(LETTERHEAD WVS FINANCIAL CORP. THE HOLDING COMPANY
                     OF WEST VIEW SAVINGS BANK LOGO OMITTED)

                               2004 Annual Report

<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                                              17

Consolidated Balance Sheet                                                  18

Consolidated Statement of Income                                            19

Consolidated Statement of Changes in Stockholders' Equity                   20

Consolidated Statement of Cash Flows                                        21

Notes to the Consolidated Financial Statements                              22

Common Stock Market Price and Dividend Information                          49

Corporate Information                                                       50

<PAGE>

To Our Stockholders:

     During fiscal 2004, the level of market  interest rates remained low due to
the Federal Reserve's  accommodative  monetary policy and the continued weakness
in the national economy.  Geopolitical  tensions  (including the war in Iraq and
the ongoing threat of terrorism),  rising oil prices,  moderate job creation and
reduced corporate earnings have all contributed to a slow economic recovery.  In
the Pittsburgh region,  manufacturing employment has fallen about 16.4% from its
peak prior to the 2001 recession.  Payrolls in  transportation  remain depressed
largely due to cutbacks by US Airways.

     A firmer  national  economy will provide some relief to  manufacturers  and
providers of business services in the Pittsburgh area. Longer term, Pittsburgh's
efforts to attract  high-tech and biotech  industries will contribute to growth.
As  economic  conditions  improve,  we  anticipate  an  eventual  rise in market
interest  rates.  The Federal Open Market  Committee  has increased its intended
federal funds rate by twenty-five  basis points at both their June 30 and August
10, 2004 meetings.

     Company net income  totaled $2.3 million and continued to be constrained by
low  market  interest  rates.  However,  we are  pleased  to report  significant
accomplishments were made during fiscal 2004. The Company continued to invest in
its  technology  platform by  introducing  free online banking and Internet bill
paying  services.  Our 3.63%  dividend yield  significantly  exceeds both the PA
median of 2.03% and the federal  funds  targeted rate of 1.25% at June 30, 2004.
In the July 2004 issue of U.S.  Banker  Magazine,  the  Company's  14.3%  3-year
return on average equity was ranked #44 of the Nation's Top 200 Publicly  Traded
Community Banks. We believe that these factors contributed to the Company's 149%
market premium to book value at June 30, 2004.

     Fiscal  2005  will  undoubtedly   bring  its  own  set  of  challenges  and
opportunities.  The board of directors and employees  will continue to work hard
to earn a  competitive  rate of return for our  stockholders  while  meeting the
banking needs of our customers.  Please  continue to recommend West View Savings
Bank to your family, friends and neighbors.

/s/ David J. Bursic                                  /s/ Donald E. Hook
-----------------------                              ---------------------
DAVID J. BURSIC                                      DONALD E. HOOK
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,
                                         ----------------------------------------------------------------------------------
                                             2004              2003               2002             2001             2000
                                         -----------        -----------        ----------       ----------       ----------
                                                           (Dollars in Thousands, except per share data)
<S>                                      <C>                <C>                <C>              <C>              <C>
Selected Financial Data:
Total assets                             $   433,624        $   367,188        $  404,911       $  396,440       $  409,618
Net loans receivable                          67,968             91,669           152,905          185,179          183,295
Mortgage-backed securities                    75,590            111,879            82,543           64,132           73,673
Investment securities                        273,589            147,482           151,384          129,593          137,502
Savings deposit accounts                     159,318            169,316           174,659          178,029          169,508
FHLB advances                                149,736            153,390           159,937          161,494          104,500
Other borrowings                              91,639              9,453            33,731           20,660          101,025
Stockholders' equity                          29,199             30,618            30,253           28,645           26,911
Non-performing assets and troubled
 debt restructurings(1)                        2,171              3,481             5,279            5,016            4,050

Selected Operating Data:
Interest income                          $    16,006        $    19,231        $   23,760       $   29,185       $   27,987
Interest expense                              10,987             11,810            14,025           18,561           16,933
                                         -----------        -----------        ----------       ----------       ----------
Net interest income                            5,019              7,421             9,735           10,624           11,054
Provision for loan losses                       (794)              (228)               57              788              150
                                         -----------        -----------        ----------       ----------       ----------
Net interest income after provision
 for loan losses                               5,813              7,649             9,678            9,836           10,904
Non-interest income                              715                725               687              669              573
Non-interest expense                           3,607              3,956             4,104            3,787            4,629
                                         -----------        -----------        ----------       ----------       ----------
Income before income tax expense               2,921              4,418             6,261            6,718            6,848
Income tax expense                               619              1,070             1,813            1,956            2,469
                                         -----------        -----------        ----------       ----------       ----------
Net income                               $     2,302        $     3,348        $    4,448       $    4,762       $    4,379
                                         ===========        ===========        ==========       ==========       ==========

Per Share Information:
Basic earnings                           $      0.91        $      1.28        $     1.63       $     1.70       $     1.48
Diluted earnings                         $      0.90        $      1.28        $     1.63       $     1.69       $     1.47
Dividends per share                      $      0.64        $      0.64        $     0.64       $     0.64       $     0.64
Dividend payout ratio                          70.33%             50.00%            39.26%           37.65%           43.24%
Book value per share at period end       $     11.84        $     11.86        $    11.30       $    10.40       $     9.35
Average shares outstanding:
  Basic                                    2,535,796          2,617,576         2,723,891        2,804,125        2,953,720
  Diluted                                  2,544,404          2,624,395         2,732,491        2,815,867        2,977,089
</TABLE>


                                       2
<PAGE>

<TABLE>
<CAPTION>
                                                        As of or For the Year Ended June 30,
                                              ----------------------------------------------------------
                                               2004         2003         2002         2001         2000
                                              ------       ------       ------       ------       ------
<S>                                           <C>          <C>          <C>          <C>          <C>
Selected Operating Ratios(2):
Average yield earned on interest-
  earning assets(3)                             4.27%        5.36%        6.41%        7.51%        7.41%
Average rate paid on interest-
  bearing liabilities                           3.13         3.57         4.13         5.21         4.91
Average interest rate spread(4)                 1.14         1.79         2.28         2.30         2.50
Net interest margin(4)                          1.47         2.19         2.74         2.83         2.97
Ratio of interest-earning assets to
  interest-bearing liabilities                111.76       112.56       112.34       111.33       110.57
Non-interest expense as a percent of
  average assets                                0.91         1.05         1.07         0.94         1.20
Return on average assets                        0.58         0.89         1.16         1.19         1.14
Return on average equity                        7.64        10.97        14.85        17.17        16.27
Ratio of average equity to average
  assets                                        7.02         8.10         7.78         6.92         6.99
Full-service offices at end of period              5            5            5            5            5

Asset Quality Ratios(2):
Non-performing loans and troubled
  debt restructurings as a percent of
  net total loans(1)                            3.19%        3.80%        3.30%        2.71%        2.21%
Non-performing assets as a percent
  of total assets(1)                            0.19         0.95         1.30         1.27         0.99
Non-performing assets and troubled
  debt restructurings as a percent of
  total assets                                  0.50         0.95         1.30         1.27         0.99
Allowance for loan losses as a
  percent of total loans receivable             1.97         2.68         1.77         1.47         1.06
Allowance for loan losses as a
  percent of non-performing loans             165.46        72.68        54.68        55.08        48.72
Charge-offs to average loans
  receivable outstanding during the
  period                                        0.68         0.00         0.04         0.01         0.01

Capital Ratios(2):
Tier 1 risk-based capital ratio                18.65%       14.30%       13.42%       14.15%       14.05%
Total risk-based capital ratio                 19.62        15.57        14.66        15.40        15.11
Tier 1 leverage capital ratio                   6.92         8.42         7.69         7.35         6.69
</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)  Consolidated  asset  quality  ratios and  capital  ratios are end of period
     ratios,  except for charge-offs to average net loans. With the exception of
     end of period  ratios,  all ratios are based on  average  monthly  balances
     during the indicated periods.

(3)  Interest and yields on  tax-exempt  loans and  securities  (tax-exempt  for
     federal income tax purposes) are shown on a fully taxable equivalent basis.

(4)  Interest rate spread represents the difference between the weighted average
     yield  on  interest-earning   assets  and  the  weighted  average  cost  of
     interest-bearing  liabilities,  and  net  interest  margin  represents  net
     interest income as a percent of average interest-earning assets.


                                       3
<PAGE>

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

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

FORWARD LOOKING STATEMENTS

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

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

GENERAL

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

West View Savings Bank is a  Pennsylvania-chartered,  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, 2004.

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:

Interest  Rate Risk  Management  - During the past three  fiscal  years,  market
interest rates have plummeted and remained at 45 year lows. The Federal  Reserve
Board's accommodative  monetary policy,  coupled with increased fiscal stimulus,
should lead to an economic recovery which began during fiscal 2004.  History has
shown that economic  recoveries  are generally  accompanied  by higher levels of
market interest  rates.  While these low market interest rates have impacted net
income,  the Company is well  positioned for an eventual rise in market interest
rates.

Enhancing  Stockholder  Value - During fiscal 2004,  the Company  maintained its
quarterly cash dividends, which yielded 3.63% at June 30, 2004.


                                       4
<PAGE>

Commitment to Capital  Management - The Company continued to balance the need to
retain  capital  for future  growth,  paying an  attractive  cash  dividend  and
supplement  market  liquidity  with our Sixth and Seventh  Common Stock  Buyback
Programs.

Strong Net Income - During fiscal 2004, the Company earned $2.3 million or $0.91
per share (basic) and $0.90 per share  (diluted).  Fiscal 2004 return on average
stockholders' equity was 7.64% while return on average assets totaled 0.58%.

Substantial  Core Deposits - As of June 30, 2004, $94.0 million or 59.0% of West
View's total  deposits  consisted of regular  savings and club  accounts,  money
market deposit accounts,  and checking accounts.  Approximately $45.8 million or
48.7% of core  deposits  consisted of regular  savings and club  accounts.  Core
deposits are considered to be more stable and lower cost funds than certificates
of deposit and other borrowings.

Community  Based  Lending  - Due to low  market  interest  rates,  West View has
limited the portfolio  origination  of thirty year mortgage  loans.  Thirty year
mortgage loans  continue to be originated on a  correspondent  basis.  Portfolio
loan originations have focused on multi-family and commercial real estate loans,
construction  loans,  consumer  loans and  small  business  loans  for  business
equipment and inventory.

Strong  Non-interest  Expense Ratios - For the fiscal years ended June 30, 2004,
2003 and 2002, the Company's  ratios of  non-interest  expense to average assets
were  0.91%,  1.05%  and  1.07%,  respectively.  In  fiscal  2004,  the  Company
introduced  Internet  banking  and  online  bill  paying  to  increase  customer
satisfaction and loyalty.

CHANGES IN FINANCIAL CONDITION

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

<TABLE>
<CAPTION>
                                                                          Change
                                       June 30,     June 30,      ----------------------
                                        2004          2003        Dollars     Percentage
                                        ----          ----        -------     ----------
                                                  (Dollars in Thousands)
<S>                                   <C>           <C>           <C>              <C>
      Cash and interest-earning
           deposits                   $  3,054      $  2,815      $     239        8.5%

      Investment securities(1)         281,121       155,279        125,842       81.0

      Mortgage-backed securities        75,590       111,879        (36,289)     -32.4

      Net loans receivable              67,968        91,669        (23,701)     -25.9

      Total assets                     433,624       367,188         66,436       18.1

      Deposits                         160,563       170,926        (10,363)      -6.1

      FHLB and other borrowings        241,375       162,843         78,532       48.2

      Total liabilities                404,425       336,570         67,855       20.2

      Total equity                      29,199        30,618         (1,419)      -4.6
</TABLE>

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


                                       5
<PAGE>

General. The $66.4 million increase in total assets was primarily comprised of a
$125.8 million  increase in investment  securities  including  Federal Home Loan
Bank  ("FHLB")  stock,  a $993  thousand  increase in trading  assets and a $239
thousand increase in cash and cash equivalents, which were partially offset by a
$36.3 million decrease in mortgage-backed  securities,  a $23.7 million decrease
in  net  loans  receivable,   a  $344  thousand  decrease  in  accrued  interest
receivable,  a $154  thousand  decrease in premises  and fixed assets and a $150
thousand decrease in other assets.

The $67.9 million or 20.2% increase in total liabilities was primarily comprised
of a $82.2 million increase in other short-term borrowings,  which was partially
offset by a $10.4 million decrease in deposits,  a $3.7 million decrease in FHLB
advances and a $252 thousand decrease in accrued interest payable.

Total  stockholders'  equity decreased $1.4 million or 4.6% primarily due to the
repurchase of $2.6 million of the Company's own common stock and $1.6 million of
cash dividends paid to stockholders, which were partially offset by $2.3 million
of Company net income and a $561 thousand  increase in capital  attributable  to
stock option  exercises  and  Recognition  and  Retention  Plan  ("RRP")  equity
contributions.  The Company  believes  that the  repurchase  of its common stock
represented  an  attractive  investment   opportunity  and  favorably  added  to
secondary market liquidity.

Cash on Hand and  Interest-earning  Deposits.  Cash on hand and interest-earning
deposits represent cash equivalents. Cash equivalents increased $239 thousand or
8.5% to $3.1  million  at June 30,  2004 from  $2.8  million  at June 30,  2003.
Increases  in  these  accounts  were  primarily  due to  increases  in  customer
transaction accounts.

