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

                                    FORM 10-Q

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

         For the quarterly period ended  March 31, 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 May 1, 2007:  2,319,155  shares Common Stock,
$.01 par value.

<page>

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

                                      INDEX
                                      -----

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

Item 1.         Financial Statements

                Consolidated Balance Sheet as of
                March 31, 2007 and June 30, 2006
                (Unaudited)                                                  3

                Consolidated Statement of Income
                for the Three and Nine Months Ended
                March 31, 2007 and 2006 (Unaudited)                          4

                Consolidated Statement of Changes in
                Stockholders' Equity for the Nine Months
                Ended March 31, 2007 (Unaudited)                             5

                Consolidated Statement of Cash Flows
                for the Nine Months Ended March 31,
                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 and Nine Months
                Ended March 31, 2007                                        12

Item 3.         Quantitative and Qualitative Disclosures
                about Market Risk                                           19

Item 4.         Controls and Procedures                                     24

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

Item 1.         Legal Proceedings                                           25
Item 1A.        Risk Factors                                                25
Item 2.         Unregistered Sales of Equity Securities and
                Use of Proceeds                                             25
Item 3.         Defaults upon Senior Securities                             25
Item 4.         Submission of Matters to a Vote of Security Holders         26
Item 5.         Other Information                                           26
Item 6.         Exhibits                                                    26
                Signatures                                                  27


                                       2
<page>

                       WVS FINANCIAL CORP. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET
                                   (UNAUDITED)
                                 (In thousands)
<table>
<caption>
                                                                  March 31, 2007   June 30, 2006
                                                                  --------------   -------------

                                                                       <c>             <c>
          Assets
          ------
Cash and due from banks                                            $        591    $      1,099
Interest-earning demand deposits                                          1,530              97
                                                                   ------------    ------------
Total cash and cash equivalents                                           2,121           1,196
Investment securities available-for-sale (amortized cost of
   $4,502 and $8,497)                                                     4,487           8,469
Investment securities held-to-maturity (market value of
   $180,732 and $185,680)                                               180,433         187,952
Mortgage-backed securities available-for-sale (amortized cost of
   $2,197 and $2,229)                                                     2,271           2,292
Mortgage-backed securities held-to-maturity (market value of
   $128,646 and $152,706)                                               128,397         153,461
Net loans receivable (allowance for loan losses of $999 and
   $957)                                                                 60,547          55,702
Accrued interest receivable                                               3,075           2,921
Federal Home Loan Bank stock, at cost                                     6,501           7,861
Premises and equipment                                                      841             864
Other assets                                                              1,069           1,024
                                                                   ------------    ------------
          TOTAL ASSETS                                             $    389,742    $    421,742
                                                                   ============    ============

          Liabilities and Stockholders' Equity
          ------------------------------------
Liabilities:
Savings Deposits:
   Non-interest-bearing accounts                                   $     11,694    $     11,315
   NOW accounts                                                          19,112          18,083
   Savings accounts                                                      32,492          36,851
   Money market accounts                                                 17,775          16,562
   Certificates of deposit                                               74,492          67,890
   Advance payments by borrowers for taxes and insurance                    733           1,012
                                                                   ------------    ------------
    Total savings deposits                                              156,298         151,713
Federal Home Loan Bank advances: long-term                              133,579         138,579
Federal Home Loan Bank advances: short-term                                  --          23,150
Other short-term borrowings                                              64,500          76,048
Accrued interest payable                                                  1,689           1,451
Other liabilities                                                         2,937           1,383
                                                                   ------------    ------------
     TOTAL LIABILITIES                                                  359,003         392,324
                                                                   ------------    ------------

Stockholders' equity:
Preferred stock:
   5,000,000 shares, no par value per share, authorized; none
   Outstanding                                                               --              --
Common stock:
   10,000,000 shares, $.01 par value per share, authorized;
   3,786,238 and 3,769,838 shares issued                                     38              38
Additional paid-in capital                                               21,073          20,817
Treasury stock: 1,467,023 and 1,434,606 shares at cost,
    respectively                                                        (22,213)        (21,679)
Retained earnings, substantially restricted                              31,804          30,221
Accumulated other comprehensive income                                       39              23
Unreleased shares - Recognition and Retention Plans                          (2)             (2)
                                                                   ------------    ------------
     TOTAL STOCKHOLDERS' EQUITY                                          30,739          29,418
                                                                   ------------    ------------
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY               $    389,742    $    421,742
                                                                   ============    ============
</table>

     See accompanying notes to unaudited consolidated financial statements.

                                       3
<page>

                       WVS FINANCIAL CORP. AND SUBSIDIARY
                        CONSOLIDATED STATEMENT OF INCOME
                                   (UNAUDITED)
                     (In thousands, except per share data)
<table>
<caption>
                                                   Three Months Ended            Nine Months Ended
                                                        March 31,                    March 31,
                                               -------------------------    -------------------------
                                                  2007          2006            2007          2006
                                               -----------   -----------    -----------   -----------

                                                  <c>           <c>            <c>           <c>
INTEREST AND DIVIDEND INCOME:
     Loans                                     $     1,120   $       965    $     3,218   $     3,016
     Investment securities                           2,708         2,520          8,135         6,343
     Mortgage-backed securities                      2,110         2,404          6,766         6,555
     Interest-earning deposits with other
         institutions                                    2             4              7            11
     Federal Home Loan Bank stock                      111            61            274           162
                                               -----------   -----------    -----------   -----------
          Total interest and dividend income         6,051         5,954         18,400        16,087
                                               -----------   -----------    -----------   -----------

INTEREST EXPENSE:
     Deposits                                        1,054           779          3,068         2,246
     Federal Home Loan Bank advances                 1,829         1,968          5,932         6,002
     Other short-term borrowings                       984         1,344          3,227         3,012
                                               -----------   -----------    -----------   -----------
          Total interest expense                     3,867         4,091         12,227        11,260
                                               -----------   -----------    -----------   -----------

NET INTEREST INCOME                                  2,184         1,863          6,173         4,827
PROVISION (RECOVERY) FOR LOAN LOSSES                    34           (38)            25          (149)
                                               -----------   -----------    -----------   -----------
NET INTEREST INCOME AFTER PROVISION
   (RECOVERY) FOR LOAN LOSSES                        2,150         1,901          6,148         4,976
                                               -----------   -----------    -----------   -----------

NON-INTEREST INCOME:
     Service charges on deposits                        86            96            267           283
     Investment securities gains                        --            --             --            30
     Other                                              66            75            198           232
                                               -----------   -----------    -----------   -----------
          Total non-interest income                    152           171            465           545
                                               -----------   -----------    -----------   -----------

