W
     V
      S

FINANCIAL
---------
   CORP.


THE HOLDING COMPANY OF WEST VIEW SAVINGS BANK



                                 ANNUAL REPORT




                                                                            2000



<PAGE>

                                TABLE OF CONTENTS

                                                                         Page
                                                                        Number

         Stockholders' Letter                                              1

         Selected Financial and Other Data                                 2

         Management's Discussion and Analysis                              4

         Report of Independent Auditors                                    21

         Consolidated Balance Sheets                                       22

         Consolidated Statements of Income                                 23

         Consolidated Statements of Changes in Stockholders' Equity        24

         Consolidated Statements of Cash Flows                             25

         Notes to the Consolidated Financial Statements                    26

         Common Stock Market Price and Dividend Information                52

         Corporate Information


<PAGE>


To Our Stockholders:

During fiscal 2000, WVS Financial  Corp. and West View Savings Bank continued to
post record operating  results.  Diluted earnings per share increased 25.6% from
$1.17 in fiscal  1999 to $1.47 in fiscal  2000.  Return on  average  equity  has
steadily  increased over the past two years,  from 10.45% in fiscal 1998, 13.01%
in fiscal 1999, to 16.27% in fiscal 2000.  Total assets grew by $61.2 million or
17.6% during fiscal 2000 and totaled $409.6 million on June 30, 2000.

We  continued  to build upon our core deposit  base,  particularly  our checking
accounts.  In our view,  checking  accounts  represent the foundation upon which
other  account  relationships  can be offered.  During  fiscal 2000, we took two
additional  steps to add value to our checking  accounts:  (1) we introduced the
VISA Check Card and (2) we helped to form the  Freedom  ATM  Alliance.  Our VISA
Check Card allows  customers the  convenience  of paying for purchases  anywhere
VISA is  accepted  without  the  hassle of  writing a check or the need to carry
large amounts of cash. The Freedom ATM Alliance  allows our customers  access to
over 250 ATMs with no surcharges.

From time to time we are asked  questions  about bank stock  pricing.  Community
banks and thrifts  have been  severely  hurt by outflows in  financial  services
mutual funds over the past two years as institutional investors have been forced
to sell off positions to cover redemptions. During the past two years, investors
have put their money into technology funds, as evidenced by the dramatic upswing
in  technology  fund  inflows  throughout  1999 and the first half of 2000.  The
Federal  Reserve  Board's  six  increases  in the  federal  funds rate have also
limited investor interest in the banking sector.

We feel that these setbacks to the entire banking sector are starting to reverse
themselves.  Since the beginning of August 2000,  financial  services funds have
seen a net inflow of money - the first time money has entered  these funds since
November 1998. Also, with the economy  appearing to be slowing,  future interest
rate hikes by the Federal Reserve may be limited.

In light of the Company's record earnings,  attractive dividend yield and strong
return  on  equity  we  believe  that our  shares  are a good  value in  today's
marketplace. During fiscal 2000, the Company's Board of Directors authorized the
Fourth Stock Repurchase  Program.  With this Program we intend to purchase up to
200,000 shares of Company common stock.  To date,  approximately  100,000 shares
have been purchased under the Fourth Program and we believe that these purchases
will continue to confirm our ongoing  commitment to actively  manage our capital
and to enhance long-term stockholder value.

On behalf of the Board of Directors  and  employees,  we would like to thank you
for your ongoing  interest in the  Company,  and in many cases,  your  continued
patronage of West View Savings Bank. Our Bank is a full service bank. We offer a
variety of  business,  consumer  and  mortgage  loans to meet all of your needs.
Please continue to recommend West View Savings Bank to your family,  friends and
neighbors.

/S/DAVID J. BURSIC                                  /S/WILLIAM J. HOEGEL
------------------                                  --------------------
DAVID J. BURSIC                                     WILLIAM J. HOEGEL
President and                                       Chairman of the Board
Chief Executive Officer


<PAGE>


                   FIVE YEAR SUMMARY OF SELECTED CONSOLIDATED

                            FINANCIAL AND OTHER DATA

<TABLE>
<CAPTION>
                                                                 As of or For the Year Ended June 30,
                                              ---------------------------------------------------------------------------
                                                  2000           1999            1998           1997           1996
                                              -------------- -------------- --------------- -------------- --------------
                                                                        (Dollars in Thousands)
Selected Financial Data:
<S>                                                <C>            <C>             <C>            <C>            <C>
Total assets                                       $409,618       $348,408        $297,054       $294,693       $259,622
Net loans receivable                                183,295        170,327         157,737        158,134        149,011
Mortgage-backed securities                           73,673         72,380          46,314         37,490         42,118
Investment securities                               137,502         92,166          81,268         87,548         59,218
Savings deposit accounts                            169,508        171,114         167,670        170,879        170,843
FHLB advances                                       104,500        116,900          88,857         77,857         38,000
Other borrowings                                    101,025         25,820             889          6,784         10,652
Stockholders' equity                                 26,911         27,938          32,978         32,889         34,038
Nonperforming assets and troubled
  debt restructurings(1)                              4,050            765             603            274            980

Selected Operating Data:
Interest income                                    $ 27,952       $ 22,999        $ 22,146       $ 21,125       $ 18,317
Interest expense                                     16,933         12,739          11,781         10,884          8,840
                                                   --------       --------        --------       --------       --------
Net interest income                                  11,019         10,260          10,365         10,241          9,477
Provision for loan losses                               150            ---           (120)             60            150
                                                   --------       --------        --------       --------       --------
Net interest income after provision
  for loan losses                                    10,869         10,260          10,485         10,181          9,327
Non-interest income                                     605            490             538            374            383
Non-interest expense                                  4,626          4,285           5,422          5,666          4,067
                                                   --------       --------        --------       --------       --------
Income before income tax expense                      6,848          6,465           5,601          4,889          5,643
Income tax expense                                    2,469          2,434           2,109          1,930          2,066
                                                   --------       --------        --------       --------       --------

Net income                                         $  4,379       $  4,031        $  3,492       $  2,959       $  3,577
                                                   ========       ========        ========       ========       ========

Per Share Information(2):
Basic earnings                                   $     1.48     $     1.18      $     1.01      $     0.88     $     1.07
Diluted earnings                                 $     1.47     $     1.17      $     0.98      $     0.85     $     1.04
Dividends per share(3)                           $     0.64     $     0.63      $     1.50      $     1.50     $     1.03
Dividend payout ratio(3)                              43.24%         53.39%         148.51%         170.45%         96.26%
Book value per share at period end               $     9.35     $     8.81      $     9.12      $     9.41     $     9.80
Average shares outstanding:
      Basic                                       2,953,720      3,405,662       3,470,479       3,369,796      3,347,363
      Diluted                                     2,977,089      3,435,738       3,574,043       3,490,226      3,452,854
</TABLE>

                                       2
<PAGE>


<TABLE>
<CAPTION>
                                                               As of or For the Year Ended June 30,
                                              ------------------------------------------------------------------------
                                                  2000          1999           1998           1997           1996
                                                  ----          ----           ----           ----           ----
                                                                      (Dollars in Thousands)
<S>                                                <C>           <C>            <C>            <C>            <C>
Selected Operating Ratios(4):
Average yield earned on interest-
  earning assets                                   7.34%         7.32%          7.69%          7.69%          7.83%
Average rate paid on interest-
  bearing liabilities                              4.91          4.70           4.78           4.78           4.58
Average interest rate spread(5)                    2.43          2.62           2.91           2.91           3.25
Net interest margin(5)                             2.89          3.27           3.60           3.73           4.05
Ratio of interest-earning assets to
  interest-bearing liabilities                   110.57        114.54         116.65         120.70         121.18
Non-interest expense as a percent of
  average assets                                   1.20          1.35           1.86           2.04           1.71
Return on average assets                           1.14          1.27           1.20           1.06           1.51
Return on average equity                          16.27         13.01          10.45           8.63          10.19
Ratio of average equity to average
  Assets                                           6.99          9.76          11.48          12.33          14.81
Full-service offices at end of period              5             5              5              5              5

Asset Quality Ratios(4):
Non-performing loans and troubled
  debt restructurings as a percent of
  net total loans(1)                               2.21%         0.32%          0.38%          0.17%          0.66%
Non-performing assets as a percent
  of total assets(1)                               0.99          0.22           0.20           0.09           0.15
Non-performing assets and troubled
  debt restructurings as a percent of
  total assets                                     0.99          0.22           0.20           0.09           0.38
Allowance for loan losses as a
  percent of total loans receivable                0.98          1.07           1.08           1.16           1.17
Allowance for loan losses as a
  percent of non-performing loans                 48.72        336.75         308.46         733.21         520.95
Charge-offs to average loans
  receivable outstanding during the
  period                                           0.01          0.02           0.02           0.01           0.02

Capital Ratios(4):
Tier 1 risk-based capital ratio                   14.05%        15.85%         20.90%         24.52%         27.19%
Total risk-based capital ratio                    15.11         16.90          22.09          25.77          28.44
Tier 1 leverage capital ratio                      6.69          8.29          10.98          11.44          13.90
</TABLE>

----------------
(1)  Non-performing assets consist of non-performing loans and real estate owned
     ("REO").  Non- performing  loans consist of non-accrual  loans and accruing
     loans  greater than 90 days  delinquent,  while REO consists of real estate
     acquired  through  foreclosure  and real estate acquired by acceptance of a
     deed in lieu of foreclosure.
(2)  All per share  information for fiscal years ended June 30, 1997 and 1996
     have been restated to reflect the two-for-one stock split of May 22, 1998.
(3)  Dividends  per  share and  dividend  payout  ratio  includes  special  cash
     dividends of $0.95,  $1.15,  and $0.85 per share,  paid during fiscal 1998,
     1997 and 1996,  respectively.
(4)  Consolidated  asset  quality  ratios and  capital  ratios are end of period
     ratios, except for net charge-offs to average net loans. With the exception
     of end of period ratios,  all ratios are based on average monthly  balances
     during the indicated periods.
(5)  Interest rate spread represents the difference between the weighted average
     yield  on  interest-earning   assets  and  the  weighted  average  cost  of
     interest-bearing  liabilities,  and  net  interest  margin  represents  net
     interest income as a percent of average interest-earning assets.

                                       3
<PAGE>

                       WVS FINANCIAL CORP. AND SUBSIDIARY

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

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 June 30, 2000.

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.

The Company's strategic focus includes:

Consistent  Earnings  Growth - Net income has grown from $3.5  million in fiscal
1998 to $4.0  million in fiscal  1999 to $4.4  million in fiscal  2000.  Diluted
earnings per share have  increased  from $0.98 in fiscal 1998 to $1.17 in fiscal
1999 to $1.47 in fiscal 2000; this equates to a compounded annual growth rate in
diluted earnings per share of 22.47%.

Commitment  to Capital  Management  - The  Company is  committed  to  maximizing
long-term  shareholder value.  Specific components of this strategy include: (1)
the repurchase of 310,141 shares of Company common stock during fiscal 2000; (2)
growing Company assets to increase net income;  and (3) paying an  above-average
dividend yield of 5.53% on the Company's common stock during fiscal 2000.

Growth of Core  Deposits - As of June 30, 2000,  $78.4  million or 46.3% of West
View's total  deposits  consisted of regular  savings and club  accounts,  money
market deposit accounts,  and checking accounts.  Approximately $37.0 million or
47.2% of core deposits consisted of regular savings and club accounts.  Checking
account balances grew $2.9 million or 11.3% during fiscal 2000 and totaled $28.6
million or 36.5% of core  deposits at June 30,  2000.  The  continued  growth in
checking  account  deposits  was  primarily  due  to  increased   marketing  and
promotional  efforts by the  Company to gain market  share.  Core  deposits  are
considered to be more stable and lower cost funds than  certificates  of deposit
and other borrowings.

Community-based  Lending  - West  View  has  consistently  focused  its  lending
activities  on  generating  loans in our market  area.  Typical  loan  offerings
include  home  mortgages,  construction  loans,  and  consumer  loans  for  home
improvement,  automobile  loans and home equity loans.  During fiscal 2000, West
View  continued to expand its small  business  lending  program,  including term
loans, business inventory loans and loans for business machinery.

Strong  Non-interest  Expense Ratios - For the fiscal years ended June 30, 2000,
1999 and 1998, the Company's  ratios of  non-interest  expense to average assets
were 1.20%, 1.35% and 1.86%,  respectively.  Excluding unusual items relating to
severance costs, the Company's ratios of non-interest  expense to average assets
were 1.20%,  1.35% and 1.68% for the fiscal years ended June 30, 2000,  1999 and
1998, respectively.


                                       4
<PAGE>

CHANGES IN FINANCIAL CONDITION

                             Condensed Balance Sheet
<TABLE>
<CAPTION>
                                                                                  Change
                                             June 30,      June 30.     ---------------------------
                                               2000          1999         Dollars     Percentage
                                               ----          ----         -------     ----------
                                                    (Dollars in Thousands)

<S>                                        <C>           <C>             <C>              <C>
         Cash and interest-earning
         deposits                          $    2,915    $    1,893      $  1,022         54.0%

         Investment securities                142,727        98,361       44,366          45.1

         Mortgage-backed securities            73,673        72,380         1,293          1.8

         Net loans receivable                 183,295       170,327        12,968          7.6

         Total assets                         409,618       348,408        61,210         17.6

         Deposits                             172,858       174,244        (1,386)        -0.8

         FHLB and other borrowings            205,525       142,720        62,805         44.0

         Total liabilities                    382,707       320,470        62,237         19.4

         Total equity                          26,911        27,938        (1,027)        -3.7
</TABLE>


General.  The $61.2  million  or 17.6%  growth  in total  assets  was  primarily
comprised of a $44.4 million increase in investment  securities and Federal Home
Loan Bank ("FHLB") stock, a $13.0 million  increase in net loans  receivable,  a
$1.3 million increase in mortgage-backed securities, and a $1.0 million increase
in cash and interest-earning deposits.

The $62.2 million or 19.4% increase in total liabilities was primarily comprised
of a $62.8 million increase in FHLB advances and other borrowings.

Total  stockholders'  equity decreased $1.0 million or 3.7% primarily due to the
Company's  ongoing  commitment to manage its capital  levels to further  enhance
stockholder  value.  The $1.0  million  decrease  in  stockholders'  equity  was
principally  attributable to the repurchase of $4.2 million of the Company's own
common stock,  $1.9 million of cash dividends paid to  stockholders,  and a $166
thousand increase in unrealized  securities losses,  which were partially offset
by $4.4  million of Company net income and a $774  thousand  increase in capital
attributable to stock option  exercises,  Employee Stock Ownership Plan ("ESOP")
share releases and Recognition and Retention Plan ("RRP") equity contributions.

Cash on Hand and  Interest-earning  Deposits.  Cash on hand and interest-earning
deposits represent cash equivalents.  Cash equivalents increased $1.0 million or
54.0% to $2.9  million  at June 30,  2000 from $1.9  million  at June 30,  1999.
Increases in these  accounts are usually the result of a combination of customer
deposits,  loan  and  investment  repayments,   and  proceeds  from  borrowings.
Decreases  in these  accounts are  primarily  due to a  combination  of new loan
originations,  customer  withdrawals,  investment  purchases  and  repayments of
borrowings.

Investments.  The Company's overall investment portfolio increased $45.6 million
or 26.7% to $216.4  million  at June 30,  2000 from  $170.8  million at June 30,
1999.  Investment  securities increased $44.3 million or 45.1% to $142.7 million
at  June  30,  2000.  These  purchases  were  made  as a part  of the  Company's
investment growth program.  Mortgage-backed securities increased $1.3 million or
1.8% to $73.7 million at June 30, 2000.  These  purchases  were made in order to
mitigate the  principal  calls on the

                                       5
<PAGE>

Company's  callable  bond  portfolio and to earn a higher yield with an expected
average life profile comparable to longer-term callable agency bonds.