Investments.  The Company's overall investment portfolio increased $89.5 million
or 33.5% to $356.7  million  at June 30,  2004 from  $267.2  million at June 30,
2003.  Investment securities increased $125.8 million or 81.0% to $281.1 million
at  June  30,  2004.  This  increase  was due  primarily  to  purchases  of U.S.
Government  Agency  securities,  which  were  partially  offset by calls of U.S.
Government Agency securities and maturities of investment grade corporate bonds.
Mortgage-backed  securities decreased $36.3 million or 32.4% to $75.6 million at
June 30, 2004.  This decrease was due  primarily to principal  repayments on the
portfolio,   which  were   partially   offset  by  purchases  of  floating  rate
mortgage-backed securities.

Net Loans Receivable.  Net loans receivable  decreased $23.7 million or 25.9% to
$68.0 million at June 30, 2004. The decrease in loans receivable was principally
the result of higher levels of  refinancing  activity due to record low mortgage
interest rates. As part of its asset/liability  management strategy, the Company
chose to invest  substantially  all of these proceeds into  adjustable  rate and
short-term investment and mortgage-backed securities.

Deposits.  Total deposits  decreased  $10.4 million or 6.1% to $160.6 million at
June 30, 2004.  Certificates of deposit decreased approximately $14.6 million or
18.3% due primarily to reduced levels of municipal  time deposits,  money market
accounts  decreased  $465 thousand or 3.2% and escrow  accounts  decreased  $365
thousand or 22.7%.  Transaction  accounts  increased  $3.4  million or 11.1% and
savings accounts  increased $1.7 million or 3.8%. The Savings Bank believes that
these changes in depositor  liquidity  preferences are due to the relatively low
level of market interest rates.

Borrowed  Funds.  Borrowed  funds  increased  $78.5  million  or 48.2% to $241.4
million at June 30, 2004. Other short-term borrowings increased $82.2 million or
869.4%  to $91.6  million  at June 30,  2004 and FHLB  advances  decreased  $3.7
million or 2.4% to $149.7  million at June 30, 2004. The Company used these sums
to fund investment purchases.

Stockholders'  Equity. Total stockholders' equity decreased $1.4 million or 4.6%
to $29.2 million at June 30, 2004. The decrease was principally  attributable to
the  repurchase  of $2.6  million of the  Company's  own  common  stock and $1.6
million of cash dividends paid to  stockholders,  which were partially offset by
$2.3  million of Company  net income  and a $489  thousand  increase  in capital
attributable to stock option exercises.


                                       6
<PAGE>

RESULTS OF OPERATIONS

                                      Condensed Statements of Income
                                      ------------------------------

<TABLE>
<CAPTION>
                                  June 30,                     June 30,                    June 30,
                                    2004          Change         2003         Change         2002
                                  --------       -------       --------      -------       --------
                                                       (Dollars in Thousands)
<S>                               <C>            <C>           <C>           <C>           <C>
Interest income                   $16,006        ($3,225)      $19,231       ($4,529)      $23,760
                                                   -16.8%                      -19.1%

Interest expense                  $10,987        ($  823)      $11,810       ($2,215)      $14,025
                                                    -7.0%                      -15.8%

Net interest income               $ 5,019        ($2,402)      $ 7,421       ($2,314)      $ 9,735
                                                   -32.4%                      -23.8%

Provision for loan losses           ($794)         ($566)        ($228)        ($285)      $    57
                                                   248.2%                     -500.0%

Non-interest income               $   715           ($10)      $   725       $    38       $   687
                                                    -1.4%                        5.5%

Non-interest expense              $ 3,607          ($349)      $ 3,956         ($148)      $ 4,104
                                                    -8.8%                       -3.6%

Income tax expense                $   619          ($451)      $ 1,070         ($743)      $ 1,813
                                                   -42.1%                      -41.0%

Net income                        $ 2,302        ($1,046)      $ 3,348       ($1,100)      $ 4,448
                                                   -31.2%                      -24.7%
</TABLE>

General. WVS reported net income of $2.3 million,  $3.3 million and $4.4 million
for the fiscal years ended June 30, 2004, 2003 and 2002, respectively.  The $1.0
million or 31.2%  decrease in net income  during  fiscal 2004 was  primarily the
result of a $2.4  million  decrease in net  interest  income and a $10  thousand
decrease in non-interest  income, which were partially offset by a $566 thousand
decrease in provisions for loan losses,  a $451 thousand  decrease in income tax
expense and a $349 thousand decrease in non-interest expense. Earnings per share
totaled $0.91  (basic) and $0.90  (diluted) for fiscal 2004 as compared to $1.28
(basic and diluted) for fiscal 2003.  The decrease in earnings per share was due
to a decrease in net income,  which was  partially  offset by a reduction in the
weighted  average  number  of  shares  outstanding  due to the  Company's  stock
repurchases during fiscal 2004.


                                       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,
                                                ----------------------------------------------------------------
                                                            2004                              2003
                                                ------------------------------   -------------------------------
                                                Average               Average    Average                Average
                                                Balance   Interest  Yield/Rate   Balance    Interest  Yield/Rate
                                                -------   --------  ----------   -------    --------  ----------
                                                                    (Dollars in Thousands)
<S>                                             <C>         <C>       <C>        <C>         <C>         <C>
Interest-earning assets:
      Net loans receivable(1)                   $ 76,513   $ 5,180      6.77%    $127,970    $ 9,524       7.44%
      Net tax-free loans receivable(2)                --        --      0.00           --         --       0.00
      Mortgage-backed securities                  84,770     2,347      2.77       82,427      2,854       3.46
      Investments - taxable                      199,341     6,829      3.43      131,193      5,228       3.98
      Investments - tax-free(2)                   29,588     2,391      8.08       28,610      2,340       8.18
      Interest-bearing deposits                    2,079         9      0.43        2,362         11       0.47
                                                --------   -------               --------    -------
      Total interest-earning assets              392,291    16,756      4.27%     372,562    119,957       5.36%
                                                           -------    ======                 -------     ======
      Non-interest-earning assets                  3,949                            4,113
                                                --------                         --------
            Total assets                        $396,240                         $376,675
                                                ========                         ========
Interest-bearing liabilities:
      Interest-bearing deposits and escrows     $151,577   $ 2,321      1.53%    $157,771    $ 3,312       2.10%
      Borrowings                                 199,439     8,666      4.35      173,226      8,498       4.91
                                                --------   -------               --------    -------
      Total interest-bearing liabilities         351,016    10,987      3.13%     330,997     11,810       3.57%
                                                           -------    ======                 -------     ======
      Non-interest-bearing accounts               12,542                           12,149
                                                --------                         --------
      Total interest-bearing liabilities and
         non-interest-bearing accounts           363,558                          343,146
      Non-interest-bearing liabilities             2,563                            3,020
                                                --------                         --------
            Total liabilities                    366,121                          346,166
Retained income                                   30,119                           30,509
                                                --------                         --------
Total liabilities and retained income           $396,240                         $376,675
                                                ========                         ========
Net interest income                                        $ 5,769                           $ 8,147
                                                           =======                           =======
Interest rate spread                                                    1.14%                             1.79%
                                                                      ======                            ======
Net yield on interest-earning assets(3)                                 1.47%                             2.19%
                                                                      ======                            ======
Ratio of interest-earning assets to
   interest-bearing liabilities                                       111.76%                           112.56%
                                                                      ======                            ======

<CAPTION>
                                                          For the Years Ended June 30,
                                                       --------------------------------
                                                                    2002
                                                       --------------------------------
                                                       Average                Average
                                                       Balance    Interest   Yield/Rate
                                                       -------    --------   ----------
                                                             (Dollars in Thousands)
<S>                                                     <C>         <C>        <C>
Interest-earning assets:
      Net loans receivable(1)                           $172,824    $13,224      7.65%
      Net tax-free loans receivable(2)                       199         26     13.28
      Mortgage-backed securities                          65,372      3,341      5.11
      Investments - taxable                              112,948      5,553      4.92
      Investments - tax-free(2)                           28,543      2,323      8.14
      Interest-bearing deposits                            1,766         10      0.57
                                                        --------    -------
      Total interest-earning assets                      381,652     24,477      6.41%
                                                                    -------    ======
      Non-interest-earning assets                          3,386
                                                        --------
            Total assets                                $385,038
                                                        ========
Interest-bearing liabilities:
      Interest-bearing deposits and escrows             $163,338    $ 5,082      3.11%
      Borrowings                                         176,383      8,943      5.07
                                                        --------    -------
      Total interest-bearing liabilities                 339,721     14,025      4.13%
                                                                    -------    ======
      Non-interest-bearing accounts                       11,814
                                                        --------
      Total interest-bearing liabilities and
         non-interest-bearing accounts                   351,535
      Non-interest-bearing liabilities                     3,547
                                                        --------
            Total liabilities                            355,082
Retained income                                           29,956
                                                        --------
Total liabilities and retained income                   $385,038
                                                        ========
Net interest income                                                 $10,452
                                                                    =======
Interest rate spread                                                            2.28%
                                                                              ======
Net yield on interest-earning assets(3)                                         2.74%
                                                                              ======
Ratio of interest-earning assets to
   interest-bearing liabilities                                               112.34%
                                                                              ======
</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
     utilizing a federal tax rate of 34%.

(3)  Net interest income divided by average interest-earning assets.


                                       8
<PAGE>

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

<TABLE>
<CAPTION>
                                                                                Year Ended June 30,
                                                  -------------------------------------------------------------------------------
                                                              2004 vs. 2003                             2003 vs. 2002
                                                  ------------------------------------      -------------------------------------
                                                   Increase (Decrease)                       Increase (Decrease)
                                                         Due to                Total                Due to                Total
                                                  ---------------------      Increase       ---------------------       Increase
                                                   Volume        Rate       (Decrease)      Volume          Rate       (Decrease)
                                                  -------       -------     ----------      -------       -------      ----------
                                                                              (Dollars in Thousands)
<S>                                               <C>           <C>           <C>           <C>           <C>           <C>
Interest-earning assets:
      Net loans receivable                        $(3,550)      $  (794)      $(4,344)      $(3,349)      $  (377)      $(3,726)
      Mortgage-backed securities                       76          (583)         (507)          747        (1,234)         (487)
      Investments - taxable                         2,402          (801)        1,601           830        (1,155)         (325)
      Investments - tax-free                           80           (29)           51             6            11            17
      Interest-bearing deposits                        (1)           (1)           (2)            3            (2)            1
                                                  -------       -------       -------       -------       -------       -------
          Total interest-earning assets              (993)       (2,208)       (3,201)       (1,763)       (2,757)       (4,520)
Interest-bearing liabilities:
      Interest-bearing deposits and
        Escrows                                      (222)         (769)         (991)         (324)       (1,446)       (1,770)
      Other borrowings                              1,201        (1,033)          168          (166)         (279)         (445)
                                                  -------       -------       -------       -------       -------       -------
          Total interest-bearing liabilities          979        (1,802)         (823)         (490)       (1,725)       (2,215)
                                                  -------       -------       -------       -------       -------       -------
Decrease in net interest income                   $(1,972)      $  (406)      $(2,378)      $(1,273)      $(1,032)      $(2,305)
                                                  =======       =======       =======       =======       =======       =======
</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 decreased by $3.2 million or 16.8% during
fiscal 2004 and  decreased  by $4.5 million or 19.1%  during  fiscal  2003.  The
decrease  in fiscal  2004 was  primarily  a result of a decrease  in the average
balance of the loan  portfolio and continued low market  interest  rates,  which
were  partially  offset by  increased  average  balances of the  investment  and
mortgage-backed securities portfolios. The decrease in fiscal 2003 was primarily
a result of  historically  low market  interest  rates and higher levels of loan
repayments,  which were partially  offset by increased  average  balances of the
investment and mortgage-backed securities portfolios.

Interest  income on investment  securities and FHLB stock increased $1.6 million
or 23.7% during  fiscal 2004 and  decreased  $325 thousand or 4.5% during fiscal
2003. The increase in fiscal 2004 was primarily  attributable to a $69.1 million
increase in the average balance of the investment securities outstanding,  which
was partially  offset by a 58 basis point decrease in the weighted average yield
on the  Company's  investment  securities.  The  decrease  in  fiscal  2003  was
primarily  attributable  to an 84 basis point  decrease in the weighted  average
yield on the Company's  investment  securities,  which was partially offset by a
$18.3  million  increase in the  average  balance of the  investment  securities
outstanding.

Interest income on mortgage-backed  securities  decreased $507 thousand or 17.8%
during fiscal 2004 and decreased  $487 thousand or 14.6% during fiscal 2003. The
decrease in fiscal 2004 was primarily  attributable to a 69 basis point decrease
in the  weighted  average  yield  on the  Company's  mortgage-backed  securities
portfolio,  which was partially offset by a $2.3 million increase in the average
balance of the mortgage-backed securities portfolio. The decrease in fiscal 2003
was  attributable to a 165 basis point decrease in the weighted average yield on
the Company's mortgage-backed  securities portfolio,  which was partially offset
by a $17.1  million  increase  in the  average  balance  of the  mortgage-backed
securities portfolio.


                                       9
<PAGE>

Interest income on net loans  receivable  decreased $4.3 million or 45.6% during
fiscal 2004 and decreased $3.7 million or 28.1% during fiscal 2003. The decrease
in fiscal 2004 was primarily  attributable  to a $51.5  million  decrease in the
average  balance of net loans  outstanding  and a 67 basis point decrease in the
weighted  average  yield  on  the  Company's  loan  portfolio.  As  part  of its
asset/liability   management  strategy,   the  Company  previously  limited  its
origination of  longer-term  fixed rate loans to mitigate its exposure to a rise
in market interest rates. The Company  continued to offer longer-term fixed rate
loans on a  correspondent  basis during fiscal 2004. The decrease in fiscal 2003
was attributable to a $45.1 million decrease in the average balance of net loans
outstanding  and a 22 basis point decrease in the weighted  average yield on the
Company's loan portfolio.

