations ("FAS 141(R)"),  which establishes  principles and requirements for
how an  acquirer  recognizes  and  measures  in  its  financial  statements  the
identifiable assets acquired,  the liabilities  assumed,  and any noncontrolling
interest in an acquiree,  including the  recognition and measurement of goodwill
acquired in a business combination. FAS No. 141(R) is effective for fiscal years
beginning on or after December 15, 2008.  Earlier  adoption is  prohibited.  The
adoption  of this  standard  is not  expected  to have a material  effect on the
Company's results of operations or financial position.

         In December 2007, the FASB issued FAS No. 160, Noncontrolling Interests
in Consolidated  Financial Statements -- an amendment of ARB No. 51. FAS No. 160
amends  ARB No. 51 to  establish  accounting  and  reporting  standards  for the
noncontrolling  interest  in a  subsidiary  and  for  the  deconsolidation  of a
subsidiary.  It clarifies that a noncontrolling interest in a subsidiary,  which
is sometimes referred to as minority  interest,  is an ownership interest in the
consolidated  entity  that  should be  reported  as  equity in the  consolidated
financial  statements.   Among  other  requirements,   this  statement  requires
consolidated  net income to be  reported  at amounts  that  include  the amounts
attributable  to both  the  parent  and  the  noncontrolling  interest.  It also
requires  disclosure,  on the face of the consolidated income statement,  of the
amounts  of  consolidated  net  income  attributable  to the  parent  and to the
noncontrolling  interest. FAS No. 160 is effective for fiscal years beginning on
or after December 15, 2008. Earlier adoption is prohibited. 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  2008,  the  FASB  issued  FAS  No.  161,  Disclosures  about
Derivative  Instruments and Hedging Activities,  to require enhanced disclosures
about  derivative  instruments  and hedging  activities.  The new  standard  has
revised financial reporting for derivative instruments and hedging activities by
requiring  more  transparency  about  how  and  why an  entity  uses  derivative
instruments,  how derivative  instruments and related hedged items are accounted
for under  FAS No.  133,  Accounting  for  Derivative  Instruments  and  Hedging
Activities;  and how derivative  instruments  and related hedged items affect an
entity's financial position,  financial performance, and cash flows. FAS No. 161
requires disclosure of the fair values of derivative instruments and their gains
and losses in a tabular  format.  It also  requires  entities  to  provide  more
information about their liquidity by requiring disclosure of derivative features
that are credit  risk-related.  Further,  it requires  cross-referencing  within
footnotes to enable financial statement users to locate important

                                       8
<PAGE>

information about derivative instruments. FAS No. 161 is effective for financial
statements  issued for fiscal years and interim periods beginning after November
15, 2008, with early  application  encouraged.  The adoption of this standard is
not expected to have a material effect on the Company's results of operations or
financial position.

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

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

<TABLE>
<CAPTION>

                                           Three Months Ended           Nine Months Ended
                                                March 31,                   March 31,
                                        ------------------------    ------------------------
                                           2008          2007          2008          2007
                                        ----------    ----------    ----------    ----------
<S>                                      <C>           <C>           <C>           <C>
Weighted average common shares
   outstanding                           3,804,121     3,785,629     3,797,081     3,775,025

Average treasury stock shares           (1,565,451)   (1,462,667)   (1,535,757)   (1,454,798)
                                        ----------    ----------    ----------    ----------
Weighted average common shares
   and common stock equivalents
   used to calculate basic earnings
   per share                             2,238,670     2,322,962     2,261,324     2,320,227

Additional common stock
   equivalents (stock options) used
   to calculate diluted earnings per
   share                                        88         1,316           400         1,832
                                        ----------    ----------    ----------    ----------

Weighted average common shares
   and common stock equivalents
   used to calculate diluted earnings
   per share                             2,238,758     2,324,278     2,261,724     2,322,059
                                        ==========    ==========    ==========    ==========
</TABLE>

         All options at March 31,  2008 and March 31, 2007 were  included in the
computation of diluted earnings per share.

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

         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 March 31, 2008
and 2007.  There were no options  issued during the periods ended March 31, 2008
and 2007.

                                       9
<PAGE>

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

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

<TABLE>
<CAPTION>
                                            Three Months Ended                          Nine Months Ended
                                                March 31,                                   March 31,
                                -----------------------------------------   -----------------------------------------
                                        2008                  2007                  2008                 2007
                                -------------------   -------------------   -------------------   -------------------
                                                                (Dollars in Thousands)
<S>                               <C>      <C>            <C>      <C>           <C>      <C>          <C>       <C>

Net income                                 $    962              $    955              $  3,034              $  2,697
Other comprehensive
  income:
  Unrealized gains
   on available
   for sale
   securities                   $     24              $      6              $     83              $     24
       Less:
          Reclassification
          adjustment for gain
          included in net
          income                      --                    --                    (1)                   --
                                --------   --------   --------   --------   --------   --------   --------   --------
Other comprehensive
   gain before tax                               24                     6                    82                    24
Income tax expense
 related to other
 comprehensive income                             8                     2                    28                     8
                                           --------              --------              --------              --------
Other comprehensive gain
   net of tax                                    16                     4                    54                    16
                                           --------              --------              --------              --------
Comprehensive income                       $    978              $    959              $  3,088              $  2,713
                                           ========              ========              ========              ========
</TABLE>
                                       10

<PAGE>

ITEM 2.

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2008

FORWARD LOOKING STATEMENTS

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

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

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

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

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

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

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

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

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

         o  acts or threats of terrorism  and actions taken by the United States
            or other governments as a result of such acts or threats,  including
            possible  military action,  could further  adversely affect business
            and economic  conditions in the United  States  generally and in our
            principal

                                       11
<PAGE>

            markets,  which  could  have  an  adverse  effect  on our  financial
            performance  and that of our borrowers and on the financial  markets
            and the price of our common stock.

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


GENERAL

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

         West View Savings Bank is a Pennsylvania-chartered,  FDIC-insured stock
savings bank conducting  business from six offices in the North Hills suburbs of
Pittsburgh.  The  Savings  Bank  converted  to the stock  form of  ownership  in
November 1993. The Savings Bank had no subsidiaries at March 31, 2008.