Net Loans  Receivable.  Net loans receivable  increased $13.0 million or 7.6% to
$183.3  million  at  June  30,  2000.  The  increase  in  loans  receivable  was
principally the result of increased mortgage and commercial loan originations.

Deposits.  Total  deposits  decreased  $1.4 million or 0.8% to $174.2 million at
June 30, 2000.  Interest-bearing and non-interest-bearing  checking accounts, as
well as money market accounts increased during the year, while passbook accounts
and time deposits decreased.

Borrowed  Funds.  Borrowed  funds  increased  $62.8  million  or 44.0% to $205.5
million at June 30, 2000. The increase is principally  the result of funding the
Company's investment growth program. Other short-term borrowings increased $75.2
million  or  291.3%  to  $101.0  million  at June 30,  2000,  and FHLB  advances
decreased $12.4 million or 10.6% to $104.5 million at June 30, 2000.

Stockholders'  Equity. Total stockholders' equity decreased $1.0 million or 3.7%
to $26.9 million at June 30, 2000.  The decrease was  principally  the result of
the  repurchase of $4.2 million of the Company's  common stock,  $1.9 million of
cash dividends paid to stockholders,  and a $166 thousand increase in unrealized
securities  losses,  which were partially  offset by $4.4 million of Company net
income and a $774  thousand  increase in capital  attributable  to stock  option
exercises, ESOP share releases and RRP equity contributions.

                                       6
<PAGE>

RESULTS OF OPERATIONS

                         Condensed Statements of Income


<TABLE>
<CAPTION>
                            June 30,                       June 30,                      June 30,
                              2000         Change            1999         Change           1998
                              ----         ------            ----         ------           ----
                                                  (Dollars in thousands)

<S>                         <C>           <C>              <C>           <C>              <C>
Interest income             $27,952       $ 4,953          $22,999       $    853         $22,146
                                             21.5%                           3.9%

Interest expense            $16,933       $ 4,194          $12,739       $   958          $11,781
                                             32.9%                           8.1%

Net interest income         $11,019       $   759          $10,260       $  (105)         $10,365
                                              7.4%                          -1.0%

Provision for loan losses   $   150       $   150          $     0       $   120          $  (120)
                                            100.0%                         100.0%

Non-interest income         $   605       $   115          $   490       $   (48)         $   538
                                             23.5%                          -8.9%

Non-interest expense        $ 4,626       $   341          $ 4,285       $(1,137)         $ 5,422
                                              8.0%                         -21.0%

Income tax expense          $ 2,469       $    35          $ 2,434       $   325          $ 2,109
                                              1.4%                          15.4%

Net income                  $ 4,379       $   348          $ 4,031       $   539          $ 3,492
                                              8.6%                          15.4%
</TABLE>


General. WVS reported net income of $4.4 million,  $4.0 million and $3.5 million
for the fiscal years ended June 30, 2000, 1999 and 1998, respectively.  The $348
thousand or 8.6%  increase in net income  during  fiscal 2000 was  primarily the
result of a $759  thousand  increase in net interest  income and a $115 thousand
increase in non-interest  income,  which was partially offset by a $341 thousand
increase in  non-interest  expense,  a $150  provision for loan losses and a $35
thousand  increase  in income tax  expense.  Earnings  per share  totaled  $1.48
(basic) and $1.47  (diluted)  for fiscal  2000 as compared to $1.18  (basic) and
$1.17  (diluted) for fiscal 1999.  The increase in earnings per share was due to
an increase  in net income and a reduction  in the  weighted  average  number of
shares outstanding due to the Company's stock repurchases during fiscal 2000.

                                       7
<PAGE>

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


<TABLE>
<CAPTION>
                                                              For the Years Ended June 30,
                                          --------------------------------------------------------------------
                                                      2000                                 1999
                                          -------------------------------      -------------------------------
                                          Average              Average         Average              Average
                                          Balance   Interest   Yield/Rate      Balance   Interest   Yield/Rate
                                          --------  ---------  ----------      --------  ---------  ----------
                                                                (Dollars in Thousands)
Interest-earning assets:
<S>                                       <C>       <C>        <C>             <C>        <C>       <C>
      Net loans receivable(1)             $176,851    $13,805    7.81%         $157,926    $12,800    8.11%
      Net tax-free loans receivable(2)         706         71   10.01               725         72    9.97
      Mortgage-backed securities            75,312      5,170    6.86            66,685      4,280    6.42
      Investments - taxable                116,500      8,352    7.17            86,137      5,752    6.68
      Investments - tax-free(2)              9,901        768    7.76               979         56    5.71
      Interest-bearing deposits              1,710         36    2.11             1,995         77    3.86
                                          --------  ---------                  --------    -------


      Total interest-earning assets        380,980     28,202    7.40%          314,447     23,037    7.33%
                                                    ---------    ====                      -------    ====
      Non-interest-earning assets            4,385                                3,324
                                          --------                             --------
            Total assets                  $385,365                             $317,771
                                          ========                             ========

Interest-bearing
liabilities:
      Interest-bearing deposits and
         escrows                          $161,727     $6,375    3.94%         $161,189     $6,537    4.05%
      Borrowings                           182,818     10,558    5.78           113,338      6,202    5.47
                                          --------     ------                  --------     ------
      Total interest-bearing liabilities   344,545     16,933    4.91%          274,527     12,739    4.64%
                                                       ------    ====                       ------    ====
      Non-interest-bearing accounts         10,281                                8,306
                                          --------                             --------
      Total interest-bearing
         liabilities and
         non-interest-bearing accounts     354,826                              282,833
      Non-interest-bearing liabilities       3,618                                3,934
                                          --------                             --------
            Total liabilities              358,444                              286,767
Retained income                             26,921                               31,004
                                          --------                             --------
Total liabilities and retained
         income                           $385,365                             $317,771
                                          ========                             ========
Net interest income                                   $11,269                              $10,298
                                                      =======                              =======
Interest rate spread                                             2.49%                                2.69%
                                                                 ====                                 ====
Net yield on interest-earning
         assets(3)                                               2.96%                                3.27%
                                                                 ====                                 ====
Ratio of interest-earning assets to
   interest- bearing liabilities                               110.57%                              114.54%
                                                               ======                               ======
<CAPTION>

                                                  For the Years Ended June 30,
                                               ---------------------------------
                                                            1998
                                               ---------------------------------
                                               Average               Average
                                               Balance    Interest  Yield/Rate
                                               --------   --------  ----------
Interest-earning assets:
<S>                                            <C>         <C>         <C>
      Net loans receivable(1)                  $163,046    $13,191     8.09%
      Net tax-free loans receivable(2)                0          0     0.00
      Mortgage-backed securities                 40,066      2,715     6.78
      Investments - taxable                      82,877      6,167     7.44
      Investments - tax-free(2)                       0          0     0.00
      Interest-bearing deposits                   1,842         73     3.96
                                               --------    -------


      Total interest-earning assets             287,831     22,146     7.69%
                                                           -------     ====
      Non-interest-earning assets                 3,143
                                                  -----
            Total assets                       $290,974
                                               ========

Interest-bearing
liabilities:
      Interest-bearing deposits and
        escrows                                $161,855     $6,943     4.29%
      Borrowings                                 84,887      4,838     5.70
                                               --------     ------
      Total interest-bearing liabilities        246,742     11,781     4.78%
                                                            ------     ====
      Non-interest-bearing accounts               7,073
                                               --------
      Total interest-bearing
        liabilities and
        non-interest-bearing accounts           253,815
      Non-interest-bearing liabilities            3,747
                                               --------
            Total liabilities                   257,562
Retained income                                  33,412
                                               --------
Total liabilities and retained
   income                                      $290,974
                                               ========
Net interest income                                        $10,365
                                                           =======
Interest rate spread                                                   2.91%
                                                                       ====
Net yield on interest-earning
   assets(3)                                                           3.60%
                                                                       ====
Ratio of interest-earning assets to
   interest- bearing liabilities                                     116.65%
                                                                     ======
</TABLE>

(1)  Includes non-accrual loans.
(2)  Interest and yields on  tax-exempt  loans and  securities  (tax-exempt  for
     federal income tax purposes) are shown on a fully taxable equivalent basis.
(3)  Net interest income divided by average interest-earning assets.

                                       8
<PAGE>

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

<TABLE>
<CAPTION>
                                                                      Year Ended June 30,
                                           --------------------------------------------------------------------------
                                                       2000 vs. 1999                         1999 vs. 1998
                                           -------------------------------------   ----------------------------------
                                            Increase (Decrease)                     Increase (Decrease)
                                                   Due to              Total               Due to             Total
                                           --------------------      Increase      --------------------     Increase
                                             Volume      Rate       (Decrease)      Volume       Rate      (Decrease)
                                           ---------   --------     ----------     --------    --------    ----------
                                                                     (Dollars in Thousands)
Interest-earning assets:
<S>                                         <C>        <C>           <C>           <C>         <C>          <C>
      Net loans receivable                  $1,491     $  (487)      $1,004        $ (357)     $    16      $ (341)
      Mortgage-backed securities               584         306          890         1,716         (151)      1,565
      Investments                            2,605         495        3,100           302         (677)       (375)
      Interest-bearing deposits                (10)        (31)         (41)            6           (2)          4
                                           ---------   --------     --------      --------     --------    -------
            Total interest-earning assets    4,670         283        4,953         1,667         (814)        853
Interest-bearing liabilities:
      Interest-bearing deposits and
         escrows                               (74)        (88)        (162)          (86)        (320)       (406)

      Other borrowings                       3,987         369        4,356         1,566         (202)      1,364
                                           ---------   --------     --------      --------     --------    -------
            Total interest-bearing
              liabilities                    3,913         281        4,194         1,480         (522)        958
                                           ---------   --------     --------      --------     --------    -------
Increase (decrease) in net interest
   income                                   $  757     $      2      $  759        $  187       $ (292)     $ (105)
                                           =========   ========     ========      ========     ========    ========
</TABLE>


Net Interest Income. Net interest income is determined by the Company's interest
rate  spread   (i.e.   the   difference   between  the  yields   earned  on  its
interest-earning assets and the rates paid on its interest-bearing  liabilities)
and  the  relative  amounts  of  interest-earning  assets  and  interest-bearing
liabilities.

Interest Income. Total interest income increased by $5.0 million or 21.5% during
fiscal 2000 and  increased  by $853  thousand or 3.9% during  fiscal  1999.  The
increase in fiscal 2000 was primarily a result of volume growth in the Company's
investment and mortgage-backed  securities portfolios,  and net loans receivable
during the periods presented.

Interest  income on net loans  receivable  increased $1.0 million or 7.8% during
fiscal 2000 and decreased $341 thousand or 2.6% during fiscal 1999. The increase
in fiscal  2000 was  attributable  to a $18.9  million  increase  in the average
balance of net loans  outstanding which was partially offset by a 30 basis point
decrease in the weighted  average yield on the  Company's  loan  portfolio.  The
decrease  in fiscal  1999 was  attributable  to a $4.4  million  decrease in the
average  balance of net loans  outstanding  and a 1 basis point  increase in the
weighted average yield on the Company's loan portfolio.

Interest  income on investment  securities and FHLB stock increased $3.0 million
or 53.5% during  fiscal 2000 and  decreased  $375 thousand or 6.1% during fiscal
1999.  The increase in fiscal 2000 was primarily  attributable  to a $39 million
increase in the average  balance of investment  securities  outstanding and a 55
basis point increase in the weighted  average yield on the Company's  investment
securities. The decrease in fiscal 1999 was primarily attributable to a decrease
of 79 basis points in the weighted  average  yield on the  Company's  investment
securities  which was partially offset by a $4.2 million increase in the average
balance  of  investment  securities  primarily  due to  increased  purchases  of
callable government agency securities.

Interest income on mortgage-backed  securities  increased $890 thousand or 20.8%
during fiscal 2000 and increased  $1.6 million or 57.6% during fiscal 1999.  The
increase  in fiscal  2000 was  attributable  to a $8.6  million  increase in the
average outstanding  balance of mortgage-backed  securities and a 44 basis point

                                       9
<PAGE>

increase  in  the  weighted  average  yield  on the  mortgage-backed  securities
portfolio.  The increase  during fiscal 1999 was  attributable to an increase in
the average outstanding balance of mortgage-backed  securities of $26.6 million,
partially offset by a decrease in the weighted average interest rate yield of 36
basis points.

Interest Expense.  Total interest expense increased $4.2 million or 32.9% during
fiscal 2000 and  increased  by $958  thousand or 8.1% during  fiscal  1999.  The
increase  during fiscal 2000 is  attributable  to an increase of $4.4 million of
interest expense on borrowings  partially offset by a $162 thousand  decrease of
interest  expense on deposits.  The increase during fiscal 1999 was attributable
to an  increase  of $1.4  million of interest  expense on  borrowings  which was
partially offset by a $406 thousand decrease of interest expense on deposits.

Interest  expense on  borrowings  increased  $4.4 million or 70.2% during fiscal
2000 and  increased  $1.4 million or 28.2% during  fiscal 1999.  The increase in
fiscal 2000 was  attributable to a $69.5 million increase in the average balance
of borrowings outstanding, and a 31 basis point increase in the weighted average
yield on the  Company's  borrowings.  The increase for fiscal 1999 was primarily
attributable  to  increases  in the average  balance of  borrowings  outstanding
totaling $28.5 million.  In order to better match investment  opportunities  and
resources and enhance its net interest income,  the Company continued to utilize
short- and  intermediate-term  borrowings to fund purchases of  interest-earning
assets and other commitments.

Interest  expense  on  interest-bearing  deposits  and  escrows  decreased  $162
thousand or 2.5% in fiscal 2000 and  decreased  $406  thousand or 5.9% in fiscal
1999.  The decrease in fiscal 2000 was  primarily  attributable  to a $2 million
decrease in the average  balance of time deposits and an 11 basis point decrease
in the weighted  average rate paid on the  Company's  deposits.  The decrease in
fiscal  1999 was  primarily  attributable  to a $10.7  million  decrease  in the
average  balance of  interest-bearing  deposits  and escrows  outstanding  and a
decrease of 26 basis points in the weighted  average rate paid on the  Company's
deposits.

Provision for Loan Losses. A provision for loan losses is charged to earnings to
bring the total allowance to a level considered adequate by management to absorb
potential losses in the portfolio. Management's determination of the adequacy of
the allowance is based on periodic evaluations of the loan portfolio considering
past experience, current economic conditions, volume, growth, composition of the
loan portfolio and other relevant  factors.  A $150 thousand  provision for loan
loss was recorded to increase the  Company's  general  loan loss  reserves.  The
Company did not record a provision for loan losses for fiscal 1999.

Non-interest  Income.  Total  non-interest  income increased by $115 thousand or
23.5% in fiscal 2000 and  decreased by $48 thousand or 8.9% in fiscal 1999.  The
increase in fiscal  2000 was  primarily  attributable  to an increase in service
charge fee income.  The decrease in fiscal 1999 was primarily due to the absence
of a $133  thousand  gain on the  sale of an  office  building  in  fiscal  1998
partially offset by a $30 thousand increase in service charges on deposits and a
$36 thousand net gain on sale of investments.

Non-interest Expense. Total non-interest expense increased $341 thousand or 8.0%
and decreased  $1.1 million or 21.0% during fiscal 2000 and 1999,  respectively.
The   increase  in  fiscal  2000  was   primarily   attributable   to  increased
discretionary  employee stock ownership plan  amortization,  which was partially
offset by  decreases  in other  payroll  costs.  The decrease in fiscal 1999 was
principally  attributable  to a $1.1  million  decrease in salaries and employee
benefits  and a $57  thousand  decrease  in  other  non-interest  expenses.  The
decrease in salaries and employee  benefits during fiscal 1999 was primarily due
to  the  absence  of  a  $533  thousand  non-recurring  charge  related  to  the
resignation of the Company's former Chief Executive Officer in fiscal 1998, $430
thousand  of  reductions  in  discretionary  ESOP  contributions  and  lower RRP
expenses and a $63 thousand decrease in employee compensation expense.