NON-INTEREST EXPENSE:
     Salaries and employee benefits                    499           500          1,483         1,458
     Occupancy and equipment                            94            91            289           292
     Data processing                                    63            73            190           208
     Correspondent bank service charges                 25            38             90           105
     Other                                             151           170            573           566
                                               -----------   -----------    -----------   -----------
          Total non-interest expense                   832           872          2,625         2,629
                                               -----------   -----------    -----------   -----------

INCOME BEFORE INCOME TAXES                           1,470         1,200          3,988         2,892
INCOME TAXES                                           515           412          1,291           886
                                               -----------   -----------    -----------   -----------
NET INCOME                                     $       955   $       788    $     2,697   $     2,006
                                               ===========   ===========    ===========   ===========

EARNINGS PER SHARE:
     Basic                                     $      0.41   $      0.34    $      1.16   $      0.85
     Diluted                                   $      0.41   $      0.34    $      1.16   $      0.85

AVERAGE SHARES OUTSTANDING:
     Basic                                       2,322,962     2,346,959      2,320,227     2,363,817
     Diluted                                     2,324,278     2,348,619      2,322,059     2,366,651

</table>

     See accompanying notes to unaudited consolidated financial statements.

                                       4
<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, 2006         $        38   $    20,817   $   (21,679)   $    30,221    $        23   $        (2)   $    29,418

Comprehensive income:

   Net Income                                                                     2,697                                       2,697
   Other comprehensive
     income:
      Change in unrealized
          holding gains on
          securities, net of
          income tax effect of
          $8                                                                                        16                           16
                                                                                                                        -----------

Comprehensive income                                                                                                          2,713

Purchase of shares for
   treasury stock                                                   (534)                                                      (534)


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

Exercise of stock options                 --           256                                                                      256

Cash dividends declared
   ($0.48 per share)                                                             (1,114)                                     (1,114)
                                 -----------   -----------   -----------    -----------    -----------   -----------    -----------

Balance at March 31,
2007                             $        38   $    21,073   $   (22,213)   $    31,804    $        39   $        (2)   $    30,739
                                 ===========   ===========   ===========    ===========    ===========   ===========    ===========

                               See accompanying notes to unaudited consolidated financial statements.

</table>

                                                                 5
<page>
<table>
<caption>

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

                                                                               Nine Months Ended
                                                                                   March 31,
                                                                            ----------------------
                                                                               2007         2006
                                                                            ---------    ---------

                                                                               <c>          <c>
OPERATING ACTIVITIES

Net income                                                                  $   2,697    $   2,006
Adjustments to reconcile net income to cash provided by operating
 activities:
   Provision (Recovery) for loan losses                                            25         (149)
   Depreciation                                                                   105          119
   Investment securities gains                                                     --          (30)
   Amortization of discounts, premiums and deferred loan fees                    (156)        (161)
   Increase in accrued and deferred taxes                                         379          509
   Increase in accrued interest receivable                                       (154)      (1,123)
   Increase in accrued interest payable                                           238          206
   Other, net                                                                      60          162
                                                                            ---------    ---------
         Net cash provided by operating activities                              3,194        1,539
                                                                            ---------    ---------

INVESTING ACTIVITIES

Available-for-sale:
   Purchases of investments and mortgage-backed securities                     (3,992)        (700)
   Proceeds from repayments of investments and mortgage-backed securities       8,032        9,384
   Proceeds from sale of investment and mortgage-backed securities                 --        1,016
Held-to-maturity:
   Purchases of investments                                                   (91,303)    (111,348)
   Purchases of mortgage-backed securities                                     (4,998)     (86,461)
   Proceeds from repayments of investments                                     98,943       72,416
   Proceeds from repayments of mortgage-backed securities                      30,101       80,289
(Increase) decrease in net loans receivable                                    (4,886)       4,484
Purchase of Federal Home Loan Bank stock                                       (4,063)      (4,677)
Redemption of Federal Home Loan Bank stock                                      5,423        5,137
Acquisition of premises and equipment                                             (83)         (36)
Other, net                                                                         --           60
                                                                            ---------    ---------
         Net cash provided by (used for) investing activities                  33,174      (30,436)
                                                                            ---------    ---------
</table>

                                                6
<page>
<table>
<caption>

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

                                                                          Nine Months Ended
                                                                              March 31,
                                                                        --------------------
                                                                          2007        2006
                                                                        --------    --------

                                                                      <c>           <c>
FINANCING ACTIVITIES

Net decrease in transaction and passbook accounts                           (676)    (10,856)
Net increase (decrease) in certificates of deposit                         6,602      (1,630)
Net (decrease) increase in FHLB short-term advances                      (23,150)      1,600
Net (decrease) increase in other short-term borrowings                   (11,548)     43,663
Repayments of Federal Home Loan Bank long-term advances                   (5,000)     (4,000)
Net decrease in advance payments by borrowers for taxes and insurance       (279)       (297)
Cash dividends paid                                                       (1,114)     (1,136)
Funds used for purchase of treasury stock                                   (534)       (922)
Net proceeds from exercise of stock options                                  256          91
                                                                        --------    --------
         Net cash (used for) provided by financing activities            (35,443)     26,513
                                                                        --------    --------

         Increase (decrease) in cash and cash equivalents                    925      (2,384)

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

CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                             2,121       1,182
                                                                        ========    ========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

   Cash paid during the period for:
      Interest on deposits, escrows and borrowings                      $ 11,989    $ 11,054
      Income taxes                                                      $    920    $    332

Non-cash item:
      Due to Federal Reserve Bank                                       $  1,062          --
      Mortgage loan transferred to other Assets                               --    $     10

            See accompanying notes to unaudited consolidated financial statements.
</table>

                                              7
<page>

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

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


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

         The accompanying  unaudited consolidated financial statements have been
prepared in accordance with the  instructions for Form 10-Q and therefore do not
include  information  or  footnotes  necessary  for a complete  presentation  of
financial  condition,  results of operations,  and cash flows in conformity with
U.S.  generally  accepted  accounting   principles.   However,  all  adjustments
(consisting  only of normal  recurring  adjustments)  which,  in the  opinion of
management,  are  necessary  for a fair  presentation  have been  included.  The
results of  operations  for the three and nine months ended March 31, 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 Company is currently evaluating the impact the adoption of the standard will
have on the Company's results of operations.

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

         In September  2006,  the SEC issued Staff  Accounting  Bulletin No. 108
("SAB  108"),   Considering  the  Effects  of  Prior  Year   Misstatements  When
Quantifying  Misstatements  in  Current  Year  Financial  Statements,  providing
guidance on quantifying financial statement misstatement and implementation when
first applying this guidance.  Under SAB No. 108,  companies  should  evaluate a
misstatement  based on its impact on the current year income statement,  as well
as the cumulative effect of correcting such  misstatements that existed in prior
years existing in the current year's ending balance sheet.  SAB 108 is effective
for fiscal  years  ending  after  November  15,  2006.  The Company is currently
evaluating  the impact the adoption of the standard  will have on the  Company's
results of operations.

