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 September 30, 2007

                                       or

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

         For the transition period from ______ to ______

                         Commission File Number: 0-22444

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

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

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

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

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

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

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

         Shares  outstanding  as of October 30, 2007:  2,260,205  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
                September 30, 2007 and June 30, 2007
                (Unaudited) 3

                Consolidated Statement of Income
                for the Three Months Ended
                September 30, 2007 and 2006 (Unaudited)                       4

                Consolidated Statement of Changes in
                Stockholders' Equity for the Three Months
                Ended September 30, 2007 (Unaudited)                          5

                Consolidated Statement of Cash Flows
                for the Three Months Ended September 30,
                2007 and 2006 (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 Months
                Ended September 30, 2007                                     10

Item 3.         Quantitative and Qualitative Disclosures
                about Market Risk                                            16

Item 4.         Controls and Procedures                                      23

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

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

                                       2
<page>
<table>
<caption>

                                 WVS FINANCIAL CORP. AND SUBSIDIARY
                                     CONSOLIDATED BALANCE SHEET
                                             (UNAUDITED)
                                           (In thousands)
                                                                 September 30, 2007    June 30, 2007
                                                                 ------------------   ---------------

                                                                          <c>                <c>
          Assets
          ------
Cash and due from banks                                            $         1,046    $           630
Interest-earning demand deposits                                             1,381              2,045
                                                                   ---------------    ---------------
Total cash and cash equivalents                                              2,427              2,675
Investment securities available-for-sale (amortized cost of
   $19,425 and $8,957)                                                      19,407              8,933
Investment securities held-to-maturity (market value of
   $219,658 and $201,510)                                                  218,409            202,664
Mortgage-backed securities available-for-sale (amortized cost of
   $2,129 and $2,186)                                                        2,226              2,246
Mortgage-backed securities held-to-maturity (market value of
   $129,878 and $119,646)                                                  130,832            119,271
Net loans receivable (allowance for loan losses of $969 and
   $986)                                                                    59,561             60,350
Accrued interest receivable                                                  3,599              3,714
Federal Home Loan Bank stock, at cost                                       10,899              6,340
Premises and equipment                                                         806                813
Other assets                                                                 1,070              1,070
                                                                   ---------------    ---------------
          TOTAL ASSETS                                             $       449,236    $       408,076
                                                                   ===============    ===============

          Liabilities and Stockholders' Equity
          ------------------------------------
Liabilities:
Savings Deposits:
   Non-interest-bearing accounts                                   $        24,280    $        12,363
   NOW accounts                                                             16,944             18,741
   Savings accounts                                                         30,532             32,937
   Money market accounts                                                    20,983             20,146
   Certificates of deposit                                                  70,542             74,177
   Advance payments by borrowers for taxes and insurance                       378              1,013
                                                                   ---------------    ---------------
    Total savings deposits                                                 163,659            159,377
Federal Home Loan Bank advances: long-term                                 135,579            130,579
Federal Home Loan Bank advances: short-term                                 86,325                 --
Other borrowings                                                            28,324             82,950
Accrued interest payable                                                     1,921              1,669
Other liabilities                                                            2,416              2,208
                                                                   ---------------    ---------------
     TOTAL LIABILITIES                                             $       418,224    $       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;
   3,790,336 and 3,790,336 shares issued                                        38                 38
Additional paid-in capital                                                  21,137             21,137
Treasury stock: 1,530,131 and 1,471,481 shares at cost,
    Respectively                                                           (23,253)           (22,286)
Retained earnings, substantially restricted                                 33,039             32,382
Accumulated other comprehensive income                                          52                 23
Unallocated shares - Recognition and Retention Plans                            (1)                (1)
                                                                   ---------------    ---------------
     TOTAL STOCKHOLDERS' EQUITY                                    $        31,012    $        31,293
                                                                   ---------------    ---------------
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY               $       449,236    $       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
                                                                September 30,
                                                         ----------------------------
                                                             2007             2006
                                                         ------------    ------------

                                                             <c>             <c>
INTEREST AND DIVIDEND INCOME:
     Loans                                               $      1,123    $      1,052
     Investment securities                                      3,383           2,566
     Mortgage-backed securities                                 1,933           2,399
     Interest-earning deposits with other institutions              2               4
     Federal Home Loan Bank stock                                  96              97
                                                         ------------    ------------
          Total interest and dividend income                    6,537           6,118
                                                         ------------    ------------

INTEREST EXPENSE:
     Deposits                                                   1,138             968
     Federal Home Loan Bank advances                            2,358           1,908
     Other borrowings                                             738           1,162
                                                         ------------    ------------
          Total interest expense                                4,234           4,038
                                                         ------------    ------------

NET INTEREST INCOME                                             2,303           2,080
RECOVERY FOR LOAN LOSSES                                          (17)             (9)
                                                         ------------    ------------
NET INTEREST INCOME AFTER RECOVERY FOR                          2,320           2,089
     LOAN LOSSES                                         ------------    ------------

NON-INTEREST INCOME:
     Service charges on deposits                                   86              88
     Investment securities gains                                    1              --
     Other                                                         70              64
                                                         ------------    ------------
          Total non-interest income                               157             152
                                                         ------------    ------------

NON-INTEREST EXPENSE:
     Salaries and employee benefits                               508             489
     Occupancy and equipment                                       88              91
     Data processing                                               63              63
     Correspondent bank service charges                            26              39
     Other                                                        257             220
                                                         ------------    ------------
          Total non-interest expense                              942             902
                                                         ------------    ------------

INCOME BEFORE INCOME TAXES                                      1,535           1,339
INCOME TAXES                                                      512             435
                                                         ------------    ------------
NET INCOME                                               $      1,023    $        904
                                                         ============    ============

EARNINGS PER SHARE:
     Basic                                               $       0.45    $       0.39
     Diluted                                             $       0.45    $       0.39