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


FINANCIAL CONDITION

         The  Company's  assets  totaled  $438.8  million at March 31, 2008,  as
compared to $408.1  million at June 30, 2007. The $30.7 million or 7.5% increase
in total assets was primarily  comprised of a $89.6 million or 73.8% increase in
mortgage-backed  securities,  a $16.5 million or 184.6%  increase in investments
securities available for sale, a $7.2 million or 100.0% increase in certificates
of deposit  and a $5.3  million  or 84.1%  increase  in  Federal  Home Loan Bank
("FHLB") stock, which were partially offset by a $82.9 million or 40.9% decrease
in investment  securities - held to maturity, a $2.9 million or 4.7% decrease in
net loans  receivable,  a $1.5  million or 40.3%  decrease  in accrued  interest
receivable and a $764 thousand or 28.6%  decrease in cash and cash  equivalents.
The  increase  in  mortgage-backed  securities  was  primarily  attributable  to
purchases  of U.S.  Government  agency  floating  rate  collateralized  mortgage
obligations.  The increase in  investment  securities  - available  for sale was
comprised of purchases of short-term  investment  grade  commercial  paper.  The
increase in  certificates  of deposit was  attributable  to  investments in bank
certificates of deposit.  The increase in FHLB stock was  attributable to higher
levels of FHLB borrowings and associated FHLB stock purchase  requirements.  The
decrease in investment securities - held to maturity was primarily  attributable
to $118.2 million of issuer  redemptions prior to maturity (i.e. calls) of fixed
rate, fixed to floating rate and step-up U.S. Government agency bonds which were
partially  offset  by  purchases  of $21.9  million  of  intermediate  term U.S.
Government  agency bonds and $21.1 million of investment  grade corporate bonds.
See "Asset and Liability Management".

         The  Company's  total  liabilities  increased  $30.1 million or 8.0% to
$406.9 million as of March 31, 2008 from $376.8 million as of June 30, 2007. The
$30.1 million increase in total liabilities was primarily  comprised of a $114.3
million or 100.0% increase in short-term  FHLB advances,  a $5.0 million or 3.8%
increase in long-term  FHLB  advances  and a $1.5  million or 69.4%  increase in
other  liabilities,  which were  partially  offset by a $82.9  million or 100.0%
decrease in other  short-term  borrowings and a $7.8 million or 4.9% decrease in
total savings  deposits.  The respective  changes in short-term  borrowings were
primarily  due to more  competitive  FHLB pricing in contrast to the  short-term
repurchase  agreement  market.  Certificates of deposit  decreased $6.3 million,
savings accounts decreased $2.6 million,  demand deposits decreased $1.7 million
and  advance

                                       12
<PAGE>

payments by borrowers for taxes and insurance  decreased  $286  thousand,  while
money market  accounts  increased $3.1 million.  The decrease in certificates of
deposits  was   primarily  due  to  the  maturity  of  accounts  held  by  local
governments.  The change in money  market  accounts  may be in response to lower
market yields on certificates of deposit and increased liquidity  preferences by
depositors in response to unsettled financial markets.  Management believes that
the changes in savings  accounts and advance payments by borrowers for taxes and
insurance were primarily  attributable to seasonal payments of county, local and
school  real  estate  taxes,  and  transactional  needs.  The  change  in  other
liabilities is primarily  attributable to increases in clearing  balances due to
the Federal Reserve and accrued income taxes payable.

         Total  stockholders'  equity  increased  $597 thousand or 1.9% to $31.9
million as of March 31, 2008,  from  approximately  $31.3 million as of June 30,
2007.  Capital  expenditures for the Company's stock repurchase program and cash
dividends totaled $1.6 million and $1.1 million,  respectively,  which were more
than  offset  by net  income  of  $3.0  million,  a $219  thousand  increase  in
additional  paid in capital  primarily  from the exercise of stock options and a
$54 thousand  increase in accumulated  other  comprehensive  income for the nine
months ended March 31, 2008.


RESULTS OF OPERATIONS

         General.  WVS  reported  net income of $962  thousand or $0.43  diluted
earnings per share and $3.0 million or $1.34 diluted  earnings per share for the
three and nine months ended March 31, 2008,  respectively.  Net income increased
by $7 thousand or 0.7% and diluted  earnings per share  increased  $0.02 or 4.9%
for the three months ended March 31, 2008,  when  compared to the same period in
2007.  The increase in net income was primarily  attributable  to a $91 thousand
change in the  provision  for loan losses and a $40 thousand  decrease in income
tax  expense  which were  partially  offset by a $94  thousand  decrease  in net
interest  income,  a $16  thousand  increase in  non-interest  expense and a $14
thousand  decrease in non-interest  income.  For the nine months ended March 31,
2008, net income increased $337 thousand or 12.5% and diluted earnings per share
increased  $0.18 or 15.5% when compared to the same period in 2007. The increase
for the nine month period was primarily  the result of a $552 thousand  increase
in net interest income, and a $89 thousand change in provisions for loan losses,
which were partially offset by a $159 thousand increase in income tax expense, a
$120 thousand  increase in non-interest  expense and a $25 thousand  decrease in
non-interest income.

         Net Interest Income. The Company's net interest income decreased by $94
thousand or 4.3% for the three months ended March 31, 2008,  and increased  $552
thousand or 8.9% for the nine months ended March 31, 2008,  when compared to the
same periods in 2007.  For the three months ended March 31, 2008,  approximately
$199  thousand of the decrease in net interest  income can be  attributed to the
impact  of  changing  market  interest  rates  on  interest-earning  assets  and
interest-bearing  liabilities,  which was offset by approximately  $105 thousand
increase  in net  interest  income  due to  increases  in  average  balances  of
interest-earning  asset and  interest-bearing  liabilities.  For the nine months
ended March 31, 2008,  approximately  $292  thousand or 52.9% of the increase in
net  interest  income  can  be  attributed  to  increases  in  average  balances
outstanding of interest-earning assets and interest-bearing  liabilities,  while
the  remaining  $260  thousand or 47.1% of the increase can be attributed to the
impact  of  changing  market  interest  rates  on  interest-earning  assets  and
interest-bearing liabilities.