         In September 2006, the FASB reached  consensus on the guidance provided
by Emerging Issues Task Force Issue 06-4 ("EITF 06-4"),  Accounting for Deferred
Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life
Insurance Arrangements.  The guidance is applicable to endorsement  split-dollar
life  insurance  arrangements,  whereby  the  employer  owns  and  controls  the
insurance policy, that are associated with a postretirement  benefit.  EITF 06-4
requires that for a split-dollar life insurance  arrangement within the scope of
the Issue,  an employer  should  recognize a  liability  for future  benefits in
accordance  with FAS No. 106 (if, in substance,  a  postretirement  benefit plan
exists) or Accounting Principles Board Opinion No. 12 (if the arrangement is, in
substance,   an  individual  deferred   compensation   contract)  based  on  the
substantive agreement with the employee. EITF 06-4 is effective for fiscal years
beginning  after  December 15, 2007.  The Company is  currently  evaluating  the
impact the adoption of the EITF will have on the Company's results of operations
or financial condition.

                                       8
<page>

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

         In February  2007,  the FASB issued FAS No. 159,  The Fair Value Option
for Financial Assets and Financial  Liabilities - Including an amendment of FASB
Statement No. 115, which provides all entities with an option to report selected
financial assets and liabilities at fair value. The objective of the FAS No. 159
is to improve financial  reporting by providing entities with the opportunity to
mitigate   volatility  in  earnings  caused  by  measuring  related  assets  and
liabilities  differently without having to apply the complex provisions of hedge
accounting.  FAS No. 159 is effective as of the  beginning of an entity's  first
fiscal year beginning after November 15, 2007. Early adoption is permitted as of
the  beginning  of a fiscal  year that  begins on or before  November  15,  2007
provided  the entity also elects to apply the  provisions  of FAS No. 157,  Fair
Value Measurements.  The Company is currently evaluating the impact the adoption
of the standard will have on the Company's financial position.

         In March 2007, the FASB ratified  Emerging  Issues Task Force Issue No.
06-10 ("EITF 06-10"),  Accounting for Collateral  Assignment  Split-Dollar  Life
Insurance  Agreements.  EITF 06-10 provides guidance for determining a liability
for the postretirement benefit obligation as well as recognition and measurement
of the associated  asset on the basis of the terms of the collateral  assignment
agreement. EITF 06-10 is effective for fiscal years beginning after December 15,
2007.  The Company is currently  evaluating  the impact the adoption of the EITF
will have on the Company's results of operations or financial condition.

                                       9
<page>

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

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

<table>
<caption>
                                            Three Months Ended         Nine Months Ended
                                                March 31,                  March 31,
                                        ------------------------    ------------------------

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

                                      <c>           <c>           <c>           <c>
Weighted average common shares
   Outstanding                           3,785,629     3,767,010     3,775,025     3,764,061

Average treasury stock shares           (1,462,667)   (1,420,051)   (1,454,798)   (1,400,244)
                                        ----------    ----------    ----------    ----------
Weighted average common shares
   and common stock equivalents
   used to calculate basic earnings
   per share                             2,322,962     2,346,959     2,320,227     2,363,817

Additional common stock
   equivalents (stock options) used
   to calculate diluted earnings per
   share                                     1,316         1,660         1,832         2,834
                                        ----------    ----------    ----------    ----------

Weighted average common shares
   and common stock equivalents
   used to calculate diluted earnings
   per share                             2,324,278     2,348,619     2,322,059     2,366,651
                                        ==========    ==========    ==========    ==========
</table>

         All options at March 31,  2007 and March 31, 2006 were  included in the
computation of diluted earnings per share.


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

         In December 2004,  the Financial  Accounting  Standards  Board ("FASB")
issued  Statement  of Financial  Accounting  Standards  No. 123 (revised  2004),
Share-Based Payment (FAS No. 123R). FAS No. 123R revised FAS No. 123, Accounting
for Stock-Based Compensation,  and supersedes APB Opinion No. 25, Accounting for
Stock Issued to Employees, and its related implementation guidance. FAS No. 123R
requires  compensation costs related to share-based  payment  transactions to be
recognized in the financial statement (with limited  exceptions).  The amount of
compensation  cost will be measured  based on the  grant-date  fair value of the
equity or liability  instruments  issued.  Compensation  cost will be recognized
over the period that an employee provides service in exchange for the award.

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

                                       10
<page>

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

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

<table>
<caption>
                                           Three Months Ended                        Nine Months Ended
                                                March 31,                                March 31,
                                 -------------------------------------    -------------------------------------
                                        2007               2006                 2007                 2006
                                 -----------------   -----------------    -----------------   -----------------

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

Net income                                 $   955             $   788              $ 2,697             $ 2,006
Other comprehensive
  income (loss):
     Unrealized gains
     (losses) on
     available for sale
     securities                  $     6             $   (40)             $    24             $  (129)
       Less:
           Reclassification
           adjustment for gain
           included in net
           income                     --                  --                   --                 (30)
                                 -------   -------   -------   -------    -------   -------   -------   -------
Other comprehensive
   income (loss)  before tax                     6                 (40)                  24                (159)
Income tax (benefit)
expense related to other
comprehensive income
(loss)                                           2                  (7)                   8                 (54)
                                           -------             -------              -------             -------
Other comprehensive income
    (loss), net of tax                           4                 (33)                  16                (105)
                                           -------             -------              -------             -------
Comprehensive income                       $   959             $   755              $ 2,713             $ 1,901
                                           =======             =======              =======             =======
</table>

                                       11
<page>

ITEM 2.

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

                                       12
<page>

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

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


GENERAL

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

         West View Savings Bank is a Pennsylvania-chartered,  SAIF-insured stock
savings bank conducting  business from six offices in the North Hills suburbs of
Pittsburgh.  The  Savings  Bank  converted  to the stock  form of  ownership  in
November 1993. The Savings Bank had no subsidiaries at March 31, 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  $389.7  million at March 31, 2007,  as
compared to $421.7  million at June 30, 2006. The $32.0 million or 7.6% decrease
in total assets was primarily  comprised of a $25.1 million or 16.1% decrease in
mortgage-backed  securities,  a $11.5  million or 5.9%  decrease  in  investment
securities,  and a $1.4  million or 17.3%  decrease  in FHLB  stock,  which were
partially offset by a $4.8 million or 8.7% increase in net loans  receivable,  a
$925 thousand or 77.3% increase in cash and cash equivalents and a $154 thousand
or 5.3%  increase in accrued  interest  receivable.  The decrease in  investment
securities is  attributable  to calls of fixed to floating rate and step-up U.S.
government agency bonds,  while the decrease in  mortgage-backed  securities was
attributable  to  repayments  on  the  Company's   portfolio  of  floating  rate
collateralized mortgage obligations. See "Asset and Liability Management".

