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

             COMMON STOCK                           BOARD OF DIRECTORS
The common stock of WVS Financial Corp.
is traded on  The Nasdaq  Global MarketSM            David L. Aeberli
       under the symbol "WVFC".                      Funeral Director
                                            McDonald-Aeberli Funeral Home, Inc.
     TRANSFER AGENT & REGISTRAR
    Registrar and Transfer Company                    David J. Bursic
          10 Commerce Drive                President and Chief Executive Officer
          Cranford, NJ 07016                      WVS Financial Corp. and
            1-800-368-5948                         West View Savings Bank

       CORPORATE SECRETARY AND                         John W. Grace
          INVESTOR RELATIONS                             President
           Pamela M. Tracy                   G & R Investment Consultants, Inc.
             412-364-1911
                                                       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
        WEST VIEW SAVINGS BANK
          9001 Perry Highway                         Margaret VonDerau
         Pittsburgh, PA 15237                   Former Senior Vice President
             412-364-1911                         and Corporate Secretary
                                                  WVS Financial Corp. and
           WEST VIEW OFFICE                        West View Savings Bank
          456 Perry Highway
             412-931-2171
                                                     EXECUTIVE OFFICERS
           CRANBERRY OFFICE
         20531 Perry Highway                           Donald E. Hook
      412-931-6080/724-776-3480                           Chairman

         FRANKLIN PARK OFFICE                         David J. Bursic
       2566 Brandt School Road                         President and
             724-935-7100                         Chief Executive Officer

           BELLEVUE OFFICE                           Jonathan D. Hoover
          572 Lincoln Avenue                       Senior Vice President
             412-761-5595
                                                      Bernard P. Lefke
         SHERWOOD OAKS OFFICE                    Vice President of Savings
        Serving Sherwood Oaks
            Cranberry Twp.                            Keith A. Simpson
                                               Vice President, Treasurer and
           LENDING DIVISION                       Chief Accounting Officer
       2566 Brandt School Road
             724-935-7400

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


<PAGE>


                                TABLE OF CONTENTS

                                                                           Page
                                                                          Number
                                                                          ------

Stockholders' Letter                                                          1

Selected Financial and Other Data                                             3

Management's Discussion and Analysis                                          5

Report of Independent Registered Public Accounting Firm                      19

Consolidated Balance Sheet                                                   20

Consolidated Statement of Income                                             21

Consolidated Statement of Changes in Stockholders' Equity                    22

Consolidated Statement of Cash Flows                                         23

Notes to the Consolidated Financial Statements                               24

Common Stock Market Price and Dividend Information                           52

<PAGE>

To Our Stockholders:

         Fiscal  2008 was another  year of growth for WVS  Financial  Corp.  Net
income for fiscal 2008  increased  to $3.8  million.  Book value,  and return on
equity,  totaled $14.44 per share and 12.03%.  We are pleased to report that net
income,  book value and return on equity have grown  steadily over the past five
fiscal years.

         Our financial results continue to receive national acclaim.  In the May
2008 issue of SNL Thrift  Investor  magazine  our  Company  was ranked #1 in the
              --- ------  --------
nation among the 104 smallest thrifts by asset size ($93 million - $630 million)
in terms of financial  performance.  We wish to thank all of our  stakeholders -
stockholders,  customers,  Board members,  employees and business partners - for
helping us achieve this milestone.

         Fiscal 2008 was also a year of celebration. In January 2008 we began to
celebrate  the 100th  Anniversary  of the founding of West View Savings Bank. As
part of our  100th  Anniversary  celebration,  the Bank  offered  a  variety  of
in-branch promotions,  special pricing on various product offerings and began to
publish  a  monthly  newsletter.  Our  customers  have  responded  well to these
initiatives.

         The financial markets have been in considerable stress almost since the
beginning of fiscal 2008. Housing remains at the center of the Federal Reserve's
concerns  about growth and financial  stability.  The Fed has pushed the Federal
Funds  target  rate down 3.25  percentage  points in the past  fiscal year in an
effort to cushion the blows of a weak housing market,  the distressed  financial
markets,  a weak national economy and rising levels of unemployment.  Government
officials expect economic activity to weaken in the second half of calendar year
2008 and only recover slowly next year.