Interest Expense.  Total interest expense decreased $823 thousand or 7.0% during
fiscal 2004 and  decreased  by $2.2 million or 15.8%  during  fiscal  2003.  The
decrease  in fiscal  2004 was  attributable  to a decrease  of $991  thousand of
interest  expense on  deposits  and  escrows  which was  partially  offset by an
increase of $168  thousand of interest  expense on  borrowings.  The decrease in
fiscal 2003 was  attributable to a decrease of $1.8 million of interest  expense
on deposits and a decrease of $445 thousand of interest expense on borrowings.

Interest  expense on  borrowings  increased  $168 thousand or 2.0% during fiscal
2004 and decreased  $445  thousand or 5.0% during  fiscal 2003.  The increase in
fiscal 2004 was  attributable to a $26.2 million increase in the average balance
of  borrowings  outstanding  which  was  partially  offset  by a 56 basis  point
decrease in the weighted average yield on the Company's borrowings. The increase
in the  average  balance  of  borrowings  outstanding  was due to $31.0  million
increase  in the  average  balance  of other  short-term  borrowings  and a $507
thousand  increase in long-term FHLB advances,  which were partially offset by a
$4.3 million  decrease in short-term FHLB advances.  The decrease in fiscal 2003
was  attributable to a 16 basis point decrease in the weighted  average yield on
the Company's borrowings,  and a $3.2 million decrease in the average balance of
borrowings  outstanding.  During  both  fiscal  2004  and  2003,  the  Company's
borrowings were primarily longer-term with fixed rates of interest.

Interest  expense  on  interest-bearing  deposits  and  escrows  decreased  $991
thousand or 29.9% in fiscal 2004 and  decreased  $1.8 million or 34.8% in fiscal
2003. The decrease in fiscal 2004 was  attributable to a 57 basis point decrease
in the  weighted  average  yield on the  Company's  deposits  and a $6.2 million
decrease in average balance of interest-bearing deposits. The decrease in fiscal
2003 was  attributable  to a 101 basis point  decrease in the  weighted  average
yield on the  Company's  deposits,  and a $5.6  million  decrease in the average
balance of interest-bearing 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.  The  Company  recorded  a credit
provision  of $794  thousand in fiscal 2004,  compared to a credit  provision of
$228  thousand in fiscal 2003.  The increase in the credit  provision for fiscal
2004 was primarily  attributable  to the work-out of  non-performing  assets and
paydowns on the Company's loan  portfolio.  The Company's  reduced  provision in
fiscal 2003 was due to the reduced levels of net loans receivable and the payoff
of a large non-performing commercial real estate loan.

Non-interest Income. Total non-interest income decreased by $10 thousand or 1.4%
in  fiscal  2004 and  increased  by $38  thousand  or 5.5% in fiscal  2003.  The
decrease  in fiscal  2004 was  primarily  attributable  to a decrease in pre-tax
gains  recognized on the sale of assets from the Company's  investment  and loan
portfolios,  which was  partially  offset by an increase in deposit  account fee
income.  The increase in fiscal 2003 was primarily  attributable  to the sale of
investments from the Company's investment portfolio.

Non-interest Expense. Total non-interest expense decreased $349 thousand or 8.8%
and decreased  $148 thousand or 3.6% during fiscal 2004 and 2003,  respectively.
The decrease in fiscal 2004 was primarily  attributable  to decreases in payroll
and benefit related costs, charitable  contributions eligible for PA tax credits
and legal  expenses and costs  associated  with the  work-out of  non-performing
assets. The decrease


                                       10
<PAGE>

in fiscal  2003 was  primarily  attributable  to a decrease  in payroll  related
costs,  which was partially offset by increases in data processing  expenses and
fixed asset costs.

Income Taxes.  Income taxes  decreased $451 thousand or 31.2% during fiscal 2004
and decreased  $743 thousand or 41.0% during fiscal 2003. The decrease in fiscal
2004 was primarily  attributable to lower levels of taxable income. The decrease
in fiscal 2003 was primarily  attributable  to a decrease in taxable  income and
proportionately  higher tax-free  interest  revenue on bank qualified  municipal
securities.  The  Company's  effective  tax rate was 21.2% at June 30,  2004 and
24.2% at June 30, 2003.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity is often analyzed by reviewing the cash flow statement.  Cash and cash
equivalents increased by $239 thousand during fiscal 2004 primarily due to $64.4
million of net cash  provided by  financing  activities  and $2.1 million of net
cash  provided by operating  activities,  which were  partially  offset by $66.3
million of net cash used for investing activities.

Funds provided by operating  activities  totaled $2.1 million during fiscal 2004
as compared to $7.1 million  during fiscal 2003.  Net cash provided by operating
activities was primarily  comprised of $2.3 million of net income,  $1.2 million
of  amortization  of  discounts,  premiums  and deferred  loan fees,  and a $344
thousand decrease in accrued interest receivable and a $205 thousand decrease in
accrued and  deferred  taxes,  which were  partially  offset by a $999  thousand
increase in purchases of trading  securities,  a $794 thousand credit  provision
for loan losses and a $252 thousand decrease in accrued interest payable.

Funds used for investing  activities totaled $66.3 million during fiscal 2004 as
compared to $33.4 million provided by investing  activities  during fiscal 2003.
Primary uses of funds during fiscal 2004 include  $427.0 million in purchases of
investment and  mortgage-backed  securities  (including FHLB stock),  which were
partially  offset by $336.4  million in repayments  and sales of investment  and
mortgage-backed  securities  (including FHLB stock) and a $23.8 million decrease
in net loans receivable.  The investment  purchases were primarily  comprised of
callable  U.S.  Government  agency  bonds that  reprice  within  two years.  The
mortgage-backed   securities  purchases  were  floating  rate  instruments  that
generally reprice on a monthly basis.

Funds provided by financing  activities totaled $64.4 million for fiscal 2004 as
compared to $40.8 million used for financing  activities in fiscal 2003. Primary
sources  of  funds  for  fiscal  2004  were a $82.2  million  increase  in other
short-term  borrowings and $221 thousand increase in FHLB long-term  borrowings,
which were  partially  offset by a $10.4  million  decrease  in  deposits,  $3.9
million  decrease in FHLB  short-term  advances,  $2.6  million in common  stock
repurchases and $1.6 million in cash  dividends.  During fiscal 2004 the Company
purchased  142,953  shares  of  common  stock for  approximately  $2.6  million.
Management has determined  that it currently is maintaining  adequate  liquidity
and  continues to better  match  funding  sources  with  lending and  investment
opportunities.

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,  2004,  the  total  approved  loan  commitments
outstanding amounted to $2.7 million. At the same date, commitments under unused
letters and lines of credit amounted to $6.3 million and the unadvanced  portion
of  construction  loans  approximated  $11.2  million.  Certificates  of deposit
scheduled to mature in one year or less at June 30, 2004, totaled $39.8 million.
Management  believes that a significant portion of maturing deposits will remain
with the Company.


                                       11
<PAGE>

The Company's contractual obligations at June 30, 2004 are as follows:

<TABLE>
<CAPTION>
                                                       Contractual Obligations
                                                        (Dollars in Thousands)
                                                Less than                                    More than
                                   Total          1 year       1-3 years      3-5 years       5 years
                                 ---------      ---------      ---------      ---------      ---------
<S>                                <C>                 <C>         <C>           <C>           <C>
Long-term debt                     149,736             --          4,157         13,500        132,079
Operating lease obligations            141             68             73             --             --
                                 ---------      ---------      ---------      ---------      ---------
                                   149,877             68          4,230         13,500        132,079
                                 =========      =========      =========      =========      =========
</TABLE>

See also Note 13 of the Company's consolidated financial statements.

Historically,  the  Company  used its  sources  of funds  primarily  to meet its
ongoing  commitments  to  pay  maturing  certificates  of  deposit  and  savings
withdrawals,  fund loan  commitments  and  maintain a  substantial  portfolio of
investment  securities.  The Company has been able to generate  sufficient  cash
through 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 Primary  Credit
Program.  Management  believes that the Company currently has adequate liquidity
available to respond to liquidity demands.

On July 27, 2004, the Company's  Board of Directors  declared a cash dividend of
$0.16 per share  payable on August  19,  2004 to  shareholders  of record at the
close of business on August 9, 2004.  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,  2004,  WVS  Financial  Corp.  exceeded  all  regulatory  capital
requirements and maintained Tier I and total  risk-based  capital equal to $28.9
million  or  18.7%  and  $30.4   million  or  19.6%,   respectively,   of  total
risk-weighted  assets;  and Tier I leverage  capital of $28.9 million or 6.9% 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
decreased  $2.7 or 76.2% to $828 thousand or 0.19% of total assets,  at June 30,
2004.  The decrease was primarily  the result of a $571 thousand in  repayments,
$2.0  million in loans  reclassified  as  performing  due to  improved  economic
performance and $366 thousand in charged off loans,  which were partially offset
by $272 thousand in loans reclassified as non-performing.

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

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

Recent  Accounting and Regulatory  Pronouncements.  The Company's  discussion of
recent  accounting and regulatory  pronouncements  can be found in Note 1 of the
Company's consolidated financial statements.


                                       12
<PAGE>

QUANTATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

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

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

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

During fiscal 2004 the level of market  interest  rates  remained low due to the
Federal Reserve's accommodative monetary policy and the weakness in the national
economy.  Geopolitical tensions, rising energy prices, moderate job creation and
reduced corporate earnings have all contributed to a slow economic recovery.  As
economic  conditions  improve, we anticipate an eventual rise in market interest
rates.  The Federal Open Market  Committee  increased its intended federal funds
rate by  twenty-five  basis  points at both their  June 30 and  August 10,  2004
meetings.

Due to the sustained  decline in market  interest  rates,  the  Company's  loan,
investment and  mortgage-backed  securities  portfolios  continued to experience
much higher than anticipated levels of prepayments.  Principal repayments on the
Company's loan,  investment and  mortgage-backed  securities  portfolios totaled
$47.4 million,  $199.5 million and $137.0 million  respectively.  In response to
higher  levels  of  liquidity  the  Company  continued  to  rebalance  its loan,
investment and mortgage-backed  securities  portfolios.  Due to the low level of
market  interest  rates,  the  Company  continued  to reduce  its  portfolio  of
long-term  fixed rate mortgages  while  continuing to offer consumer home equity
and construction  loans. The Company began to purchase callable U. S. Government
Agency bonds in order to earn a higher return while limiting  interest rate risk
within the  portfolio.  Within the  mortgage-backed  securities  portfolio,  the
Company  aggressively  purchased  floating  rate  securities in order to provide
current income and protection against an eventual rise in market interest rates.
Each of the  aforementioned  strategies also helped to better the  interest-rate
and liquidity  risks  associated  with the Savings  Bank's  customers  liquidity
preference for shorter term deposit products.


                                       13
<PAGE>

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 has  continued  to offer  multi-family,  commercial  real  estate,  land
acquisition and development and shorter-term  construction  loans,  primarily on
residential properties, to increase interest income while limiting interest rate
risk.  The Company has also  emphasized  higher  yielding  home equity and small
business loans to existing customers and seasoned prospective customers.

As of June 30, 2004, the implementation of these asset and liability  management
initiatives resulted in the following:

     1)   the Company's  liquidity  profile  remains  strong with $123.2 million
          callable  within 3 months,  $54.5 million  being  callable with 3 to 6
          months and $ 51.6 million being  callable  with 6 to 12 months.  Based
          upon  current  market  conditions,   management   anticipates  that  a
          substantial portion of the investments will be called within the above
          time intervals.

     2)   $55.0  million  or  19.6%  of  the  Company's   investment   portfolio
          (including FHLB stock) was comprised of floating rate bonds which will
          reprice quarterly within one year;

     3)   $162.3  million  or  57.7%  of  the  Company's   investment  portfolio
          (including FHLB stock) was comprised of U.S. Government Agency Step-up
          bonds  which  will  reprice  from  initial  rates of 3.35% - 5.42% and
          increase to 7.00% within two years;

     4)   $15.1 million or 5.4% of the Company's investment portfolio (including
          FHLB stock) was comprised of  investment  grade  corporate  bonds with
          remaining maturities of less than one year;

     5)   $69.3 million or 91.7% of the Company's  portfolio of  mortgage-backed
          securities  (including  collateralized  mortgage obligations - "CMOs")
          were comprised of floating rate  instruments that reprice on a monthly
          basis;

     6)   the maturity  distribution of the Company's  borrowings is as follows:
          less than 1 year: $91.6 million or 38.0%; 1-3 years: $4.2 or 1.7%; 3-5
          years:  $13.5 million or 5.6%; over 5 years:  $132.1 million or 54.7%;
          and

     7)   an  aggregate  of $33.7  million  or 49.6% of the  Company's  net loan
          portfolio had adjustable  interest rates or maturities of less than 12
          months.

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

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

<TABLE>
<CAPTION>
                                                                 June 30,
                                                 -----------------------------------------
                                                    2004            2003            2002
                                                 ---------       ---------       ---------
                                                         (Dollars in Thousands)
<S>                                              <C>             <C>             <C>
Interest-earning assets maturing or
   repricing within one year                     $ 288,451       $ 262,782       $ 252,467
Interest-bearing liabilities maturing or
   repricing within one year                       171,655         133,418         142,823
                                                 ---------       ---------       ---------
Interest sensitivity gap                         $ 116,796       $ 129,364       $ 109,644
                                                 =========       =========       =========
Interest sensitivity gap as a percentage of
   total assets                                       26.9%           35.2%           27.1%
Ratio of assets to liabilities
   maturing or repricing within one year             168.0%          197.0%          176.8%
</TABLE>


                                       14
<PAGE>

During fiscal 2004, the Company  managed its one year interest  sensitivity  gap
by: (1) limiting the portfolio  origination of long-term  fixed rate  mortgages;
(2)  emphasizing  loans  with  shorter  terms  or  repricing  frequencies;   (3)
purchasing investments with  maturities/repricing  dates within 2 years; and (4)
purchasing floating rate CMO's which reprice on a monthly basis.