         The  Company's  total  liabilities  decreased  $33.3 million or 8.5% to
$359.0  million as of March 31, 2007,  from $392.3  million as of June 30, 2006.
The $33.3 million  decrease in total  liabilities  was primarily  comprised of a
$23.2 million or 100.0% decrease in short-term FHLB advances, a $11.5 million or
15.2%  decrease  in  other  short-term  borrowings  and a $5.0  million  or 3.6%
decrease in  long-term  FHLB  advances,  which were  partially  offset by a $4.6
million or 3.0% increase in total savings  deposits and a $1.6 million or 112.5%
increase in other  liabilities.  Certificates of deposit increased $6.6 million,
demand deposits  increased $1.4 million and money market accounts increased $1.2
million while savings accounts  decreased $4.4 million and advanced  payments by
borrowers  for taxes and  insurance  decreased  $279  thousand.  The increase in
certificates  of deposit was  principally  attributable  to investments by local
governments  and  school  districts.  Management  believes  that the  changes in
savings  accounts and advance payments by borrowers for taxes and insurance were
primarily  attributable to purchases of  certificates of deposit,  transactional
needs and seasonal payments of local and school real estate taxes.

                                       13
<page>

         Total  stockholders'  equity  increased  $1.3  million or 4.4% to $30.7
million as of March 31, 2007,  from $29.4  million as of June 30, 2006.  Company
net income of $2.7 million was partially offset by capital  expenditures for the
Company's  stock  repurchase  program  and cash  dividends  which  totaled  $534
thousand  and $1.1  million,  respectively,  for the nine months ended March 31,
2007.


RESULTS OF OPERATIONS

         General.  WVS  reported  net income of $955  thousand or $0.41  diluted
earnings per share and $2.7 million or $1.16 diluted  earnings per share for the
three and nine months ended March 31, 2007,  respectively.  Net income increased
$167 thousand or 21.2% and diluted  earnings per share  increased $0.07 or 20.6%
for the three months ended March 31, 2007,  when  compared to the same period in
2006. The increase in net income for the quarter was primarily attributable to a
$321  thousand  increase in net interest  income and a $40 thousand  decrease in
non-interest expense, which were partially offset by a $103 thousand increase in
income tax expense,  a $72  thousand  change in  provision  (recovery)  for loan
losses and a $19 thousand decrease in non-interest  income.  For the nine months
ended March 31, 2007,  net income  increased  $691 thousand or 34.4% and diluted
earnings per share  increased $0.31 or 36.5% when compared to the same period in
2006.  The increase for the nine month period was primarily the result of a $1.3
million  increase in net interest  income,  which was partially offset by a $405
thousand  increase in income tax expense,  a $174 thousand  change in provisions
(recovery) for loan losses and a $80 thousand decrease in non-interest income.

         Net Interest  Income.  The Company's net interest  income  increased by
$321  thousand or 17.2% and $1.3  million or 27.9% for the three and nine months
ended March 31, 2007,  respectively,  when compared to the same periods in 2006.
The  increases in net interest  income for the three and nine month periods were
primarily   attributable   to   higher   rates   received   on   the   Company's
interest-earning  assets,  which  more than  offset  higher  rates paid on other
short-term  borrowings and time deposits.  The increases in both rates earned on
interest-earning assets and rates paid on interest-bearing  liabilities reflects
the higher levels of short and intermediate term market interest rates fueled by
the Federal Reserve Board's increases in its targeted Federal Funds Rate.

         Interest  Income.  Interest  on net  loans  receivable  increased  $155
thousand or 16.1% and $202  thousand or 6.7% for the three and nine months ended
March 31, 2007,  respectively,  when  compared to the same periods in 2006.  The
increases were primarily  attributable  to an increase of 66 basis points in the
weighted  average yield earned on net loans  receivable  and an increase of $3.3
million in the average balance of net loans receivable outstanding for the three
months ended March 31, 2007,  when  compared to the same period in 2006,  and an
increase of 51 basis  points in the weighted  average  yield earned on net loans
receivable  was  partially  offset by a decrease of $413 thousand in the average
balance of net loans  receivable  for the nine months  ended March 31, 2007 when
compared to the same period in 2006.  The changes in the average  loan  balances
outstanding for the three and nine months ended March 31, 2007 were attributable
in part to the Company's  asset/liability  management strategy.  The Company has
limited its portfolio  origination of  longer-term  fixed rate real estate loans
while  emphasizing  floating rate  commercial and  intermediate  term fixed-rate
consumer loans to mitigate its exposure to a rise in market interest rates.  The
Company will  continue to originate  longer-term  fixed rate loans for sale on a
correspondent  basis to increase  non-interest  income and to  contribute to net
income.

         Interest on mortgage-backed securities decreased $294 thousand or 12.2%
for the three months ended March 31, 2007,  when  compared to the same period in
2006.  The  decrease  for the three  months  ended March 31, 2007 was  primarily
attributable   to  a  $38.5   million   decrease  in  the  average   balance  of
mortgage-backed  securities  outstanding  for the  period,  which was  partially
offset by a 71 basis point  increase in the  weighted  average  yield  earned on
mortgage-backed securities outstanding for the period, when compared to the same
period in 2006. Interest on mortgage-backed  securities  increased $211 thousand
or 3.2% for the nine months  ended  March 31,  2007,  when  compared to the same
period in 2006.  The  increase  for the nine  months  ended  March 31,  2007 was
primarily  attributable  to a 123 basis point  increase in the weighted  average
yield earned on mortgage-backed  securities for the period,  which was partially
offset by a $29.3  million  decrease in the average  balance of  mortgage-backed
securities  outstanding  for the nine months

                                       14
<page>

ended March 31, 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 and nine months ended March 31,
2007. The decrease in the average balances of mortgage-backed  securities during
the three and nine months  ended March 31, 2007 was  primarily  attributable  to
paydowns on floating rate mortgage-backed securities in the Company's portfolio.
Due to  unattractive  spreads in this  sector,  the Company  used a  substantial
portion of these paydowns to reduce short-term borrowings, and to purchase other
investment securities.