         During the nine months  ended March 31,  2008,  the Federal Open Market
Committee (FOMC) reduced its targeted federal funds level from 5.25% at June 30,
2007 to 2.25% at March 31, 2008. During the six months ending March 31, 2008 the
Company also  observed a marked  upward  deviation in the  three-month  LIBOR as
compared to the U.S.  federal funds rate.  Market  participants  attributed this
upward deviation to liquidity imbalances in LIBOR markets. During this anomalous
period the Company  benefited by earning a higher than anticipated  yield on its
LIBOR  floating rate CMO  portfolio,  while  enjoying  lower costs of short-term
funding  which were more closely  aligned with the targeted  federal funds rate.
See also Asset and Liability Management.

         Interest Income.  Interest on investment  securities  decreased by $463
thousand  or 17.1% and  increased  $461  thousand or 5.7% for the three and nine
months ended March 31, 2008, respectively,  when

                                       13
<PAGE>

compared to the same  periods in 2007.  The  decrease for the three months ended
March 31,  2008,  was  primarily  attributable  to a $843  thousand  decrease in
interest  income on U.S.  Government  Agency bonds,  (principally  due to issuer
redemptions  of  securities  prior  to  scheduled  maturities),  a $26  thousand
decrease  in  interest  income on  tax-free  municipal  bonds and a $2  thousand
decrease in interest earned on other investment securities, which were partially
offset by a $217  thousand  increase  in income on  commercial  paper and a $191
thousand  increase in income on corporate  bonds. The changes in interest income
on the various segments of the investment  portfolio are primarily  attributable
to change in the average balances of the respective  segments.  The increase for
the nine  months  ended  March 31,  2008 was  primarily  attributable  to a $714
thousand  increase in income on commercial paper and a $218 thousand increase in
income on  corporate  bonds,  which  were  partially  offset by a $400  thousand
decrease in income on U.S.  government  agency bonds, a $58 thousand decrease in
income on tax-free municipal bonds and a $5 thousand decrease in income on other
investment securities.  The increase in income on commercial paper and corporate
bonds was primarily  attributable  to increases in average  balances,  while the
decrease in income on the U.S.  government  agency bonds was  attributable  to a
decrease in the average balance due to issuer redemptions of securities prior to
scheduled  maturities  which was partially offset by an increase in the weighted
average yield earned on the remaining U.S.  government  agency bonds held in the
portfolio.

         Interest on net loans receivable decreased $43 thousand or 3.8% for the
three months ended March 31, 2008,  and  increased  $90 thousand or 2.8% for the
nine  months  ended  March 31,  2008,  respectively,  when  compared to the same
periods in 2007.  The  decrease  for the three  months  ended March 31, 2008 was
primarily  attributable to a decrease of 29 basis points in the weighted average
yield earned on net loans  receivable for the three months ended March 31, 2008,
when compared to the same period in 2007. The increase for the nine months ended
March 31,  2008 was  attributable  to a $1.6  million  increase  in the  average
balance of net loans receivable outstanding, when compared to the same period in
2007. The decrease in the weighted  average yield earned on net loans receivable
for the three months ended March 31, 2008,  was primarily  attributable  to rate
reductions  on the  adjustable  rate portion of the loan  portfolio due to lower
market  rates on which the  adjustments  are based.  The increase in the average
loan  balance  outstanding  for  the  nine  months  ended  March  31,  2008  was
attributable in part to increases in new loan  originations  among  construction
and commercial loan products.  The Company has limited its portfolio origination
of  longer-term  fixed rate loans to mitigate  its  exposure to a rise in market
interest rates.  The Company will continue to originate  longer-term  fixed rate
loans for sale on a correspondent  basis to increase  non-interest income and to
contribute to net income.

         Interest on mortgage-backed  securities increased $121 thousand or 5.7%
for the three months ended March 31, 2008,  and decreased  $309 thousand or 4.6%
for the nine months ended March 31,  2008,  respectively,  when  compared to the
same periods in 2007. The increase for the three months ended March 31, 2008 was
primarily  attributable  to a $55.0 million  increase in the average  balance of
U.S. government agency  mortgage-backed  securities  outstanding for the period,
which was partially offset by a 130 basis point decrease in the weighted average
yield earned on U.S. government agency mortgage-backed  securities,  a 173 basis
point   decrease  in  the   weighted-average   yield  earned  on  private  label
mortgage-backed  securities,  and a $4.5 million decrease on the average balance
outstanding  of private label  mortgage-backed  securities  for the three months
ended March 31, 2008, when compared to the same period in 2007. The decrease for
the nine  months  ended March 31,  2008,  was  attributable  to a 62 basis point
decrease in the weighted average yield earned on U.S. government mortgage-backed
securities,  a 69 basis point  decrease in the weighted  average yield earned on
private  label  mortgage-backed  securities  and a $6.3 million  decrease in the
average balance outstanding of private label mortgage-backed  securities,  which
were  partially  offset  by a $15.6  million  increase  in the  average  balance
outstanding of U.S. government agency mortgage-backed  securities, when compared
to the same period in 2007. The decrease in the weighted average yield earned on
mortgage-backed  securities was consistent  with lower market interest rates for
the three and nine months  ended  March 31,  2008.  The  increase in the average
balances of U.S. government agency  mortgage-backed  securities during the three
and nine months ended March 31, 2008 was primarily  attributable to purchases of
floating  rate U.S.  government  agency  mortgage-backed  securities  during the
period, while the decrease in average balances of private label  mortgage-backed
securities for the three and nine months ended March 31, 2008 reflects principal
paydowns during the period. All mortgage-backed securities purchased during both
periods were guaranteed by agencies of the U.S. government.

                                       14
<PAGE>

         Dividends on FHLB stock  increased $8 thousand or 7.2% and $68 thousand
or 24.8% for the three and nine months ended March 31, 2008, respectively,  when
compared to the same  periods in 2007.  The  increase for the three months ended
March 31,  2008 was  attributable  to a $3.3  million  increase  in the  average
balance of FHLB stock which was partially  offset by a 198 basis point  decrease
in the yield earned on FHLB stock held when compared to the same period in 2007.
The increase for the nine months ended March 31, 2008 was attributable to a $2.3
million  increase in the average balance of FHLB stock held, which was partially
offset by a 31 basis point  decrease in the average  yield  earned on FHLB stock
held when compared to the same period in 2007. The increase in average  balances
of FHLB  stock  held  resulted  from  higher  levels  of FHLB  borrowings  which
necessitated purchases of the FHLB stock.