AVERAGE SHARES OUTSTANDING:
     Basic                                                  2,283,510       2,327,183
     Diluted                                                2,284,384       2,329,120

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

                            <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                                                                   1,023                                      1,023
   Other comprehensive
     income:
      Change in unrealized
          holding gains on
          securities, net of
          income tax effect
          of $15                                                                                 29                           29
                                                                                                                     -----------

Comprehensive income                                                                                                       1,052

Purchase of shares for
   treasury stock                                                 (967)                                                     (967)


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

Exercise of stock options               --            --                                                                      --

Cash dividends declared
   ($0.16 per share)                                                             (366)                                      (366)
                               -----------   -----------   -----------    -----------   -----------   -----------    -----------

Balance at Sept 30, 2007       $        38   $    21,137   $   (23,253)   $    33,039   $        52   $        (1)   $    31,012
                               ===========   ===========   ===========    ===========   ===========   ===========    ===========



                             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)

                                                                                Three Months Ended
                                                                                  September 30,
                                                                            ------------------------
                                                                               2007          2006
                                                                            ----------    ----------

                                                                                <c>           <c>
OPERATING ACTIVITIES

Net income                                                                  $    1,023    $      904
Adjustments to reconcile net income to cash provided by operating
 activities:
   Recovery for loan losses                                                        (17)           (9)
   Depreciation                                                                     34            32
   Investment securities gains                                                       1            --
   Amortization of discounts, premiums and deferred loan fees                      (23)          (41)
   Accretion of discounts - commercial paper                                      (275)           (7)
   Increase in accrued and deferred taxes                                           77            27
  Decrease (Increase) in accrued interest receivable                               115          (489)
   Increase in accrued interest payable                                            252           149
   Other, net                                                                       32           673
                                                                            ----------    ----------
         Net cash provided by operating activities                               1,214         1,236
                                                                            ----------    ----------

INVESTING ACTIVITIES

Available-for-sale:
   Purchases of investments and mortgage-backed securities                     (64,583)           --
   Proceeds from repayments of investments and mortgage-backed securities       54,403         8,009
   Proceeds from sale of investment and mortgage-backed securities                  49            --
Held-to-maturity:
   Purchases of investments                                                    (21,929)      (18,331)
   Purchases of mortgage-backed securities                                     (17,973)       (4,998)
   Proceeds from repayments of investments                                       6,204         6,009
   Proceeds from repayments of mortgage-backed securities                        6,205        12,617
   Proceeds from sale of investments and mortgage-backed securities                216            --
Decrease (increase) in net loans receivable                                        801        (1,527)
Purchase of Federal Home Loan Bank stock                                        (7,049)         (753)
Redemption of Federal Home Loan Bank stock                                       2,490         1,944
Acquisition of premises and equipment                                              (28)           (7)
Other, net                                                                           3            --
                                                                            ----------    ----------
         Net cash (used for) provided by investing activities                  (41,191)        2,963
                                                                            ----------    ----------

                                                  6
</table>
<page>
<table>
<caption>

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

                                                                         Three Months Ended
                                                                            September 30,
                                                                        --------------------
                                                                          2007        2006
                                                                        --------    --------

                                                                       <c>          <c>
FINANCING ACTIVITIES

Net increase in transaction and passbook accounts                          8,633       8,336
Net (decrease) increase in certificates of deposit                        (3,635)      3,302
Net increase (decrease) in FHLB short-term advances                       86,325     (23,150)
Net (decrease) increase in other borrowings                              (54,626)     15,452
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       (635)       (691)
Cash dividends paid                                                         (366)       (372)
Funds used for purchase of treasury stock                                   (967)       (245)
                                                                        --------    --------
         Net cash provided by (used for) financing activities             39,729      (2,368)
                                                                        --------    --------

         (Decrease) increase in cash and cash equivalents                   (248)      1,831

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

CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                          $  2,427    $  3,027
                                                                        ========    ========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

   Cash paid during the period for:
      Interest on deposits, escrows and borrowings                      $  3,932    $  3,889
      Income taxes                                                           450         420
   Non cash item
      Due to Federal Reserve Bank                                            676         595
      Neighborhood Assistance Act Tax Credit                                  36          --




           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 months ended  September  30, 2007,  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.

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
                                                                   September 30,
                                                              ------------------------
                                                                 2007          2006
                                                              ----------    ----------

                                                           <c>           <c>
Weighted average common shares issued                          3,790,336     3,769,838
Average treasury stock shares                                 (1,506,826)   (1,442,655)
                                                              ----------    ----------

Weighted average common shares and common stock equivalents
  used to calculate basic earnings per share                   2,283,510     2,327,183
Additional common stock equivalents (stock options) used to
  calculate diluted earnings per share                               874         1,937
                                                              ----------    ----------

Weighted average common shares and common stock equivalents
  used to calculate diluted earnings per share                 2,284,384     2,329,120
                                                              ==========    ==========
</table>

         All options at September  30, 2007 and September 30, 2006 were included
in the computation of diluted earnings per share.


                                       8
<page>

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 September 30,
2007 and 2006.  There were no options issued during the periods ended  September
30, 2007 and 2006.

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):

                                       Three Month Ended September 30,
                                 -----------------------------------------
                                         2007                  2006
                                 -------------------   -------------------

      Net income                            $  1,023              $    904
      Other comprehensive
       income:
         Unrealized gains
         on available for sale
         securities              $     45              $     35

           Less:
          Reclassification
          adjustment for
           gain included in
           net income                  (1)                   --
                                 --------   --------   --------   --------
      Other comprehensive gain
       before tax                                 44                    35
      Income tax expense
      related to other
      comprehensive gain                          15                    12
                                            --------              --------
      Other comprehensive gain
      net of tax                                  29                    23
                                            --------              --------
      Comprehensive income                  $  1,052              $    927
                                            ========              ========

                                       9
<page>

ITEM 2.