         Interest on  investment  securities  increased by $188 thousand or 7.5%
and $1.8  million or 28.3% for the three and nine months  ended March 31,  2007,
respectively,  when  compared to the same periods in 2006.  The increase for the
three months ended March 31, 2007 was  attributable to a 77 basis point increase
in the weighted  average  yield earned on the Company's  investment  securities,
which was partially offset by a $14.2 million decrease in the average balance of
investments  outstanding.  The increase for the nine months ended March 31, 2007
was primarily  attributable to a 90 basis point increase in the weighted average
yield  earned  on  investment  securities  for the  period  and a $11.1  million
increase in the average  balance of investments  outstanding for the nine months
ended March 31, 2007 when compared to the same period in 2006.  The increases in
yields earned were  consistent  with  increases in market  interest  rates.  The
increases  in average  balances  for the nine  months  ended March 31, 2007 were
associated  with the  Company's  reinvestment  of proceeds  from  floating  rate
mortgage-backed  securities  into fixed rate  callable  U.S.  Government  Agency
securities.  During the quarter  ended March 31, 2007,  proceeds  from  maturing
investment  securities were used to paydown  short-term debt due to lower market
spreads in this sector.

         Dividends received on FHLB stock increased by $50 thousand or 82.0% and
$112  thousand  or 69.1% for the three and nine  months  ended  March 31,  2007,
respectively,  when  compared  to the same  period  in 2006.  The  increase  was
primarily  attributable to increases of 333 and 219 basis points in the dividend
rates  received  for the three and nine month  periods  ending  March 31,  2007,
respectively, when compared to the same periods in 2006.

         Interest  Expense.  Interest expense on deposits and escrows  increased
$275  thousand or 35.3% for the three months ended March 31, 2007 when  compared
to the same period in 2006. The increase in interest expense on deposits for the
three  months  ended March 31, 2007 was  attributable  to increases of 84 and 72
basis point increases in the weighted average rate paid on time and money market
deposits,  respectively,  and  increases of $9.0 million and $2.3 million in the
average balances of time and money market deposits,  respectively, for the three
months ended March 31, 2007, when compared to the same period in 2006.  Interest
expense on deposits and escrows  increased  $822  thousand or 36.6% for the nine
months  ended March 31,  2007,  when  compared  to the same period in 2006.  The
increase in interest  expense on deposit and escrows was primarily  attributable
to a 101 and 92 basis point  increase in the weighted  average rate paid on time
and money  market  deposits,  respectively,  and a $5.6 million and $2.5 million
increase  in  the  average   balance  of  time  and  money   markets   deposits,
respectively,  for the nine months  ended March 31, 2007,  when  compared to the
same  period  in 2006.  The  average  yield  paid on  interest-bearing  deposits
reflects higher market interest rates for time and money market deposits for the
three and nine months ended March 31, 2007.

         Interest paid on FHLB advances  decreased $139 thousand or 7.1% for the
three months ended March 31, 2007 when compared to the same period in 2006.  The
decrease for the three months ended March 31, 2007 was primarily attributable to
a $8.4 million decrease in the average balances of FHLB long-term advances and a
$2.6 million decrease in the average  balances of FHLB short-term  advances when
compared to the same period in 2006.  Interest paid on FHLB  advances  decreased
$70 thousand or 1.2% for the nine months  ended March 31, 2007 when  compared to
the same  period  in  2006.  The  decrease  for the nine  months  was  primarily
attributable  to a  $8.5  million  decrease  in the  average  balances  of  FHLB
long-term  advances  which were  partially  offset by a decrease of $6.0 million
increase in the average  balances of FHLB  short-term  advances when compared to
the same period in 2006. The increase in FHLB short-term advances was the result
of the Company's  repositioning of its liability  structure to take advantage of
lower rates on FHLB short-term advances, as compared to other short-term funding
sources,  while the decrease in FHLB long-term  advances was a result of payoffs
of such advances.

                                       15
<page>

         Interest paid on other short-term borrowings decreased $360 thousand or
26.8% and  increased  $215  thousand or 7.1% for the three and nine months ended
March 31, 2007 when  compared to the same periods in 2006.  The decrease for the
three months ended March 31, 2007 was  attributable to a $44.4 million  decrease
in associated  average balances,  which was partially offset by a 78 basis point
increase in rates paid.  The  increase  for the nine months ended March 31, 2007
was  primarily  attributable  to a 123 basis point  increase in the average rate
paid,  which was  partially  offset by a $16.6  million  decrease in the average
balances of other  borrowings  when  compared  to the same  period in 2006.  The
increase  in rates paid was  consistent  with  increases  in  short-term  market
interest  rates.  The  decrease  in  average  balances  is  attributable  to the
Company's  decision  to paydown  short-term  borrowings  due to  reduced  market
spreads available in the mortgage-backed and investment securities sectors.

         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 provision  of $34  thousand for loan losses for
the three  months  ended March 31, 2007  compared to a recovery for loan loss of
$38 thousand for the same period in 2006. The $38 thousand  recovery  during the
quarter  ended  March 31, 2006 was  primarily  attributable  to the  paydowns on
non-accrual  loans.  The  Company  recorded  a  provision  for loan  loss of $25
thousand  for the nine months  ended March 31, 2007 in  conjunction  with higher
average loan balances  compared to a recovery for loan loss of $149 thousand for
the same period in 2006. At March 31, 2007,  the Company's  total  allowance for
loan  losses  amounted  to $999  thousand  or 1.6% of the  Company's  total loan
portfolio, as compared to $957 thousand or 1.7% at June 30, 2006.

         Non-Interest  Income.  Non-interest income decreased by $19 thousand or
11.1% and $80  thousand or 14.7% for the three and nine  months  ended March 31,
2007 when compared to the same periods in 2006. The decrease for the three month
period  ended  March  31,  2007 was  primarily  attributable  to a $10  thousand
decrease in deposit fee income and a $6 thousand  decrease in ATM and debit card
fee income.  The decrease for the nine months ended March 31, 2007 was primarily
attributable  to a decrease  of $30  thousand  in  pre-tax  gains on the sale of
investment securities, a $16 thousand decrease in service charges on deposits, a
$19  thousand  decrease  in ATM and  debit  card fee  income  and a $4  thousand
decrease in correspondent loan fees.

         Non-Interest  Expense.  Non-interest  expense decreased $40 thousand or
4.6% and $4 thousand or 0.2% for the three and nine months  ended March 31, 2007
when  compared  to the same  period in 2006.  The  decrease  for the three month
period  ended  March  31,  2007 was  primarily  attributable  to a $13  thousand
decrease in correspondent  bank service charges, a $10 thousand decrease in data
processing  expense,  an $8 thousand  decrease in outside service fees and an $8
thousand   increase  in  credit  provisions  for  losses  on  off-balance  sheet
liabilities.  The  decrease  for the  nine  months  ended  March  31,  2007  was
principally  attributable  to a $43 thousand  change in  provisions/credits  for
losses on off  balance  sheet  liabilities,  an $18  thousand  decrease  in data
processing  expense and a $15 thousand  decrease in  correspondent  bank service
charges,  which were partially  offset by a $40 thousand  increase in charitable
contributions  eligible  for  Pennsylvania  state tax credits and a $25 thousand
increase in employee related costs when compared to the same period in 2006.