The following table  illustrates  the Company's  estimated  stressed  cumulative
repricing gap - the difference between the amount of interest-earning assets and
interest-bearing  liabilities  expected to reprice at a given point in time - at
June 30, 2004. The table estimates the impact of an upward or downward change in
market interest rates of 100 and 200 basis points.

<TABLE>
<CAPTION>

                                                              Cummulative Stressed Repricing Gap
                                                              ----------------------------------

                            Month 3         Month 6        Month 12        Month 24         Month 36      Month 60        Long Term
                            -------         -------        --------        --------         --------      --------        ---------
                                                                       (Dollars in Thousands)
<S>                         <C>             <C>             <C>             <C>             <C>            <C>              <C>
Base Case Up 200 bp
-------------------
Cummulative
 Gap ($'s)                  (10,549)        (11,549)        (24,679)        (62,693)        (79,788)       (92,251)         26,444
% of Total
  Assets                       -2.4%           -2.7%           -5.7%          -14.4%          -18.4%         -21.3%             6.1%
Base Case Up 100 bp
-------------------
Cummulative
 Gap ($'s)                   43,923          43,249          45,505          10,411          51,697         78,439          26,444
% of Total
  Assets                       10.1%           10.0%           10.5%            2.4%           11.9%          18.1%            6.1%
Base Case No Change
-------------------
Cummulative
 Gap ($'s)                   96,304          99,518         116,796         194,004         183,364        164,885          26,444
% of Total
  Assets                       22.2%           22.9%           26.9%           44.7%           42.2%          38.0%            6.1%
Base Case Down 100 bp
---------------------
Cummulative
 Gap ($'s)                  115,093         120,934         141,000         204,736         192,403        169,095          26,444
% of Total
  Assets                       26.5%           27.9%           32.5%           47.2%           44.3%          39.0%            6.1%
Base Case Down 200 bp
---------------------
Cummulative
 Gap ($'s)                  134,210         172,340         208,637         209,726         194,428        169,285          26,444
% of Total
 Assets                        30.9%           39.7%           48.1%           48.3%           44.8%          39.0%            6.1%
</TABLE>

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


                                       15
<PAGE>

The following  table presents the simulated  impact of a 100 and 200 basis point
upward or downward shift in market  interest  rates and the estimated  impact on
net interest income,  return on average equity, return on average assets and the
market value of portfolio equity at June 30, 2004 and June 30, 2003.

<TABLE>
<CAPTION>

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

                                                              Modeled Change in Market Interest Rates
                           --------------------------------------------------------------------------------------------------------
                                             June 30, 2004                                          June 30, 2003
                           --------------------------------------------------    --------------------------------------------------
Estimated impact on:         -200     -100         0         +100      +200       -200        -100       0        +100       +200
-------------------        -------   -------    -------    -------    -------    -------    -------   -------    -------    -------
<S>                        <C>       <C>        <C>        <C>        <C>        <C>        <C>       <C>        <C>        <C>
Change in net               -44.9%    -20.6%      0.00%      38.8%      64.4%     -47.6%     -35.0%     0.00%      24.8%      46.8%
interest income

Return on average            0.33%     4.01%      7.00%     12.39%     15.78%      0.31%      1.88%     6.16%      9.08%     11.62%
equity

Return on average            0.02%     0.29%      0.51%      0.92%      1.19%      0.02%      0.14%     0.47%      0.70%      0.91%
assets

Market value of           $16,255   $21,386    $27,424    $26,957    $20,079    $(4,248)   $ 5,191   $13,582    $19,086    $22,309
equity (in thousands)
</TABLE>

The  table  below   provides   information   about  the  Company's   anticipated
transactions comprised of firm loan commitments and other commitments, including
undisbursed  letters  and  lines  of  credit.  The  Company  used no  derivative
financial  instruments  to hedge such  anticipated  transactions  as of June 30,
2004.

                                  Anticipated Transactions
             -------------------------------------------------------------------
                                                          (Dollars in Thousands)

             Undisbursed construction and development loans
                   Fixed rate                                    $   2,719
                                                                      5.58%

                   Adjustable rate                               $   7,237
                                                                      4.95%

             Undisbursed lines of credit
                   Adjustable rate                               $   6,015
                                                                      4.80%

             Loan origination commitments
                   Fixed rate                                    $     571
                                                                      6.58%

                   Adjustable rate                               $   2,095
                                                                      6.21%

             Letters of credit
                   Adjustable rate                               $   1,576
                                                                      5.01%
                                                                 ---------
                                                                 $  20,213
                                                                 =========


                                       16
<PAGE>

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Stockholders
WVS Financial Corp.

We have audited the  accompanying  consolidated  balance  sheet of WVS Financial
Corp. and subsidiary as of June 30, 2004 and 2003, 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, 2004. These financial statements are the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these consolidated financial statements based on our audits.

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

In our opinion, the consolidated  financial statements referred to above present
fairly, in all material respects,  the financial position of WVS Financial Corp.
and subsidiary as of June 30, 2004 and 2003, and the results of their operations
and their cash flows for each of the years in the  three-year  period ended June
30, 2004, in conformity with  accounting  principles  generally  accepted in the
United States of America.

/s/ S.R. Snodgrass A.C.
----------------------
Wexford, PA
July 30, 2004


                                       17
<PAGE>

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

<TABLE>
<CAPTION>
                                                                                           June 30,
                                                                                    2004               2003
                                                                                 ----------         ----------
<S>                                                                              <C>                <C>
ASSETS
     Cash and due from banks                                                     $      769         $      921
     Interest-earning demand deposits                                                 2,285              1,894
                                                                                 ----------         ----------
     Total cash and cash equivalents                                                  3,054              2,815
     Trading securities                                                                 993                 --
     Investment securities available for sale (amortized
       cost of $4,113 and $25,310)                                                    4,416             25,641
     Investment securities held to maturity (market value
       of $271,103 and $126,036)                                                    269,173            121,841
     Mortgage-backed securities available for sale
       (amortized cost of $3,234 and $4,219)                                          3,357              4,387
     Mortgage-backed securities held to maturity
       (market value of $72,099 and $107,914)                                        72,233            107,492
     Net loans receivable (allowance for loan losses of
       $1,370 and $2,530)                                                            67,968             91,669
     Accrued interest receivable                                                      2,456              2,800
     Federal Home Loan Bank stock, at cost                                            7,532              7,797
     Premises and equipment                                                           1,077              1,231
     Other assets                                                                     1,365              1,515
                                                                                 ----------         ----------

           TOTAL ASSETS                                                          $  433,624         $  367,188
                                                                                 ==========         ==========

LIABILITIES
     Deposits                                                                    $  160,563         $  170,926
     Federal Home Loan Bank advances                                                149,736            153,390
     Other borrowings                                                                91,639              9,453
     Accrued interest payable                                                         1,197              1,449
     Other liabilities                                                                1,290              1,352
                                                                                 ----------         ----------
TOTAL LIABILITIES                                                                   404,425            336,570
                                                                                 ----------         ----------

STOCKHOLDERS' EQUITY
     Preferred stock, no par value; 5,000,000 shares authorized;
       none outstanding                                                                  --                 --
     Common stock, par value $.01; 10,000,000 shares authorized;
       3,762,968 and 3,736,750 shares issued                                             38                 37
     Additional paid-in capital                                                      20,727             20,212
     Treasury stock (1,296,544 and 1,153,591 shares at cost)                        (19,377)           (16,767)
     Retained earnings - substantially restricted                                    27,535             26,857
     Accumulated other comprehensive income                                             281                329
     Unallocated shares - Recognition and Retention Plans                                (5)               (50)
                                                                                 ----------         ----------
TOTAL STOCKHOLDERS' EQUITY                                                           29,199             30,618
                                                                                 ----------         ----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                       $  433,624         $  367,188
                                                                                 ==========         ==========
</TABLE>

See accompanying notes to the consolidated financial statements.


                                       18
<PAGE>

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

<TABLE>
<CAPTION>
                                                                      Year Ended June 30,
                                                           2004                2003             2002
                                                        -----------        -----------       -----------
<S>                                                     <C>                <C>               <C>
INTEREST AND DIVIDEND INCOME
     Loans                                              $     5,180        $     9,524       $    13,242
     Investment securities                                    8,350              6,590             6,735
     Mortgage-backed securities                               2,347              2,854             3,341
     Interest-earning demand deposits                             9                 11                10
     Federal Home Loan Bank stock                               120                252               432
                                                        -----------        -----------       -----------
         Total interest and dividend income                  16,006             19,231            23,760
                                                        -----------        -----------       -----------

INTEREST EXPENSE
     Deposits                                                 2,321              3,312             5,082
     Federal Home Loan Bank advances                          8,120              8,224             8,635
     Other borrowings                                           546                274               308
                                                        -----------        -----------       -----------
         Total interest expense                              10,987             11,810            14,025
                                                        -----------        -----------       -----------

NET INTEREST INCOME                                           5,019              7,421             9,735
Provision (recovery) for loan losses                           (794)              (228)               57
                                                        -----------        -----------       -----------
NET INTEREST INCOME AFTER PROVISION
     (RECOVERY) FOR LOAN LOSSES                               5,813              7,649             9,678
                                                        -----------        -----------       -----------

NONINTEREST INCOME
     Service charges on deposits                                385                361               403
     Investment securities gains                                 20                 64                --
     Other                                                      310                300               284
                                                        -----------        -----------       -----------
         Total noninterest income                               715                725               687
                                                        -----------        -----------       -----------

NONINTEREST EXPENSE
     Salaries and employee benefits                           1,992              2,240             2,448
     Occupancy and equipment                                    433                398               375
     Data processing                                            231                221               190
     Correspondent bank charges                                 142                152               163
     Other                                                      809                945               928
                                                        -----------        -----------       -----------
         Total noninterest expense                            3,607              3,956             4,104
                                                        -----------        -----------       -----------

Income before income taxes                                    2,921              4,418             6,261

Income taxes                                                    619              1,070             1,813
                                                        -----------        -----------       -----------

NET INCOME                                              $     2,302        $     3,348       $     4,448
                                                        ===========        ===========       ===========

EARNINGS PER SHARE:
     Basic                                              $      0.91        $      1.28       $      1.63
     Diluted                                                   0.90               1.28              1.63

AVERAGE SHARES OUTSTANDING:
     Basic                                                2,535,796          2,617,576         2,723,891
     Diluted                                              2,544,404          2,624,395         2,732,491
</TABLE>

See accompanying notes to the consolidated financial statements.


                                       19
<PAGE>

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

<TABLE>
<CAPTION>
                                                                                              Retained
                                                                   Additional                 Earnings-
                                                        Common       Paid-in     Treasury  Substantially
                                                        Stock        Capital       Stock     Restricted
                                                        ------     ----------    --------  -------------
<S>                                                     <C>         <C>         <C>           <C>
Balance June 30, 2001                                   $   37      $ 19,742    $(13,589)     $ 22,478

Comprehensive income:
  Net income                                                                                     4,448
  Unrealized gain on available-
    for-sale securities, net of
    taxes of $48
Tax benefit from stock grants issued
  under RRPs                                                              54
Accrued compensation expense for RRPs
Exercise of stock options                                                241
Purchase of treasury stock                                                        (1,544)
Cash dividends declared ($0.64 per share)                                                       (1,743)
                                                        ------      --------    --------      --------

Balance June 30, 2002                                       37        20,037     (15,133)       25,183
Comprehensive income:
  Net income                                                                                     3,348
  Unrealized gain on available-
    for-sale securities, net of
    taxes of $66
Tax benefit from stock grants issued
  under RRPs                                                             104
Accrued compensation expense for RRPs
Exercise of stock options                                                 71
Purchase of treasury stock                                                        (1,634)
Cash dividends declared ($0.64 per share)                                                       (1,674)
                                                        ------      --------    --------      --------

Balance June 30, 2003                                       37        20,212     (16,767)       26,857

Comprehensive income:
  Net income                                                                                     2,302
  Unrealized loss on available
    for sale securities, net of tax benefit of $25
Tax benefit from stock grants issued
  under RRPs                                                              27
Accrued compensation expense for RRPs
Cancellation of unallocated RRP shares
Exercise of stock options                                    1           488
Purchase of treasury stock                                                        (2,610)
Cash dividends declared ($0.64 per share)                                                       (1,624)
                                                        ------      --------    --------      --------
Balance June 30, 2004                                   $   38      $ 20,727    $(19,377)     $ 27,535
                                                        ======      ========    ========      ========

<CAPTION>
                                                                          Accumulated
                                                           Unallocated       Other
                                                           Shares Held   Comprehensive
                                                              by RRP      Income (Loss)      Total
                                                           -----------   -------------     --------
<S>                                                         <C>             <C>            <C>
Balance June 30, 2001                                       $   (131)       $    108       $ 28,645

Comprehensive income:
  Net income                                                                                  4,448
  Unrealized gain on available-
    for-sale securities, net of
    taxes of $48                                                                  93             93
Tax benefit from stock grants issued
  under RRPs                                                                                     54
Accrued compensation expense for RRPs                             59                             59
Exercise of stock options                                                                       241
Purchase of treasury stock                                                                   (1,544)
Cash dividends declared ($0.64 per share)                                                    (1,743)
                                                            --------        --------       --------

Balance June 30, 2002                                            (72)            201         30,253
Comprehensive income:
  Net income                                                                                  3,348
  Unrealized gain on available-
    for-sale securities, net of
    taxes of $66                                                                 128            128
Tax benefit from stock grants issued
  under RRPs                                                                                    104
Accrued compensation expense for RRPs                             22                             22
Exercise of stock options                                                                        71
Purchase of treasury stock                                                                   (1,634)
Cash dividends declared ($0.64 per share)                                                    (1,674)
                                                            --------        --------       --------

Balance June 30, 2003                                            (50)            329         30,618

Comprehensive income:
  Net income                                                                                  2,302
  Unrealized loss on available
    for sale securities, net of tax benefit of $25                               (48)           (48)
Tax benefit from stock grants issued
  under RRPs                                                                                     27
Accrued compensation expense for RRPs                              5                              5
Cancellation of unallocated RRP shares                            40                             40
Exercise of stock options                                                                       489
Purchase of treasury stock                                                                   (2,610)
Cash dividends declared ($0.64 per share)                                                    (1,624)
                                                            --------        --------       --------
Balance June 30, 2004                                       $     (5)       $    281       $ 29,199
                                                            ========        ========       ========
</TABLE>

        See accompanying notes to the consolidated financial statements.