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2007

FORWARD LOOKING STATEMENTS

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

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

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

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

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

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

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

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

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

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

                                       10
<page>

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

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


GENERAL

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

         West View Savings Bank is a Pennsylvania-chartered,  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 September 30, 2007.

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


FINANCIAL CONDITION

         The Company's  assets  totaled $449.2 million at September 30, 2007, as
compared to $408.1 million at June 30, 2007. The $41.1 million or 10.1% increase
in total assets was primarily  comprised of a $26.2 million or 12.4% increase in
investment  securities,  a $11.5  million or 9.5%  increase  in  mortgage-backed
securities,  and a $4.6  million or 71.9%  increase  in  Federal  Home Loan Bank
("FHLB") stock,  which were partially offset by a $789 thousand or 1.3% decrease
in net loans  receivable,  a $248  thousand  or 9.3%  decrease  in cash and cash
equivalents and a $115 thousand or 3.1% decrease in accrued interest receivable.
The  increase  in  investment   securities  is   attributable  to  purchases  of
intermediate  term  fixed-rate   callable  U.S.   government  agency  bonds  and
short-term  investment grade commercial  paper. The increase in  mortgage-backed
securities was primarily  attributable  to purchases of U.S.  Government  agency
floating rate collateralized  mortgage  obligations.  The increase in FHLB stock
was  attributable  to higher levels of FHLB borrowings and associated FHLB stock
purchase requirements. See "Asset and Liability Management".

         The Company's  total  liabilities  increased  $41.4 million or 11.0% to
$418.2 million as of September 30, 2007 from $376.8 million as of June 30, 2007.
The $41.4 million  increase in total  liabilities  was primarily  comprised of a
$86.3 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 $4.3 million or 2.7% increase in
total savings deposits,  which were partially offset by a $54.6 million or 65.9%
decrease  in  other  short-term  borrowings.  Demand  deposits  increased  $10.1
million, and money market accounts increased $837 thousand while certificates of
deposit  decreased  $3.6 million,  savings  accounts  decreased $2.4 million and
advanced payments by borrowers for taxes and insurance  decreased $635 thousand.
The  increase  in demand  deposits  was  principally  attributable  to  seasonal
increases  in  local  real  estate  tax  collector  accounts.  The  decrease  in
certicates  of deposit were  primarily  due to the maturity of accounts  held by
local governments.  Management believes that the changes

                                       11
<page>

in savings  accounts and advance  payments by borrowers  for taxes and insurance
were primarily attributable to seasonal payments of local and school real estate
taxes.

         Total  stockholders'  equity  decreased  $281 thousand or 0.9% to $31.0
million as of September 30, 2007,  from  approximately  $31.3 million as of June
30, 2007.  Capital  expenditures for the Company's stock repurchase  program and
cash dividends totaled $967 thousand and $366 thousand, respectively, which were
partially  offset by net income of $1.0 million and a $29  thousand  increase in
accumulated other comprehensive  income for the three months ended September 30,
2007.


RESULTS OF OPERATIONS

         General.  WVS  reported  net income of $1.0  million  or $0.45  diluted
earnings  per share for the three months ended  September  30, 2007.  Net income
increased by $119  thousand or 13.2% and diluted  earnings  per share  increased
$0.06 or 15.4% for the three months ended  September 30, 2007,  when compared to
the same period in 2006.  The increase in net income was primarily  attributable
to a $223 thousand  increase in net interest income,  a $8 thousand  increase in
recoveries for loan losses and a $5 thousand  increase in  non-interest  income,
which were partially offset by a $40 thousand  increase in non-interest  expense
and a $77 thousand increase in income tax expense.

         Net Interest  Income.  The Company's net interest  income  increased by
$223  thousand or 10.7% for the three months  ended  September  30,  2007,  when
compared to the same period in 2006. Approximately $193 thousand or 86.5% of the
increase  in net  interest  income can be  attributed  to the impact of changing
market   interest  rates  on  interest   earning  asset  and  interest   bearing
liabilities. The remaining $30 thousand or 13.5% increase in net interest income
can be attributed to changes in the average balances of interest-earning  assets
and interest-bearing liabilities.

         As  part  of  its  Asset/Liability  Management  strategy,  the  Company
increased its holdings of taxable investment  securities,  primarily  fixed-rate
callable  U.S.  Government  agency  securities,   and  reduced  its  holding  of
floating-rate    mortgage-backed   securities.    Changes   to   the   Company's
interest-bearing   liabilities  were  two-fold.  The  Company's  composition  of
short-term borrowings shifted from short-term repurchase agreements with brokers
to  short-term  FHLB  advances  due to  disruptions  in the  short-term  funding
markets.  The Company also noted a decrease in time  deposits,  partially due to
lower  balances of local  government  time  deposits  during the  quarter  ended
September 30, 2007 as compared to the same period in 2006.

         Interest Income.  Interest on investment  securities  increased by $817
thousand or 31.8% for the three months ended September 30, 2007 when compared to
the same  period in 2006.  The  increase  was  attributable  to a $40.8  million
increase in the average balance of the Company's investment securities portfolio
and a 41 basis  point  increase  in the  weighted  average  yield  earned on the
Company's investment  securities.  The increase in yields earned were consistent
with increases in market interest rates.  The increases in average balances were
associated with the Company's  reinvestment of proceeds into fixed-rate callable
U.S.  Government  Agency  securities and short-term  investment grade commercial
paper as part of the Company's Asset/Liability Management strategy.

         Interest on net loans receivable increased $71 thousand or 6.7% for the
three months ended September 30, 2007, when compared to the same period in 2006.
The  increase  for the three  months  ended  September  30,  2007 was  primarily
attributable  to an increase of $2.8 million in the average balance of net loans
receivable  outstanding  and an  increase  of 13 basis  points  in the  weighted
average  yield  earned  on net  loans  receivable  for the  three  months  ended
September 30, 2007,  when  compared to the same period in 2006.  The increase in
the average loan balance  outstanding  for the three months ended  September 30,
2007  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.