         Income Tax Expense. Income tax expense increased $103 thousand or 25.0%
and $405  thousand or 45.7% for the three and nine  months  ended March 31, 2007
when  compared  to the  same  period  in  2006.  The  increases  were  primarily
attributable  to an  increased  level of  taxable  income for the three and nine
months ended March 31, 2007 when compared to the same periods in 2006.

                                       16
<page>

LIQUIDITY AND CAPITAL RESOURCES

         Net cash provided by operating  activities  totaled $3.2 million during
the nine months ended March 31, 2007. Net cash provided by operating  activities
was primarily  comprised of $2.7 million of net income, a $379 thousand increase
in accrued and deferred  taxes,  a $238  thousand  increase in accrued  interest
payable  and $105  thousand in fixed asset  depreciation,  which were  partially
offset by a $154 increase in accrued interest receivable, and a $156 thousand in
amortization of discounts, premiums and deferred loan fees.

         Funds provided by investing activities totaled $33.2 million during the
nine  months  ended March 31,  2007.  Primary  sources of funds  during the nine
months ended March 31, 2007,  included  maturities and repayments of investment,
mortgage-backed securities and FHLB Stock totaling $106.9 million, $30.1 million
and $5.4  million,  respectively,  which were  partially  offset by purchases of
investments,  mortgage-backed  securities and FHLB Stock totaling $95.3 million,
$5.0 million and $4.1 million,  respectively, and a $4.9 million increase in net
loans receivable.

         Funds used for financing  activities totaled $35.4 million for the nine
months ended March 31, 2007. The primary uses included a $23.2 million  decrease
in  short-term  FHLB  advances,  $11.5  million  decrease  in  other  short-term
borrowings,  a $5.0 million decrease in long-term FHLB advances, $1.1 million in
cash dividends paid on the Company's  common stock and $534 thousand in treasury
stock purchases, which were partially offset by a $5.6 million increase in total
deposits.  The $5.6  million  increase  in total  deposits  consisted  of a $6.6
million increase in certificates of deposit  primarily due to accounts opened by
local county  municipal  governments and school  districts,  which was partially
offset by a $676 thousand  decrease in transaction  and passbook  accounts and a
$279 thousand decrease in mortgage escrow accounts.  Management believes that it
currently is  maintaining  adequate  liquidity  and  continues to match  funding
sources with lending and investment opportunities.

         The  Company's  primary  sources of funds are  deposits,  amortization,
repayments  and  maturities of existing  loans,  mortgage-backed  securities and
investment  securities,  funds from operations,  and funds obtained through FHLB
advances  and other  borrowings.  At March 31,  2007,  the total  approved  loan
commitments  outstanding  amounted to approximately  $603 thousand.  At the same
date,  commitments under unused lines of credit amounted to $7.1 million and the
unadvanced   portion  of   construction   loans   approximated   $12.1  million.
Certificates  of  deposit  scheduled  to mature in one year or less at March 31,
2007 totaled $53.4 million.  Management  believes that a significant  portion of
maturing deposits will remain with the Company.

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

         On April 24, 2007,  the  Company's  Board of Directors  declared a cash
dividend of $0.16 per share payable May 24, 2007, to  shareholders  of record at
the close of business on May 14, 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 March 31, 2007,  WVS  Financial  Corp.  exceeded  all  regulatory
capital requirements and maintained Tier I and total risk-based capital equal to
$30.7  million  or 23.3% and $31.7  million  or  24.1%,

                                       17
<page>

respectively,  of total  risk-weighted  assets,  and Tier I leverage  capital of
$30.7 million or 7.79% of average quarterly assets.

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

         The   Company's   nonperforming   assets  at  March  31,  2007  totaled
approximately $1.2 million or 0.31% of total assets as compared to $318 thousand
or 0.08% of total  assets at June 30,  2006.  Nonperforming  assets at March 31,
2007 consisted of: one commercial real estate loan totaling $973 thousand, three
single-family  real estate loans  totaling  $215  thousand,  two line of credits
secured by single-family real estate totaling $18 thousand and one single-family
real estate owned property with a book value of approximately $2 thousand.

         The $890  thousand  increase in  nonperforming  assets  during the nine
months  ended  March 31,  2007 was  primarily  attributable  to the  addition to
non-accrual status of one commercial real estate loan totaling $973 thousand (as
further  discussed below) and one line of credit secured by  single-family  real
estate which were partially offset by the  reclassification of two single-family
real estate loans totaling $75 thousand from non-performing to performing and an
$8 thousand  charge-off related to the single-family real estate owned property.
The loans are in various stages of collection activity and the real estate owned
parcel is being marketed.

         At March 31,  2007,  the Company had one  previously  restructured  and
non-accrual  commercial real estate loan to a retirement  village located in the
North Hills totaling $973 thousand.  The Savings  Bank's  outstanding  principal
balance on this loan totaled  $2.0 million at June 30, 2003.  During the quarter
ended   September  30,  2003,   the  Savings  Bank  redeemed  $388  thousand  of
participating  interests.  During the quarter ended  December 31, 2003, the Bank
sold a forty percent participating  interest to another financial institution at
par resulting in proceeds totaling $979 thousand. The Savings Bank's outstanding
principal  balance  totaled  $984  thousand  at June 30,  2006.  The Company had
recorded  interest  received  on this  credit  on a cost  recovery  basis  until
September  30, 2003 and is now  recording  interest  income on a cash basis.  At
March 31, 2007,  this credit was  classified as  non-performing.  The project is
experiencing  lower than desired levels of occupancy and the borrower is working
to increase occupancy.

         At March 31, 2007,  the Company had one  previously  restructured  loan
secured  by   undeveloped   land  totaling  $338  thousand  and  one  previously
restructured  unsecured loan totaling $37 thousand to two borrowers.  During the
fourth  quarter of fiscal 2004,  the  Bankruptcy  Court approved a secured claim
totaling $440 thousand and an unsecured  claim  totaling $76 thousand be paid on
these loans in accordance  with a Bankruptcy Plan of  Reorganization.  All Court
ordered plan payments have been received in a timely manner.  In accordance with
generally  accepted  accounting  principles,  the Company had recorded  interest
payments  received  on a cost  recovery  basis  until  June 30,  2006 and is now
recording interest income.

         During the nine months ended March 31, 2007,  approximately $7 thousand
of  interest  income  would  have  been  recorded  on loans  accounted  for on a
non-accrual  basis if such loans had been current according to the original loan
agreements  for the  entire  period.  These  amounts  were not  included  in the
Company's  interest income for the nine months ended March 31, 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.