Income  Taxes.  Income taxes  increased $35 thousand or 1.44% during fiscal 2000
and increased $325 thousand or 15.4% during fiscal 1999. Fiscal year 2000 income
tax expense was favorably  impacted by the $18.1 million  increase in tax-exempt
investments.  The increases in fiscal 2000 and 1999 were primarily  attributable
to increases in taxable  income.  The Company's  effective tax rate was 36.1% at
June 30, 2000 and 37.7% at June 30, 1999.


                                       10
<PAGE>

ASSET AND LIABILITY MANAGEMENT

The  Company   continued  a  strategy  designed  to  reduce  the  interest  rate
sensitivity of its financial  assets to its financial  liabilities.  The primary
elements of this strategy include:

1)   expanding the Company's  investment  growth program in order to enhance net
     interest income;
2)   maintaining the Company's level of short-term liquid investments by funding
     loan commitments and purchasing longer-term investment securities;
3)   emphasizing  the  acquisition and retention of lower-cost core deposits and
     checking accounts; and
4)   pricing the Company's  certificates  of deposit and loan products nearer to
     the market  average  rate as opposed to the upper  range of market  offered
     rates.

The Company has continued its investment growth program, originally initiated in
the third  quarter of fiscal  1994,  throughout  fiscal 2000 in order to realize
additional net interest income.  Under this strategy,  a longer-term callable or
non-callable investment security, or mortgage-backed  security, is purchased and
funded  through the use of  non-deposit  liabilities,  such as FHLB advances and
other  borrowings.  With this strategy,  the Company  increases its net interest
income, but also faces the risk, during periods of rising market interest rates,
that it may experience a decline in net interest  income if the rate paid on its
various  borrowings  rises  above  the rate  earned on the  investment  security
purchased.  In order to mitigate  this  exposure,  the Board has placed  certain
restrictions on the investment growth program, including:

1)   the  average  outstanding  daily  balance  of  total  borrowings,  computed
     quarterly, may not exceed $220.0 million;
2)   suitable  investments  shall be  restricted  to those  meeting  the  credit
     quality criteria outlined in the Company's investment policy;
3)   all  securities  purchased  will be allocated to either held to maturity or
     available for sale portfolios;
4)   each security purchased shall initially yield a minimum of 125 basis points
     above the incremental  rate paid on short-term  borrowings,  at the time of
     purchase; and
5)   the Company's total borrowed funds position may not exceed $225.0 million.

In most cases, the initial yield spread earned on investment  security purchases
ranged from approximately 221 to 228 basis points.

During  the  fiscal  year  ended  June  30,  2000,  the  Company  increased  its
mortgage-backed  securities  holdings by $1.3  million.  At June 30,  2000,  the
Company held $73.7 million of  mortgage-backed  securities  with an  approximate
yield of 7.1%. The  mortgage-backed  securities  purchases were made in order to
mitigate the principal calls on the Company's callable bond portfolio and earn a
higher yield with an expected  average life profile  comparable  to  longer-term
callable agency bonds. In order to mitigate risks associated with a general rise
in market interest rates,  approximately $16.1 million or 21.8% of the Company's
mortgage-backed  securities  portfolio  were  floating  rate  securities  with a
weighted average yield of 7.8%.

The  Company  has  continued  to  purchase  callable  bonds in order to  capture
additional net interest income.  Callable bonds generally provide investors with
higher rates of return than noncallable  bonds because the issuer has the option
to redeem  the bonds  before  maturity.  During a period of  declining  interest
rates,  the  Company  would be exposed to the risk that the  investment  will be
redeemed prior to its final stated maturity. In order to mitigate this risk, the
Company has funded a significant portion of its purchases of callable bonds with
short-term borrowings.  Approximately $4.0 million of callable agency bonds with
an estimated  weighted  average rate of 8.08% were called during the fiscal year
ended June 30,  2000.  During the fiscal year ended June 30,  2000,  the Company
purchased  approximately  $31.0  million of callable  bonds with an  approximate
weighted  average  yield to call and maturity of 8.17% and 7.91%,  respectively.
The callable  agency bond purchases,  totaling $31.1 million,  are summarized by
initial term to call as follows: $10.0 million within three months, $3.2 million
with greater than three months and within six months,  $4.0 million with greater
than six months and within one year,  $1.0  million  with  greater  than  twelve
months and within twenty-four months, $7.7 million with greater than twenty-four
months  and  within  thirty-six  months,  and $5.2  million  with  greater  than
thirty-six months and less than sixty months.


                                       11
<PAGE>

During  the  twelve   months  ended  June  30,  2000,   the  Company   purchased
approximately  $14.6 million of bank qualified  tax-exempt  bonds with a taxable
equivalent yield of 8.47%. Bank qualified tax-exempt bonds generally have longer
terms to maturity  (e.g.  twenty  years) and longer first call dates (e.g.  five
years).  The Company  purchased these securities in order to capture  attractive
yields for an extended period of time as measured by the first call date.

During the fiscal year ended June 30, 2000, the Company  borrowed  approximately
$766.1 million in various  borrowings from the FHLB with a weighted average rate
of 5.97% and incurred $752.3 million in other borrowings with a weighted average
rate of 5.96%.  During the twelve months ended June 30, 2000, the Company repaid
$778.5 million of FHLB advances and $677.1 million of other borrowings.

The Company also makes available for origination residential mortgage loans with
interest rates which adjust pursuant to a designated  index,  although  customer
acceptance  has been somewhat  limited in the Savings  Bank's  market area.  The
Company  will  continue  to  selectively  offer  commercial  real  estate,  land
acquisition and development,  and shorter-term  construction loans, primarily on
residential  properties,  to partially increase its loan asset sensitivity.  The
Company intends to emphasize higher yielding commercial real estate, home equity
and  small  business  loans  to  existing  customers  and  seasoned  prospective
customers.

As of June 30, 2000, the implementation of these asset and liability  management
initiatives resulted in the following:

1)   an aggregate of $51.2 million or 27.9% of the Company's net loan  portfolio
     had adjustable interest rates or maturities of less than 12 months;
2)   $16.1  million  or  21.8% of the  Company's  portfolio  of  mortgage-backed
     securities  (including  collateralized  mortgage obligations - "CMOs") were
     secured by floating rate securities; and
3)   $116.1 million or 84.4% of the Company's  investment  securities  portfolio
     was comprised of callable bonds.

The effect of  interest  rate  changes on a financial  institution's  assets and
liabilities may be analyzed by examining the "interest rate  sensitivity" of the
assets  and  liabilities  and  by  monitoring  an  institution's  interest  rate
sensitivity  "gap".  An asset or liability is said to be interest rate sensitive
within a specific  time period if it will mature or reprice  within a given time
period.  A gap is  considered  positive  (negative)  when  the  amount  of  rate
sensitive assets (liabilities)  exceeds the amount of rate sensitive liabilities
(assets).  During a period of falling  interest rates, a negative gap would tend
to result  in an  increase  in net  interest  income.  During a period of rising
interest  rates,  a  positive  gap would  tend to result in an  increase  in net
interest income. The Company's one year cumulative interest rate sensitivity gap
is estimated at a negative  46.3% of total assets at June 30, 2000,  as compared
to a  negative  8.9% at June  30,  1999,  in each  instance,  based  on  certain
assumptions  by management  with respect to the repricing of certain  assets and
liabilities. At June 30, 2000, the Company's interest-earning assets maturing or
repricing   within  one  year  totaled   $86.2   million   while  the  Company's
interest-bearing  liabilities  maturing  or  repricing  within one year  totaled
$275.8  million,   providing  a  deficiency  of  interest-earning   assets  over
interest-bearing liabilities of $189.6 million. At June 30, 2000, the percentage
of the Company's assets to liabilities maturing or repricing within one year was
31.3%.


                                       12
<PAGE>

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

<TABLE>
<CAPTION>
                                                                  June 30,
                                                -------------------------------------------
                                                  2000             1999             1998
                                                ---------        --------         --------
                                                           (Dollars in Thousands)
<S>                                             <C>              <C>              <C>
Interest-earning assets maturing or
   repricing within one year(1)                 $  86,215        $ 99,729         $107,186
Interest-bearing liabilities maturing or
   repricing within one year(2)                   275,814         130,788          180,318
                                                ---------        --------         --------

Interest sensitivity gap                        $(189,599)       $(31,059)        $(73,132)
                                                =========        ========         ========
Interest sensitivity gap as a percentage of
   total assets                                     (46.3)%          (8.9)%          (24.6)%
Ratio of assets to liabilities
   maturing or repricing within one year             31.3%           76.3%            59.4%
</TABLE>

--------------------
(1)  Adjustable  and  floating  rate assets are  included in the period in which
     interest  rates are next  scheduled to adjust  rather than in the period in
     which  they are  contractually  due to  mature,  and fixed  rate  loans are
     included in the periods in which they are scheduled to be repaid,  based on
     scheduled  amortization,  in each case as  adjusted  to take  into  account
     estimated  prepayments  based on the assumptions set forth in the footnotes
     to the following table. The Company believes that the assumptions utilized,
     which are based on statistical data provided by a federal regulatory agency
     in the Company's market area, are reasonable.

(2)  Deposit decay rates are based on the assumptions set forth in the footnotes
     to the following table.

During  fiscal 2001,  the Company  anticipates  reducing  its one year  interest
sensitivity gap by: (1)reducing the amount of incremental  wholesale  borrowing;
(2) limiting future investment  purchases;  and (3) extending the term structure
of a portion of the Company's borrowings as market conditions permit.


                                       13
<PAGE>


The following table  summarizes the  anticipated  maturities or repricing of the
Company's  interest-earning  assets and interest-bearing  liabilities as of June
30, 2000,  based on the information and assumptions set forth in the notes.  The
Company believes that the assumptions  utilized,  which are based on statistical
data provided by a federal  regulatory  agency in the Company's market area, are
reasonable.

<TABLE>
<CAPTION>
                                                              More Than    More Than
                                    Within       Six to       One Year       Three        Over
                                     Six         Twelve       to Three      Years to      Five
                                    Months       Months         Years      Five Years     Years        Total
                                  ----------    --------      ---------    ----------   --------    ----------
Interest-earning assets:
<S>                                <C>           <C>           <C>           <C>         <C>         <C>
  Loans receivable (1)(2)(3)(4)    $ 34,841      $ 20,132      $ 40,833      $ 23,865    $ 66,398    $ 186,069
  Mortgage-backed securities         18,935         3,275        11,283         9,205      31,189       73,887
  Investments(5)                      6,905           ---           ---           ---     135,906      142,811
  Interest-bearing deposits           2,127           ---           ---           ---         ---        2,127
                                  ----------    ----------    ----------   -----------  ----------  ----------
       Total                         62,808        23,407        52,116        33,070     233,493      404,894
                                  ----------    ----------    ----------   -----------  ----------  ----------

Interest-bearing liabilities:
  Interest-bearing deposits
    and escrows(6)(7)(8)             46,812        41,477        43,324        17,898      23,347      172,858
  Borrowings                        167,525        20,000         8,000         5,000       5,000      205,525
                                  ----------    ----------    ----------   -----------  ----------  ----------
      Total                         214,337        61,477        51,324        22,898      28,347      378,383
                                  ----------    ----------    ----------   -----------  ----------  ----------
Interest sensitivity gap           (151,529)      (38,070)          792        10,172     205,146
                                  ----------    ----------    ----------   -----------  ----------
Cumulative interest sensitivity
    gap                            (151,529)     (189,599)     (188,807)     (178,635)     26,511
                                  ----------    ---------     ----------   -----------  ----------
Ratio of  cumulative gap to
    total assets                      (37.0)%       (46.3)%       (46.1)%       (43.6)%       6.5%
                                  ----------    ----------    ----------   -----------  ----------
</TABLE>

------------------
(1)  Net of undisbursed loan proceeds and  does  not  include  net deferred loan
     fees or the allowance for loan losses.
(2)  For single-family  residential  loans,   assumes  annual  amortization  and
     prepayment rate at 18% for adjustable  rate loans,  and 8% to 38% for fixed
     rate loans. For  multi-family  residential  loans and other loans,  assumes
     amortization and prepayment rate of 12%.
(3)  For second mortgage loans,  assumes annual amortization and prepayment rate
     of 18%.
(4)  Consumer loans, assumes amortization and prepayment rate of 13%.
(5)  Totals include the Company's investment in Federal Home Loan Bank stock.
(6)  For regular savings accounts, assumes an annual decay rate of 17% for three
     years or less,  16% for more than three through five years and 14% for more
     than five years.
(7)  For NOW accounts, assumes an annual decay rate of 37% for one year or less,
     32% for more than one  through  three  years  and 17% for more  than  three
     years.
(8)  For money market deposit accounts,  assumes an annual decay rate of 79% for
     one year or less and 31% for more than one year.

                                       14
<PAGE>


QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

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

Evaluating  a financial  institution's  exposure  to changes in  interest  rates
includes  assessing both the adequacy of the management  process used to control
IRR and the organization's  quantitative  level of 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.

The Federal  Reserve Board,  together with the Office of the  Comptroller of the
Currency and the Federal Deposit Insurance  Corporation,  adopted a Joint Agency
Policy  Statement on  Interest-Rate  Risk,  effective  June 26, 1996. The policy
statement  provides  guidance to examiners  and bankers on sound  practices  for
managing interest rate risk, which will form the basis for ongoing evaluation of
the adequacy of interest-rate  risk management at supervised  institutions.  The
policy  statement also outlines  fundamental  elements of sound  management that
have been  identified  in prior  Federal  Reserve  guidance  and  discusses  the
importance  of these  elements in the context of  managing  interest-rate  risk.
Specifically,  the guidance emphasizes the need for active board of director and
senior  management  oversight and a comprehensive  risk-management  process that
effectively  identifies,  measures,  and controls  interest-rate risk. Financial
institutions derive their income primarily from the excess of interest collected
over interest paid. The rates of interest an institution earns on its assets and
owes on its liabilities generally are established  contractually for a period of
time. Since market interest rates change over time, an institution is exposed to
lower profit  margins (or losses) if it cannot adapt to  interest-rate  changes.
For  example,  assume  that  an  institution's  assets  carry  intermediate-  or
long-term  fixed  rates  and that  those  assets  were  funded  with  short-term
liabilities.   If  market  interest  rates  rise  by  the  time  the  short-term
liabilities  must be  refinanced,  the  increase in the  institution's  interest
expense on its liabilities may not be sufficiently  offset if assets continue to
earn at the long-term fixed rates.  Accordingly,  an institution's profits could
decrease on existing assets because the  institution  will either have lower net
interest income or,  possibly,  net interest  expense.  Similar risks exist when
assets are subject to  contractual  interest-rate  ceilings,  or rate  sensitive
assets are funded by longer-term,  fixed-rate  liabilities in a  decreasing-rate
environment.

An institution  may use several  techniques to minimize  interest rate risk. One
approach  used  by  the  Company  is to  periodically  analyze  its  assets  and
liabilities and make future financing and investment  decisions based on payment
streams,  interest rates,  contractual maturities,  and estimated sensitivity to
actual or potential changes in market interest rates. Such activities fall under
the broad  definition  of  asset/liability  management.  The  Company's  primary
asset/liability   management  technique  is  the  monitoring  of  the  Company's
asset/liability  gap,  which was  discussed in detail under "Asset and Liability
Management" commencing on page 11.