                                       20
<PAGE>

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

<TABLE>
<CAPTION>
                                                                                           Year Ended June 30,
                                                                                   2004            2003            2002
                                                                                ---------       ---------       ---------
<S>                                                                             <C>             <C>             <C>
OPERATING ACTIVITIES
     Net income                                                                 $   2,302       $   3,348       $   4,448
     Adjustments to reconcile net income to net cash
       provided by operating activities:
          Provision (recovery) for loan losses                                       (794)           (228)             57
          Depreciation                                                                188             156             123
          Investment securities gains                                                 (20)            (64)             --
          Amortization of discounts, premiums, and
            deferred loan fees                                                      1,166           3,205             766
          Purchase of trading securities                                             (999)             --              --
          Deferred income taxes                                                       171              43             (93)
          Decrease (increase) in accrued interest receivable                          344           1,103             (66)
          Decrease in accrued interest payable                                       (252)           (249)           (743)
          Other, net                                                                   20            (263)             11
                                                                                ---------       ---------       ---------
             Net cash provided by operating activities                              2,126           7,051           4,503
                                                                                ---------       ---------       ---------
INVESTING ACTIVITIES
     Available for sale:
          Purchase of investment and mortgage-backed
            securities                                                            (23,890)        (25,836)        (29,454)
          Proceeds from repayments of investment and
            mortgage-backed securities                                             45,852          10,313          24,793
          Proceeds from sales of investment and
            mortgage-backed securities                                                251             639              --
     Held to maturity:
          Purchase of investment and mortgage-backed
            securities                                                           (401,567)       (259,234)       (296,854)
          Proceeds from repayments of investment and
            mortgage-backed securities                                            288,489         246,069         260,973
     Net decrease in net loans receivable                                          23,751          61,131          31,520
     Purchase of Federal Home Loan Bank stock                                      (1,584)         (1,021)           (131)
     Redemption of Federal Home Loan Bank stock                                     1,849           1,505              --
     Acquisition of premises and equipment                                            (34)           (391)           (118)
     Other, net                                                                       572             220             180
                                                                                ---------       ---------       ---------

            Net cash provided by (used for) investing activities                  (66,311)         33,395          (9,091)
                                                                                ---------       ---------       ---------
FINANCING ACTIVITIES
     Net decrease in deposits                                                     (10,363)         (6,746)         (3,667)
     Net increase (decrease) in Federal Home Loan Bank short-term advances         (3,875)          3,875         (14,836)
     Net increase (decrease) in other borrowings                                   82,186         (24,278)         13,071
     Proceeds from Federal Home Loan Bank long-term advances                          500             578          23,279
     Repayments of Federal Home Loan Bank long-term advances                         (279)        (11,000)        (10,000)
     Net proceeds from exercise of stock options                                      489              71             212
     Cash dividends paid                                                           (1,624)         (1,674)         (1,743)
     Purchase of treasury stock                                                    (2,610)         (1,634)         (1,544)
                                                                                ---------       ---------       ---------
            Net cash provided by (used for) financing activities                   64,424         (40,808)          4,772
                                                                                ---------       ---------       ---------
Increase (decrease) in cash and cash equivalents                                      239            (362)            184
CASH AND CASH EQUIVALENTS AT BEGINNING
     OF YEAR                                                                        2,815           3,177           2,993
                                                                                ---------       ---------       ---------
CASH AND CASH EQUIVALENTS AT END OF YEAR                                        $   3,054       $   2,815       $   3,177
                                                                                =========       =========       =========
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the year for:
     Interest                                                                   $  11,238       $  12,059       $  14,768
     Taxes                                                                            363           1,049           1,735
</TABLE>

See accompanying notes to the consolidated financial statements.


                                       21
<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 to accounting  principles  generally  accepted in the
     United  States of America.  The  Company's  fiscal  year-end for  financial
     reporting is June 30. For regulatory and income tax reporting purposes, WVS
     reports on a December 31 calendar year basis.

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

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

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

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


                                       22
<PAGE>

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

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

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

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

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

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

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

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

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

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

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


                                       23
<PAGE>

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

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

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

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

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

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

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

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

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

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

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

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

     The Company maintains stock option plans for key officers,  employees,  and
     non-employee directors.

     As permitted under Statement of Financial  Accounting Standards ("FAS") 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 FAS 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.


                                       24
<PAGE>

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

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

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

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

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

     In December 2003 the Financial  Accounting Standards Board ("FASB") revised
     FAS No. 132, Employers'  Disclosures About Pension and Other Postretirement
     Benefit.  This statement  retains the disclosures  required by FAS No. 132,
     which  standardized  the  disclosure  requirements  for  pensions and other
     postretirement  benefits to the extent practicable and requires  additional
     information  on changes in the benefit  obligations  and fair value of plan
     assets.  Additional disclosures include information describing the types of
     plan assets,  investment strategy,  measurement date(s),  plan obligations,
     cash flows, and components of net periodic  benefit cost recognized  during
     interim periods. This statement retains reduced disclosure requirements for
     nonpublic entities from FAS No. 132, and it includes reduced disclosure for
     certain of the new requirements.  This statement is effective for financial
     statements  with fiscal years ending after  December 15, 2003.  The interim
     disclosures  required by this  statement are effective for interim  periods
     beginning  after  December 15, 2003. The adoption of this statement did not
     have a material effect on the Company's disclosure requirements.

     In April 2003 the FASB issued FAS No. 149,  Amendment of  Statement  133 on
     Derivative  Instruments and Hedging  Activities.  This statement amends and
     clarifies   accounting  for  derivative   instruments,   including  certain
     derivative  instruments  embedded  in  other  contracts,  and  for  hedging
     activities  under FAS No.  133.  The  amendments  set forth in FAS No.  149
     improve  financial  reporting by requiring that  contracts with  comparable
     characteristics be accounted for similarly.  In particular,  this statement
     clarifies  under  what   circumstances  a  contract  with  an  initial  net
     investment meets the characteristic of a derivative as discussed in FAS No.
     133. In  addition,  it  clarifies  when a  derivative  contains a financing
     component that warrants  special  reporting in the statement of cash flows.
     FAS No.149 amends certain other existing pronouncements. Those changes will
     result in more  consistent  reporting of contracts that are  derivatives in
     their entirety or that contain  embedded  derivatives that warrant separate
     accounting.  This  statement is  effective  for  contracts  entered into or
     modified after  September 30, 2003,  except as stated below and for hedging
     relationships  designated  after September 30, 2003. The guidance should be
     applied prospectively.  The provisions of this statement that relate to FAS
     No.  133,  Implementation  Issues,  that have  been  effective  for  fiscal
     quarters  that began prior to  September  15, 2003,  should  continue to be
     applied in accordance with their  respective  effective dates. In addition,
     certain  provisions  relating to forward  purchases or sales of when-issued
     securities or other securities that do not yet exist,  should be applied to
     existing  contracts as well as new contracts  entered into after  September
     30, 2003. The adoption of this statement did not have a material  effect on
     the Company's financial position or results of operations.


                                       25
<PAGE>

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

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

     Recent Accounting Pronouncements (Continued)
     --------------------------------

     In May 2003 the FASB issued FAS No. 150,  Accounting for Certain  Financial
     Instruments  With  Characteristics  of Both  Liabilities  and Equity.  This
     statement  establishes  standards for how an issuer classifies and measures
     certain financial  instruments with characteristics of both liabilities and
     equity. It requires that an issuer classify a financial  instrument that is
     within its scope as a liability (or an asset in some  circumstances).  Such
     instruments may have been previously  classified as equity.  This statement
     is effective for financial  instruments  entered into or modified after May
     31, 2003,  and otherwise is effective at the beginning of the first interim
     period  beginning  after September 15, 2003. The adoption of this statement
     did not have a material effect on the Company's reported equity.

     In January 2003 the FASB issued  Interpretation  No. 46,  Consolidation  of
     Variable  Interest  Entities,  in an effort to expand  upon and  strengthen
     existing  accounting  guidance that addresses when a company should include
     in its financial  statements  the assets,  liabilities,  and  activities of
     another entity. The objective of this interpretation is not to restrict the
     use of variable  interest  entities but to improve  financial  reporting by
     companies involved with variable interest entities.  Until now, one company
     generally  has  included  another  entity  in  its  consolidated  financial
     statements only if it controlled the entity through voting interests.  This
     interpretation  changes that, by requiring a variable interest entity to be
     consolidated  by a company if that  company is subject to a majority of the
     risk of loss from the variable interest entity's  activities or entitled to
     receive  a  majority  of  the  entity's   residual  returns  or  both.  The
     consolidation  requirements  of this  interpretation  apply  immediately to
     variable   interest   entities   created  after   January  31,  2003.   The
     consolidation requirements apply to older entities in the first fiscal year
     or interim period beginning after June 15, 2003.  Certain of the disclosure
     requirements  apply in all  financial  statements  issued after January 31,
     2003,  regardless of when the variable interest entity was established.  In
     October 2003 the FASB decided to defer to the fourth quarter from the third
     quarter the  implementation  date for  Interpretation No. 46. This deferral
     only applies to variable  interest  entities that existed prior to February
     1, 2003. The adoption of this interpretation has not and is not expected to
     have a material  effect on the Company's  financial  position or results of
     operations.

2.   EARNINGS PER SHARE

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

<TABLE>
<CAPTION>
                                                           2004             2003              2002
                                                        ----------       ----------       ----------
<S>                                                     <C>              <C>               <C>
      Weighted-average common shares
           issued                                        3,747,821        3,731,949        3,718,640

      Average treasury stock shares                     (1,212,025)      (1,114,373)        (994,749)
                                                        ----------       ----------       ----------

      Weighted-average common shares and
           common stock equivalents used to
           calculate basic earnings per share            2,535,796        2,617,576        2,723,891

      Additional common stock equivalents
           (stock options) used to calculate
           diluted earnings per share                        8,608            6,819            8,600
                                                        ----------       ----------       ----------

      Weighted-average common shares and
           common stock equivalents used
           to calculate diluted earnings per share       2,544,404        2,624,395        2,732,491
                                                        ==========       ==========       ==========
</TABLE>


                                       26
<PAGE>

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

2.   EARNINGS PER SHARE (Continued)

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

3.   COMPREHENSIVE INCOME

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

<TABLE>
<CAPTION>
                                                                               2004          2003         2002
                                                                            ---------     ---------    ---------
<S>                                                                         <C>           <C>          <C>
      Net Income                                                            $   2,302     $   3,348    $   4,448
      Other comprehensive income:
            Unrealized gains (losses) on available-for-sale securities            (93)          258          141
            Less: Reclassification adjustment for gain included
                     in net income                                                 20            64           --
                                                                            ---------     ---------    ---------
      Other comprehensive income (loss) before tax                                (73)          194          141
      Income tax expense (benefit) related to other
            comprehensive income (loss)                                           (25)           66           48
                                                                            ---------     ---------    ---------
      Other comprehensive income (loss), net of tax                               (48)          128           93
                                                                            ---------     ---------    ---------
      Comprehensive income                                                  $   2,254     $   3,476    $   4,541
                                                                            =========     =========    =========
</TABLE>

4.   INVESTMENT SECURITIES

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

<TABLE>
<CAPTION>
                                                                  Gross          Gross          Estimated
                                                Amortized      Unrealized      Unrealized         Market
                                                   Cost           Gains          Losses           Value
                                               ----------      ----------      ----------       ----------
<S>                                            <C>             <C>             <C>              <C>
      2004
      ----
      AVAILABLE FOR SALE
      Corporate debt securities                $    2,532      $       18      $       --       $    2,550
      Equity securities                             1,581             313             (28)           1,866
                                               ----------      ----------      ----------       ----------

           Total                               $    4,113      $      331      $      (28)      $    4,416
                                               ==========      ==========      ==========       ==========

      HELD TO MATURITY
      U.S. Government agency securities        $  223,808      $    1,176      $     (864)      $  224,120
      Corporate debt securities                    13,772              16              --           13,788
      Obligations of states and political
        subdivisions                               31,593           1,641             (39)          33,195
                                               ----------      ----------      ----------       ----------

           Total                               $  269,173      $    2,833      $     (903)      $  271,103
                                               ==========      ==========      ==========       ==========
</TABLE>


                                       27
<PAGE>

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

4.   INVESTMENT SECURITIES (Continued)

<TABLE>
<CAPTION>
                                                                Gross         Gross       Estimated
                                                Amortized    Unrealized    Unrealized       Market
                                                  Cost          Gains        Losses         Value
                                               ----------    ----------    ----------     ----------
<S>                                            <C>           <C>           <C>            <C>
      2003
      ----
      AVAILABLE FOR SALE
      Preferred trust securities               $      128    $        3    $       --     $      131
      Corporate debt securities                     7,428            62            (2)         7,488
      Obligations of states and political
        subdivisions                                1,000            --            --          1,000
      Commercial paper                             15,442            --            (1)        15,441
      Equity securities                             1,312           269            --          1,581
                                               ----------    ----------    ----------     ----------

           Total                               $   25,310    $      334    $       (3)    $   25,641
                                               ==========    ==========    ==========     ==========

      HELD TO MATURITY
      U.S. Government agency securities        $   24,097    $      601    $       --     $   24,698
      Corporate debt securities                    66,978           487            (6)        67,459
      Commercial paper                              1,099            --            --          1,099
      Obligations of states and political
        subdivisions                               29,667         3,113            --         32,780
                                               ----------    ----------    ----------     ----------

           Total                               $  121,841    $    4,201    $       (6)    $  126,036
                                               ==========    ==========    ==========     ==========
</TABLE>

     In 2004 the  Company  recorded  realized  investment  security  gains,  and
     unrealized  holding  gains  and  losses  for  trading  securities,  of $20.
     Proceeds from sales of investment securities during 2004 were $251.