         During  the three  months  ended  March 31,  2008,  the  Company  began
investing in FDIC insured bank certificates of deposit.  Income during the three
months ended March 31, 2008 totaled  approximately  $17  thousand  dollars.  The
certificates ranged in maturity terms from five to twenty-four months.

         Interest  Expense.  Interest  paid  on  FHLB  advances  increased  $545
thousand or 29.8% and $1.2  million or 20.2% for the three and nine months ended
March 31, 2008,  respectively,  when  compared to the same periods in 2007.  The
increase for the three months ended March 31, 2008 was  attributable  to a $69.4
million  increase in the average balance of FHLB short-term  advances and a $2.0
million increase in the average balance of FHLB long-term  advances,  which were
partially  offset by a 2 basis point  decrease  in rates paid on FHLB  long-term
advances  and a 272  basis  point  decrease  in  rates  paid on FHLB  short-term
advances  when  compared to the same period in 2007.  The  increase for the nine
months ended March 31, 2008 was  attributable  to $42.5 million  increase in the
average balances of FHLB short-term advances and a $726 thousand increase in the
average balance of FHLB long-term  advances which were partially offset by a 125
basis point  decrease in rates paid on FHLB  short-term  advances  and a 6 basis
point  decrease in rates paid on FHLB long-term  advances.  The increases in the
average balances of FHLB short-term  advances were primarily used to repay other
short-term  borrowings,   while  the  decreases  in  rates  paid  reflect  lower
short-term market interest rates.

         Interest paid on other borrowings  decreased $706 thousand or 71.7% and
$1.5  million  or 46.6% for the  three and nine  months  ended  March 31,  2008,
respectively,  when  compared to the same periods in 2007.  The decrease for the
three months ended March 31, 2008 was  attributable to a $46.5 million  decrease
in the average  balances of other  borrowings  and a 127 basis point decrease in
rates paid for the period. The decrease for the nine months ended March 31, 2008
was  attributable  to a $32.0 million  decrease in the average  balance of other
borrowings  and a 57 basis  point  decrease  in rates paid for the  period.  The
decrease in rates paid were consistent  with the decreases in short-term  market
interest  rates for both  periods.  The  decrease  in average  balances of other
borrowings is attributable to more favorable  short-term borrowing rates offered
by the FHLB.

         Interest  expense on deposits and escrows  decreased  $106  thousand or
10.1% for the three months ended March 31, 2008,  and  increased $75 thousand or
2.4% for the nine months ended March 31, 2008,  respectively,  when  compared to
the same periods in 2007.  The decrease in interest  expense on deposits for the
three months ended March 31, 2008 was primarily  attributable  to a $5.0 million
decrease in the average  balance of time deposits,  a 92 basis point decrease in
the weighted  average rate paid on money markets,  and a 25 basis point decrease
in the weighted average rate paid on time deposits,  which were partially offset
by a $5.9 million increase in the average balance of money markets for the three
months  ended March 31,  2008,  when  compared  to the same period in 2007.  The
increase for the nine months ended March 31, 2008 was primarily  attributable to
a $4.8 million increase in the average balance of money markets,  and a 12 basis
point increase in the weighted  average rates paid on time deposits,  which were
partially  offset by a $1.6  million  decrease  in the  average  balance of time
deposits,  a 27 basis point decrease in the weighted  average rate paid on money
markets, and a $3.2 million decrease in the average balance of savings accounts,
when  compared to the same period in 2007.  The decrease in average  balances of
time deposits reflects maturities of time deposits for local governments,  while
the decrease in average  yield on the money  markets  reflect lower market rates
for the three and nine months ended March 31, 2008.

         Provision  (Recovery) for Loan Losses. A provision  (recovery) for loan
losses is charged  (credited)  to earnings to maintain the total  allowance at a
level considered adequate by management to

                                       15
<PAGE>

absorb  potential  losses in the portfolio.  Management's  determination  of the
adequacy of the allowance is based on an evaluation of the portfolio considering
past experience,  current economic conditions, volume, growth and composition of
the loan portfolio, and other relevant factors.

         The Company recorded a recovery for loan losses of $57 thousand for the
three months ended March 31, 2008 compared to a provision for loan losses of $34
thousand for the same period in 2007. The $91 thousand change during the quarter
ended March 31, 2008 was primarily due to slightly  lower levels of  non-accrual
loans and a $55 thousand  recovery on a previously  charged-off  commercial real
estate loan.  For the nine months ended March 31, 2008,  the Company  recorded a
recovery of $64  thousand  compared to a provision  of $25 thousand for the same
period in 2007. At March 31, 2008, the Company's total allowance for loan losses
amounted to $978  thousand or 1.7% of the  Company's  total loan  portfolio,  as
compared to $986 thousand or 1.6% at June 30, 2007.

         Non-Interest  Income.  Non-interest income decreased by $14 thousand or
9.2% and $25  thousand  or 5.4% for the three and nine  months  ended  March 31,
2008,  respectively,  when  compared to the same periods in 2007.  The decreases
were  primarily  attributable  to lower  levels of  service  charges  on deposit
accounts.

         Non-Interest  Expense.  Non-interest  expense increased $16 thousand or
1.9% and $120  thousand  or 4.6% for the three and nine  months  ended March 31,
2008, respectively,  when compared to the same periods in 2007. The increase for
the three  months  ended March 31, 2008 was  principally  attributable  to a $21
thousand  increase in payroll and benefit  related  costs,  which were partially
offset by a $6 thousand  decrease in occupancy and equipment costs when compared
to the same period in 2007.  The  increase  for the nine months  ended March 31,
2008 was  primarily  attributable  to a $103  thousand  increase  in  charitable
contributions  eligible for Pennsylvania Tax credits and a $62 thousand increase
in payroll  and  benefit  related  costs  which were  partially  offset by a $25
thousand  decrease in occupancy and equipment costs and a $14 thousand  decrease
in correspondent bank service charges when compared to the same period in 2007.

         Income Tax Expense.  Income tax expense  decreased $40 thousand or 7.8%
for the three months ended March 31, 2008 and  increased  $159 thousand or 12.3%
for the nine months ended March 31,  2008,  respectively,  when  compared to the
same periods in 2007. The decrease for the three months ended March 31, 2008 was
primarily due to lower levels of taxable income, while the increase for the nine
months ended March 31, 2008 was  attributable to higher levels of taxable income
when compared to the same periods in 2007.