                                       12
<page>

         Interest on mortgage-backed securities decreased $466 thousand or 19.4%
for the three months ended  September 30, 2007, when compared to the same period
in 2006.  The  decrease  for the  three  months  ended  September  30,  2007 was
primarily  attributable  to a $31.9 million  decrease in the average  balance of
mortgage-backed  securities  outstanding  for the  period,  which was  partially
offset  by  a  11  basis  point   increase  in  the  average   yield  earned  on
mortgage-backed  securities outstanding for the three months ended September 30,
2007 when  compared to the same  period in 2006.  The  increase in the  weighted
average yield earned on  mortgage-backed  securities was consistent  with higher
market  interest  rates for the three  months  ended  September  30,  2007.  The
decrease in the average balances of mortgage-backed  securities during the three
months ended  September 30, 2007 was primarily  attributable  to paydowns on the
floating rate mortgage-backed securities in the Company's portfolio.

         Interest  Expense.  Interest  paid  on  FHLB  advances  increased  $450
thousand or 23.6% for the three months ended September 30, 2007 when compared to
the same period in 2006.  The increase for the three months ended  September 30,
2007 was  primarily  attributable  to a $38.1  million  increase  in the average
balances of FHLB  short-term  advances  that were used  primarily to repay other
short-term borrowings.

         Interest paid on other borrowings  decreased $424 thousand or 36.5% for
the three months ended  September  30, 2007 when  compared to the same period in
2006.  The  decrease  for  the  three  months  ended   September  30,  2007  was
attributable  to a $30.6  million  decrease  in the  average  balances  of other
borrowings  and a 25 basis  point  decrease  in rates paid for the  period.  The
decrease  in rates paid was  consistent  with  decreases  in  short-term  market
interest  rates.  The  decrease  in  average  balances  is  attributable  to the
restructuring of the Company's  short-term  borrowings due to disruptions in the
short-term funding markets and favorable  short-term  borrowing rates offered by
the FHLB.

         Interest  expense on deposits and escrows  increased  $196  thousand or
4.9% for the three months  ended  September  30, 2007 when  compared to the same
period in 2006.  The  increase  in interest  expense on  deposits  for the three
months ended September 30, 2007 was attributable to a 42 basis point increase in
the weighted average rate paid on money market and time deposits, a $7.5 million
increase in the average balance of money markets and certificates of deposit for
the three months ended  September 30, 2007,  when compared to the same period in
2006,  and a $5.8  million  increase in the average  balances of borrowed  funds
outstanding  for the  period.  The average  yield paid on money  market and time
deposits  reflects  higher  market  interest  rates for the three  months  ended
September 30, 2007.

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

         The Company recorded a recovery for loan losses of $17 thousand for the
three months ended  September 30, 2007 compared to a recovery for loan losses of
$9  thousand  for the same period in 2006.  The $8  thousand  or 88.9%  increase
during the quarter  ended  September  30, 2007 was  primarily  due to  continued
paydowns of  non-accrual  loans and decreases in loan balances  outstanding.  At
September 30, 2007, the Company's  total  allowance for loan losses  amounted to
$969 thousand or 1.6% 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 increased by $5 thousand or
3.3% for the three months  ended  September  30, 2007 when  compared to the same
period in 2006.  The  increase  was  primarily  attributable  to $6  thousand of
casualty insurance proceeds on an office building owned by the Company.

         Non-Interest  Expense.  Non-interest  expense increased $40 thousand or
4.4% for the three months  ended  September  30, 2007 when  compared to the same
period in 2006.  The increase  was  principally  attributable  to a $40 thousand
increase  in  contributions  eligible  for  Pennsylvania  Tax  credits and a $20
thousand  increase in payroll and benefit  related  costs,  which were partially
offset by a $13 thousand  decrease in  correspondent  bank service  charges when
compared to the same period in 2006.

                                       13
<page>

         Income Tax Expense.  Income tax expense increased $77 thousand or 17.7%
for the three months ended  September  30, 2007 when compared to the same period
in 2006.  The  increase was  primarily  attributable  to an  increased  level of
taxable  income for the three months ended  September  30, 2007 when compared to
the same period in 2006.

LIQUIDITY AND CAPITAL RESOURCES

         Net cash provided by operating  activities  totaled $1.2 million during
the three  months  ended  September  30,  2007.  Net cash  provided by operating
activities  was  primarily  comprised  of $1.0  million of net income and a $252
thousand increase in accrued interest payable.

         Funds used for investing  activities  totaled $41.2 million  during the
three months ended  September  30, 2007.  Primary uses of funds during the three
months  ended   September   30,   2007,   included   purchases  of   investment,
mortgage-backed  securities and FHLB Stock totaling $86.5 million, $18.0 million
and $7.0 million,  respectively,  which were partially  offset by maturities and
repayments of  investments,  mortgage-backed  securities and FHLB Stock totaling
$60.6  million,  $6.2 million and $2.5  million,  respectively,  a $801 thousand
decrease  in  net  loans   receivable   and  $265  thousand  from  the  sale  of
mortgage-backed securities.