                                       18
<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  March 31,  2007,  the  Federal  Open Market
Committee held its targeted  federal funds rate at 5.25%.  The table below shows
the targeted  federal  funds rate and the  benchmark  two and ten year  treasury
yields at March 31, 2006, June 30, 2006 and March 31, 2007.

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

     March 31, 2006          4.75%              4.82%             4.86%
      June 30, 2006          5.25%              5.16%             5.15%
     March 31, 2007          5.25%              4.58%             4.65%


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

                                       19
<page>

investment and mortgage-backed securities portfolios and a marked compression of
industry-wide net interest margins. The difference in yields on the ten year and
two year  Treasury's is often used to determine the steepness of the yield curve
and to assess the term  premium of market  interest  rates.  The term premium of
market  interest rates is often used to determine the relative  merits of taking
on additional interest rate risk and to gauge the market's expectation of future
interest rates.

         Principal   repayments   on  the   Company's   loan,   investment   and
mortgage-backed  securities portfolios for the nine months ended March 31, 2007,
totaled $15.1 million, $106.9 million and $30.1 million,  respectively. Due to a
marked compression of Treasury yields, low market volatility and reduced spreads
available on mortgage-backed and investment securities, the Company chose to use
principal  repayments to reduce short and  long-term  debt during most of fiscal
2007.  This strategy has allowed the Company to increase  operating  margins and
capital ratios while reducing overall interest rate risk.

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

         During the quarter ended March 31, 2007, principal investment purchases
were  comprised  of callable  fixed rate  government  agency bonds with ten year
final  maturities and initial  lock-out  periods as follows:  6 months or less -
$14.6 million with weighted  average  yields to call of  approximately  6.11%; 6
thru  12  months  - $8.0  million  with a  weighted  average  yield  to  call of
approximately  6.04%;  13 thru 18 months - $3.0 million with a weighted  average
yield to call of 6.01%.  The Company also  purchased  $4.0 million in short-term
commercial paper with a yield of approximately  5.43%. Major investment proceeds
received  during the  quarter  ended March 31,  2007 were:  callable  government
agency bonds - $50.8  million  with a weighted  average  yield of  approximately
4.93%; mortgage-backed securities - $8.0 million.

         As of March 31, 2007, the  implementation  of these asset and liability
management initiatives resulted in the following:

         1)       $128.4  million  or  98.2%  of  the  Company's   portfolio  of
                  mortgage-backed  securities (including collateralized mortgage
                  obligations   -  "CMOs")  were   comprised  of  floating  rate
                  instruments that reprice on a monthly basis.
         2)       $25.0 million or 13.5% of the Company's  investment  portfolio
                  was comprised of fixed to floating rate U.S. Government Agency
                  bonds which will reprice as follows:  6 months or less - $10.0
                  million and over 1 year - $15.0 million.  Management currently
                  believes  that these bonds are likely to be repaid  during the
                  intervals shown.
         3)       $139.0 million or 75.2% 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 - $29.4
                  million;  3 - 6 months - $14.6 million;  6 - 12 months - $36.6
                  million; 1 - 2 years - $55.5 million;  and over 2 years - $3.0
                  million. These bonds may or may not actually be redeemed prior
                  to maturity (i.e.  called)  depending upon the level of market
                  interest rates at their respective call dates.
         4)       $4.7 million or 2.5% of the Company's investment portfolio was
                  comprised of U.S.  Government  Agency Step-up bonds which will
                  reprice  as  follows:  3 months  or less - $4.7  million  with
                  coupons  increasing from 4.70% to 6.00%.  Management  believes
                  that  substantially all of these bonds are likely to be repaid
                  during the intervals shown.
         5)       An aggregate of $34.6  million or 57.2% of the  Company's  net
                  loan portfolio had adjustable  interest rates or maturities of
                  less than 12 months; and
         6)       The maturity  distribution  of the Company's  borrowings is as
                  follows: 1 month or less - $64.5 million or 32.5%; 1 - 3 years
                  - $8.5 million or 4.3%; 3 - 5 years - $117.6 million or 59.4%;
                  and over 5 years - $7.5 million or 3.8%.

                                       20
<page>

         The effect of interest rate changes on a financial institution's assets
and liabilities may be analyzed by examining the "interest rate  sensitivity" of
the assets and  liabilities  and by  monitoring an  institution's  interest rate
sensitivity  "gap".  An asset or liability is said to be interest rate sensitive
within a specific  time period if it will mature or reprice  within a given time
period.  A gap is  considered  positive  (negative)  when  the  amount  of  rate
sensitive assets (liabilities)  exceeds the amount of rate sensitive liabilities
(assets).  During a period of falling  interest rates, a negative gap would tend
to result  in an  increase  in net  interest  income.  During a period of rising
interest  rates,  a  positive  gap would  tend to result in an  increase  in net
interest income.

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

         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.

                                              March 31,         June 30,
                                              --------    --------------------
                                                2007        2006        2005
                                              --------    --------    --------
                                                    (Dollars in Thousands)
Interest-earning assets maturing or
   repricing within one year                  $233,684    $273,884    $318,015
                                              --------    --------    --------
Interest-bearing liabilities maturing or
   repricing within one year                   162,558     194,509     181,085
                                              --------    --------    --------
Interest sensitivity gap                      $ 71,126    $ 79,375    $136,930
                                              ========    ========    ========
Interest sensitivity gap as a percentage of
   total assets                                  18.25%      18.82%       32.5%
Ratio of assets to liabilities
   maturing or repricing within one year        143.75%     140.81%      175.6%

         During the quarter  ended March 31, 2007,  the Company  managed its one
year interest sensitivity gap by: (1) paying down approximately $28.4 million in
short-term  borrowings;  (2) reducing overall purchases of investment securities
due to lower  market  spreads;  and (3) limiting the  portfolio  origination  of
long-term  fixed rate  mortgages and  emphasizing  loans with  shorter-terms  or
repricing frequencies.

                                       21
<page>

         The  following  table  illustrates  the  Company's  estimated  stressed
cumulative repricing gap - the difference between the amount of interest-earning
assets and interest-bearing  liabilities expected to reprice at a given point in
time - at March  31,  2007.  The  table  estimates  the  impact  of an upward or
downward change in market interest rates of 100 and 200 basis points.