LIQUIDITY AND CAPITAL RESOURCES

         Net cash provided by operating  activities  totaled $4.1 million during
the nine months ended March 31, 2008. Net cash provided by operating  activities
was primarily  comprised of $3.0 million of net income,  a $1.5 million decrease
in accrued interest  receivable,  a $428 increase in accrued and deferred income
taxes and $94 thousand in fixed asset depreciation,  which were partially offset
by $712 thousand in accretion of discounts on commercial paper and $273 thousand
in amortization of discounts, premiums and deferred loan fees.

         Funds used for investing  activities  totaled $31.9 million  during the
nine months ended March 31,  2008.  Primary uses of funds during the nine months
ended  March  31,   2008,   included   purchases   of   investment   securities,
mortgage-backed  securities,  FHLB stock and  certificates  of deposit  totaling
$181.7 million,  $103.4 million,  $18.8 million and $7.2 million,  respectively,
which  were  partially  offset by  maturities  and  repayments  of  investments,
mortgage-backed securities and FHLB stock totaling $248.9 million, $13.7 million
and $13.5 million, respectively, a $2.9 million decrease in net loans receivable
and  $265  thousand  from  the sale of  mortgage-backed  securities.  Short-term
investment grade commercial paper purchases,  included in investment  securities
available  for sale,  totaled  $138.6  million;  and  maturities  of  short-term
commercial paper totaled $129.1 million.

         Funds  provided by financing  activities  totaled $27.0 million for the
nine months ended March 31, 2008. The primary sources  included a $114.3 million
increase in short-term  FHLB  advances and a $5.0

                                       16
<PAGE>

million  increase in long-term FHLB advances  which were  partially  offset by a
$82.9 million decrease in other short-term  borrowings,  a $7.8 million decrease
in deposits,  $1.6 million in treasury stock  purchases and $1.1 million in cash
dividends paid on the Company's  common stock.  The decrease in other short-term
borrowings  reflects lower short-term  rates available  through the Federal Home
Loan Bank.  The $7.8  million  decrease in total  deposits  consisted  of a $6.3
million  decrease  in  time  deposits  primarily  due to the  maturity  of  cash
management  time  deposits  held by local  county  governments,  a $2.6  million
decrease in passbook  accounts,  a $1.7  decrease in demand  deposits and a $286
thousand decrease in mortgage escrow accounts,  which were partially offset by a
$3.1  million  increase in money market  deposits.  The increase in money market
balances may be  attributable to lower market yields on certificates of deposits
and  increased  liquidity  preferences  by  depositors  in response to unsettled
financial  markets.  The  decreases  in passbook  and escrow  accounts  were due
primarily  to the  payments  of  local  property  taxes  by and  for  customers.
Management  believes  that it currently is  maintaining  adequate  liquidity and
continues to match funding sources with lending and investment opportunities.

         The  Company's  primary  sources of funds are  deposits,  amortization,
repayments  and  maturities of existing  loans,  mortgage-backed  securities and
investment  securities,  funds from operations,  and funds obtained through FHLB
advances  and  other  borrowings.   At  March  31,  2008,  total  approved  loan
commitments  outstanding  amounted to approximately  $554 thousand.  At the same
date,  commitments under unused lines of credit amounted to $5.4 million and the
unadvanced   portion  of   construction   loans   approximated   $12.1  million.
Certificates  of  deposit  scheduled  to mature in one year or less at March 31,
2008 totaled $54.1 million.  Management  believes that a significant  portion of
maturing deposits will remain with the Company.

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

         On April 29, 2008,  the  Company's  Board of Directors  declared a cash
dividend of $0.16 per share payable May 22, 2008, to  shareholders  of record at
the close of business on May 12, 2008.  Dividends  are subject to  determination
and declaration by the Board of Directors, which take into account the Company's
financial  condition,  statutory and regulatory  restrictions,  general economic
conditions and other  factors.  There can be no assurance that dividends will in
fact be paid on the  Common  Stock in  future  periods  or that,  if paid,  such
dividends will not be reduced or eliminated.

         As of March 31, 2008,  WVS  Financial  Corp.  exceeded  all  regulatory
capital requirements and maintained Tier I and total risk-based capital equal to
$31.8  million  or 19.0% and $32.8  million  or  19.6%,  respectively,  of total
risk-weighted  assets,  and Tier I leverage capital of $31.8 million or 7.59% of
average quarterly assets.

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

         The   Company's   nonperforming   assets  at  March  31,  2008  totaled
approximately  $1.6  million or 0.4% of total assets as compared to $1.2 million
or 0.3% of total assets at June 30, 2007. Nonperforming assets at March 31, 2008
consisted  of: one  commercial  real estate loan  totaling  $972  thousand,  one
speculative  construction loan totaling $358 thousand,  three single-family real
estate loans totaling $229 thousand,  two single-family real estate junior liens
totaling $41 thousand and two home equity lines of credit totaling $17 thousand.
These loans are in various stages of collection activity.

                                       17
<PAGE>

         The $413  thousand  increase in  nonperforming  assets  during the nine
months ended March 31, 2008 was primarily  attributable to the  reclassification
to  non-performing  of a $358  thousand  speculative  construction  loan,  a $93
thousand single-family real estate loan and two single-family real estate junior
liens totaling $41 thousand, which were partially offset by the reclassification
of a  $76  thousand  single-family  real  estate  loan  from  non-performing  to
performing, the sale of the single-family real estate owned property with a book
value of  approximately  $2 thousand,  and paydowns on  non-performing  loans of
approximately $2 thousand.

         At March 31,  2008,  the Company had one  previously  restructured  and
non-performing  commercial  real estate loan to a retirement  village located in
the North Hills totaling $972 thousand. The Savings Bank's outstanding principal
balance  totaled  $2.0  million  at June 30,  2003.  During  the  quarter  ended
September 30, 2003,  the Savings Bank  redeemed  $388 thousand of  participating
interests.  During the quarter  ended  December 31, 2003,  the Bank sold a forty
percent participating interest to another financial institution at par resulting
in proceeds  totaling $979 thousand.  The Savings Bank's  outstanding  principal
balance  totaled  $972  thousand at June 30,  2007.  The  Company  had  recorded
interest  received on this credit on a cost recovery  basis until  September 30,
2003 when it began to recognize  interest  income.  During the nine months ended
March 31, 2008 the Company  received  and  recognized  $34  thousand of interest
income. The Company anticipates work-out  negotiations on this credit during the
next fiscal quarter.  At this time, the Company cannot predict the final form or
outcome of the work-out negotiations.