An institution  could also manage interest rate risk by selling existing assets,
repaying certain  liabilities or matching  repricing  periods for new assets and
liabilities (for example,  by shortening  terms of new loans or investments).  A
large  portion  of an  institution's  liabilities  may be  short-term  or due on
demand,  while  most  of its  assets  may be  invested  in  long-term  loans  or
investments.  Accordingly, the Company seeks to have


                                       15
<PAGE>

in place sources of cash to meet short-term demands. These funds can be obtained
by increasing  deposits,  borrowing,  or selling assets. Also, FHLB advances and
wholesale borrowings have become increasingly important sources of liquidity for
the  Company.  Financial  institutions  are also subject to  prepayment  risk in
falling rate  environments.  For  example,  mortgage  loans and other  financial
assets may be prepaid by a debtor so that the debtor may refund its  obligations
at new,  lower rates.  Prepayments  of assets  carrying  higher rates reduce the
Company's interest income and overall asset yields.

An institution might also invest in more complex financial  instruments intended
to hedge,  or  otherwise  change  the  interest  rate risk of  existing  assets,
liabilities,   or  anticipated   transactions.   Interest  rate  swaps,  futures
contracts,  options on futures, and other such derivative financial  instruments
often are used for this  purpose.  Because  these  instruments  are sensitive to
interest rate changes,  they require management  expertise to be effective.  The
Company has not purchased derivative financial  instruments in the past and does
not presently intend to purchase such instruments in the near future.

The  following  table  provides   information  about  the  Company's   financial
instruments  that are sensitive to changes in interest rates as of June 30, 2000
based on the information and assumptions in the notes. The Company's assumptions
are based on  statistical  data provided by a federal  regulatory  agency in the
Company's  market area,  and are believed to be  reasonable.  The Company had no
derivative  financial  instruments or trading portfolio as of June 30, 2000. The
expected maturity date values for loans receivable,  mortgage-backed securities,
and  investment   securities  were  calculated  by  adjusting  the  instrument's
contractual maturity date for expectations of prepayments.  Similarly,  expected
maturity date values for  interest-bearing  core deposits were calculated  based
upon estimates of the period over which the deposits would be outstanding.  With
respect to the Company's  adjustable rate  instruments,  expected  maturity date
values were measured by adjusting the instrument's contractual maturity date for
expectations  of  prepayments.  Substantially  all of the  Company's  investment
securities portfolio is comprised of callable government agency securities. From
a risk management  perspective,  the Company  believes that repricing  dates, as
opposed to expected  maturity dates,  may be a more relevant metric in analyzing
the value of such instruments.  Company borrowings were tabulated by contractual
maturity dates and without regard to any conversion or repricing dates.


                                       16
<PAGE>

<TABLE>
<CAPTION>
                                                 EXPECTED MATURITY DATE -
                                                FISCAL YEAR ENDED JUNE 30,
                                  ---------------------------------------------------------
                                                                                                 There-                     Fair
                                     2001        2002        2003        2004        2005        after        Total         value
                                   --------    -------     -------     --------    --------    ---------    ----------    ---------
ON-BALANCE SHEET FINANCIAL INSTRUMENTS
<S>                                  <C>         <C>         <C>         <C>         <C>          <C>          <C>         <C>
Interest-earning assets:
  Loans receivable (1)(2)(3)(4)
    Fixed rate                     $28,978     $16,716     $13,734     $12,927     $ 9,442      $60,981      $142,778     $142,681
      Average interest rate          7.98%       7.64%       7.60%       7.60%       7.54%        7.46%

    Adjustable rate                 13,094       6,121       5,158       4,326       3,635       10,957        43,291       41,009
      Average interest rate(5)       8.45%       8.06%       8.07%       8.08%       8.09%        7.91%
  Mortgage-backed securities
    Fixed rate                         ---          32       1,251         ---         ---       56,483        57,766       55,524
      Average interest rate          0.00%       8.00%       6.02%       0.00%       0.00%        6.94%

    Adjustable rate                    ---         ---         ---         ---         ---       16,121        16,121       16,355
      Average interest rate(6)       0.00%       0.00%       0.00%       0.00%       0.00%        7.76%

  Investments(7)                     6,905         ---         ---         ---         ---      135,906       142,811      135,793
      Average interest rate          7.03%       0.00%       0.00%       0.00%       0.00%        7.82%

  Interest-bearing deposits          2,127         ---         ---         ---         ---          ---         2,127        2,127
      Average interest rate          6.96%       0.00%       0.00%       0.00%       0.00%        0.00%
                                  --------     -------     -------     --------    --------    ---------    ----------    ---------
        Total                      $51,104     $22,869     $20,143     $17,253     $13,077     $280,448      $404,894     $393,489

Interest-bearing liabilities:
  Interest-bearing deposits
   and escrows(8)(9)(10)           $88,290     $21,662     $21,662     $ 8,948     $ 8,948     $ 23,348      $172,858     $172,540
      Average interest rate          4.38%       3.67%       3.67%       3.48%       3.48%        2.06%

  Borrowings                       167,525         ---         ---         ---         ---       38,000       205,525      205,140
      Average interest rate          6.61%       0.00%       0.00%       0.00%       0.00%        5.61%
                                  --------     -------     -------     --------    --------    ---------    ----------    ---------
        Total                     $255,815     $21,662     $21,662     $ 8,948     $ 8,948     $ 61,348      $378,383     $377,680
</TABLE>

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

(1)  Net of  undisbursed  loan  proceeds and does not include net deferred  loan
     fees or the allowance for loan losses.
(2)  For  single-family  residential  loans,  assumes  annual  amortization  and
     prepayment rate at 18% for adjustable  rate loans,  and 8% to 38% for fixed
     rate loans. For  multi-family  residential  loans and other loans,  assumes
     amortization and prepayment rate of 12%.
(3)  For second mortgage loans,  assumes annual amortization and prepayment rate
     of 18%.
(4)  Consumer loans assumes amortization and prepayment rate of 13%.
(5)  Substantially  all of the  Company's  adjustable  rate loans  reprice on an
     annual basis based upon changes in the one-year  constant maturity treasury
     index with various market based annual and lifetime  interest rate caps and
     floors.
(6)  Substantially  all  of  the  Company's   adjustable  rate   mortgage-backed
     securities  reprice on a monthly  basis based upon changes in the one month
     LIBOR index with various lifetime caps and floors.
(7)  Totals include the Company's investment in Federal Home Loan Bank stock.
(8)  For regular savings accounts, assumes an annual decay rate of 17% for three
     years or less,  16% for more than three through five years and 14% for more
     than five years.
(9)  For NOW accounts, assumes an annual decay rate of 37% for one year or less,
     32% for more than one though three years and 17% for more than three years.
(10) For money market deposit accounts,  assumes an annual decay rate of 79% for
     one year or less and 31% for more than one year.

                                       17
<PAGE>

The  table  below   provides   information   about  the  Company's   anticipated
transactions comprised of firm loan commitments and other commitments, including
undisbursed  letters  and  lines  of  credit.  The  Company  used no  derivative
financial  instruments  to hedge such  anticipated  transactions  as of June 30,
2000.

                        Anticipated Transactions
         ------------------------------------------------
         Undisbursed construction and
             land development loans
               Fixed rate                       $ 4,985
                                                  8.47%

               Adjustable rate                  $10,835
                                                  9.77%
         Undisbursed lines of credit
               Adjustable rate                  $10,639
                                                  9.25%

         Loan origination commitments
               Fixed rate                       $ 3,888
                                                  8.74%

         Letters of credit
               Adjustable rate                  $    77
                                                 12.50%
                                                --------
                                                $30,424
                                                ========



                                       18
<PAGE>


LIQUIDITY AND CAPITAL RESOURCES

Liquidity is often analyzed by reviewing the cash flow statement.  Cash and cash
equivalents  increased by $1.0 million during fiscal 2000 primarily due to $55.4
million of net cash  provided by  financing  activities  and $4.3 million of net
cash provided by operating  activities.  This  increase was partially  offset by
$58.7 million of net cash used for investing activities.

Funds provided by operating  activities  totaled $4.3 million during fiscal 2000
as compared to $4.4 million  during fiscal 1999.  Net cash provided by operating
activities was primarily comprised of $4.4 million of net income.

Funds used for investing  activities totaled $58.7 million during fiscal 2000 as
compared to $51.7  million  during  fiscal  1999.  Primary  uses of funds during
fiscal 2000 include $61.7 million in purchases of investment and mortgage-backed
securities  and a $13.4  million  increase in net loans  receivable,  which were
partially  offset by $15.2 million in proceeds from maturities and repayments on
investment and mortgage-backed securities.

Funds provided by financing  activities totaled $55.4 million for fiscal 2000 as
compared to $46.7 million used for financing  activities in fiscal 1999. Primary
sources of funds for fiscal 2000 were a $62.8 million increase in FHLB and other
borrowings  used to fund loan  commitments  and investment  security  purchases,
which was  partially  offset by $4.2 million in common stock  repurchases,  $1.9
million of cash dividends paid and a $1.4 million  decrease in deposits.  During
fiscal  2000,  the  Company   purchased  310,141  shares  of  common  stock  for
approximately  $4.2  million.  Management  has  determined  that it currently is
maintaining  adequate  liquidity and  continues to better match funding  sources
with lending and investment opportunities.


                                       18
<PAGE>

The Company's primary sources of funds are deposits,  amortization,  prepayments
and  maturities of existing  loans,  mortgage-backed  securities  and investment
securities,  funds from operations, and funds obtained through FHLB advances and
other  borrowings.  At June  30,  2000,  the  total  approved  loan  commitments
outstanding amounted to $3.3 million. At the same date, commitments under unused
letters and lines of credit amounted to $10.7 million and the unadvanced portion
of  construction  loans  approximated  $15.8  million.  Certificates  of deposit
scheduled to mature in one year or less at June 30, 2000, totaled $58.5 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  certificates  of  deposit  and  savings
withdrawals,  fund loan  commitments  and  maintain a  substantial  portfolio of
investment  securities.  The Company has been able to generate  sufficient  cash
through 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 has access to the Federal Reserve Bank discount window.
Management  believes that the Company currently has adequate liquidity available
to respond to liquidity demands.

On July 25, 2000, the Company's  Board of Directors  declared a cash dividend of
$0.16 per share  payable on August  17,  2000 to  shareholders  of record at the
close of business on August 7, 2000.  Dividends are subject to determination and
declaration  by the Board of  Directors,  which take into account the  Company's
financial  condition,  statutory and regulatory  restrictions,  general economic
conditions and other  factors.  There can be no assurance that dividends will in
fact be paid on the common stock in the future or that, if paid,  such dividends
will not be reduced or eliminated in future periods.

As of June 30,  2000,  WVS  Financial  Corp.  exceeded  all  regulatory  capital
requirements and maintained Tier 1 and total  risk-based  capital equal to $27.1
million  or  14.1%  and  $29.0   million  or  15.1%,   respectively,   of  total
risk-weighted  assets,  and Tier 1 leverage  capital of $27.1 million or 6.7% of
average total assets.

Non-performing assets consist of non-accrual loans and real estate owned. A loan
is placed on  non-accrual  status  when,  in the  judgment  of  management,  the
probability of collection of interest is deemed  insufficient to warrant further
accrual.  When a loan is placed on non-accrual  status,  previously  accrued but
uncollected  interest is deducted from interest  income.  Non-performing  assets
increased  $3.3 million or 429.4% to $4.1 million,  or 1.0% of total assets,  at
June 30, 2000. The increase was primarily the result of a $3.5 million  increase
in non-accrual loans, which was partially offset by the sale of $218 thousand of
real estate owned.


                                       19
<PAGE>


FORWARD LOOKING STATEMENTS

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

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

                                       20
<PAGE>

                         REPORT OF INDEPENDENT AUDITORS

Board of Directors and Stockholders
WVS Financial Corp.

We have audited the  accompanying  consolidated  balance sheets of WVS Financial
Corp. and subsidiary as of June 30, 2000 and 1999, and the related  consolidated
statements of income,  stockholders' equity and cash flows for each of the years
in the three-year period ended June 30, 2000. These financial statements are the
responsibility of the Company's management. Our  responsibility is to express an
opinion on these consolidated financial statements based on our audits.

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

In our opinion, the consolidated  financial statements referred to above present
fairly, in all material respects,  the financial position of WVS Financial Corp.
and subsidiary as of June 30, 2000 and 1999, and the results of their operations
and their cash flows for each of the years in the  three-year  period ended June
30, 2000, in conformity with generally accepted accounting principles.



/s/S.R. Snodgrass, A.C.
-----------------------
S.R. Snodgrass, A.C.
Wexford, PA
July 28, 2000

                                       21
<PAGE>


                               WVS FINANCIAL CORP.
                           CONSOLIDATED BALANCE SHEETS
                                 (In thousands)

<TABLE>
<CAPTION>
                                                                                   June 30,
                                                                            2000              1999
                                                                       ----------------  ----------------
ASSETS
<S>                                                                     <C>               <C>
     Cash and due from banks                                            $          788    $          745
     Interest-earning demand deposits                                            2,127             1,148
     Investment securities available for sale (amortized
        cost of $1,380 and $1,380) (Note 3)                                      1,296             1,402
     Investment securities held to maturity (market value
        of $129,272 and $87,850) (Note 3)                                      136,206            90,764
     Mortgage-backed securities available for sale
        (amortized cost of $10,150 and $9,342) (Note 4)                          9,936             9,273
     Mortgage-backed securities held to maturity
        (market value of $61,943 and $62,167) (Note 4)                          63,737            63,107
      Net loans receivable (allowance for loan losses of
        $1,973 and $1,842) (Note 5)                                            183,295           170,327
     Accrued interest receivable                                                 4,375             3,105
     Federal Home Loan Bank stock, at cost                                       5,225             6,195
     Premises and equipment                                                      1,050             1,154
     Deferred taxes and other assets                                             1,583             1,188
                                                                       ----------------  ----------------
             TOTAL ASSETS                                               $      409,618    $      348,408
                                                                       ================  ================

LIABILITIES
     Deposits (Note 10)                                                 $      172,858    $      174,244
     Federal Home Loan Bank advances (Note 11)                                 104,500           116,900
     Other borrowings (Note 12)                                                101,025            25,820
     Accrued interest payable                                                    2,704             1,929
     Other liabilities                                                           1,620             1,577
                                                                        ----------------  ----------------
TOTAL LIABILITIES                                                              382,707           320,470
                                                                        ----------------  ----------------

STOCKHOLDERS' EQUITY (Notes 14 and 15)
     Preferred stock, no par value; 5,000,000 shares authorized;
        none outstanding                                                             -                 -
     Common stock, par value $.01; 10,000,000 shares authorized;
        3,685,280 and 3,668,060 shares issued                                       37                37
     Additional paid-in capital                                                 19,548            19,062
     Treasury stock (808,444 and 498,303 shares at cost)                       (11,770)           (7,596)
     Retained earnings - substantially restricted                               19,513            17,024
     Accumulated other comprehensive income (loss)                                (197)              (31)
     Unallocated shares - Employee Stock Ownership Plan                              -              (232)
     Unallocated shares - Recognition and Retention Plans                         (220)             (326)
                                                                       ----------------  ----------------
TOTAL STOCKHOLDERS' EQUITY                                                      26,911            27,938
                                                                       ----------------  ----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                              $      409,618    $      348,408
                                                                       ================  ================
</TABLE>

See accompanying notes to the consolidated financial statements.