         Financial  stocks have  experienced an  unprecedented  downward spiral.
While our stock has performed  well and  maintained  its value,  most  financial
stocks have  experienced  large  declines in earning and stock prices.  In early
September  2008, the U.S.  government  decided to put both the Federal  National
Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation
(Freddie Mac) into conservatorship. So far this calendar year, there

                                       1
<PAGE>

have been 11 failures of FDIC insured  banks.  Most of the problem can be traced
to either  poor loan  underwriting,  inadequate  loan  collateral  or lending in
unfamiliar  markets.  We would like you to know that our Board of Directors sees
each loan that is  approved  and that our  employees  work hard each day to make
sure that your hard-earned money is safe at West View Savings Bank.

         The Company remains committed to its Capital Management  Strategy.  The
Capital  Management  Strategy  seeks to  maximize  stockholder  value  through a
combination of attractive  cash dividends and  repurchases of common stock.  Our
dividend yield of  approximately  4% compares very favorably to short-term money
market yields.  Through fiscal year end 2008, the Company has  repurchased  over
41% of its outstanding  shares and in this process has returned over $24 million
to  stockholders.  We believe that  investment in our stock is a good value.  In
August 2008,  the Company's  Board of Directors  authorized the repurchase of an
additional 40,000 shares as part of our Ninth Stock Repurchase Program.

         At the Board  level,  we would  like to  welcome  John W. Grace who was
elected  as a  Director  in  October  2007.  John  brings  over 39 years of bank
investment and financial  management  expertise to our Company.  The Board would
also like to recognize and thank our current Board Chairman, Donald E. Hook, for
over 22 years of self-less  service to the Company and the Bank. Don will retire
from the Board after this year's  annual  meeting and has offered to continue to
help us in any way that he can.

         We thank you for your  investment in the Company and for your faith and
trust in West View Savings Bank.


/S/ DAVID J. BURSIC      /S/ DONALD E. HOOK                 /S/ DAVID L. AEBERLI
DAVID J. BURSIC          DONALD E. HOOK                         DAVID L. AEBERLI
President and            Chairman of the Board        Vice Chairman of the Board
Chief Executive Officer


                                       2
<PAGE>
<TABLE>
<CAPTION>

                                    FIVE YEAR SUMMARY OF SELECTED CONSOLIDATED
                                             FINANCIAL AND OTHER DATA

                                                         As of or For the Year Ended June 30,
                                          2008           2007            2006           2005             2004
                                      -----------     -----------    -----------     -----------     -----------
                                                    (Dollars in Thousands, except per share data)
<S>                                       <C>             <C>            <C>             <C>             <C>
Selected Financial Data:
Total assets                          $   423,109     $   408,076    $   421,742     $   421,044     $   433,624
Net loans receivable                       56,477          60,350         55,702          60,151          67,968
Mortgage-backed securities                215,905         121,517        155,753         162,151          75,590
Investment securities                     128,537         211,597        196,421         183,066         273,589
Savings deposit accounts                  149,218         158,364        150,701         163,589         159,318
FHLB advances                             135,579         130,579        161,729         155,036         149,736
Other short-term borrowings               100,600          82,950         76,048          69,680          91,639
Stockholders' equity                       32,148          31,293         29,418          29,201          29,199
Non-performing assets, troubled
  debt restructurings and potential         1,924           1,574          1,695           2,171           2,171
   problem loans(2)

Selected Operating Data:
Interest income                       $    23,681     $    24,310    $    22,248     $    17,874     $    16,006
Interest expense                           15,143          15,985         15,460          11,844          10,987
                                      -----------     -----------    -----------     -----------     -----------
Net interest income                         8,538           8,325          6,788           6,030           5,019
Provision for (Recovery of) loan
losses                                       (123)             13           (161)            (46)           (794)
                                      -----------     -----------    -----------     -----------     -----------
Net interest income after provision
  for (recovery of) loan losses             8,661           8,312          6,949           6,076           5,813
Non-interest income                           597             626            705             992             715
Non-interest expense                        3,636           3,529          3,521           3,532           3,607
                                      -----------     -----------    -----------     -----------     -----------
Income before income tax expense            5,622           5,409          4,133           3,536           2,921
Income tax expense                          1,850           1,763          1,287             627             619
                                      -----------     -----------    -----------     -----------     -----------
Net income                            $     3,772     $     3,646    $     2,846     $     2,909     $     2,302
                                      ===========     ===========    ===========     ===========     ===========