         At March 31, 2008,  the Company had one  previously  restructured  loan
secured  by   undeveloped   land  totaling  $325  thousand  and  one  previously
restructured  unsecured loan totaling $24 thousand to two borrowers.  During the
fourth  quarter of fiscal 2004,  the  Bankruptcy  Court approved a secured claim
totaling $440 thousand and an unsecured  claim  totaling $76 thousand be paid in
accordance  with a Bankruptcy  Plan of  Reorganization.  All Court  ordered plan
payments have been received in a timely  manner.  In accordance  with  generally
accepted  accounting  principles,  the Company had  recorded  interest  payments
received  on a cost  recovery  basis  until June 30,  2006 and is now  recording
interest income.

         During the nine months ended March 31, 2008, approximately $40 thousand
of  interest  income  would  have  been  recorded  on loans  accounted  for on a
non-accrual  basis if such loans had been current according to the original loan
agreements  for the  entire  period.  These  amounts  were not  included  in the
Company's  interest income for the nine months ended March 31, 2008. The Company
continues  to work with the  borrowers in an attempt to cure the defaults and is
also pursuing various legal avenues in order to collect on these loans.


ITEM 3.


QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ASSET AND LIABILITY MANAGEMENT

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

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

                                       18
<PAGE>

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

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

         During  the three  months  ending  March 31,  2008,  FOMC  participants
consistently  noted that  incoming  information  pointed  to a  markedly  weaker
outlook  for  consumer  spending.  The  decline in housing  had  steepened,  and
consumer  outlays  appeared  to be  softening  more  than  anticipated,  perhaps
indicating  some spill over from the housing  correction to other  components of
consumer spending.  These  developments,  together with continued strains in the
financial markets, suggested that growth in late 2007 and during 2008 was likely
to be much more sluggish than FOMC participants had previously anticipated.

         FOMC participants discussed in detail at their January 2008 meeting the
resurgence  of  stresses  in  financial  markets  in  November.  Performance  of
mortgage-related assets deteriorated further,  increasing the losses being borne
by a number of major  financial  firms.  Heightened  worries about  counterparty
credit  risk,  balance  sheet  constraints  and  liquidity   pressures  affected
interbank  funding  markets and  commercial  paper  markets,  where spreads over
risk-free  rates  were,  in some cases,  higher than those seen in August  2007.
Spreads on conforming  mortgage products also widened after reports of losses at
the housing-related  government-sponsored  enterprises,  depository institutions
and other financial intermediaries.

         At their December 2007 meeting, the FOMC voted to establish a temporary
Term  Auction  Facility  (TAF).  The TAF is to provide  term funding to eligible
depository  institutions  through an auction mechanism.  Also, the TAF accepts a
broader range of collateral  than used for open market  operations.  The Company
had no TAF related borrowings during the quarter ended March 31, 2008.

         At their meetings held in January and March 2008, FOMC members voted to
reduce the  targeted  federal  funds rate by one hundred  twenty-five  (125) and
seventy-five (75) basis points,  respectively.  Reductions were also made to the
Federal Reserve Discount Rate of one hundred  twenty-five  (125) and one hundred
(100) basis points, respectively.

                                       19
<PAGE>
<TABLE>
<CAPTION>

         The table below shows the targeted federal funds rate and the benchmark
two and ten year treasury yields at September 30, 2006, December 31, 2006, March
31, 2007,  June 30, 2007,  September  30, 2007,  December 31, 2007 and March 31,
2008. The difference in yields on the two and ten 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 Yield
                          Federal             Year               Year              Curve
                           Funds            Treasury           Treasury
                       ---------------    --------------    --------------------------------------
<S>                        <C>                <C>               <C>                 <C>
September 30, 2006         5.25%              4.71%             4.64%             Inverted
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
September 30, 2007         4.75%              3.97%             4.59%       Moderately Positive
December 31, 2007          4.25%              3.05%             4.04%             Positive
March 31, 2008             2.25%              1.62%             3.45%             Positive
</TABLE>

         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.  Principal  repayments on the
Company's loan,  investment and  mortgage-backed  securities  portfolios for the
nine months ended March 31, 2008,  totaled  $16.2  million,  $248.9  million and
$13.9 million, respectively. Included in the Company's investment repayments are
commercial paper maturities totaling $129.1 million.

         The term  premium of market  interest  rates is often used to determine
the relative merits of taking an 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  during the nine months ended March
31,  2008  the  Company  adjusted  its  asset/liability  mix  in  several  ways.
Intermediate  term callable U.S.  Government  Agency  securities  were purchased
early on during the quarter  ended  September  30,  2007.  As  financial  market
conditions  deteriorated,  the Company purchased  floating rate U.S.  Government
Agency  collateralized   mortgage   obligations,   short-term  investment  grade
commercial  paper  and  investment  grade  corporate  bonds.   With  respect  to
short-term borrowings, the Company replaced broker repurchase agreements ("other
short-term  borrowings") with FHLB short-term  borrowings due to lower borrowing
costs at the FHLB.

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

         The Company purchased  short-term  investment grade commercial paper to
earn a favorable  financing spread and to provide higher levels of liquidity due
to turmoil  in the world  financial  markets.  The  Company  also  continued  to
purchase  intermediate  term fixed rate callable U. S. Government  Agency bonds;
and began to purchase  investment  grade  corporate  bonds and FDIC insured bank
certificates of deposit in order to earn a spread against the Company's  various
borrowings while limiting  interest rate risk within the portfolio.  The Company
also purchased  floating rate U.S.  Government  Agency  collateralized  mortgage
obligations to provide current income and in response to lower  intermediate and
long-term  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 money market and
time deposit products.