         Funds  provided by financing  activities  totaled $39.7 million for the
three months ended  September  30, 2007.  The primary  sources  included a $86.3
million  increase  in  short-term  FHLB  advances,  a $5.0  million  increase in
long-term  FHLB  advances  and a $4.3 million  increase in deposits,  which were
partially  offset by a $54.6 million  decrease in other  short-term  borrowings,
$967 thousand in treasury  stock  purchases and $366 thousand in cash  dividends
paid on the  Company's  common  stock.  The  shift in  borrowed  funds  reflects
disruptions in the  short-term  funding  market and the lower  short-term  rates
available through the Federal Home Loan Bank. The $4.3 million increase in total
deposits  consisted of a $10.3 million increase in demand deposits primarily the
result of  increases in balances for local tax  collectors  and a $837  thousand
increase in money market accounts, which were partially offset by a $3.6 million
decrease in time deposits  primarily due to the maturity of cash management time
deposits held by local county  governments,  a $2.4 million decrease in passbook
accounts and a $635 thousand decrease in mortgage escrow accounts. The decreases
in passbook  and escrow  accounts  are 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  September  30, 2007,  total  approved  loan
commitments  outstanding  amounted to approximately  $105 thousand.  At the same
date,  commitments under unused lines of credit amounted to $5.9 million and the
unadvanced   portion  of   construction   loans   approximated   $13.4  million.
Certificates of deposit scheduled to mature in one year or less at September 30,
2007 totaled $53.8 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 August 14, 2007,  the Company's  Board of Directors  authorized  its
Ninth Common Stock Buyback Program in the amount of 125,000  shares.  See Issuer
Purchases of Equity Securities in Part II, Item 2 (c) of this Form 10-Q.

                                       14
<page>

         On October 30, 2007, the Company's  Board of Directors  declared a cash
dividend of $0.16 per share payable November 21, 2007, to shareholders of record
at the close of  business  on  November  12,  2007.  Dividends  are  subject  to
determination and declaration by the Board of Directors, which take into account
the  Company's  financial  condition,  statutory  and  regulatory  restrictions,
general  economic  conditions and other factors.  There can be no assurance that
dividends will in fact be paid on the Common Stock in future periods or that, if
paid, such dividends will not be reduced or eliminated.

         As of September 30, 2007, WVS Financial  Corp.  exceeded all regulatory
capital requirements and maintained Tier I and total risk-based capital equal to
$30.9  million  or 20.9% and $32.0  million  or  21.5%,  respectively,  of total
risk-weighted  assets,  and Tier I leverage capital of $30.9 million or 7.25% 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  September  30,  2007  totaled
approximately  $1.1  million or 0.2% of total assets as compared to $1.2 million
or 0.3% of total assets at June 30, 2007.  Nonperforming assets at September 30,
2007 consisted of: one commercial  real estate loan totaling $972 thousand,  two
single-family real estate loans totaling $138 thousand,  and two lines of credit
totaling $17 thousand. These loans are in various stages of collection activity.

         The $78  thousand  decrease in  nonperforming  assets  during the three
months   ended   September   30,  2007  was   primarily   attributable   to  the
reclassification  of  a  $76  thousand   single-family  real  estate  loan  from
non-performing to performing and the sale of the single-family real estate owned
property with a book value of approximately $2 thousand.

         At September 30, 2007, 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  quarter  ended
September 30, 2007 the Company  received and  recognized $5 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 September 30, 2007, the Company had one previously restructured loan
secured  by   undeveloped   land  totaling  $331  thousand  and  one  previously
restructured  unsecured loan totaling $30 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 three months ended  September  30, 2007,  approximately  $12
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 quarter ended September 30, 2007. 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.

                                       15
<page>

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ASSET AND LIABILITY MANAGEMENT

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

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

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

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

         During  the  quarter  ended   September  30,  2007   financial   market
participants  appeared to become more concerned about liquidity and counterparty
credit risk.  Unsecured bank funding  markets showed signs of stress,  including
volatility in overnight  lending rates,  elevated term rates, and illiquidity in
term funding markets. On August 10, 2007, the Federal Reserve issued a statement
announcing that it was providing liquidity to facilitate the orderly functioning
of  financial  markets.  The Federal  Reserve  indicated  that it would  provide
reserves as necessary  through open market  operations to promote trading in the
federal  funds  market at rates close to the target  rate of 5.25%.  The Federal
Reserve  also  noted  that the  discount  window  was  available  as a source of
funding.

         On August 17, 2007, the Federal  Reserve Open Market  Committee  (FOMC)
issued a statement noting that financial market  conditions had deteriorated and
that tighter credit  conditions and increased  uncertainty  had the potential to
restrain economic growth going forward.  The FOMC judged that the downside risks
to growth  had  increased  appreciably,  indicated  that it was  monitoring  the
situation,  and stated that it was  prepared  to act as needed to  mitigate  the
adverse  effects  on the  economy  arising  from the  disruptions  in  financial
markets.  Simultaneously,  the Federal  Reserve Board announced that, to promote
the

                                       16
<page>

restoration  of orderly  conditions in financial  markets,  it had approved a 50
basis  point  reduction  in the  primary  credit  rate to 5.75%.  The Board also
announced a change to the Reserve Banks' usual  practices to allow the provision
of term  financing  for as long as thirty days,  renewable by the  borrower.  In
addition,  the Board noted that the Federal  Reserve would  continue to accept a
broad range of collateral  for discount  window loans,  including home mortgages
and related assets, while maintaining existing collateral margins. On August 21,
2007 the Federal  Reserve Bank of New York announced  some temporary  changes to
the terms and  conditions of the System Open Market  Account  (SOMA)  securities
lending program, including a reduction in the minimum fee. The effective federal
funds rate was somewhat  below the target rate for a time over the  intermeeting
period,  as  efforts to keep the funds rate near the  target  were  hampered  by
technical  factors and financial market  volatility.  In the days leading up the
FOMC meeting, however, the funds rate traded closer to the target.