                                       22
<PAGE>

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

<TABLE>
<CAPTION>
                                                                     Year Ended June 30,
                                                          2000              1999              1998
                                                     ---------------   ---------------   ---------------

INTEREST AND DIVIDEND INCOME
<S>                                                  <C>               <C>               <C>
     Loans                                           $       13,854    $       12,850    $       13,191
     Investment securities                                    8,428             5,414             5,908
     Mortgage-backed securities                               5,170             4,280             2,715
     Interest-earning demand deposits                            36                77                73
     Federal Home Loan Bank stock                               464               378               259
                                                     ---------------   ---------------   ---------------
         Total interest and dividend income                  27,952            22,999            22,146
                                                     ---------------   ---------------   ---------------

INTEREST EXPENSE
     Deposits (Note 10)                                       6,375             6,537             6,943
     Borrowings                                              10,558             6,202             4,838
                                                     ---------------   ---------------   ---------------
         Total interest expense                              16,933            12,739            11,781
                                                     ---------------   ---------------   ---------------

NET INTEREST INCOME                                          11,019            10,260            10,365
Provision for loan losses (Note 6)                              150                 -              (120)
                                                     ---------------   ---------------   ---------------
NET INTEREST INCOME AFTER PROVISION
     FOR LOAN LOSSES                                         10,869            10,260            10,485
                                                     ---------------   ---------------   ---------------

NONINTEREST INCOME
     Service charges on deposits                                312               264               234
     Investment securities gains, net                             -                36                 -
     Other                                                      293               190               304
                                                     ---------------   ---------------   ---------------
         Total noninterest income                               605               490               538
                                                     ---------------   ---------------   ---------------

NONINTEREST EXPENSE
     Salaries and employee benefits                           3,095             2,803             3,855
     Occupancy and equipment                                    354               362               399
     Deposit insurance premium                                   69               101               107
     Data processing                                            179               175               169
     Correspondent bank charges                                 144               127               118
     Other                                                      785               717               774
                                                     ---------------   ---------------   ---------------
         Total noninterest expense                            4,626             4,285             5,422
                                                     ---------------   ---------------   ---------------

Income before income taxes                                    6,848             6,465             5,601

Income taxes (Note 17)                                        2,469             2,434             2,109
                                                     ---------------   ---------------   ---------------

NET INCOME                                           $        4,379    $        4,031    $        3,492
                                                     ===============   ===============   ===============

EARNINGS PER SHARE:
     Basic                                           $         1.48    $         1.18    $         1.01
     Diluted                                                   1.47              1.17              0.98

AVERAGE SHARES OUTSTANDING:
     Basic                                                2,953,720         3,405,662         3,470,479
     Diluted                                              2,977,089         3,435,738         3,574,043
</TABLE>


See accompanying notes to the consolidated financial statements.

                                       23
<PAGE>

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

<TABLE>
<CAPTION>
                                                                                              Retained
                                                                Additional                   Earnings-      Unallocated
                                                    Common        Paid-in      Treasury     Substantially   Shares Held
                                                     Stock        Capital        Stock       Restricted       by ESOP
                                                  ------------  ------------  ------------  -------------  --------------
<S>                                               <C>           <C>           <C>           <C>            <C>
Balance, June 30, 1997                            $        17   $    17,236   $         -   $     16,900   $        (453)

Comprehensive income:
    Net income                                                                                     3,492
    Unrealized gain on available
      for sale securities

    Total comprehensive income
Release of earned ESOP shares                                           360                                          141
Accrued compensation expense for RRPs
Exercise of stock options                                   1           635
Tax benefit from stock grants issued
    under RRPs                                                          173
Two-for-one stock split                                    18           (18)
Cash dividends declared ($1.50 per share)                                                         (5,249)
                                                  ------------  ------------  ------------  -------------  --------------

Balance, June 30, 1998                                     36        18,386             -         15,143            (312)

Comprehensive income:
    Net income                                                                                     4,031
    Unrealized loss on available
      for sale securities
    Reclassification adjustment for
      realized gains included in
      net income, net of taxes of $12

    Total comprehensive income
Release of earned ESOP shares                                           165                                           80
Accrued compensation expense for RRPs
Exercise of stock options                                   1           253
Tax benefit from exercise of stock options                              257
Tax benefit from stock grants issued
    under RRPs                                                            1
Purchase of treasury stock                                                         (7,596)
Cash dividends declared ($0.63 per share)                                                         (2,150)
                                                  ------------  ------------  ------------  -------------  --------------

Balance, June 30, 1999                                     37        19,062        (7,596)        17,024            (232)

Comprehensive income:
    Net income                                                                                     4,379
    Unrealized loss on available
      for sale securities
    Reclassification adjustment for
      realized gains included in
      net income, net of tax

    Total comprehensive income
Release of earned ESOP shares                                           395                                          232
Accrued compensation expense for RRPs
Exercise of stock options                                                91
Purchase of treasury stock                                                         (4,174)
Cash dividends declared ($0.64 per share)                                                         (1,890)
                                                  ------------  ------------  ------------  -------------  --------------

Balance June 30, 2000                             $        37   $    19,548   $   (11,770)  $     19,513   $           -
                                                  ============  ============  ============  =============  ==============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                                                                  Accumulated
                                                Unallocated          Other
                                                Shares Held       Comprehensive
                                                   by RRP        Income (Loss)        Total
                                                -------------   ----------------  --------------

<S>                                             <C>             <C>               <C>
Balance, June 30, 1997                          $       (631)   $          (180)  $      32,889

Comprehensive income:
    Net income                                                                            3,492
    Unrealized gain on available
      for sale securities                                                   337             337
                                                                                  --------------
    Total comprehensive income                                                            3,829
Release of earned ESOP shares                                                               501
Accrued compensation expense for RRPs                    199                                199
Exercise of stock options                                                                   636
Tax benefit from stock grants issued
    under RRPs                                                                              173
Two-for-one stock split                                                                       -
Cash dividends declared ($1.50 per share)                                                (5,249)
                                                -------------   ----------------  --------------

Balance, June 30, 1998                                  (432)               157          32,978

Comprehensive income:
    Net income                                                                            4,031
    Unrealized loss on available
      for sale securities                                                  (212)           (212)
    Reclassification adjustment for
      realized gains included in
      net income, net of taxes of $12                                        24              24
                                                                                  --------------
    Total comprehensive income                                                            3,843
Release of earned ESOP shares                                                               245
Accrued compensation expense for RRPs                    106                                106
Exercise of stock options                                                                   254
Tax benefit from exercise of stock options                                                  257
Tax benefit from stock grants issued
    under RRPs                                                                                1
Purchase of treasury stock                                                               (7,596)
Cash dividends declared ($0.63 per share)                                                (2,150)
                                                -------------   ----------------  --------------

Balance, June 30, 1999                                  (326)               (31)         27,938

Comprehensive income:
    Net income                                                                            4,379
    Unrealized loss on available
      for sale securities                                                  (166)           (166)
    Reclassification adjustment for
      realized gains included in
      net income, net of tax                                                  -               -
                                                                                  --------------
    Total comprehensive income                                                            4,213
Release of earned ESOP shares                                                               627
Accrued compensation expense for RRPs                    106                                106
Exercise of stock options                                                                    91
Purchase of treasury stock                                                               (4,174)
Cash dividends declared ($0.64 per share)                                                (1,890)
                                                -------------   ----------------  --------------

Balance June 30, 2000                           $       (220)   $          (197)  $      26,911
                                                =============   ================  ==============
</TABLE>


See accompanying notes to the consolidated financial statements.

                                       24
<PAGE>

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

<TABLE>
<CAPTION>
                                                                              Year Ended June 30,
                                                                        2000         1999         1998
                                                                    -----------  -----------  -----------
OPERATING ACTIVITIES
<S>                                                                 <C>          <C>          <C>
     Net income                                                     $   4,379    $   4,031    $   3,492
     Adjustments to reconcile net income to net cash
       provided by operating activities:
          Provision for loan losses                                       150         --           (120)
          Depreciation and amortization, net                              115          116          126
          Amortization of discounts, premiums, and
            deferred loan fees                                           (120)          96          (32)
          Amortization of ESOP and RRP deferred
            compensation                                                  683          350          899
          Investment securities gains, net                               --            (36)        --
          Deferred income taxes                                          (121)          87         (202)
          (Increase) decrease in accrued interest receivable           (1,270)        (691)         396
          Increase in accrued interest payable                            774           56          106
          Other, net                                                     (328)         363          445
                                                                    ---------    ---------    ---------
             Net cash provided by operating activities                  4,262        4,372        5,110
                                                                    ---------    ---------    ---------

INVESTING ACTIVITIES
Available for sale:
          Purchase of investment and mortgage-backed
            securities                                                 (2,932)     (26,908)     (36,992)
          Proceeds from repayments of investment and
            mortgage-backed securities                                  2,114       52,022       20,731
          Proceeds from sale of investment and
            mortgage-backed securities                                   --            905        2,192
     Held to maturity:
          Purchase of investment and mortgage-backed
            securities                                                (58,774)    (168,868)     (99,744)
          Proceeds from repayments of investment and
            mortgage-backed securities                                 13,045      105,881      112,017
     Net increase in net loans receivable                             (13,353)     (13,139)      (2,602)
     Proceeds from sale of loans                                         --           --          2,914
     Decrease (increase) in Federal Home Loan Bank stock                  970       (1,520)        (748)
     Acquisition of premises and equipment                                (10)         (91)          (8)
     Other, net                                                           253          (11)        --
                                                                    ---------    ---------    ---------
             Net cash used for investing activities                   (58,687)     (51,729)      (2,240)
                                                                    ---------    ---------    ---------

FINANCING ACTIVITIES
     Net increase (decrease) in deposits                               (1,385)       3,261       (3,427)
     Net increase (decrease) in Federal Home Loan Bank advances       (23,500)      28,043       11,000
     Net increase (decrease) in other borrowings                       86,305       24,931       (5,895)
     Net proceeds from issuance of common stock                            91          255          636
     Cash dividends paid                                               (1,890)      (2,150)      (5,249)
     Purchase of treasury stock                                        (4,174)      (7,596)        --
                                                                    ---------    ---------    ---------
             Net cash provided by (used for) financing activities      55,447       46,744       (2,935)
                                                                    ---------    ---------    ---------

Increase (decrease) in cash and cash equivalents                        1,022         (613)         (65)
CASH AND CASH EQUIVALENTS AT BEGINNING
     OF YEAR                                                            1,893        2,506        2,571
                                                                    ---------    ---------    ---------

CASH AND CASH EQUIVALENTS AT END OF YEAR                            $   2,915    $   1,893    $   2,506
                                                                    =========    =========    =========

SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the year for:

     Interest                                                       $  16,159    $  12,683    $  11,675
     Taxes                                                              2,668        2,059        2,286
</TABLE>


See accompanying notes to the consolidated financial statements.

                                       25
<PAGE>

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

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

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

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

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

Basis of Presentation

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

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

Investment and Mortgage-backed Securities

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

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


                                       26
<PAGE>

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

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Net Loans Receivable

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

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

Allowance for Loan Losses

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

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

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

Real Estate Owned

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


                                       27
<PAGE>

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

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Premises and Equipment

Premises  and  equipment  are  stated at cost,  less  accumulated  depreciation.
Depreciation  is  principally  computed  on the  straight-line  method  over the
estimated  useful  lives  of the  related  assets.  Leasehold  improvements  are
amortized over their  estimated  useful lives or their  respective  lease terms,
whichever  is  shorter.  Expenditures  for  maintenance  and repairs are charged
against  income as  incurred.  Costs of major  additions  and  improvements  are
capitalized.

Income Taxes

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

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

Earnings Per Share

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

Comprehensive Income

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

Cash Flow Information

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

Reclassification of Comparative Figures

Certain comparative amounts for prior years have been reclassified to conform to
current year presentations. Such reclassifications did not effect net income.


                                       28
<PAGE>

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

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Recent Accounting Pronouncement

In June 1998,  the  Financial  Accounting  Standards  Board issued  Statement of
Financial Accounting  Standards No. 133, "Accounting for Derivative  Instruments
and  Hedging  Activities."  The  Statement  provides  accounting  and  reporting
standards for derivative  instruments,  including certain derivative instruments
embedded in other  contracts,  by requiring  the  recognition  of those items as
assets or liabilities in the statement of financial  position,  recorded at fair
value.  Statement  No. 133  precludes  a held to  maturity  security  from being
designated as a hedged item; however, at the date of initial application of this
Statement, an entity is permitted to transfer any held to maturity security into
the available for sale or trading  categories.  The  unrealized  holding gain or
loss on such  transferred  securities  shall  be  reported  consistent  with the
requirements of  Statement No. 115,  "Accounting for Certain Investments in Debt
and Equity  Securities."   Such  transfers  do not raise an issue  regarding  an
entity's intent to hold other debt securities to maturity in the future. In June
1999, the Financial  Accounting  Standards  Board issued  Statement of Financial
Accounting Standards No. 137, "Accounting for Derivative Instruments and Hedging
Activities  - Deferral  of the  Effective  Date of FASB  Statement  No. 133 - an
amendment of FASB Statement No. 133." This Statement  delayed the effective date
of  Statement  No. 133 for one year,  to fiscal years  beginning  after June 15,
2000. Earlier adoption is permitted for any fiscal quarter that begins after the
issue date of Statement No. 133.

The  Company  does not believe  the effect of the  adoption  of this  accounting
statement will be material.

2.                      EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per
share.

<TABLE>
<CAPTION>
                                                      2000              1999              1998
                                               ----------------  ----------------  ----------------
<S>                                                  <C>               <C>               <C>
Weighted-average common shares
     outstanding                                     3,672,506         3,662,402         3,548,088

Average treasury stock shares                        (684,957)         (201,716)                --

Average unearned ESOP shares                          (33,829)          (55,024)          (77,609)
                                               ----------------  ----------------  ----------------

Weighted-average common shares and
     common stock equivalents used to
     calculate basic earnings per share              2,953,720         3,405,662         3,470,479

Additional common stock equivalents
     (stock options) used to calculate
     diluted earnings per share                         23,369            30,076           103,564
                                               ----------------  ----------------  ----------------

Weighted-average common shares and
     common stock equivalents used
     to calculate diluted earnings per share         2,977,089         3,435,738         3,574,043
                                               ================  ================  ================
</TABLE>

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

                                       29
<PAGE>

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

3.   INVESTMENT SECURITIES

The amortized cost and estimated market values of investments are as follows:


<TABLE>
<CAPTION>
                                                                              2000
                                              ----------------------------------------------------------------------
                                                                     Gross             Gross           Estimated
                                                 Amortized        Unrealized        Unrealized          Market
                                                   Cost              Gains            Losses             Value
                                              ----------------  ----------------  ----------------  ----------------
AVAILABLE FOR SALE
<S>                                           <C>               <C>               <C>               <C>
Equity securities                             $         1,380   $            16   $         (100)   $         1,296
                                              ================  ================  ================  ================

<CAPTION>

                                                                              2000
                                              ----------------------------------------------------------------------
                                                                     Gross             Gross           Estimated
                                                 Amortized        Unrealized        Unrealized          Market
                                                   Cost              Gains            Losses             Value
                                              ----------------  ----------------  ----------------  ----------------
HELD TO MATURITY
<S>                                           <C>               <C>               <C>               <C>
U.S. Government agency securities             $       116,052   $             -   $       (6,691)   $       109,361
Obligations of states and political
  subdivisions                                         20,154                80             (323)             19,911
                                              ----------------  ----------------  ----------------  ----------------

     Total                                    $       136,206   $            80   $       (7,014)   $       129,272
                                              ================  ================  ================  ================

<CAPTION>

                                                                              1999
                                              ----------------------------------------------------------------------
                                                                     Gross             Gross           Estimated
                                                 Amortized        Unrealized        Unrealized          Market
                                                   Cost              Gains            Losses             Value
                                              ----------------  ----------------  ----------------  ----------------
AVAILABLE FOR SALE
<S>                                           <C>               <C>               <C>               <C>
Equity securities                             $         1,380   $            42   $          (20)   $         1,402
                                              ================  ================  ================  ================


                                                                              1999
                                              ----------------------------------------------------------------------
                                                                     Gross             Gross           Estimated
                                                 Amortized        Unrealized        Unrealized          Market
                                                   Cost              Gains            Losses             Value
                                              ----------------  ----------------  ----------------  ----------------
HELD TO MATURITY
<S>                                           <C>                <C>              <C>               <C>
U.S. Government agency securities             $        88,714    $            6   $       (2,871)   $        85,849
Obligations of states and political
  subdivisions                                          2,050                 -              (49)             2,001
                                              ----------------  ----------------  ----------------  ----------------

     Total                                    $        90,764   $             6   $       (2,920)   $        87,850
                                              ================  ================  ================  ================
</TABLE>

                                       30
<PAGE>



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

3.   INVESTMENT SECURITIES (Continued)

The amortized  cost and estimated  market values of debt  securities at June 30,
2000, by contractual  maturity,  are shown below. Expected maturities may differ
from the  contractual  maturities  because  issuers  may have the  right to call
securities prior to their final maturities.