Per Share Information:
Basic earnings                        $      1.67     $      1.57    $      1.21     $      1.20     $      0.91
Diluted earnings                      $      1.67     $      1.57    $      1.21     $      1.19     $      0.90
Dividends per share                   $      0.64     $      0.64    $      0.64     $      0.64     $      0.64
Dividend payout ratio                       38.32%          46.76%         46.76%          53.33%          52.89%
Book value per share at period end    $     14.44     $     13.49    $     12.60     $     12.20     $     11.84
Average shares outstanding:
      Basic                             2,252,604       2,319,928      2,357,217       2,432,267       2,535,796
      Diluted                           2,252,906       2,321,536      2,359,996       2,437,647       2,544,404

                                                        3
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                As of or For the Year Ended June 30,
                                           2008      2007      2006      2005      2004
                                          ------    ------    ------    ------    ------
<S>                                        <C>       <C>       <C>       <C>       <C>

Selected Operating Ratios(1):
Average yield earned on interest-
  earning assets(3)                         5.72%     6.15%     5.29%     4.61%     4.28%
Average rate paid on interest-
  bearing liabilities                       4.06      4.46      4.01      3.27      3.13
Average interest rate spread(4)             1.66      1.69      1.28      1.34      1.14
Net interest margin(4)                      2.10      2.14      1.67      1.68      1.48
Ratio of interest-earning assets to
  interest-bearing liabilities            112.02    111.53    110.48    111.45    111.76
Non-interest expense as a percent of
  average assets                            0.86      0.87      0.82      0.87      0.91
Return on average assets                    0.89      0.90      0.66      0.71      0.58
Return on average equity                   12.03     12.14      9.87     10.03      7.64
Ratio of average equity to average
  assets                                    7.43      7.43      6.70      7.10      7.60
Full-service offices at end of period          5         5         5         5         5

Asset Quality Ratios(1):
Non-performing and potential problem
  loans and troubled debt
  restructurings as a percent of net
   total loans(2)                           3.41%     2.60%     3.03%     3.49%     3.19%
Non-performing assets as a percent
  of total assets(2)                        0.37      0.30      0.08      0.25      0.19
Non-performing assets, troubled debt
   restructurings and potential problem
   loans as a percent of total assets       0.45      0.39      0.40      0.52      0.50
Allowance for loan losses as a
  percent of total loans receivable         1.66      1.60      1.69      1.83      1.97
Allowance for loan losses as a
  percent of non-performing loans          60.43     81.89    310.71    113.58    163.48
Charge-offs to average loans
  receivable outstanding during the
  period                                    0.00      0.00      0.01      0.37      0.68

Capital Ratios(1):
Tier 1 risk-based capital ratio            21.71%    22.41%    22.12%    20.99%    18.65%
Total risk-based capital ratio             22.37     23.15     22.88     21.80     19.62
Tier 1 leverage capital ratio               7.75      8.13      6.78      7.14      6.92
</TABLE>

----------------
(1)  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.
(2)  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.  Potential  problem loans include loans where
     management  has some doubt as to the ability of the borrower to comply with
     present loan repayment terms.
(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.

                                       4
<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,  FDIC-insured stock savings
bank  conducting  business  from six  offices  in the  North  Hills  suburbs  of
Pittsburgh.  The  Savings  Bank  converted  from the mutual to the stock form of
ownership in November  1993.  The Savings Bank had no  subsidiaries  at June 30,
2008.