         Short-term  financial  markets came under  pressure  during the quarter
ended  September 30, 2007 amid  heightened  investor  unease about  exposures to
subprime  mortgages and to structured  credit products more generally.  Rates on
asset-backed  commercial  paper  and on  low-rated  unsecured  commercial  paper
soared, and some issuers,  particularly  asset-backed  commercial paper programs
with investments in subprime mortgages, found it difficult to roll over maturing
paper.  These  developments led several programs to draw backup lines,  exercise
options to extend the  maturity of  outstanding  paper,  or even  default.  As a
result,  asset-backed  commercial paper  outstanding  contracted  substantially.
Investors sought the safety and liquidity of Treasury securities,  and yields on
Treasury  bills  dropped  sharply for a period;  trading  conditions in the bill
market were impaired at times. Meanwhile,  banks took measures to conserve their
liquidity  and were cautious  about  counterparties'  exposures to  asset-backed
commercial paper. Term interbank  funding markets were  significantly  impaired,
with rates  rising  well  above  expected  future  overnight  rates and  traders
reporting a substantial  drop in the  availability  of term  funding.  Pressures
eased a bit in  mid-September  2007, but short-term  financial  markets remained
strained.  The  foreign  exchange  value  of  the  dollar  against  other  major
currencies fell, on balance.

         Investors appeared to mark down  significantly  their expected path for
the federal funds rate during the intermeeting period,  evidently in response to
the strains in money and credit markets and a few key data  releases,  including
weaker-than-expected  reports  on housing  activity  and  employment.  Yields on
nominal  Treasury   securities  fell  appreciably  across  the  term  structure.
TIPS-based inflation  compensation at the five-year horizon was about unchanged,
while inflation compensation at longer horizons crept higher.

         According to the minutes of the Federal Open Market  Committee  meeting
of  September  18,  2007,  all FOMC  members  favored an easing of the stance of
monetary policy.  Members  emphasized that because of the recent sharp change in
credit market conditions,  the incoming data in many cases were of limited value
in assessing the likely evolution of economic  activity and prices, on which the
Committee's policy decision must be based. Members judged that a lowering of the
target  funds  rate was  appropriate  to help  offset  the  effects  of  tighter
financial  conditions  on the  economic  outlook.  Without  such policy  action,
members saw a risk that tightening credit conditions and an intensifying housing
correction would lead to significant  broader weakness in output and employment.
Similarly,  the impaired functioning of financial markets might persist for some
time or possibly worsen,  with negative  implications for economic activity.  In
order to help  forestall  some of the adverse  effects on the economy that might
otherwise  arise,  all members agreed that a rate cut of 50 basis points at this
meeting  was the most  prudent  course  of  action.  Such a measure  should  not
interfere with an adjustment to realistic  pricing of risk or with the gains and
losses that implied for participants in financial markets.  With economic growth
likely to run below its potential for a while and with incoming  inflation  data
to the favorable side, the easing of policy seemed unlikely to affect  adversely
the outlook for inflation.

         The  committee  agreed  that the  statement  to be  released  after the
meeting  should  indicate  that the  outlook  for  economic  growth had  shifted
appreciably  since the  Committee's  last regular  meeting but that the 50 basis
point easing in policy should help promote  moderate growth over time. They also
agreed that the inflation  situation seemed to have improved slightly and judged
that it was no longer  appropriate  to indicate  that a sustained  moderation in
inflation  pressures  had yet to be shown.  Nonetheless,  all  agreed  that some
inflation  risks  remained  and  that the  statement  should  indicate  that the
Committee would continue to monitor inflation developments carefully.  Given the
heightened  uncertainty  about the economic  outlook,  the Committee  decided to
refrain from providing an explicit assessment of the balance of risks, as such a

                                       17
<page>

characterization  could give the mistaken impression that the Committee was more
certain  about the economic  outlook than was in fact the case.  Future  actions
would  depend  on how  economic  prospects  were  affected  by  evolving  market
developments and by other factors.

         At conclusion of the  discussion,  the Committee voted to authorize and
direct the Federal Reserve Bank of New York, until it was instructed  otherwise,
to execute  transactions  in the System Account in accordance with the following
domestic policy directive:

         "The  Federal  Open  Market  Committee  seeks  monetary  and  financial
conditions  that will foster price stability and promote  sustainable  growth in
output.  To further its long-run  objectives,  the  Committee  in the  immediate
future seeks  conditions in reserve marks  consistent  with reducing the federal
funds rate to an average of around 4.75%."

         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 and September 30, 2007. 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.

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

                    <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
</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
three months ended September 30, 2007,  totaled $7.0 million,  $60.6 million and
$6.5 million, respectively.

         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 quarter ended September
30,  2007  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  and short-term  investment  grade
commercial paper. With respect to short-term borrowings, the Company substituted
broker  repurchase   agreements  ("other   short-term   borrowings")  with  FHLB
short-term borrowings due to market conditions in the short-term debt market.

         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.

                                       18
<page>

         The Company purchased  short-term  investment grade commercial paper to
provide  liquidity for short-term  demand deposits by local tax collectors.  The
Company also continued to purchase  intermediate  term fixed rate callable U. S.
Government  Agency  bonds  in  order  to earn a  spread  against  the  Company's
long-term FHLB advances 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.

         During the quarter  ended  September  30,  2007,  principal  investment
purchases were comprised of:  short-term  investment  grade  commercial  paper -
$64.6 million with a weighted  average yield of 6.13%;  callable fixed rate U.S.
Government  Agency bonds with initial lock-out periods as follows:  0-3 months -
$16.9 million with a weighted average yield to call of approximately  6.15%; 3 -
6 months - $5.0 million with a weighted  average yield to call of  approximately
6.01%;  and floating  rate  collateralized  mortgage  obligations  which reprice
monthly - $18.0 million with an original weighted average yield of approximately
6.18%. Major investment proceeds received during the quarter ended September 30,
2007 were:  short-term  investment grade commercial paper - $60.6 million with a
weighted average yield of approximately 5.95%; and mortgage-backed  securities -
$6.5 million.