<table>
<caption>

                                               Cumulative Stressed Repricing Gap
                                               ---------------------------------

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

                          <c>            <c>            <c>            <c>            <c>            <c>              <c>
                                                                (Dollars in Thousands)
Base Case Up 200 bp
-------------------
Cummulative
  Gap ($'s)                (63,241)       (82,451)      (101,450)       (95,352)       (95,934)      (102,546)        30,818
% of Total
  Assets                    -16.2%         -21.2%         -26.0%         -24.5%         -24.6%         -26.3%            7.9%
Base Case Up 100 bp
-------------------
Cummulative
  Gap ($'s)                (69,706)       (90,043)      (102,769)      (102,385)      (102,920)      (106,539)        30,818
% of Total
  Assets                    -17.9%         -23.1%         -26.4%         -26.3%         -26.4%         -27.3%            7.9%
Base Case No Change
-------------------
Cummulative
  Gap ($'s)                 60,784         41,158         71,126        128,225        132,201         19,386         30,818
% of Total
  Assets                      15.6%          10.6%          18.2%          32.9%          33.9%           5.0%           7.9%
Base Case Down 100 bp
---------------------
Cummulative
  Gap ($'s)                 91,624         87,872        113,766        168,806        170,492         56,420         30,818
% of Total
  Assets                      23.5%          22.5%          29.2%          43.3%          43.7%          14.5%           7.9%
Base Case Down 200 bp
---------------------
Cummulative
  Gap ($'s)                 94,490         92,808        119,483        175,061        175,118         57,454         30,818
% of Total
  Assets                      24.2%          23.8%          30.7%          44.9%          44.9%          14.7%           7.9%

</table>

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

                                       22
<page>

         The  following  table  presents the  simulated  impact of a 100 and 200
basis point upward or downward  (parallel) shift in market interest rates on net
interest  income,  return on average  equity,  return on average  assets and the
market  value of  portfolio  equity at March 31,  2007.  This  analysis was done
assuming  that the  interest-earning  assets  will  average  approximately  $399
million over a projected  twelve month period for the estimated impact on change
in net interest  income,  return on average equity and return on average assets.
The estimated  changes in market value of equity were  calculated  using balance
sheet levels at March 31, 2007.

<table>
<caption>

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

                                                 Modeled Change in Market Interest Rates
                                    ------------------------------------------------------------------
Estimated impact on:                   -200        -100             0          +100          +200
-------------------

                                     <c>             <c>          <c>            <c>         <c>
   Change in net interest income       -22.7%         - 9.3          0.00%        - 6.6        -27.6%

   Return on average equity              8.17%        10.37%        11.88%        10.84%         7.47%

   Return on average assets              0.62%         0.80%         0.92%         0.83%         0.57%

   Market value of equity (in
      thousands)                   $   27,355    $   32,423    $   36,267    $   27,081    $   12,336
</table>

         The table below provides  information  about the Company's  anticipated
transactions comprised of firm loan commitments and other commitments, including
undisbursed  letters  and  lines  of  credit.  The  Company  used no  derivative
financial  instruments to hedge such  anticipated  transactions  as of March 31,
2007.

                        Anticipated Transactions
         -----------------------------------------------------------
                                              (Dollars in Thousands)
         Undisbursed construction and
             land development loans
               Fixed rate                          $    6,609
                                                         7.17%

               Adjustable rate                     $    5,451
                                                         6.34%

         Undisbursed lines of credit
               Adjustable rate                     $    7,113
                                                         8.37%

         Loan origination commitments
               Fixed rate                          $       78
                                                         8.50%

               Adjustable rate                     $      525
                                                         9.75%

         Letters of credit
               Adjustable rate                     $    1,011
                                                         9.26%

                                                   $   20,787
                                                   ==========

                                       23
<page>

         In the  ordinary  course  of its  construction  lending  business,  the
Savings Bank enters into performance standby letters of credit.  Typically,  the
standby  letters of credit are issued on behalf of a builder to a third party to
ensure the timely  completion of a certain aspect of a  construction  project or
land  development.  At March 31, 2007,  the Savings Bank had eleven  performance
standby letters of credit outstanding  totaling  approximately $1.0 million. Two
letters of credit are secured by deposits with the Savings Bank and nine letters
of credit are secured by developed property. Eight of the letters of credit will
mature within twelve  months,  two will mature within twenty four months and one
letter of credit is  open-ended.  In the  event  that the  obligor  is unable to
perform its obligations as specified in the standby letter of credit  agreement,
the Savings Bank would be obligated to disburse funds up to the amount specified
in the standby letter of credit agreement.  The Savings Bank maintains  adequate
collateral that could be liquidated to fund this contingent obligation.

ITEM 4.

CONTROLS AND PROCEDURES

         Our management evaluated, with the participation of our Chief Executive
Officer  and  Chief  Financial  Officer,  the  effectiveness  of our  disclosure
controls and procedures (as defined in Rules  13a-15(e) and 15d-15(e)  under the
Securities Exchange Act of 1934) as of March 31, 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 third quarter of fiscal 2007 that has materially  affected,
or is  reasonably  likely  to  materially  affect,  our  internal  control  over
financial reporting.


                                       24
<page>

PART II - OTHER INFORMATION

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

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

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

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

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

         (a)      Not applicable.
         (b)      Not applicable.
         (c)      The  following  table sets forth  information  with respect to
                  purchases  of common stock of the Company made by or on behalf
                  of the Company during the three months ended March 31, 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)
-------------------------------------------------------------------------------------------------
<c>                    <c>                  <c>                   <c>                 <c>
01/01/07 - 01/31/07        1,000                16.40                 1,000               57,428
-------------------------------------------------------------------------------------------------
02/01/07 - 02/28/07           --                 0.00                    --               57,428
-------------------------------------------------------------------------------------------------
03/01/07 - 03/31/07        6,000                16.50                 6,000               51,428
-------------------------------------------------------------------------------------------------
     Total                 7,000                16.49                 7,000               51,428
-------------------------------------------------------------------------------------------------
</table>

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

         (1)      All shares indicated were purchased under the Company's Eighth
                  Stock Repurchase Program.
         (2)      Eighth Stock Repurchase Program
                  (a)      Announced September 27, 2005.
                  (b)      125,000 common shares approved for repurchase.
                  (c)      No fixed date of expiration.
                  (d)      This  program has not  expired and had 51,428  shares
                           remaining to be purchased at March 31, 2007.
                  (e)      Not applicable.


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

         Not applicable.

                                       25
<page>

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

         Not applicable.

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

         Not applicable.

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

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

  Number     Description                                                   Page
 --------    -----------------------------------------------------------  ------
   31.1      Rule 13a-14(a) / 15d-14(a) Certification of the Chief          E-1
             Executive 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


                                       26
<page>

                                   SIGNATURES

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



                                      WVS FINANCIAL CORP.



         May 4, 2007            BY:   /s/ David J. Bursic
                                      ------------------------------------------
         Date                         David J. Bursic
                                      President and Chief Executive Officer
                                      (Principal Executive Officer)


         May 4, 2007            BY:   /s/ Keith A. Simpson
                                      ------------------------------------------
         Date                         Keith A. Simpson
                                      Vice-President, Treasurer and Chief
                                       Accounting Officer
                                      (Principal Accounting Officer)



                                       27