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

                                       5
<PAGE>


CHANGES IN FINANCIAL CONDITION

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

                                June 30,                Change
                            2008       2007      Dollars    Percentage
                            ----       ----      -------    ----------
                               (Dollars in Thousands)

Cash equivalents          $  1,826   $  2,675   ($   849)      -31.7%

Certificates of deposit      9,398          0      9,398       100.0%

Investments (1)            351,373    339,454     11,919         3.5

Net loans receivable        56,477     60,350     (3,873)       -6.4

Total assets               423,109    408,076     15,033         3.7

Deposits                   150,142    159,377     (9,235)       -5.8

Borrowed funds             236,179    213,529     22,650        10.6

Total liabilities          390,961    376,783     14,178         3.8

Stockholders' equity        32,148     31,293        855         2.7

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


Cash  Equivalents.  Cash on hand and  interest-earning  deposits  represent cash
equivalents.  Cash equivalents  decreased $849 thousand or 31.7% to $1.8 million
at June 30, 2008 from $2.7 million at June 30, 2007. Changes in cash equivalents
are  influenced  by the timing of customer  transaction  account  deposits,  the
redeployment  of funds into other earning  assets such as  investments or loans,
and the repayment of Company borrowings.

Certificates  of Deposit.  Certificates  of deposit  increased  $9.4  million or
100.0% to $9.4  million at June 30,  2008.  As part of our asset  liability  and
liquidity management strategies, the Company purchased FDIC insured certificates
of deposit with other financial  institutions.  Contract terms typically  ranged
from five to twenty-four  months.  These  purchases  were funded  primarily from
investment portfolio cash flows.

Investments.  The Company's  investment portfolio is primarily comprised of U.S.
Government  Agency bonds,  corporate bonds and commercial  paper, FHLB stock and
mortgaged-backed   securities   issued   by   U.S.   Government   Agencies   and
private-issuers.  See notes 4 and 5 for  additional  information.  The Company's
investment  portfolio  increased $11.9 million or 3.5% to $351.4 million at June
30,  2008 from  $339.5  million  at June 30,  2007.  Mortgage-backed  securities
increased  $94.4  million  or 77.7% to $215.9  million  at June 30,  2008.  This
increase was due primarily to purchases of U.S.  Government Agency floating rate
mortgage-backed  securities,  funded  by early  redemptions  of U.S.  Government
Agency   securities  and  cash   repayments  of  principal  on   mortgage-backed
securities.  Investment  securities  decreased  $83.1 million or 36.3% to $128.5
million at June 30, 2008.  This decrease was due primarily to early  redemptions
of callable U.S. Government Agency securities. See "Quantitative and Qualitative
Disclosures about Market Risk" beginning on page 13.

Net Loans  Receivable.  Net loans  receivable  decreased $3.9 million or 6.4% to
$56.5  million at June 30,  2008.  The decrease in net loans  receivable  during
fiscal 2008 was due to lower loan originations and normal principal  repayments.
Loan originations were soft in fiscal 2008 due to the weak economic environment,
an increase in the inventory of existing houses for sale and fewer  construction
loan starts.

                                       6
<PAGE>

We expect  these  trends to continue  into  fiscal  2009.  The Savings  Bank has
continued  its  partnership  with SCORE  (Service  Corps of Retired  Executives)
Pittsburgh  to better  serve new  business  owners and  existing  Bank  business
customers with access to business counseling services.

Deposits.  Total  deposits  decreased  $9.2 million or 5.8% to $150.1 million at
June 30, 2008.  Certificates of deposit decreased  approximately $9.9 million or
13.4%.  Transaction  accounts  decreased  approximately  $1.8  million  or 5.6%.
Savings  accounts  decreased  $912  thousand or 2.8% and money  market  accounts
increased $3.4 million or 17.1%.

Borrowed  Funds.  Borrowed  funds  include  FHLB  short and long term  advances,
Federal Reserve Bank  borrowings and short-term  broker  repurchase  agreements.
Borrowed  funds  increased  $22.7 million or 10.6% to $236.2 million at June 30,
2008. FHLB long-term  advances increased $5.0 million or 3.8% to $135.6 million.
FRB short-term  borrowings  increased  $80.6 million or 100.0% to $80.6 million.
Other short-term  borrowings  decreased $63.0 million or 75.9% to $20.0 million.
The  Company  repositioned  its  borrowing  mix as part of its  assets/liability
management program.