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

    1)   $130.8 million or 98.3% of the Company's  portfolio of  mortgage-backed
         securities  (including  collateralized  mortgage  obligations - "CMOs")
         were comprised of floating rate  instruments  that reprice on a monthly
         basis.
    2)   $25.0  million  or  10.5% of the  Company's  investment  portfolio  was
         comprised of fixed to floating rate U.S.  Government Agency bonds which
         will  mature or reprice as  follows:  $10  million of these  bonds were
         redeemed  on October 1, 2007,  $15  million  are  expected to mature or
         reprice in April 2008.
    3)   $178.4  million  or 75.0% of the  Company's  investment  portfolio  was
         comprised of fixed-rate callable U.S. Government Agency bonds which are
         callable as follows:  3 months or less - $59.6 million;  3 - 6 months -
         $30.4  million;  6 - 12  months  - $61.4  million;  1 - 2 years - $24.1
         million;  and over 2 years - $3.0  million.  These bonds may or may not
         actually be redeemed prior to maturity (i.e. called) depending upon the
         level of market interest rates at their respective call dates.
    4)   $18.9  million  or  7.9%  of the  Company's  investment  portfolio  was
         comprised of investment  grade commercial paper with maturities of less
         than 90 days.
    5)   $4.7  million  or  2.0%  of  the  Company's  investment  portfolio  was
         comprised of U.S. Government Agency Step-up bonds which will reprice as
         follows:  less than 3 months - $4.7 million from 4.70% to 6.00%.  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.
    6)   An  aggregate  of $32.7  million  or 53.9%  of the  Company's  net loan
         portfolio had  adjustable  interest rates or maturities of less than 12
         months; and
    7)   The maturity  distribution of the Company's borrowings is as follows: 1
         month or less - $107.6 million or 43.0%; 1 - 3 months - $4.0 million or
         1.6%; 3 - 6 months - $3.0 million or 1.2%; 1 - 3 years - $51.1  million
         or 20.4%;  3 - 5 years - $67.0  million  or  26.8%;  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.

                                       19
<page>

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

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

<table>
<caption>
                                              September 30,             June 30,
                                              ------------    ----------------------------
                                                  2007            2007             2006
                                              ------------    ------------    ------------
                                                         (Dollars in Thousands)

                                                <c>             <c>             <c>
Interest-earning assets maturing or
   repricing within one year                  $    247,182    $    206,136    $    273,884
Interest-bearing liabilities maturing or
   repricing within one year                       214,072         187,494         194,509
                                              ------------    ------------    ------------

Interest sensitivity gap                      $     33,110    $     18,642    $     79,375
                                              ============    ============    ============
Interest sensitivity gap as a percentage of
   total assets                                       7.37%           4.57%           32.5%
Ratio of assets to liabilities
   maturing or repricing within one year            115.47%         109.94%          175.6%
</table>

         During the quarter ended  September 30, 2007,  the Company  managed its
one year interest sensitivity gap by: (1) limiting the portfolio  origination of
long-term fixed rate  mortgages;  (2) emphasizing  loans with  shorter-terms  or
repricing frequencies; (3) purchasing floating rate U.S. Government Agency CMO's
which reprice on a monthly basis; and (4) adjusting its investment  portfolio to
include  intermediate  term U.S.  Government  Agency bonds with more varied call
dates,  and  (5)  modestly  higher  holdings  of  short-term   investment  grade
commercial paper.

                                       20
<page>

          The  following  table  illustrates  the Company's  estimated  stressed
cumulative repricing gap - the difference between the amount of interest-earning
assets and interest-bearing  liabilities expected to reprice at a given point in
time - at September  30, 2007.  The table  estimates  the impact of an upward or
downward change in market interest rates of 100 and 200 basis points.

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

                     Month 3      Month 6      Month 12      Month 24      Month 36      Month 60        Long Term
                     -------      -------      --------      --------      --------      --------        ---------
                                                       (Dollars in Thousands)

                   <c>           <c>           <c>           <c>          <c>          <c>               <c>
Base Case Up 200 bp
-------------------
Cummulative
  Gap ($'s)            27,301        13,220        7,624         (6,680)      (54,337)     (107,235)         19,821
% of Total
  Assets                  6.1%          2.9%         1.7%          -1.5%        -12.1%        -23.9%            4.4%
Base Case Up 100 bp
-------------------
Cummulative
  Gap ($'s)            27,522        13,631        8,311         (5,815)      (53,434)     (106,254)         19,821
% of Total
  Assets                  6.1%          3.0%         1.9%          -1.3%        -11.9%        -23.7%            4.4%
Base Case No Change
-------------------
Cummulative
  Gap ($'s)            36,989        28,823       33,110         34,270        62,302        19,366          19,821
% of Total
  Assets                  8.2%          6.4%         7.4%           7.6%         13.9%          4.3%            4.4%
Base Case Down 100 bp
---------------------
Cummulative
  Gap ($'s)            81,184        99,625      157,505        169,227       128,120        60,716          19,821
% of Total
  Assets                 18.1%         22.2%        35.1%          37.7%         28.5%         13.5%            4.4%
Base Case Down 200 bp
---------------------
Cummulative
  Gap ($'s)            83,417       103,426      162,198        174,210       132,393        61,743          19,821
% of Total
  Assets                 18.6%         23.0%        36.1%          38.8%         29.5%         13.7%            4.4%
</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.

                                       21
<page>

              The following table presents the simulated impact of a 100 and 200
basis point upward or downward  (parallel) shift in market interest rates on net
interest  income,  return on average  equity,  return on average  assets and the
market value of portfolio  equity at September 30, 2007.  This analysis was done
assuming  that the  interest-earning  assets  will  average  approximately  $415
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 September 30, 2007.

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

                                   <c>         <c>        <c>        <c>       <c>
   Change in net interest income      -16.1%       -6.4%      0.00%       1.0%     -5.7%

   Return on average equity           10.06%      11.75%     13.00%     12.99%    11.86%

   Return on average assets            0.75%       0.88%      0.98%      0.95%     0.86%

   Market value of equity (in
      thousands)                    $29,871     $35,225    $37,557    $29,510   $13,466

</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 September 30,
2007.