<TABLE>
<CAPTION>
                               Due in           Due after         Due after
                              one year         one through      five through        Due after
                               or less         five years         ten years         ten years           Total
                           ----------------  ----------------  ----------------  ----------------  ----------------

HELD TO MATURITY
<S>                         <C>                 <C>             <C>                <C>                 <C>
  Amortized cost            $      300          $     -         $    7,904         $    128,002        $  136,206
  Estimated market value           300                -              7,672              121,300           129,272
</TABLE>

Proceeds from the sale of investment securities available for sale and the gross
realized gains and losses for the year ended June 30, are as follows:

                                 2000              1999              1998
                            ----------------  ----------------  ----------------

     Proceeds               $      -           $   905          $    2,192
     Gross gains                   -               156                 -
     Gross losses                  -               120                 -

Investment  securities with amortized cost of $102,246 and $28,224 and estimated
market  values of $96,337 and  $29,104 at June 30, 2000 and 1999,  respectively,
were pledged to secure public  deposits,  repurchase  agreements,  and for other
purposes as required by law.

4.   MORTGAGE-BACKED SECURITIES

The amortized cost and estimated market values of mortgage-backed securities are
as follows:

<TABLE>
<CAPTION>
                                                                       2000
                                                 ------------------------------------------------
                                                                Gross       Gross       Estimated
                                                 Amortized   Unrealized    Unrealized     Market
                                                    Cost        Gains        Losses        Value
                                                    ----        -----        ------        -----
AVAILABLE FOR SALE
<S>                                                <C>          <C>         <C>          <C>
Federal National Mortgage
  Association certificates                         $ 6,010      $   2       $  (220)      $5,792
Government National Mortgage
  Association certificates                           2,924         15           (13)       2,926

Federal Home Loan Mortgage
  Corporation certificates                             100          1          --            101

Collateralized mortgage obligations issued
  by agencies of the U.S. Government                   595          5          --            600

Corporate collateralized mortgage obligations          521       --              (4)         517
                                                   -------      -----       -------       ------

     Total                                         $10,150      $  23       $  (237)      $9,936
                                                   =======      =====       =======       ======

</TABLE>


                                       31

<PAGE>

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

4.   MORTGAGE-BACKED SECURITIES (Continued)

<TABLE>
<CAPTION>
                                                                                    2000
                                                    ----------------------------------------------------------------------
                                                                           Gross             Gross           Estimated
                                                       Amortized        Unrealized        Unrealized          Market
                                                         Cost              Gains            Losses             Value
                                                    ----------------  ----------------  ----------------  ----------------
HELD TO MATURITY
<S>                                                 <C>               <C>               <C>                <C>
Federal National Mortgage
  Association certificates                          $           45    $             3   $            -     $          48
Government National Mortgage
  Association certificates                                   9,217                 15              (93)            9,139
Federal Home Loan Mortgage
  Corporation certificates                                     107                  5                -               112
Collateralized mortgage obligations issued
  by agencies of the U.S. Government                        17,792                209             (216)           17,785
Corporate collateralized mortgage obligations               36,576                 21           (1,738)           34,859

                                                    ----------------  ----------------  ----------------  ----------------
     Total                                          $       63,737    $           253   $       (2,047)   $       61,943
                                                    ================  ================  ================  ================

<CAPTION>

                                                                                    1999
                                                    ----------------------------------------------------------------------
                                                                           Gross             Gross           Estimated
                                                       Amortized        Unrealized        Unrealized          Market
                                                         Cost              Gains            Losses             Value
                                                    ----------------  ----------------  ----------------  ----------------
AVAILABLE FOR SALE
<S>                                                 <C>               <C>               <C>                <C>
Federal National Mortgage
  Association certificates                          $       6,632     $           1     $       (114)      $     6,519
Government National Mortgage
  Association certificates                                    766                14                -               780
Federal Home Loan Mortgage
  Corporation certificates                                    214                 4                -               218
Collateralized mortgage obligations issued
  by agencies of the U.S. Government                          878                24                -               902
Corporate collateralized mortgage obligations                 852                 2                -               854
                                                    ----------------  ----------------  ----------------  ----------------

     Total                                          $       9,342     $          45     $       (114)      $     9,273
                                                    ================  ================  ================  ================
</TABLE>


                                       32
<PAGE>

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

4.   MORTGAGE-BACKED SECURITIES (Continued)

<TABLE>
<CAPTION>
                                                                                    1999
                                                    ----------------------------------------------------------------------
                                                                           Gross             Gross           Estimated
                                                       Amortized        Unrealized        Unrealized          Market
                                                         Cost              Gains            Losses             Value
                                                    ----------------  ----------------  ----------------  ----------------
HELD TO MATURITY
<S>                                                 <C>               <C>               <C>                <C>
Federal National Mortgage
  Association certificates                          $           103   $             4   $             -    $          107
Government National Mortgage
  Association certificates                                    1,107                10               (8)             1,109
Federal Home Loan Mortgage
  Corporation certificates                                      146                10                 -               156
Collateralized mortgage obligations issued
  by agencies of the U.S. Government                         18,847               375             (130)            19,092
Corporate collateralized mortgage obligations                42,904                35           (1,236)            41,703
                                                    ----------------  ----------------  ----------------  ----------------

     Total                                          $        63,107   $           434   $       (1,374)   $        62,167
                                                    ================  ================  ================  ================
</TABLE>

The amortized cost and estimated market values of mortgage-backed  securities at
June 30, 2000, by contractual maturity, are shown below. Expected maturities may
differ from the contractual  maturities  because borrowers may have the right to
call or prepay obligations with or without call or prepayment penalties.

<TABLE>
<CAPTION>
                                     Due in           Due after         Due after
                                    one year         one through      five through        Due after
                                     or less         five years         ten years         ten years           Total
                                 ----------------  ----------------  ----------------   ---------------   ---------------
AVAILABLE FOR SALE
<S>                               <C>               <C>               <C>                <C>               <C>
   Amortized cost                 $       -         $   1,264         $      58          $  8,828          $ 10,150
   Estimated market value                 -             1,205                60             8,671             9,936

HELD TO MATURITY
   Amortized cost                 $       -         $      20         $      99          $ 63,618          $ 63,737
   Estimated market value                 -                20               103            61,820            61,943
</TABLE>


At June 30, 2000 and 1999,  mortgage-backed securities with an amortized cost of
$81,826 and $31,183 and  estimated  market  values of $79,274 and $32,216,  were
pledged to secure  borrowings  with the  Federal  Home Loan Bank and  repurchase
agreements.

                                       33
<PAGE>

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

5.   NET LOANS RECEIVABLE

Major classifications of loans are summarized as follows:

<TABLE>
<CAPTION>
                                                          2000              1999
                                                     ----------------  ----------------
First mortgage loans:
<S>                                                   <C>               <C>
     1 - 4 family dwellings                           $      105,964    $      103,035
     Construction                                             26,935            23,810
     Land acquisition and development                          7,510             7,646
     Multi-family dwellings                                    6,077             5,925
     Commercial                                               32,149            27,826
                                                     ----------------  ----------------
                                                             178,635           168,242
                                                     ----------------  ----------------
Consumer loans:
     Home equity                                              12,749            10,740
     Home equity lines of credit                               5,809             5,727
     Education loans                                              57                11
     Other                                                     2,062             2,153
                                                     ----------------  ----------------
                                                              20,677            18,631
                                                     ----------------  ----------------

Commercial loans                                               1,879             1,720
                                                     ----------------  ----------------

Obligations of state and political subdivisions                  698               720
                                                     ----------------  ----------------
Less:
     Undisbursed construction and land development            15,820            16,327
     Net deferred loan fees                                      801               817
     Allowance for loan losses                                 1,973             1,842
                                                     ----------------  ----------------
                                                              18,594            18,986
                                                     ----------------  ----------------
Net loans receivable                                  $      183,295    $      170,327
                                                     ================  ================
</TABLE>


The Company's  primary  business  activity is with customers  located within its
local trade area of Northern Allegheny and Southern Butler counties. The Company
has  concentrated  its lending efforts by granting  residential and construction
mortgage  loans to customers  throughout  its immediate  trade area. The Company
also selectively  funds and participates in commercial and residential  mortgage
loans  outside  of its  immediate  trade  area,  provided  such  loans  meet the
Company's  credit policy  guidelines.  In general,  the Company's loan portfolio
performance  at June 30, 2000 and 1999,  is  dependent  upon the local  economic
conditions.

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

<TABLE>
<CAPTION>
                                          2000              1999              1998
                                     ----------------  ----------------  ----------------
<S>                                  <C>               <C>               <C>
Principal outstanding                $         4,050   $           546   $           603
                                     ----------------  ----------------  ----------------
Interest income that would
  have been recognized               $           357   $            42   $            64
Interest income recognized                       180                41                44
                                     ----------------  ----------------  ----------------

     Interest income foregone        $           177   $             1   $            20
                                     ================  ================  ================
</TABLE>


                                       34
<PAGE>



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

5.   NET LOANS RECEIVABLE (Continued)

Included in total  non-accrual  loans are  impaired  loans of $3,600 at June 30,
2000. A related  allowance  for loan losses of $630 has been  reserved for these
impaired loans.  During the year, the Bank had an average balance of $3,604, and
recognized  $150 in  interest  income on these  loans.  There  were no  material
impaired loans at June 30, 1999.

Certain  officers,  directors,  and their  associates were customers of, and had
transactions with, the Company in the ordinary course of business.  A summary of
loan activity for those directors, executive officers, and their associates with
aggregate  loan balances  outstanding of at least $60,000 during the years ended
June 30, are as follows:

                                    2000              1999
                               ----------------  ----------------
Balance, July 1                 $        826      $      1,664
     Additions                            95               662
     Amounts collected                   (40)             (768)
     Other                                 -              (732)
                               ----------------  ----------------
Balance, June 30                $        881      $        826
                               ================  ================

6.   ALLOWANCE FOR LOAN LOSSES

Changes in the allowance for loan losses are as follows:

<TABLE>
<CAPTION>
                                             2000              1999              1998
                                        ----------------  ----------------  ----------------

<S>                                      <C>               <C>               <C>
Balance, July 1                          $       1,842     $       1,860     $       2,009
Add:
     Provision charged to operations               150                -               (120)
     Recoveries                                     -                  2                10
Less loans charged off                              19                20                39
                                        ----------------  ----------------  ----------------
Balance, June 30                        $        1,973     $       1,842     $       1,860
                                        ================  ================  ================
</TABLE>

7.   ACCRUED INTEREST RECEIVABLE

Accrued interest receivable consists of the following:

                                                  2000              1999
                                             ----------------  ----------------
Investment and mortgage-backed securities    $     3,259        $     2,082
Loans receivable                                   1,116              1,023
                                             ----------------  ----------------

     Total                                   $     4,375        $     3,105
                                             ================  ================

8.   FEDERAL HOME LOAN BANK STOCK

The Savings Bank is a member of the Federal Home Loan Bank System.  As a member,
West View  maintains an investment in the capital stock of the Federal Home Loan
Bank  ("FHLB")  of  Pittsburgh  in an amount  not less than one  percent  of its
outstanding  qualifying assets as defined by the FHLB or 1/20 of its outstanding
FHLB borrowings, whichever is greater, as calculated throughout the year.

                                       35
<PAGE>

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

9.   PREMISES AND EQUIPMENT

Major classifications of premises and equipment are summarized as follows:

                                         2000              1999
                                    ----------------  ----------------
Land and improvements               $     264         $     226
Buildings and improvements              1,900             1,937
Furniture, fixtures, and equipment        953               970
                                    ----------------  ----------------

                                        3,117             3,133
Less accumulated depreciation           2,067             1,979
                                    ----------------  ----------------

     Total                          $   1,050         $   1,154
                                    ================  ================

Depreciation  charged to operations was $115, $116, and $126 for the years ended
June 30, 2000, 1999, and 1998, respectively.

During 1998,  having  satisfied  the criteria  defined in Statement of Financial
Accounting  Standards No. 66,  "Accounting for Sales of Real Estate," a deferred
gain on the sale of branch office  property of $136 was  recognized and included
in other noninterest income on the Consolidated Statement of Income.

10.  DEPOSITS

Deposit accounts are summarized as follows:

<TABLE>
<CAPTION>
                                               2000                                   1999
                                 ----------------------------------     ----------------------------------
                                                     Percent of                             Percent of
                                     Amount           Portfolio             Amount           Portfolio
                                 ----------------  ----------------     ----------------  ----------------

<S>                               <C>                          <C>      <C>                           <C>
Noninterest-earning checking      $       10,485               6.1%     $         9,037               5.2%
Interest-earning checking                 18,158              10.5               16,668               9.6
Savings accounts                          36,995              21.4               38,923              22.3
Money market accounts                     12,802               7.4               12,610               7.2
Advance payments by borrowers
   for taxes and insurance                 3,350               1.9                3,130               1.8
                                 ----------------  ----------------     ----------------  ----------------
                                          81,790              47.3               80,368              46.1
                                 ----------------  ----------------     ----------------  ----------------
Savings certificates:
     5.00% or less                        10,509               6.1               38,906              22.3
     5.01 - 6.00%                         58,114              33.6               47,611              27.3
     6.01 - 7.00%                         21,180              12.3                4,991               2.9
     7.01% or more                         1,265               0.7                2,368               1.4
                                 ----------------  ----------------     ----------------  ----------------
                                          91,068              52.7               93,876              53.9
                                 ----------------  ----------------     ----------------  ----------------

     Total                        $      172,858             100.0%      $      174,244             100.0%
                                 ================  ================     ================  ================
</TABLE>

                                       36
<PAGE>


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

10.  DEPOSITS (Continued)

The  maturities  of savings  certificates  at June 30, 2000,  are  summarized as
follows:

Within one year                            $        57,231
Beyond one year but within two years                19,166
Beyond two years but within three years              5,381
Beyond three years                                   9,290
                                           ----------------
     Total                                 $        91,068
                                           ================

Savings  certificates  with balances of $100,000 or more amounted to $12,052 and
$10,948 on June 30, 2000 and 1999,  respectively.  The Company does not have any
brokered deposits.