                                       20
<PAGE>

         During the quarter ended March 31, 2008, principal investment purchases
were  comprised of:  floating rate  collateralized  mortgage  obligations  which
reprice  monthly - $44.0  million  with an original  weighted  average  yield of
approximately  5.03%;  short-term  investment  grade  commercial  paper  - $53.2
million with a weighted  average  yield of 3.62%;  fixed rate  investment  grade
corporate  bonds - $9.0  million  with a weighted  average  yield of 3.88%.  The
Company also purchased $7.2 million of FDIC bank insured certificates of deposit
with a weighted  average  yield of 3.53%.  Major  investment  proceeds  received
during the quarter ended March 31, 2008 were: callable government agency bonds -
$60.0 million with a weighted average yield of approximately  5.75%;  short-term
investment  grade commercial paper - $48.5 million with a weighted average yield
of approximately 4.55%;  mortgage-backed securities - $4.4 million; and tax-free
municipal bonds - $1.3 million with a weighted average yield of 3.60%.

         As of March 31, 2008, the  implementation  of these asset and liability
management initiatives resulted in the following:

         1) $208.9   million   or   99.0%   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) $90.0  million or 61.9% 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 - $28.4  million;  3 - 6
            months - $34.5  million;  6 - 12 months - $21.1  million;  and 1 - 2
            years  - $6.0  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.
         3) $24.9  million or 17.1% of the  Company's  investment  portfolio was
            comprised of investment  grade  commercial  paper with maturities of
            less than 90 days.
         4) $15.4  million  or  10.6%  of  the  Company's  investment  portfolio
            consisted  of  investment  grade  fixed  rate  corporate  bonds with
            maturities between three and eighteen months;
         5) $5.7 million or 3.9% of the Company's investment portfolio consisted
            of investment grade floating rate corporate bonds which will reprice
            within three months and will mature within nine to fourteen months;
         6) $7.2 million or 1.6% of the Company's total assets consisted of FDIC
            insured bank  certificates of deposit with  maturities  ranging from
            five to twenty-four months;
         7) An aggregate  of $33.2  million or 57.7% of the  Company's  net loan
            portfolio had  adjustable  interest rates or maturities of less than
            12 months; and
         8) The maturity distribution of the Company's borrowings is as follows:
            1 month or less - $114.3  million  or  45.8%;  6 - 12  months - $5.5
            million or 2.2%; 1 - 3 years - $90.6 million or 36.2%; 3 - 5 years -
            $22.0 million or 8.8%; and over 5 years - $17.5 million or 7.0%.

         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.

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


                                       21
<PAGE>

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

<TABLE>
<CAPTION>

                                               March 31,           June 30,
                                              ----------   ------------------------
                                                 2008         2007          2006
                                              ----------   ----------    ----------
                                                      (Dollars in Thousands)
<S>                                            <C>          <C>           <C>
Interest-earning assets maturing or           $  387,271   $  206,136    $  273,884
   repricing within one year
Interest-bearing liabilities maturing or
   repricing within one year                     222,819      187,494       194,509
                                              ----------   ----------    ----------


Interest sensitivity gap                      $  164,452   $   18,642    $   79,375
                                              ==========   ==========    ==========

Interest sensitivity gap as a percentage of
   total assets                                    37.48%        4.57%         32.5%
Ratio of assets to liabilities
   maturing or repricing within one year          173.81%      109.94%        175.6%
</TABLE>

         During the quarter  ended March 31, 2008,  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) purchasing floating rate U.S. Government Agency CMO's
which reprice on a monthly basis; and (4) adjusting its investment  portfolio to
include  investment  grade fixed and floating rate corporate  bonds,  (5) higher
holdings of short-term  investment grade commercial  paper, and (6) investing in
shorter-term FDIC insured bank certificates of deposit.


                                       22
<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 March  31,  2008.  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
                      -------      -------      --------      --------      --------      --------        ---------
<S>                  <C>            <C>         <C>           <C>             <C>           <C>             <C>
                                                          (Dollars in Thousands)
Base Case Up 200 bp
-------------------
Cummulative
  Gap ($'s)           105,495       92,178        76,092        76,387       (16,528)      (21,126)          33,639
% of Total
  Assets                 24.0%        21.0%         17.3%         17.4%         -3.8%         -4.8%             7.7%
Base Case Up 100 bp
-------------------
Cummulative
  Gap ($'s)           118,023      110,537        94,890       125,732        50,937        29,155           33,639
% of Total
  Assets                 26.9%        25.2%         21.6%         28.7%         11.6%          6.6%             7.7%
Base Case No Change
-------------------
Cummulative
  Gap ($'s)           135,609      158,018       164,452       174,058        81,895        59,616           33,639
% of Total
  Assets                 30.9%        36.0%         37.5%         39.7%         18.7%         13.6%             7.7%
Base Case Down 100 bp
---------------------
Cummulative
  Gap ($'s)           137,270      160,884       169,037       180,528        88,304        63,678           33,639
% of Total
  Assets                 31.3%        36.7%         38.5%         41.1%         20.1%         14.5%             7.7%
Base Case Down 200 bp
---------------------
Cummulative
  Gap ($'s)           137,358      161,007       169,221       180,585        88,358        63,678           33,639
% of Total
  Assets                 31.3%        36.7%         38.6%         41.2%         20.1%         14.5%             7.7%

</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.

                                       23
<PAGE>

              The following table presents the simulated impact of a 100 and 200
basis point upward or downward  (parallel) shift in market interest rates on net
interest  income,  return on average  equity,  return on average  assets and the
market  value of  portfolio  equity at March 31,  2008.  This  analysis was done
assuming  that the  interest-earning  assets  will  average  approximately  $421
million over a projected  twelve month period for the estimated impact on change
in net interest  income,  return on average equity and return on average assets.
The estimated  changes in market value of equity were  calculated  using balance
sheet levels at March 31, 2008.

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

<TABLE>
<CAPTION>
                                           -----------------------------------------------------------------------------------------
                                                                    Modeled Change in Market Interest Rates
                                           ---------------    ---------------    ---------------   ---------------    --------------
Estimated impact on:                            -200               -100                0                +100               +200
--------------------                       ---------------    ---------------    ---------------   ---------------    --------------
<S>                                       <C>                <C>                 <C>               <C>                <C>
   Change in net interest income                -49.9%             -24.7%                                 36.2%              57.7%

   Return on average equity                      1.85%              5.36%              8.68%             13.39%             16.06%

   Return on average assets                      0.14%              0.40%              0.66%              0.95%              1.12%

   Market value of equity (in
      thousands)                              $26,442            $28,818            $25,615            $18,882             $8,460

</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 March 31,
2008.