                              Anticipated Transactions
                ------------------------------------------------------
                                                (Dollars in Thousands)
                 Undisbursed construction and
                     land development loans
                       Fixed rate                      $ 7,029
                                                          8.22%

                       Adjustable rate                 $ 6,338
                                                          8.64%

                 Undisbursed lines of credit
                       Adjustable rate                 $ 5,906
                                                          8.45%

                 Loan origination commitments
                       Fixed rate                      $   105
                                                          6.88%

                 Letters of credit
                       Adjustable rate                 $   450
                                                          8.25%
                                                       -------

                                                       $19,828
                                                       =======


                                       22
<page>


         In the  ordinary  course  of its  construction  lending  business,  the
Savings Bank enters into performance standby letters of credit.  Typically,  the
standby  letters of credit are issued on behalf of a builder to a third party to
ensure the timely  completion of a certain aspect of a  construction  project or
land  development.  At September 30, 2007, the Savings Bank had six  performance
standby letters of credit outstanding totaling  approximately $450 thousand. All
letters of credit are  secured by  developed  property.  Five of the  letters of
credit will mature within twelve months,  and one will mature within twenty four
months.  In the event that the obligor is unable to perform its  obligations  as
specified in the standby letter of credit  agreement,  the Savings Bank would be
obligated to disburse funds up to the amount  specified in the standby letter of
credit agreement.  The Savings Bank maintains adequate  collateral that could be
liquidated to fund this contingent obligation.

ITEM 4.  CONTROLS AND PROCEDURES

         Not applicable.

ITEM 4T. CONTROLS AND PROCEDURES

         (a) Our  management  evaluated,  with the  participation  of our  Chief
Executive  Officer  and  Chief  Financial  Officer,  the  effectiveness  of  our
disclosure  controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)
under the  Securities  Exchange Act of 1934) as of September 30, 2007.  Based on
such evaluation,  our Chief Executive  Officer and Chief Financial  Officer have
concluded  that our  disclosure  controls and  procedures are designed to ensure
that  information  required to be disclosed by us in the reports that we file or
submit  under  the  Securities  Exchange  Act of  1934 is  recorded,  processed,
summarized and reported within the time periods specified in the SEC's rules and
regulations and are operating in an effective manner.

         No change in our internal control over financial  reporting (as defined
in Rules  13a-15(f) and 15(d)-15(f)  under the Securities  Exchange Act of 1934)
occurred  during  the  quarter  ended  September  30,  2007 that has  materially
affected,  or is reasonably  likely to materially  affect,  our internal control
over financial reporting.


                                       23
<page>

PART II - OTHER INFORMATION

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

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


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

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

<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 (2,3)
         -----------------------------------------------------------------------------------------------------------------------

                                         <c>                     <c>                     <c>                         <c>
         07/01/07 - 07/31/07               22,150                  16.48                   22,150                      24,820
         -----------------------------------------------------------------------------------------------------------------------
         08/01/07 - 08/31/07               29,500                  16.48                   29,500                     120,320
         -----------------------------------------------------------------------------------------------------------------------
         09/01/07 - 09/30/07                7,000                  16.50                    7,000                     113,320
         -----------------------------------------------------------------------------------------------------------------------
              Total                        58,650                  16.48                   58,650                     113,320
         -----------------------------------------------------------------------------------------------------------------------
</table>

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

         (1) All shares  indicated were purchased under the Company's Eighth and
             Ninth Stock Repurchase Program.
         (2) Eighth Stock Repurchase Program
                  (a) Announced September 27, 2005.
                  (b) 125,000 common shares approved for repurchase.
                  (c) No fixed date of expiration.
                  (d) This program was completed on August 24, 2007.
                  (e) Not applicable.
         (3) 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  113,320  shares
                      remaining to be repurchased at September 30, 2007.
                  (e) Not applicable.

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

         Not applicable.

                                       24
<page>

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

         (a) The  Company's  2007  Annual  Meeting of  Stockholders  was held on
             October 30, 2007.
         (b) Not applicable.
         (c) Two matters  were voted upon at the annual  meeting held on October
             30, 2007:  Item 1:  Proposal to elect two directors for a four-year
             term or until their  successors are elected and qualified;  Item 2:
             Proposal to ratify the  appointment  by the Board of  Directors  of
             S.R. Snodgrass, A.C. as the Company's Independent Registered Public
             Accounting Firm for the fiscal year ending June 30, 2008.

             Each of the two proposals received stockholder approval. There were
             2,267,205 shares outstanding on the record date eligible to vote at
             the meeting and 1,928,705 shares were present in person or by proxy
             at the meeting.  The voting  record with respect to each item voted
             upon is enumerated below:

              Item            Nominee
             Number        (if Applicable)           For      Against    Abstain
             ------        ---------------           ---      -------    -------

                1      John W. Grace              1,874,684   54,021
                       Lawrence M. Lehman         1,875,684   53,021

                2      Ratification of Auditors   1,918,484    8,782       1,439

             There were no broker  non-votes  with  respect to any matter  voted
             upon.
         (d) Not applicable.




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.

Number    Description                                                       Page
------    ----------------------------------------------------------------  ----
 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


                                       25
<page>

                                   SIGNATURES


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



                                       WVS FINANCIAL CORP.



         October 30, 2007          BY:  /s/ David J. Bursic
                                        ----------------------------------------
         Date                           David J. Bursic
                                        President and Chief Executive Officer
                                        (Principal Executive Officer)


         October 30, 2007          BY:  /s/ Keith A. Simpson
                                        ----------------------------------------
         Date                           Keith A. Simpson
                                        Vice-President, Treasurer and
                                        Chief Accounting Officer
                                        (Principal Accounting Officer)



                                       26