     The amortized cost and estimated  market values of debt  securities at June
     30, 2004, 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
                                        --------     -----------   ------------   ---------      --------
<S>                                     <C>           <C>            <C>           <C>           <C>
      AVAILABLE FOR SALE
         Amortized cost                 $  2,532      $      --      $     --      $     --      $  2,532
         Estimated market value            2,550             --            --            --         2,550

      HELD TO MATURITY
         Amortized cost                 $ 14,073      $      --      $  2,062      $253,038      $269,173
         Estimated market value           14,088             --         2,200       254,815       271,103
</TABLE>

     Investment  securities  with  amortized  costs of $138,899  and $17,624 and
     estimated  market values of $139,411 and $18,009 at June 30, 2004 and 2003,
     respectively,   were  pledged  to  secure   public   deposits,   repurchase
     agreements, and for other purposes as required by law.


                                       28
<PAGE>

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

5.   MORTGAGE-BACKED SECURITIES

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

<TABLE>
<CAPTION>
                                                                 Gross           Gross           Estimated
                                                Amortized      Unrealized      Unrealized          Market
                                                  Cost           Gains           Losses            Value
                                               ----------      ----------      ----------       ----------
<S>                                            <C>             <C>             <C>              <C>
      2004
      ----
      AVAILABLE FOR SALE

      Fannie Mae                               $      686      $       37      $       --       $      723
      Government National Mortgage
        Association certificates                    2,411              80              (1)           2,490
      Freddie Mac                                      45               1              --               46
      Collateralized mortgage obligations              92               6              --               98
                                               ----------      ----------      ----------       ----------
           Total                               $    3,234      $      124      $       (1)      $    3,357
                                               ==========      ==========      ==========       ==========

      HELD TO MATURITY

      Fannie Mae                               $       19      $       --      $       --       $       19
      Government National Mortgage
        Association certificates                      591              42              --              633
      Freddie Mac                                      17              --              --               17
      Collateralized mortgage obligations          71,606             117            (293)          71,430
                                               ----------      ----------      ----------       ----------
           Total                               $   72,233      $      159      $     (293)      $   72,099
                                               ==========      ==========      ==========       ==========

<CAPTION>
                                               -----------------------------------------------------------
                                                                 Gross           Gross           Estimated
                                                Amortized      Unrealized      Unrealized          Market
                                                  Cost           Gains           Losses            Value
                                               ----------      ----------      ----------       ----------
<S>                                            <C>             <C>             <C>              <C>
      2003
      ----
      AVAILABLE FOR SALE
      Fannie Mae                               $    1,494      $       78      $       --       $    1,572
      Government National Mortgage
        Association certificates                    2,510              70              --            2,580
      Freddie Mac                                      47               3              --               50
      Collateralized mortgage obligations             168              17              --              185
                                               ----------      ----------      ----------       ----------
           Total                               $    4,219      $      168      $       --       $    4,387
                                               ==========      ==========      ==========       ==========

      HELD TO MATURITY
      Fannie Mae                               $       29      $        1      $       --       $       30
      Government National Mortgage
        Association certificates                    2,603              81             (17)           2,667
      Freddie Mac                                      36              --              --               36
      Collateralized mortgage obligations         104,824             392             (35)         105,181
                                               ----------      ----------      ----------       ----------
           Total                               $  107,492      $      474      $      (52)      $  107,914
                                               ==========      ==========      ==========       ==========
</TABLE>


                                       29
<PAGE>

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

5.   MORTGAGE-BACKED SECURITIES (Continued)

     The amortized cost and estimated market value of mortgage-backed securities
     at June 30,  2004,  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
                                        --------      ----------      ------------      ---------     -------
<S>                                     <C>             <C>             <C>              <C>          <C>
      AVAILABLE FOR SALE
         Amortized cost                 $    --         $    18         $     --         $ 3,216      $ 3,234
         Estimated market value              --              18               --           3,339        3,357

      HELD TO MATURITY
         Amortized cost                 $    --         $    26         $     --         $72,207      $72,233
         Estimated market value              --              26               --          72,073       72,099
</TABLE>

     At June 30, 2004 and 2003,  mortgage-backed  securities  with an  amortized
     cost of $65,496  and  $67,746 and  estimated  market  values of $65,486 and
     $68,179, were pledged to secure borrowings with the Federal Home Loan Bank.

6.   UNREALIZED LOSSES ON SECURITIES

     The following  table shows the Company's gross  unrealized  losses and fair
     value,  aggregated  by  category  and  length of time  that the  individual
     securities have been in a continuous  unrealized loss position, at June 30,
     2004.

<TABLE>
<CAPTION>
                                         Less than Twelve Months     Twelve Months or Greater                Total
                                       -------------------------------------------------------     ------------------------
                                        Estimated        Gross       Estimated        Gross        Estimated        Gross
                                          Market      Unrealized       Market       Unrealized       Market      Unrealized
                                          Value         Losses         Value          Losses         Value         Losses
                                        ---------     ----------     ---------      ----------     ---------     ----------
<S>                                     <C>            <C>            <C>            <C>            <C>            <C>
      U.S. government agencies
        securities                      $ 84,084       $    864       $     --       $     --       $ 84,084       $    864
      Obligations of states and
        political subdivisions             1,312             39             --             --          1,312             39
      Government National Mortgage
        Association certificates              40              1             --             --             40              1
      Collateralized mortgage             60,419            290            348              3         60,767            293
        obligations
      Equity securities                      972             28             --             --            972             28
                                        --------       --------       --------       --------       --------       --------
           Total                        $146,827       $  1,222       $    348       $      3       $147,175       $  1,225
                                        ========       ========       ========       ========       ========       ========
</TABLE>

The policy of the Company is to recognize an other than temporary  impairment on
equity  securities  where the fair value has been  significantly  below cost for
three  consecutive  quarters.  For fixed maturity  investments  with  unrealized
losses due to  interest  rates where the  Company  has the  positive  intent and
ability to hold the investment for a period of time sufficient to allow a market
recovery,  declines  in value  below  cost  are not  assumed  to be  other  than
temporary. The Company reviews its position


                                       30
<PAGE>

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

6.   UNREALIZED LOSSES ON SECURITIES (Continued)

     quarterly and has asserted that at June 30, 2004, the declines  outlined in
     the above table represent  temporary declines and the Company does have the
     intent and ability to hold those securities  either to maturity or to allow
     a market recovery.

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

7.    NET LOANS RECEIVABLE

<TABLE>
<CAPTION>
                                                                 2004           2003
                                                              ----------     ----------
<S>                                                           <C>            <C>
      First mortgage loans:
           1 - 4 family dwellings                             $   25,825     $   43,255
           Construction                                           18,070         16,942
           Land acquisition and development                        7,947          7,437
           Multi-family dwellings                                  4,761          5,196
           Commercial                                              9,950         17,949
                                                              ----------     ----------
                                                                  66,553         90,779
                                                              ----------     ----------
      Consumer loans:
           Home equity                                             7,086          8,006
           Home equity lines of credit                             3,932          4,368
           Other                                                     870          1,069
                                                              ----------     ----------
                                                                  11,888         13,443
                                                              ----------     ----------

      Commercial loans                                               968          1,499
                                                              ----------     ----------

      Less:
           Undisbursed construction and land development           9,956         11,348
           Net deferred loan fees                                    115            174
           Allowance for loan losses                               1,370          2,530
                                                              ----------     ----------
                                                                  11,441         14,052
                                                              ----------     ----------

      Net loans receivable                                    $   67,968     $   91,669
                                                              ==========     ==========
</TABLE>

Major classifications of loans are summarized as follows:

The Company's  primary  business  activity is with customers  located within its
local trade area of Northern Allegheny and Southern Butler counties. The Company
has  concentrated  its lending efforts by granting  residential and construction
mortgage  loans to customers  throughout  its immediate  trade area. The Company
also selectively  funds and participates in commercial and residential  mortgage
loans  outside  of its  immediate  trade  area,  provided  such  loans  meet the
Company's credit policy  guidelines.  At June 30, 2004 and 2003, the Company had
approximately  $15 million and $12 million,  respectively,  of outstanding loans
for land  development  and  construction  in the local trade area.  Although the
Company  has a  diversified  loan  portfolio  at June 30,  2004 and 2003,  loans
outstanding to individuals  and businesses are dependent upon the local economic
conditions in its immediate trade area.


                                       31
<PAGE>

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

7.   NET LOANS RECEIVABLE (Continued)

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

<TABLE>
<CAPTION>
                                                            2004            2003            2002
                                                         ----------      ----------      ----------
<S>                                                      <C>             <C>             <C>
      Principal outstanding                              $    2,181      $    3,481      $    5,044
                                                         ----------      ----------      ----------
      Interest income that would
        have been recognized                                    123             256             408
      Interest income recognized                                 94              26             162
                                                         ----------      ----------      ----------
      Interest income foregone                           $       29      $      230      $      246
                                                         ==========      ==========      ==========
</TABLE>

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

<TABLE>
<CAPTION>
                                                            2004             2003           2002
                                                         ----------      ----------      ----------
<S>                                                      <C>             <C>             <C>
      Impaired loans with an allocated allowance         $    1,900      $    3,423      $    3,600
      Impaired loans without an allocated allowance              --              --              --
                                                         ----------      ----------      ----------
         Total impaired loans                            $    1,900      $    3,423      $    3,600
                                                         ==========      ==========      ==========
      Allocated allowance on impaired loans              $      762      $    1,816      $    1,764
      Average impaired loans                                  1,836           3,441           3,586
      Income recognized on impaired loans                        89              23             116
</TABLE>

     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:

<TABLE>
<CAPTION>
                                                            2004              2003
                                                         ----------       ----------
<S>                                                      <C>              <C>
      Balance, July 1                                    $      535       $      822
           Additions                                            101               49
           Amounts collected                                   (320)            (336)
                                                         ----------       ----------
      Balance, June 30                                   $      316       $      535
                                                         ==========       ==========
</TABLE>

8.   ALLOWANCE FOR LOAN LOSSES

     Changes in the allowance for loan losses are as follows:

<TABLE>
<CAPTION>
                                                            2004            2003            2002
                                                         ----------      ----------      ----------
<S>                                                      <C>             <C>             <C>
      Balance, July 1                                    $    2,530      $    2,758      $    2,763
      Add:
           Provision (recovery) for loan losses                (794)           (228)             57
           Recoveries                                           158              --               6
      Less:
           Loans charged off                                    524              --              68
                                                         ----------      ----------      ----------
      Balance, June 30                                   $    1,370      $    2,530      $    2,758
                                                         ==========      ==========      ==========
</TABLE>


                                       32
<PAGE>

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

9.   ACCRUED INTEREST RECEIVABLE

     Accrued interest receivable consists of the following:

                                                        2004             2003
                                                     ----------      ----------

      Investment and mortgage-backed securities      $    2,135      $    2,283
      Loans receivable                                      321             517
                                                     ----------      ----------

           Total                                     $    2,456      $    2,800
                                                     ==========      ==========

10.  FEDERAL HOME LOAN BANK STOCK

     The Savings  Bank is a member of the FHLB  System.  As a member,  West View
     maintains an  investment  in the capital stock of the FHLB of Pittsburgh in
     an amount  not less than 70 basis  points of the  outstanding  unused  FHLB
     borrowing capacity and one-twentieth of its outstanding FHLB borrowings, as
     calculated throughout the year.

11.  PREMISES AND EQUIPMENT

     Major classifications of premises and equipment are summarized as follows:

                                                         2004            2003
                                                      ----------      ----------

      Land and improvements                           $      264      $      264
      Buildings and improvements                           2,024           2,024
      Furniture, fixtures, and equipment                   1,069           1,069
                                                      ----------      ----------
                                                           3,357           3,357
      Less accumulated depreciation                        2,280           2,126
                                                      ----------      ----------
           Total                                      $    1,077      $    1,231
                                                      ==========      ==========

     Depreciation  charged to operations was $188, $156, and $123, for the years
     ended June 30, 2004, 2003, and 2002, respectively.