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

                             2000              1999              1998
                        ----------------  ----------------  ----------------
Checking accounts       $           139   $           141   $           180
Savings accounts                    915               920               957
Money market accounts               340               316               309
Savings certificates              4,981             5,160             5,497
                        ----------------  ----------------  ----------------
     Total              $         6,375   $         6,537   $         6,943
                        ================  ================  ================


11.  FEDERAL HOME LOAN BANK ADVANCES

The following table presents information regarding FHLB term advances as of June
30:

<TABLE>
<CAPTION>
                                                              Weighted-                              Weighted-
           Maturing During                                     average                                average
          Fiscal Year Ended                                   Interest                               Interest
               June 30:                       2000              Rate                 1999              Rate
---------------------------------------  ----------------  ----------------     ----------------  ----------------
<S>                                      <C>                 <C>                 <C>               <C>
                 2001                     $       50,000              6.61%      $          -                 -%
                 2002                                -                 -                    -                 -
                 2003                                -                 -                 56,500            5.72
                 2004                                -                 -                    -                 -
                 2005                                -                 -                    -                 -
         2006 and thereafter                      38,000              5.61               47,000            5.11
                                         ----------------                       ----------------
                Total                     $       88,000                         $      103,500
                                         ================                       ================
</TABLE>

                                       37
<PAGE>


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

11.  FEDERAL HOME LOAN BANK ADVANCES (Continued)

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

                                                       2000           1999
                                                  -------------   ------------

FHLB revolving and short-term advances:
     Ending balance                                $    16,500     $   13,400
     Average balance during the year                    28,749         13,303
     Maximum month-end balance during the year          88,200         28,550
     Average interest rate during the year               5.36%          5.57%
     Weighted-average rate at year-end                   6.77%          5.58%

At June 30, 2000, WVS had an unused borrowing capacity of approximately $96,220.

Although no specific  collateral  is required to be pledged,  Federal  Home Loan
Bank  advances are secured by a blanket  security  agreement  that  includes the
Company's  FHLB  stock,  investment  and  mortgage-backed   securities  held  in
safekeeping at the FHLB, and certain qualifying first mortgage loans.

12.  OTHER BORROWINGS

Other  borrowings  include  Treasury,  Tax, and Loan  ("TT&L")  demand notes and
securities sold under  agreements to repurchase with  securities  brokers.  TT&L
notes  amounted  to $3,018  and $749 at June 30,  2000 and  1999,  respectively.
Repurchase  agreements  amounted  to $98,007 and $25,071 as of June 30, 2000 and
1999,  respectively.  The outstanding  repurchase  agreements  generally  mature
within  one  to  ninety-two  days  from  the  transaction  date  and  qualifying
collateral has been delivered.  The Company pledged investment securities with a
carrying  value of $93,849 and $25,812 at June 30, 2000 and 1999,  respectively,
as collateral for the repurchase agreements and TT&L as explained in Notes 3 and
4. The following table presents  information  regarding  other  borrowings as of
June 30:

                                                      2000           1999
                                                --------------  --------------

Ending balance                                   $   101,025    $    25,820
Average balance during the year                       61,927         12,473
Maximum month-end balance during the year            109,660         25,820
Average interest rate during the year                  5.88%          5.12%
Weighted-average rate at year-end                      6.58%          5.16%


13.  COMMITMENTS AND CONTINGENT LIABILITIES

Loan commitments

In the normal course of business,  there are various outstanding commitments and
certain  contingent  liabilities  that  are not  reflected  in the  accompanying
Consolidated  Balance  Sheets.  Various loan  commitments  totaling  $30,424 and
$30,028 at June 30, 2000 and 1999, respectively, represent financial instruments
with off-balance sheet risk.

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

                                       38
<PAGE>



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

13.  COMMITMENTS AND CONTINGENT LIABILITIES (Continued)

Commitments  to extend  credit are  agreements  to lend to a customer as long as
there is no violation of any condition established in the loan agreement.  These
commitments are comprised  primarily of the undisbursed  portion of construction
and land development loans (Note 5),  residential,  commercial real estate,  and
consumer loan originations.

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

Litigation

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

14.  REGULATORY CAPITAL

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

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

As of June 30, 2000 and 1999,  the FDIC  categorized  the  Savings  Bank as well
capitalized under the regulatory  framework for prompt corrective  action. To be
classified as a well capitalized financial institution, Total Risk-based, Tier 1
Risk-based, and Tier 1 Leverage Capital Ratios must be at least ten percent, six
percent, and five percent, respectively.

                                       39
<PAGE>



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

14.  REGULATORY CAPITAL (Continued)

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

<TABLE>
<CAPTION>
                                                                          June 30, 2000
                                              -------------------------------------------------------------------------
                                                    WVS Financial Corp.                 West View Savings Bank
                                              --------------------------------     ------------------------------------
                                                  Amount            Ratio              Amount            Ratio
                                              ----------------  --------------     ----------------  ------------------

Total Capital (to Risk-weighted Assets)
<S>                                           <C>                       <C>         <C>                       <C>
Actual                                        $        29,071           15.11%      $       25,695            13.41%
To Be Well Capitalized                                 19,244           10.00               19,158            10.00
For Capital Adequacy Purposes                          15,395            8.00               15,326             8.00

Tier I Capital (to Risk-weighted Assets)

Actual                                        $        27,042           14.05%      $       23,665            12.35%
To Be Well Capitalized                                 11,546            6.00               11,495             6.00
For Capital Adequacy Purposes                           7,698            4.00                7,663             4.00


Tier I Capital (to Average Total Assets)

Actual                                        $        27,042            6.69%      $       23,665             5.86%
To Be Well Capitalized                                 20,215            5.00               20,175             5.00
For Capital Adequacy Purposes                          16,172            4.00               16,140             4.00
</TABLE>

<TABLE>
<CAPTION>
                                                                          June 30, 1999
                                              -------------------------------------------------------------------------
                                                    WVS Financial Corp.                 West View Savings Bank
                                              --------------------------------     ------------------------------------
                                                  Amount            Ratio              Amount            Ratio
                                              ----------------  --------------     ----------------  ------------------

Total Capital (to Risk-weighted Assets)
<S>                                           <C>                       <C>         <C>                       <C>
Actual                                        $        29,821           16.90%      $       28,594            16.28%
To Be Well Capitalized                                 17,644           10.00               17,560            10.00
For Capital Adequacy Purposes                          14,115            8.00               14,048             8.00

Tier I Capital (to Risk-weighted Assets)

Actual                                        $        27,969           15.85%      $       26,747            15.23%
To Be Well Capitalized                                 10,587            6.00               10,536             6.00
For Capital Adequacy Purposes                           7,058            4.00                7,024             4.00

Tier I Capital (to Average Total Assets)

Actual                                        $        27,969            8.29%      $       26,747             7.95%
To Be Well Capitalized                                 16,876            5.00               16,814             5.00
For Capital Adequacy Purposes                          13,501            4.00               13,451             4.00
</TABLE>


                                       40
<PAGE>

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

15.  STOCK BENEFIT PLANS

Stock Option Plan

The Company  maintains  a Stock  Option Plan for the  directors,  officers,  and
employees.  An aggregate of 347,258  shares of  authorized  but unissued  common
stock of WVS were  reserved  for future  issuance  under  this  Plan.  The stock
options  typically  have an  expiration  term of ten  years,  subject to certain
extensions and early terminations.  The per share exercise price of an incentive
stock option shall at a minimum equal the fair market value of a share of common
stock on the date the  option  is  granted.  The per share  exercise  price of a
compensatory  stock option granted shall at least equal the greater of par value
or 85 percent of the fair  market  value of a share of common  stock on the date
the option is  granted.  Proceeds  from the  exercise  of the stock  options are
credited to common stock for the  aggregate par value and the excess is credited
to paid-in capital.

The following table presents information related to the outstanding options:

<TABLE>
<CAPTION>
                                        Officers' and                         Weighted-
                                          Employees'       Directors'          average
                                           Stock             Stock            Exercise
                                          Options           Options            Price
                                      ----------------  ----------------  ----------------
<S>                                       <C>                <C>           <C>
Outstanding, June 30, 1998                153,884            30,600        $      9.82

     Granted                                  --              2,800              14.75
     Exercised                            (50,940)             --                 5.00
     Forfeited                             (3,320)             --                15.63
                                         ----------        ---------

Outstanding, June 30, 1999                 99,624            33,400        $     11.56

     Granted                               15,960             2,000              12.02
     Exercised                               (620)          (16,600)              5.14
     Forfeited                             (4,098)           (2,400)             15.02
                                         ----------        ---------

Outstanding, June 30, 2000                110,866            16,400
                                         ==========        =========

Exercisable at year-end                    69,546            16,400
                                         ==========        =========

Available for future grant                  4,098             3,214
                                         ==========        =========
</TABLE>

At June 30,  2000,  for  officers  and  employees  there  were  110,866  options
outstanding,  of which 69,546 were  exercisable at a  weighted-average  exercise
price of  $11.87,  and a  weighted-average  remaining  contractual  life of 5.92
years.

There were also 16,400 options  outstanding  for directors with exercise  prices
between $5.00 and $15.625, with a weighted-average  exercise price of $8.61, and
a  weighted-average  remaining  contractual  life of 4.32  years.  All of  these
options are exercisable.

                                       41
<PAGE>


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

15.  STOCK BENEFIT PLANS (Continued)

As  permitted  under  Statement  of  Financial   Accounting  Standards  No.  123
"Accounting for Stock-based  Compensation,"  the Company has elected to continue
following  Accounting  Principles  Board Opinion No. 25,  "Accounting  for Stock
Issued to Employees" ("APB 25"), and related Interpretations,  in accounting for
stock-based awards to employees. Under APB 25, because the exercise price of the
Company's employee stock options equals the market price of the underlying stock
on the date of the grant, no compensation expense is recognized in the Company's
financial statements.  Had compensation expense included stock option plan costs
determined  based on the fair value at the grant dates for options granted under
these plans consistent with Statement No. 123, pro forma net income and earnings
per share would not have been  materially  different  than that presented on the
Consolidated Statement of Income.

Retention and Recognition Plans ("RRP")

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

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

As of June 30, 2000,  2,560 RRP shares were available for future  issuance.  RRP
costs are accrued to operations,  and added back to stockholders' equity, over a
four to ten-year vesting period.

Employee Stock Ownership Plan ("ESOP")

WVS maintains an ESOP for the benefit of officers and Savings Bank employees who
have met certain eligibility  requirements related to age and length of service.
An ESOP Trust was created,  and acquired 161,000 shares of common stock in WVS's
initial public offering, using proceeds of a loan obtained from WVS, which bears
interest at one quarter point over the prime rate, adjusted quarterly. The loan,
which is secured by the shares of stock purchased,  calls for quarterly interest
and principal payments over a ten-year term. The loan was repaid in full on June
30, 2000 by a contribution from the Savings Bank.

The Savings Bank makes quarterly  contributions  to the Trust to allow the Trust
to make the required loan payments to WVS.  Shares are released from  collateral
based upon the  proportion  of annual  principal  payments made on the loan each
year  and  allocated  to  eligible  employees.   As  shares  are  released  from
collateral, the Savings Bank reports compensation expense based upon the amounts
contributed  or  committed  to be  contributed  each year and the shares  become
outstanding  for earnings per share  computations.  Dividends  paid on allocated
ESOP shares are recorded as a reduction of retained earnings.  Dividends paid on
unallocated   shares  are  added  to   participant   accounts  and  reported  as
compensation. Compensation expense for the ESOP was $627, $310, and $680 for the
years ended June 30, 2000, 1999, and 1998, respectively.

                                       42
<PAGE>

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

15.  STOCK BENEFIT PLANS (Continued)

The following table presents the components of the ESOP shares at June 30:

<TABLE>
<CAPTION>
                                                 2000              1999              1998
                                            ----------------  ----------------  ----------------
<S>                                                <C>                <C>               <C>
     Allocated shares                              120,384            98,574            70,398

     Shares released for allocation                 30,225            16,099            28,176

     Shares distributed                             (9,839)          (10,391)                -

     Unallocated shares                                 --            46,325            62,424
                                            ----------------  ----------------  ----------------

               Total ESOP shares                   140,770           150,607           160,998
                                            ================  ================  ================

     Fair value of unreleased ESOP shares   $            -     $         701      $        999
                                            ================  ================  ================
</TABLE>

16.  DIRECTOR, OFFICER, AND EMPLOYEE BENEFITS

Profit Sharing Plan

The Company  maintains a  non-contributory  profit sharing plan (the "Plan") for
its  officers  and  employees  who  have  met  the  age and  length  of  service
requirements.  The Plan is a defined  contribution  plan with the  contributions
based on a percentage of salaries of the Plan participants.  In conjunction with
the Plan,  an  integrated  401(k)  employee  savings plan was also  implemented.
Employees may contribute up to the maximum  allowed by law. The Company may make
matching  contributions as approved at the discretion of the Board of Directors.
The  Company  has  made  no  matching   contributions  to  date.  The  Company's
contributions to the Plan,  which were charged to expense,  were $200, $200, and
$200 for the years ended June 30, 2000, 1999, and 1998, respectively.

Directors' Deferred Compensation Plan

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

The Plan allows for the deferred amounts to be paid in shares of common stock at
the prevailing market price on the date of distribution.  For fiscal years ended
June 30, 2000, 1999, and 1998; 44,318,  42,598, and 41,598 shares  respectively,
were held by the Plan.

                                       43
<PAGE>


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

17.  INCOME TAXES

The provision for income taxes consists of:

                                2000              1999              1998
                           ----------------  ----------------  ----------------
Currently payable:
     Federal                   $2,364            $2,035            $2,064
     State                        226               312               247
                               ------            ------            ------

                                2,590             2,347             2,311
Deferred                         (121)               87              (202)
                               ------            ------             -----

     Total                     $2,469            $2,434            $2,109
                               ======            ======            ======

The following temporary  differences gave rise to the net deferred tax assets at
June 30:

<TABLE>
<CAPTION>
                                                             2000        1999
                                                          ----------  ----------
Deferred tax assets:
<S>                                                       <C>         <C>
     Allowance for loan losses                            $     690   $     639
     Net unrealized loss on securities available for sale       101          16
     Deferred compensation                                      305         317
     Other                                                       67          17
                                                          ----------  ----------
             Total gross deferred tax assets                  1,163         989
                                                          ----------  ----------

Deferred tax liabilities:
     Bad debt reserve for tax reporting purposes                219         279
     Deferred origination fees, net                              98          63
     Other                                                       63          70
                                                          ----------  ----------
             Total gross deferred tax liabilities               380         412
                                                          ----------  ----------

     Net deferred tax assets                              $     783   $     577
                                                          ==========  ==========
</TABLE>

No valuation  allowance  was  established  at June 30, 2000 and 1999, in view of
WVS's ability to carryback to taxes paid in previous years,  future  anticipated
taxable income, which is evidenced by WVS's earnings potential, and deferred tax
liabilities at June 30.

                                       44
<PAGE>


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

17.  INCOME TAXES (Continued)

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

<TABLE>
<CAPTION>
                                            2000                      1999                       1998
                                    ---------------------     ----------------------     ----------------------
                                                  % of                       % of                       % of
                                                Pre-tax                    Pre-tax                    Pre-tax
                                     Amount      Income         Amount      Income         Amount      Income
                                    ---------------------     ----------------------     ----------------------
<S>                                 <C>             <C>       <C>              <C>       <C>              <C>
Provision at statutory rate         $   2,328       34.0%     $    2,198       34.0%     $    1,904       34.0%
State income tax, net of federal
  tax benefit                             149        2.2             206        3.2             163        2.9
Other, net                                 (8)      (0.1)             30        0.5              42        0.8
                                    ----------  ---------     -----------  ---------     -----------  ---------

Actual tax expense and
  effective rate                    $   2,469       36.1%     $    2,434       37.7%     $    2,109       37.7%
                                    ==========  =========     ===========  =========     ===========  =========
</TABLE>

18.  REGULATORY MATTERS

Cash and Due from Banks

The Federal  Reserve  requires  the Savings  Bank to  maintain  certain  reserve
balances.  The required  reserves are computed by applying  prescribed ratios to
the Savings Bank's average deposit transaction account balances.  As of June 30,
2000  and  1999,  the  Savings  Bank had  required  reserves  of $738 and  $684,
respectively.  The  required  reserves  are held in the form of vault cash and a
noninterest-bearing  depository  balance  maintained  directly  with the Federal
Reserve.