                            Anticipated Transactions
                --------------------------------------------------
                                            (Dollars in Thousands)
                Undisbursed construction and
                    land development loans
                      Fixed rate                      $    6,096
                                                            7.90%

                      Adjustable rate                 $    5,957
                                                            6.67%

                Undisbursed lines of credit
                      Adjustable rate                 $    5,427
                                                            6.34%

                Loan origination commitments
                      Fixed rate                      $      394
                                                            6.69%

                      Adjustable rate                 $      160
                                                            7.38%

                Letters of credit
                      Adjustable rate                 $      457
                                                            6.25%
                                                      ----------

                                                      $   18,491
                                                      ==========

                                       24
<PAGE>

         In the  ordinary  course  of its  construction  lending  business,  the
Savings Bank enters into performance standby letters of credit.  Typically,  the
standby  letters of credit are issued on behalf of a builder to a third party to
ensure the timely  completion of a certain aspect of a  construction  project or
land  development.  At March 31,  2008,  the  Savings  Bank had six  performance
standby letters of credit outstanding  totaling  approximately $307 thousand and
one financial letter of credit totaling $150 thousand.  All performance  letters
of credit are secured by developed property while the financial letter of credit
is secured by certificates of deposit.  All of the letters of credit will mature
within  twelve  months.  In the event that the  obligor is unable to perform its
obligations  as  specified in the  applicable  letter of credit  agreement,  the
Savings Bank would be obligated to disburse funds up to the amount  specified in
the letter of credit agreement.  The Savings Bank maintains adequate  collateral
that could be liquidated to fund these contingent obligations.

ITEM 4.  CONTROLS AND PROCEDURES

         Not applicable.

ITEM 4T. CONTROLS AND PROCEDURES

         (a) Our  management  evaluated,  with the  participation  of our  Chief
Executive  Officer  and  Chief  Accounting  Officer,  the  effectiveness  of our
disclosure  controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)
under the Securities  Exchange Act of 1934) as of March 31, 2008.  Based on such
evaluation,  our Chief  Executive  Officer  and Chief  Accounting  Officer  have
concluded  that our  disclosure  controls and  procedures are designed to ensure
that  information  required to be disclosed by us in the reports that we file or
submit  under  the  Securities  Exchange  Act of  1934 is  recorded,  processed,
summarized and reported within the time periods specified in the SEC's rules and
regulations and are operating in an effective manner.

         No change in our internal control over financial  reporting (as defined
in Rules  13a-15(f) and 15(d)-15(f)  under the Securities  Exchange Act of 1934)
occurred  during the quarter ended March 31, 2008 that has materially  affected,
or is  reasonably  likely  to  materially  affect,  our  internal  control  over
financial reporting.



                                       25
<PAGE>

PART II - OTHER INFORMATION

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

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


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

         There are no material  changes to the risk factors  included in Item 1A
of the  Company's  Annual Report on Form 10-K for the fiscal year ended June 30,
2007.


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

         (a) Not applicable.

         (b) Not applicable.

         (c) The  following  table  sets  forth   information  with  respect  to
             purchases  of  common stock o f the Company made by or on behalf of
             the Company during the three months ended March 31, 2008.
<TABLE>
<CAPTION>

         -----------------------------------------------------------------------------------------------------------
                                              ISSUER PURCHASES OF EQUITY SECURITIES
         -----------------------------------------------------------------------------------------------------------
                                                                           Total Number of       Maximum Number of
                                       Total                              Shares Purchased      Shares that May Yet
                                     Number of                           as Part of Publicly       Be Repurchased
                                      Shares         Average Price       Announced Plans or      Under the Plans or
                   Period            Purchased    Paid per Share ($)        Programs (1)            Programs (2)
         -----------------------------------------------------------------------------------------------------------
<S>                                   <C>                    <C>                    <C>                    <C>
         01/01/08 - 01/31/08            30,299                 16.24                  30,299                 72,535
         -----------------------------------------------------------------------------------------------------------
         02/01/08 - 02/29/08                --                  0.00                      --                 72,535
         -----------------------------------------------------------------------------------------------------------
         03/01/08 - 03/31/08                --                  0.00                      --                 72,535
         -----------------------------------------------------------------------------------------------------------
              Total                     30,299                 16.24                  30,299                 72,535
         -----------------------------------------------------------------------------------------------------------
</TABLE>

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

         (1) All shares indicated were purchased under the Company's Ninth Stock
             Repurchase Program.
         (2) Ninth Stock Repurchase Program
             (a) Announced August 14, 2007.
             (b) 125,000 common shares approved for repurchase.
             (c) No fixed date of expiration.
             (d) This program has not expired and has 72,535 shares remaining to
                 be repurchased at March 31, 2008.
             (e) Not applicable.

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

         Not applicable.

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

         Not applicable.

                                       26
<PAGE>


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

         (a) Not applicable.
         (b) Not applicable.



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

         The  following  exhibits are filed as part of this Form 10-Q,  and this
         list includes the Exhibit Index.
<TABLE>
<CAPTION>
                Number      Description                                                          Page
                ------      ----------------------------------------------------------------     ----
                <S>         <C>                                                                  <C>
                 31.1       Rule 13a-14(a) / 15d-14(a)  Certification of the Chief Executive     E-1
                            Officer
                 31.2       Rule   13a-14(a)   /  15d-14(a)   Certification   of  the  Chief     E-2
                            Accounting Officer
                 32.1       Section 1350 Certification of the Chief Executive Officer            E-3
                 32.2       Section 1350 Certification of the Chief Accounting Officer           E-4
                  99        Report of Independent Registered Public Accounting Firm              E-5

</TABLE>

                                       27
<PAGE>

                                   SIGNATURES


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



                                  WVS FINANCIAL CORP.



         May 9, 2008         BY:  /s/ David J. Bursic
                                  ----------------------------------------------
         Date                     David J. Bursic
                                  President and Chief Executive Officer
                                  (Principal Executive Officer)


         May 9, 2008         BY:  /s/ Keith A. Simpson
                                  ----------------------------------------------
         Date                     Keith A. Simpson
                                  Vice-President, Treasurer and Chief Accounting
                                  Officer
                                  (Principal Accounting Officer)


                                       28