                                       33
<PAGE>

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

12.  DEPOSITS

     Deposit accounts are summarized as follows:

<TABLE>
<CAPTION>
                                                   2004                             2003
                                         --------------------------       --------------------------
                                                         Percent of                       Percent of
                                           Amount         Portfolio         Amount         Portfolio
                                         ----------      ----------       ----------      ----------
<S>                                      <C>                  <C>         <C>                  <C>
      Non-interest-earning checking      $   10,996             6.8%      $   11,302             6.6%
      Interest-earning checking              22,897            14.3           19,215            11.2
      Savings accounts                       45,837            28.5           44,152            25.8
      Money market accounts                  14,226             8.9           14,691             9.0
      Advance payments by borrowers
         for taxes and insurance              1,245             0.7            1,610             0.8
                                         ----------      ----------       ----------      ----------
                                             95,201            59.2           90,970            53.4
                                         ----------      ----------       ----------      ----------
      Savings certificates:
           2.00% or less                     38,528            24.0           34,419            20.1
           2.01 - 4.00%                      16,875            10.5           27,443            16.0
           4.01 - 6.00%                       8,604             5.4           15,685             9.1
           6.01 - 8.00%                       1,355             0.9            2,409             1.4
                                         ----------      ----------       ----------      ----------
                                             65,362            40.8           79,956            46.6
                                         ----------      ----------       ----------      ----------

           Total                         $  160,563           100.0%      $  170,926           100.0%
                                         ==========      ==========       ==========      ==========
</TABLE>

     The maturities of savings  certificates at June 30, 2004, are summarized as
     follows:

<TABLE>
<S>                                                                    <C>
      Within one year                                                  $  39,766
      Beyond one year but within two years                                12,301
      Beyond two years but within three years                              5,435
      Beyond three years                                                   7,860
                                                                       ---------

           Total                                                       $  65,362
                                                                       =========
</TABLE>

     Savings  certificates  with balances of $100,000 or more amounted to $6,944
     and $14,161 on June 30, 2004 and 2003, respectively.

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

<TABLE>
<CAPTION>
                                                      2004            2003            2002
                                                   ----------      ----------      ----------
<S>                                                <C>             <C>             <C>
      Interest-earning checking accounts           $       47      $       66      $       94
      Savings accounts                                    334             509             735
      Money market accounts                               109             183             257
      Savings certificates                              1,831           2,554           3,996
      Advance payments by borrowers for taxes
        and insurance                                      15              24              33
                                                   ----------      ----------      ----------

           Total                                   $    2,336      $    3,336      $    5,115
                                                   ==========      ==========      ==========
</TABLE>


                                       34
<PAGE>

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

13.  FEDERAL HOME LOAN BANK ADVANCES

          The following table presents contractual  maturities of FHLB long-term
     advances as of June 30:

<TABLE>
<CAPTION>
                                             Weighted        Stated interest
                       Maturity range         average          rate range
 Description          from        to       interest rate     from         to            2004                 2003
-----------         --------   --------    -------------     -----       -----     --------------       ------------
<S>                 <C>        <C>             <C>           <C>         <C>       <C>                  <C>
Convertible         02/20/08   06/22/16        5.35%         2.86%       6.10%     $      144,500       $    144,500
Fixed rate          03/16/06   05/03/10        4.97          2.91        5.43               5,236              5,015
                                                                                   --------------       ------------

                                                                                   $      149,736       $    149,515
                                                                                   ==============       ============
</TABLE>

          Maturities of FHLB long-term advances at June 30, 2004, are summarized
     as follows:

<TABLE>
<CAPTION>
                                                                    Weighted-
                Maturing During                                      average
               Fiscal Year Ended                                    Interest
                    June 30:                   Amount                 Rate
               -----------------            ----------              --------
<S>                                         <C>                       <C>
                      2006                  $    4,157                5.42%
                      2008                       3,000                5.48
                      2009                       5,500                5.16
              2010 and thereafter              137,079                5.34
                                            ----------

                     Total                  $  149,736                5.34%
                                            ==========
</TABLE>

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

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

<TABLE>
<CAPTION>
                                                                        2004            2003
                                                                   ------------     ------------
<S>                                                                <C>              <C>
FHLB revolving and short-term advances:
     Ending balance                                                $         --     $      3,875
     Average balance during the year                                        336            1,149
     Maximum month-end balance during the year                            2,250           14,350
     Average interest rate during the year                                 2.24%            1.64%
     Weighted-average rate at year-end                                       --%            1.35%
</TABLE>

At June 30, 2004, the Company had remaining  intermediate  term (maturing within
five years) borrowing capacity with the FHLB of approximately $61 million.

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


                                       35
<PAGE>

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

14.  OTHER BORROWINGS

     Other  borrowings  include  securities sold under  agreements to repurchase
     with securities brokers.  The outstanding  repurchase  agreements generally
     mature  within  1 to 90 days  from  the  transaction  date  and  qualifying
     collateral has been delivered.  The Company pledged  investment  securities
     with a  carrying  value of $91,866  and  $9,495 at June 30,  2004 and 2003,
     respectively,  as collateral for the repurchase  agreements as explained in
     Note 4. The following table presents information regarding other borrowings
     as of June 30:

                                                        2004            2003
                                                     ----------     ----------

      Ending balance                                 $   91,639     $    9,453
      Average balance during the year                    48,749         18,277
      Maximum month-end balance during the year          93,639         38,184
      Average interest rate during the year                1.12%          1.50%
      Weighted-average rate at year-end                    1.28%          1.23%

15.  COMMITMENTS AND CONTINGENT LIABILITIES

     Loan Commitments

     In the normal course of business,  there are various  commitments  that are
     not  reflected  in  the  Bank's  financial  statements.  These  instruments
     involve,  to varying degrees,  elements of credit and interest rate risk in
     excess of the amount  recognized in the  consolidated  balance  sheet.  The
     Bank's exposure to credit loss in the event of  nonperformance by the other
     parties to the financial  instruments  is  represented  by the  contractual
     amounts as disclosed. Losses, if any, are charged to the allowance for loan
     losses.  Management  minimizes  its  exposure  to credit  loss under  these
     commitments by subjecting them to credit approval,  review procedures,  and
     collateral  requirements  as deemed  necessary.  Various  loan  commitments
     totaling  $20,213  and  $19,340  at June 30,  2004 and 2003,  respectively,
     represent   financial   instruments  with   off-balance   sheet  risk.  The
     commitments outstanding at June 30, 2004, contractually mature in less than
     one year.

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

     Commitments  to extend credit are  agreements to lend to a customer as long
     as  there  is no  violation  of  any  condition  established  in  the  loan
     agreement.  These  commitments  are composed  primarily of the  undisbursed
     portion of construction and land development  loans (Note 6),  residential,
     commercial real estate, and consumer loan originations.

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

     Litigation

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


                                       36
<PAGE>

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

16.  REGULATORY CAPITAL

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

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

     As of June 30, 2004 and 2003, the FDIC categorized the Savings Bank as well
     capitalized under the regulatory framework for prompt corrective action. To
     be  classified  as  a  well  capitalized   financial   institution,   Total
     Risk-Based,  Tier 1 Risk-Based,  and Tier 1 Leverage Capital Ratios must be
     at least 10 percent, 6 percent, and 5 percent, respectively.

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

<TABLE>
<CAPTION>
                                                                                June 30, 2004
                                                         ----------------------------------------------------------------
                                                                      WVS                             West View
                                                         ----------------------------       -----------------------------
                                                            Amount            Ratio             Amount             Ratio
                                                         -----------        ---------       ------------         --------
<S>                                                      <C>                  <C>           <C>                    <C>
      Total Capital (to Risk-Weighted Assets)
      ---------------------------------------

      Actual                                             $    30,416          19.62%        $     27,524           17.98%
      To Be Well Capitalized                                  15,507          10.00               15,306           10.00
      For Capital Adequacy Purposes                           12,405           8.00               12,245            8.00

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

      Actual                                             $    28,918          18.65%        $     26,155           17.09%
      To Be Well Capitalized                                   9,304           6.00                9,184            6.00
      For Capital Adequacy Purposes                            6,203           4.00                6,123            4.00

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

      Actual                                             $    28,918           6.92%        $     26,155            6.30%
      To Be Well Capitalized                                  20,860           5.00               20,743            5.00
      For Capital Adequacy Purposes                           16,688           4.00               16,594            4.00
      </TABLE>


                                       37
<PAGE>

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

16.  REGULATORY CAPITAL (Continued)

<TABLE>
<CAPTION>
                                                                                   June 30, 2003
                                                         ---------------------------------------------------------------
                                                                     WVS                              West View
                                                         ----------------------------       ----------------------------
                                                            Amount            Ratio            Amount             Ratio
                                                         -----------       ----------       -----------         --------
<S>                                                      <C>                  <C>           <C>                   <C>
      Total Capital (to Risk-Weighted Assets)
      ---------------------------------------

      Actual                                             $    32,941          15.57%        $    27,738           13.38%
      To Be Well Capitalized                                  21,176          10.00              20,737           10.00
      For Capital Adequacy Purposes                           16,941           8.00              16,590            8.00

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

      Actual                                             $    30,290          14.30%        $    25,202           12.15%
      To Be Well Capitalized                                  12,706           6.00              12,442            6.00
      For Capital Adequacy Purposes                            8,470           4.00               8,295            4.00

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

      Actual                                             $    30,290           8.42%        $    25,202            7.07%
      To Be Well Capitalized                                  17,967           5.00              17,819            5.00
      For Capital Adequacy Purposes                           14,373           4.00              14,255            4.00
</TABLE>

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

17.  STOCK BENEFIT PLANS

     Stock Option Plan

     The Company maintains a Stock Option Plan for the directors,  officers, and
     employees. 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.


                                       38
<PAGE>

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

17.  STOCK BENEFIT PLANS (Continued)

     Stock Option Plan (Continued)

     The  following  table  presents  information  related  to  the  outstanding
     options:

                                      Officers' and                  Weighted-
                                        Employees'    Directors'      average
                                          Stock         Stock        Exercise
                                         Options       Options         Price
                                      -------------   ----------     ---------
      Outstanding, June 30, 2001          98,396        11,400       $   13.89

           Granted                            --         1,214           15.77
           Exercised                     (15,068)       (6,200)           9.96
           Forfeited                      (4,916)           --           15.63
                                         -------       -------
      Outstanding, June 30, 2002          78,412         6,414       $   14.80

           Granted                            --            --
           Exercised                      (4,992)       (1,200)          11.40
           Forfeited                          --            --
                                         -------       -------
      Outstanding, June 30, 2003          73,420         5,214       $   15.07

           Granted                            --            --
           Exercised                     (34,028)         (800)          15.19
           Forfeited                         (80)           --            5.00
                                         -------       -------

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

      Exercisable at year-end             39,312         4,414       $   14.99
                                         =======       =======

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

     At June 30,  2004,  for officers and  employees  there were 39,312  options
     outstanding,  exercisable at a  weighted-average  exercise price of $15.03,
     and a weighted-average remaining contractual life of 3.84 years.

     There were also 4,414 options  outstanding  and  exercisable  for directors
     with a  weighted-average  exercise price of $14.70,  and a weighted-average
     remaining contractual life of 5.33 years.


                                       39
<PAGE>

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

17.  STOCK BENEFIT PLANS (Continued)

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

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

     An  aggregate  of 300,000  shares of common  stock of WVS 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.

     The RRP expired during 2004 and all unissued shares were retired. RRP costs
     are accrued to  operations  and added back to  stockholders'  equity over a
     four to ten-year vesting period. Net compensation expense attributed to the
     RRPs amounted to $5, $23, and $59 for the years ended June 30, 2004,  2003,
     and 2002.

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

     WVS  maintains  an ESOP  for the  benefit  of  officers  and  Savings  Bank
     employees who have met certain eligibility  requirements related to age and
     length of service.  Compensation  expense for the ESOP was $100,  $100, and
     $200 for the years ended June 30, 2004, 2003, and 2002, respectively. Total
     ESOP  shares  as of June 30,  2004 and  2003,  were  226,839  and  219,865,
     respectively.

18.  DIRECTOR, OFFICER, AND EMPLOYEE BENEFITS

     Profit Sharing Plan

     The Company  maintains a  non-contributory  profit sharing 401(k) plan (the
     "Plan") for its officers and  employees  who have met the age and length of
     service  requirements.  The Plan is a  defined  contribution  plan with the
     contributions  based on a percentage of salaries of the Plan  participants.
     The  Company  made no  contributions  to the Plan for the three years ended
     June 30, 2004, 2003, and 2002.

     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,  2004,  2003,  and 2002,  39,539,  37,939,  and
     48,311 shares, respectively, were held by the Plan.


                                       40
<PAGE>

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

19.  INCOME TAXES

     The provision for income taxes consists of:

<TABLE>
<CAPTION>
                                                        2004           2003             2002
                                                    ----------      ----------      ----------
<S>                                                 <C>             <C>             <C>
      Currently payable:
           Federal                                  $      366      $      794      $    1,667
           State                                            82             233             239
                                                    ----------      ----------      ----------
                                                           448           1,027           1,906
      Deferred                                             171              43             (93)
                                                    ----------      ----------      ----------

           Total                                    $      619      $    1,070      $    1,813
                                                    ==========      ==========      ==========
</TABLE>

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

<TABLE>
<CAPTION>
                                                                        2004            2003
                                                                     ----------      ----------
<S>                                                                  <C>             <C>
      Deferred tax assets:
           Allowance for loan losses                                 $      466      $      860
           Deferred compensation                                            270             314
           Accrued interest receivable on loans                             225             226
           Net operating loss carryforward                                   72              --
           Alternative minimum tax credit                                   174              --
                                                                     ----------      ----------
                   Total gross deferred tax assets                        1,207           1,400
                                                                     ----------      ----------

      Deferred tax liabilities:
           Bad debt reserve for tax reporting purposes                       --              19
           Net unrealized gain on securities available for sale             145             169
           Deferred origination fees, net                                   209             204
           Premises and equipment                                            67              75
                                                                     ----------      ----------
                   Total gross deferred tax liabilities                     421             467
                                                                     ----------      ----------

           Net deferred tax assets                                   $      786      $      933
                                                                     ==========      ==========
</TABLE>

     No valuation  allowance was  established at June 30, 2004 and 2003, in view
     of the  Company's  ability to  carryback  to taxes paid in previous  years,
     future  anticipated  taxable  income,  which is evidenced by the  Company's
     earnings potential, and deferred tax liabilities at June 30.