Loans

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

Dividend Restrictions

The Savings Bank is subject to the Pennsylvania  Banking Code that restricts the
availability of surplus for dividend  purposes.  At June 30, 2000, surplus funds
of $3,363 were not available for dividends.

19.  CONVERSION AND REORGANIZATION

In accordance with  regulations at the time that the Savings Bank converted from
a mutual  savings bank to a stock savings  bank, a portion of retained  earnings
was restricted by establishing a liquidation  account.  The liquidation  account
will be maintained for the benefit of eligible  account  holders who continue to
maintain their accounts at the Savings Bank after the  conversion,  for a period
of ten years from the date of the stock conversion. The liquidation account will
be reduced  annually to the extent that  eligible  account  holders have reduced
their  qualifying  deposits.  Subsequent  increases will not restore an eligible
account holder's interest in the liquidation account. In the unlikely event of a
complete  liquidation of the Savings Bank,  each account holder will be entitled
to  receive  a  distribution   from  the   liquidation   account  in  an  amount
proportionate to the current adjusted  qualifying balances for the accounts then
held.

                                       45
<PAGE>

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

20.  FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying amounts and estimated fair values at June 30, are as follows:

<TABLE>
<CAPTION>
                                                            2000                                1999
                                              ----------------------------------  ----------------------------------
                                                 Carrying            Fair            Carrying            Fair
                                                  Amount             Value            Amount             Value
                                              ----------------  ----------------  ----------------  ----------------
FINANCIAL ASSETS
<S>                                            <C>               <C>              <C>               <C>
Cash, due from banks, and interest-
   earning demand deposits                     $        2,915    $        2,915    $        1,893    $        1,893
Investment securities                                 137,502           130,568            92,166            89,252
Mortgage-backed securities                             73,673            71,879            72,380            71,440
Net loans receivable                                  183,295           183,690           170,327           173,575
Accrued interest receivable                             4,375             4,374             3,105             3,105
FHLB stock                                              5,225             5,225             6,195             6,195
                                              ----------------  ----------------  ----------------  ----------------

     Total financial assets                    $      406,985    $      398,651    $      346,066    $      345,460
                                              ================  ================  ================  ================

FINANCIAL LIABILITIES
Deposits                                       $      172,858    $      172,540    $      174,244    $      174,190
FHLB advances                                         104,500           104,115           116,900           116,029
Other borrowings                                      101,025           101,025            25,820            25,820
Accrued interest payable                                2,704             2,704             1,929             1,929
                                              ----------------  ----------------  ----------------  ----------------

     Total financial liabilities               $      381,087    $      380,384    $      318,893    $      317,968
                                              ================  ================  ================  ================
</TABLE>

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

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

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

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

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

                                       46
<PAGE>



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

20.  FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)

Cash,  Due  from  Banks,  Interest-earning  Demand  Deposits,  Accrued  Interest
Receivable and Payable, and Other Borrowings

The fair value approximates the current book value.

Investment Securities, Mortgage-backed Securities, and FHLB Stock

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

Net Loans Receivable and Deposits

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

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

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

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

FHLB Advances and Other Borrowings

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

Commitments to Extend Credit

These financial instruments are generally not subject to sale and estimated fair
values are not readily  available.  The carrying  value,  represented by the net
deferred  fee  arising  from the  unrecognized  commitment,  and the fair  value
determined by  discounting  the remaining  contractual  fee over the term of the
commitment  using fees currently  charged to enter into similar  agreements with
similar credit risk, are not considered material for disclosure. The contractual
amounts of unfunded  commitments  are  presented  in Note 13 to these  financial
statements.

                                       47
<PAGE>


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

21.  PARENT COMPANY

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


                            CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                            June 30,
                                                                       2000            1999
                                                                 ----------------  ------------
ASSETS
<S>                                                                    <C>                 <C>
    Interest-earning deposits with subsidiary bank               $     2,283       $       325
    Investment securities available for sale                           1,048             1,141
    Investment and mortgage-backed securities held to maturity             -                18
    Investment in subsidiary bank                                     23,303            26,151
    Loan receivable from ESOP                                              -               232
    Accrued interest receivable and other assets                         341                77
                                                                 ----------------  ------------

TOTAL ASSETS                                                     $    26,975       $    27,944
                                                                 ================  ============

LIABILITIES AND STOCKHOLDERS' EQUITY
    Other liabilities                                            $        64       $         6
    Stockholders' equity                                              26,911            27,938
                                                                 ----------------  ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                       $    26,975       $    27,944
                                                                 ================  ============
</TABLE>


                          CONDENSED STATEMENT OF INCOME


<TABLE>
<CAPTION>
                                                                  Year Ended June 30,
                                                        2000              1999              1998
                                                    ---------------  ----------------  ----------------
INCOME
<S>                                                  <C>               <C>               <C>
    Loans                                            $          16     $          24    $           33
    Investment and mortgage-backed securities                   83               124               442
    Dividend from subsidiary                                 7,429             5,000                 -
    Interest-earning deposits with subsidiary bank              32                31                31
    Investment securities gains, net                             -                36                 -
                                                    ---------------  ----------------  ----------------

Total income                                                 7,560             5,215               506
                                                    ---------------  ----------------  ----------------

OTHER OPERATING EXPENSE                                        104                94               111
                                                    ---------------  ----------------  ----------------
    Income before equity in undistributed
      earnings of subsidiary                                 7,456             5,121               395
    Equity in undistributed earnings of subsidiary          (3,081)           (1,059)            3,202
                                                    ---------------  ----------------  ----------------

    Income before income taxes                               4,375              4,062            3,597
    Income taxes                                                (4)                31              105
                                                    ---------------  ----------------  ----------------

NET INCOME                                           $       4,379   $          4,031  $         3,492
                                                    ===============  ================  ================
</TABLE>

                                       48
<PAGE>

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

21.  PARENT COMPANY (Continued)

                        CONDENSED STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                                 Year Ended June 30,
                                                                       2000              1999              1998
                                                                 ----------------  ----------------  ----------------
OPERATING ACTIVITIES
<S>                                                              <C>               <C>               <C>
    Net income                                                   $         4,379   $         4,031   $         3,492
    Adjustments to reconcile net income to net cash
      provided by operating activities:
        Undistributed net income of subsidiary                             3,081             1,059            (3,202)
        Amortization of investment discounts and premiums                     -                (21)             (120)
        Amortization of ESOP and RRP deferred
          compensation                                                       345               164               360
        Investment securities gains, net                                      -                (36)               -
        Decrease in accrued interest receivable                               -                  2                63
        Other                                                              (124)               276               293
                                                                 ----------------  ----------------  ----------------
    Net cash provided by operating activities                              7,681             5,475               886
                                                                 ----------------  ----------------  ----------------

INVESTING ACTIVITIES
    Available for sale:
        Purchase of investment and
          mortgage-backed securities                                           -            (2,972)          (12,735)
        Proceeds from sale of investment securities                            -               905                 -
        Proceeds from repayments of investment and
          mortgage-backed securities                                           -             5,229             9,842
    Held to maturity:
        Purchases of investment and mortgage-backed
          securities                                                           -                 -            (7,579)
        Proceeds from repayments of investment and
          mortgage-backed securities                                          18               596            14,156
    ESOP loan repayments                                                     232                81               141
                                                                 ----------------  ----------------  ----------------
    Net cash provided by investing activities                                250             3,839             3,825
                                                                 ----------------  ----------------  ----------------

FINANCING ACTIVITIES
    Net proceeds from issuance of common stock                               91               255                636
    Cash dividends paid                                                  (1,890)           (2,150)            (5,249)
    Purchases of treasury stock                                          (4,174)           (7,596)                 -
                                                                 ----------------  ----------------  ----------------

    Net cash used for financing activities                               (5,973)           (9,491)            (4,613)
                                                                 ----------------  ----------------  ----------------

    Increase (decrease) in cash and cash equivalents                      1,958              (177)                98


CASH AND CASH EQUIVALENTS
  BEGINNING OF YEAR                                                          325              502                404
                                                                 ----------------  ----------------  ----------------

CASH AND CASH EQUIVALENTS
  END OF YEAR                                                    $         2,283   $          325    $           502
                                                                 ================  ================  ================
</TABLE>


                                       49
<PAGE>


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

22.  SELECTED QUARTERLY FINANCIAL DATA (unaudited)

<TABLE>
<CAPTION>
                                                                       Three Months Ended
                                              ----------------------------------------------------------------------
                                                 September         December            March             June
                                                   1999              1999              2000              2000
                                              ----------------  ----------------  ----------------  ----------------
<S>                                           <C>               <C>               <C>               <C>
Total interest and dividend income            $         6,609   $         6,931   $         7,094   $         7,318
Total interest expense                                  3,769             4,067             4,331             4,766
                                              ----------------  ----------------  ----------------  ----------------

Net interest income                                     2,840             2,864             2,763             2,552
Provision for loan losses                                  -                 -                 -               150
                                              ----------------  ----------------  ----------------  ----------------

Net interest income after
  provision for loan losses                             2,840             2,864             2,763             2,402

Investment securities gains, net                           -                 -                 -                 -
Total noninterest income                                  135               144               132               194
Total noninterest expense                               1,111             1,203             1,041             1,271
                                              ----------------  ----------------  ----------------  ----------------

Income before income taxes                              1,864             1,805             1,854             1,325
Income taxes                                              727               625               723               394
                                              ----------------  ----------------  ----------------  ----------------

Net income                                    $         1,137   $         1,180   $         1,131   $           931
                                              ================  ================  ================  ================

Per share data:
Net income
     Basic                                    $          0.37   $          0.40   $          0.39   $          0.33
     Diluted                                             0.37              0.39              0.39              0.32
Average shares outstanding
     Basic                                          3,056,406         2,977,411         2,915,300         2,864,368
     Diluted                                        3,084,253         3,004,701         2,936,508         2,881,499
</TABLE>

                                       50
<PAGE>



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

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

<TABLE>
<CAPTION>
                                                              Three Months Ended
                                     ----------------------------------------------------------------------
                                        September         December            March             June
                                          1998              1998              1999              1999
                                     ----------------  ----------------  ----------------  ----------------

<S>                                   <C>              <C>               <C>               <C>
Total interest and dividend income    $        5,554   $         5,710   $         5,718   $        6,017
Total interest expense                         3,038             3,213             3,137             3,351
                                     ----------------  ----------------  ----------------  ----------------

Net interest income                            2,516             2,497             2,581             2,666
Provision for loan losses                          -                 -                 -                 -
                                     ----------------  ----------------  ----------------  ----------------

Net interest income after
  provision for loan losses                    2,516             2,497             2,581             2,666
Investment securities gains, net                   -                36                 -                 -
Total noninterest income                         102               126               109               117
Total noninterest expense                      1,061             1,113             1,039             1,072
                                     ----------------  ----------------  ----------------  ----------------

Income before income taxes                     1,557             1,546             1,651             1,711
Income taxes                                     607               563               644               620
                                     ----------------  ----------------  ----------------  ----------------
Net income                           $           950   $          983    $         1,007    $        1,091
                                     ================  ================  ================  ================

Per share data:
Net income
     Basic                           $          0.26   $          0.28   $          0.30    $         0.34
     Diluted                                    0.26              0.28              0.30              0.33
Average shares outstanding
     Basic                                 3,596,067         3,514,757         3,364,721         3,165,631
     Diluted                               3,627,719         3,545,577         3,394,679         3,193,476
</TABLE>


                                       51
<PAGE>

               COMMON STOCK MARKET PRICE AND DIVIDEND INFORMATION

WVS Financial Corp.'s common stock is traded on the over-the-counter  market and
quoted on the Nasdaq  Stock  MarketSM  National  Market  System under the symbol
"WVFC".  The bid and ask  quotations  for the common stock on September 14, 2000
were:

                        Bid                 Ask
                   -------------        ----------
                    $ 12 3/16            $ 12 3/8

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

                                     Market Price
                               ------------------------   Cash Dividends
        Quarter Ended            High            Low          Declared
--------------------------       ----            ---          --------
June 00                        $ 12            $ 11 1/2        $0.16
March 00                         12 1/4          10 3/4         0.16
December 99                      14 3/4          12 3/16        0.16
September 99                     15 3/8          13 1/2         0.16

June 99                        $ 15 3/8        $ 14 7/8        $0.16
March 99                         15 3/8          14 3/4         0.16
December 98                      15 1/2          14 5/8         0.16
September 98                     16 1/4          15 1/8         0.15

There were four Nasdaq Market  Makers in the  Company's  common stock as of June
30, 2000: F. J. Morrissey & Co.,  Inc.;  Legg Mason Wood Walker,  Inc.;  Herzog,
Heine, Geduld, Inc.; and Spear, Leeds & Kellogg.

According  to  the  records  of  the  Company's   transfer  agent,   there  were
approximately  940  shareholders  of record at September 14, 2000. This does not
include any persons or entities who hold their stock in nominee or "street name"
through various brokerage firms.

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

                                       52
<PAGE>
<TABLE>
<CAPTION>

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

<S>                                                                               <C>
                           COMMON STOCK                                                     BOARD OF DIRECTORS
       The common stock of WVS Financial  Corp. is traded on The Nasdaq                      David L. Aeberli
                 Stock MarketSM under the symbol "WVFC".                                        President
                                                                                   McDonald-Aeberli Funeral Home, Inc.

                    TRANSFER  AGENT & REGISTRAR
                  Registrar and Transfer Company
                         10 Commerce Drive                                                   Arthur H. Brandt
                        Cranford, NJ 07016                                     President and CEO Brandt Excavating, Inc. and
                          1-800-368-5948                                              Retired - Former President and CEO
                                                                                            Brandt Paving, Inc.
                        INVESTOR RELATIONS
                          Pamela M. Tracy                                                     David J. Bursic
                           412-364-1911                                            President and Chief Executive Officer
                                                                                          WVS Financial Corp. and
                              COUNSEL                                                     West View Savings Bank
                         Bruggeman & Linn

                                                                                             William J. Hoegel
                          SPECIAL COUNSEL                                                     Sole Proprietor
               Elias, Matz, Tiernan & Herrick L.L.P.                                  William J. Hoegel & Associates


                      WEST VIEW SAVINGS BANK                                                  Donald E. Hook
                        9001 Perry Highway                                                       Chairman
                       Pittsburgh, PA  15237                                             Pittsburgh Cut Flower Co.
                          412-364-1911

                                                                                             John M. Seifarth
                         WEST VIEW OFFICE                                              Senior Engineer - Consultant
                         456 Perry Highway                                          Nichols & Slagle Engineering, Inc.
                           412-931-2171

                                                                                             Margaret VonDerau
                         CRANBERRY OFFICE                                     Senior Vice President, Treasurer and Secretary
                        20531 Perry Highway                                               WVS Financial Corp. and
                     412-931-6080/724-776-3480                                            West View Savings Bank

                       FRANKLIN PARK OFFICE                                                 EXECUTIVE OFFICERS
                      2566 Brandt School Road
                           724-935-7100                                                      William J. Hoegel
                                                                                                 Chairman

                          BELLEVUE OFFICE
                        572 Lincoln Avenue                                                    David J. Bursic
                           412-761-5595                                                        President and
                                                                                          Chief Executive Officer

                       SHERWOOD OAKS OFFICE
                       Serving Sherwood Oaks                                                 Margaret VonDerau
                          Cranberry Twp.                                           Senior Vice President, Treasurer and
                                                                                            Corporate Secretary

                         LENDING DIVISION
                      2566 Brandt School Road                                                Edward M. Wielgus
                           724-935-7400                                                 Senior Vice President and
                                                                                           Chief Lending Officer
</TABLE>

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









                         A Tradition of Quality Banking















                               WVS FINANCIAL CORP.