                                       41
<PAGE>

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

19.  INCOME TAXES (Continued)

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

<TABLE>
<CAPTION>
                                                    2004                         2003                          2002
                                            ---------------------        ---------------------        ---------------------
                                                            % of                         % of                         % of
                                                           Pretax                       Pretax                       Pretax
                                             Amount        Income         Amount        Income         Amount        Income
                                            ---------------------        ---------------------        ---------------------
<S>                                         <C>             <C>          <C>             <C>          <C>              <C>
      Provision at statutory rate           $   993          34.0%       $ 1,502          34.0%       $ 2,129          34.0%
      State income tax, net of federal
        tax benefit                              54           1.9            154           3.5            158           2.5
      Tax exempt income                        (558)        (19.1)          (549)        (12.4)          (555)         (8.9)
      Other, net                                130           4.4            (37)         (0.9)            81           1.4
                                            -------       -------        -------       -------        -------       -------
      Actual tax expense and
        effective rate                      $   619          21.2%       $ 1,070          24.2%       $ 1,813          29.0%
                                            =======       =======        =======       =======        =======       =======
</TABLE>

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

20.  REGULATORY MATTERS

     Cash and Due From Banks

     The Federal Reserve  requires the Savings Bank to maintain  certain reserve
     balances.  The required reserves are computed by applying prescribed ratios
     to the Savings Bank's average deposit transaction  account balances.  As of
     June 30, 2004 and 2003, the Savings Bank had required  reserves of $808 and
     $763,  respectively.  The  required  reserves are held in the form of vault
     cash and a non-interest-bearing depository balance maintained directly with
     the Federal Reserve.

     Loans

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

     Dividend Restrictions

     The  Savings  Bank is  subject  to the  Pennsylvania  Banking  Code,  which
     restricts the  availability of surplus for dividend  purposes.  At June 30,
     2004, surplus funds of $3,363 were not available for dividends.


                                       42
<PAGE>

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

21.  FAIR VALUE OF FINANCIAL INSTRUMENTS

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

<TABLE>
<CAPTION>
                                                2004                         2003
                                       ----------------------      ----------------------
                                       Carrying        Fair        Carrying        Fair
                                        Amount         Value        Amount         Value
                                       --------      --------      --------      --------
<S>                                    <C>           <C>           <C>           <C>
      FINANCIAL ASSETS
      Cash and cash equivalents        $  3,054      $  3,054      $  2,815      $  2,815
      Trading securities                    993           993            --            --
      Investment securities             273,589       275,519       147,482       151,677
      Mortgage-backed securities         75,590        75,456       111,879       112,301
      Net loans receivable               67,968        70,170        91,669        98,108
      Accrued interest receivable         2,456         2,456         2,800         2,800
      FHLB stock                          7,532         7,532         7,797         7,797

      FINANCIAL LIABILITIES
      Deposits                         $160,563      $160,657      $170,926      $171,830
      FHLB advances                     149,736       153,944       153,390       163,829
      Other borrowings                   91,639        91,639         9,453         9,453
      Accrued interest payable            1,197         1,197         1,449         1,449
</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:


                                       43
<PAGE>

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

21.  FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)

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

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

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

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

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

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

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

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

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

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


                                       44
<PAGE>

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

22.  PARENT COMPANY

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

                             CONDENSED BALANCE SHEET

<TABLE>
<CAPTION>
                                                                                 June 30,
                                                                            2004           2003
                                                                        ----------      ----------
<S>                                                                     <C>             <C>
      ASSETS
        Interest-earning deposits with subsidiary bank                  $      868      $      718
        Investment securities available for sale                             2,120           4,153
        Investment and mortgage-backed securities held to maturity              --             250
        Investment in subsidiary bank                                       26,257          25,360
        Loan receivable                                                         --             114
        Accrued interest receivable and other assets                            64             118
                                                                        ----------      ----------

      TOTAL ASSETS                                                      $   29,309      $   30,713
                                                                        ==========      ==========
      LIABILITIES AND STOCKHOLDERS' EQUITY
        Other liabilities                                               $      110      $       95
        Stockholders' equity                                                29,199          30,618
                                                                        ----------      ----------

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                        $   29,309      $   30,713
                                                                        ==========      ==========
</TABLE>

                          CONDENSED STATEMENT OF INCOME

<TABLE>
<CAPTION>
                                                                        Year Ended June 30,
                                                               2004             2003            2002
                                                            ----------       ----------      ----------
<S>                                                         <C>              <C>             <C>
      INCOME
        Loans                                               $        2       $       27      $       45
        Investment and mortgage-backed securities                   89              111             118
        Dividend from subsidiary                                 1,300            2,400           3,800
        Investment securities gains, net                            20               64              --
        Interest-earning deposits with subsidiary bank              10               33              50
                                                            ----------       ----------      ----------

      Total income                                               1,421            2,635           4,013
                                                            ----------       ----------      ----------

      OTHER OPERATING EXPENSE                                      104              111              96
                                                            ----------       ----------      ----------

        Income before equity in undistributed
          earnings of subsidiary                                 1,317            2,524           3,917
        Equity in undistributed earnings of subsidiary             983              840             558
                                                            ----------       ----------      ----------
        Income before income taxes                               2,300            3,364           4,475
        Income tax expense (benefit)                                (2)              16              27
                                                            ----------       ----------      ----------

      NET INCOME                                            $    2,302       $    3,348      $    4,448
                                                            ==========       ==========      ==========
</TABLE>


                                       45
<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,
                                                                     2004             2003              2002
                                                                  ----------       ----------       ----------
<S>                                                               <C>              <C>              <C>
      OPERATING ACTIVITIES
        Net income                                                $    2,302       $    3,348       $    4,448
        Adjustments to reconcile net income to net cash
          provided by operating activities:
            Undistributed net income of subsidiary                      (983)            (840)            (558)
             Investment securities gains                                 (20)             (64)              --
            Amortization (accretion) of investment discounts
             and premiums, net                                            (3)              22              (23)
            Other, net                                                   119               45               89
                                                                  ----------       ----------       ----------
        Net cash provided by operating activities                      1,415            2,511            3,956
                                                                  ----------       ----------       ----------

      INVESTING ACTIVITIES
        Available for sale:
            Purchase of investment and
              mortgage-backed securities                              (3,321)          (4,934)          (9,148)
            Proceeds from repayments of investment and
              mortgage-backed securities                               5,183            2,582            8,159
            Proceeds from sales of investment securities                 251              639               --
        Held to maturity:
            Purchases of investment and mortgage-backed
              securities                                              (3,199)          (1,817)          (7,789)
            Proceeds from repayments of investment and
              mortgage-backed securities                               3,451            1,555           10,304
            Net decrease (increase) in loans receivable                  115              354             (468)
                                                                  ----------       ----------       ----------
        Net cash provided by (used for) investing activities           2,480           (1,621)           1,058
                                                                  ----------       ----------       ----------

      FINANCING ACTIVITIES
        Net proceeds from exercise of stock options                      489               71              212
        Cash dividends paid                                           (1,624)          (1,674)          (1,743)
        Purchases of treasury stock                                   (2,610)          (1,634)          (1,544)
                                                                  ----------       ----------       ----------
        Net cash used for financing activities                        (3,745)          (3,237)          (3,075)
                                                                  ----------       ----------       ----------
        Increase (decrease) in cash and cash equivalents                 150           (2,347)           1,938

      CASH AND CASH EQUIVALENTS
        BEGINNING OF YEAR                                                718            3,065            1,127
                                                                  ----------       ----------       ----------

      CASH AND CASH EQUIVALENTS
        END OF YEAR                                               $      868       $      718       $    3,065
                                                                  ==========       ==========       ==========
</TABLE>


                                       46
<PAGE>

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

23.  SELECTED QUARTERLY FINANCIAL DATA (unaudited)

<TABLE>
<CAPTION>
                                                                      Three Months Ended
                                                -----------------------------------------------------------------
                                                 September          December            March             June
                                                    2003              2003              2004              2004
                                                -----------       -----------       -----------       -----------
<S>                                             <C>               <C>               <C>               <C>
      Total interest and dividend income        $     3,811       $     3,956       $     4,067       $     4,172
      Total interest expense                          2,769             2,760             2,716             2,742
                                                -----------       -----------       -----------       -----------

      Net interest income                             1,042             1,196             1,351             1,430
      Provision (recovery) for loan losses             (133)             (624)              (14)              (23)
                                                -----------       -----------       -----------       -----------

      Net interest income after
        provision for loan losses                     1,175             1,820             1,365             1,453

      Total noninterest income                          194               161               163               197
      Total noninterest expense                         892               938               899               878
                                                -----------       -----------       -----------       -----------

      Income before income taxes                        477             1,043               629               772
      Income taxes                                      125               273               165                56
                                                -----------       -----------       -----------       -----------

      Net income                                $       352       $       770       $       464       $       716
                                                ===========       ===========       ===========       ===========

      Per share data:
      Net income
           Basic                                $      0.14       $      0.30       $      0.18       $      0.29
           Diluted                                     0.14              0.30              0.18              0.29
      Average shares outstanding
           Basic                                  2,575,242         2,560,420         2,525,612         2,481,206
           Diluted                                2,585,081         2,569,578         2,533,697         2,488,556
</TABLE>


                                       47
<PAGE>

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

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

<TABLE>
<CAPTION>
                                                                     Three Months Ended
                                                ---------------------------------------------------------------
                                                 September         December          March              June
                                                   2002              2002             2003              2003
                                                -----------      -----------      -----------       -----------
<S>                                             <C>              <C>              <C>               <C>
      Total interest and dividend income        $     5,432      $     5,023      $     4,636       $     4,140
      Total interest expense                          3,188            3,018            2,841             2,763
                                                -----------      -----------      -----------       -----------
      Net interest income                             2,244            2,005            1,795             1,377
      Provision (recovery) for loan losses               18               --              (89)             (157)
                                                -----------      -----------      -----------       -----------
      Net interest income after
        provision for loan losses                     2,226            2,005            1,884             1,534

      Total noninterest income                          243              172              152               158
      Total noninterest expense                       1,120            1,045              975               816
                                                -----------      -----------      -----------       -----------

      Income before income taxes                      1,349            1,132            1,061               876
      Income taxes                                      349              351              329                41
                                                -----------      -----------      -----------       -----------

      Net income                                $     1,000      $       781      $       732       $       835
                                                ===========      ===========      ===========       ===========

      Per share data:
      Net income
           Basic                                $      0.38      $      0.30      $      0.28       $      0.32
           Diluted                                     0.37             0.30             0.28              0.32
      Average shares outstanding
           Basic                                  2,661,933        2,631,112        2,593,546         2,582,813
           Diluted                                2,667,220        2,636,633        2,598,775         2,594,053
</TABLE>


                                       48
<PAGE>

COMMON STOCK MARKET PRICE AND DIVIDEND INFORMATION

WVS  Financial  Corp.'s  common  stock is traded on the  Nasdaq  Stock  MarketSM
National Market System under the symbol "WVFC".

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

                                       Market Price
                                  ----------------------          Cash Dividends
         Quarter Ended              High           Low               Declared
      ------------------          -------        -------          --------------
      June 04                     $19.400        $17.110              $0.16
      March 04                     19.980         17.350               0.16
      December 03                  18.400         16.810               0.16
      September 03                 18.650         16.500               0.16

      June 03                     $18.930        $16.200              $0.16
      March 03                     16.250         15.410               0.16
      December 02                  16.250         15.100               0.16
      September 02                 16.050         15.800               0.16

There were six Nasdaq Market Makers in the Company's common stock as of June 30,
2004:  Boenning & Scattergood  Inc.;  Schwab Capital Markets;  Sandler O'Neill &
Partners;  Boston  Stock  Exchange;  Ryan Beck & Co.,  Inc.;  and Knight  Equity
Markets, L.P.

According  to  the  records  of  the  Company's   transfer  agent,   there  were
approximately  785  shareholders  of record at September 8, 2004.  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.


                                       49
<PAGE>

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

<TABLE>
<S>                                                                            <C>
                    COMMON STOCK                                                        BOARD OF DIRECTORS
The common stock of WVS Financial Corp. is traded on
The Nasdaq Stock Market SM under the symbol "WVFC".                                     David L. Aeberli
                                                                                         Funeral Director
             TRANSFER AGENT & REGISTRAR                                         McDonald-Aeberli Funeral Home, Inc.
           Registrar and Transfer Company
                  10 Commerce Drive                                                      Arthur H. Brandt
                 Cranford, NJ 07016                                                  Former President and CEO
                   1-800-368-5948                                                   Brandt Excavating, Inc. and
                                                                                        Brandt Paving, Inc.
               CORPORATE SECRETARY AND
                 INVESTOR RELATIONS                                                       David J. Bursic
                   Pamela M. Tracy                                             President and Chief Executive Officer
                    412-364-1911                                                      WVS Financial Corp. and
                                                                                      West View Savings Bank
                       COUNSEL
                  Bruggeman & Linn                                                        Donald E. Hook
                                                                                             Chairman
                   SPECIAL COUNSEL                                                   Pittsburgh Cut Flower Co.
        Elias, Matz, Tiernan & Herrick L.L.P.
                   Washington, DC                                                       Lawrence M. Lehman
                                                                                          Sole Proprietor
                                                                                  Newton-Lehman Insurance Agency

                                                                                         John M. Seifarth
               WEST VIEW SAVINGS BANK                                              Senior Engineer - Consultant
                 9001 Perry Highway                                             Nichols & Slagle Engineering, Inc.
                Pittsburgh, PA 15237
                    412-364-1911                                                         Margaret VonDerau
                                                                                   Former Senior Vice President
                  WEST VIEW OFFICE                                                    and Corporate Secretary
                  456 Perry Highway                                                   WVS Financial Corp. and
                    412-931-2171                                                      West View Savings Bank

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

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

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


                                       50

<PAGE>
                      (LETTERHEAD FOR WVS FINANCIAL CORP.
                        A Tradition of Quality Banking)