Stockholders' Equity. Total stockholders' equity increased $855 thousand or 2.7%
to $32.1  million  at June 30,  2008.  Company  earnings  of $3.8  million  were
partially  offset by $1.4 million of cash dividends paid on the Company's common
stock and $1.8 million for the  repurchase  of 107,376  shares of the  Company's
common  stock.  The Company  believes  that the  repurchase  of its common stock
represented  an  attractive  investment   opportunity  and  favorably  added  to
secondary  market  liquidity.  Book value per share  increased  $0.95 or 7.0% to
$14.44 at June 30, 2008.


RESULTS OF OPERATIONS

<TABLE>
<CAPTION>
                                      Condensed Statements of Income
                                      ------------------------------

                                 Year Ended                    Year Ended                   Year Ended
                                  June 30,                      June 30,                     June 30,
                                    2008          Change          2007         Change          2006
                                 ----------     ----------     ----------    ----------     ----------
                                                         (Dollars in Thousands)
<S>                              <C>            <C>            <C>           <C>            <C>
Interest income                  $   23,681     ($     629)    $   24,310    $    2,062     $   22,248
                                                      -2.6%                         9.3%

Interest expense                 $   15,143     ($     842)    $   15,985    $      525     $   15,460
                                                      -5.3%                         3.4%

Net interest income              $    8,538            213     $    8,325    $    1,537     $    6,788
                                                       2.6%                        22.6%

Provision (recovery) for loan    $     (123)    ($     136)    $       13    $      174     ($     161)
losses                                            -$1046.2%                       108.1%

Non-interest income              $      597     ($      29)    $      626    ($      79)    $      705
                                                      -4.6%                       -11.2%

Non-interest expense             $    3,636     $      107     $    3,529    $        8     $    3,521
                                                       3.0%                         0.2%

Income tax expense               $    1,850     $       87     $    1,763    $      476     $    1,287
                                                       4.9%                        37.0%

Net income                       $    3,772     $      126     $    3,646    $      800     $    2,846
                                                       3.5%                        28.1%
</TABLE>

                                       7
<PAGE>

General. WVS reported net income of $3.8 million,  $3.6 million and $2.8 million
for the fiscal years ended June 30, 2008, 2007 and 2006, respectively.  The $126
thousand or 3.5%  increase in net income  during  fiscal 2008 was  primarily the
result of a $213 thousand  increase in net interest income,  and a $136 thousand
change in  provision  for loan  losses  which  were  partially  offset by a $107
thousand increase in non-interest expense, a $87 thousand increase in income tax
expense and a $29 thousand decrease in non-interest  income.  Earnings per share
totaled  $1.67  (basic and  diluted) for fiscal 2008 as compared to $1.57 (basic
and diluted)  for fiscal 2007.  The increase in earnings per share was due to an
increase in net income and a reduction in the weighted  average number of shares
outstanding due to the Company's stock repurchases during fiscal 2008.

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.


<PAGE>
<TABLE>
<CAPTION>
                                                                         For the Years Ended June 30,
                                         -------------------------------------------------------------------------------------------
                                                     2008                           2007                          2006
                                         -----------------------------  -----------------------------  -----------------------------
                                         Average              Average   Average             Average    Average             Average
                                         Balance   Interest Yield/Rate  Balance   Interest Yield/Rate  Balance   Interest Yield/Rate
                                         --------  -------- ----------  --------  -------- ----------  --------  -------- ----------
                                                                              (Dollars in Thousands)
<S>                                       <C>         <C>        <C>     <C>        <C>         <C>     <C>         <C>        <C>
Interest-earning assets:
      Net loans receivable(1)            $ 59,437  $  4,298      7.23%  $ 59,030  $  4,350      7.37%  $ 58,274  $  4,009      6.88%
      Mortgage-backed securities          168,124     8,518      5.07    139,683     8,748      6.26    169,844     8,919      5.25
      Investments - taxable               169,019     9,861      5.83    183,143    10,276      5.61    177,031     8,292      4.68
      Investments - tax-free(2)             8,575       480      8.06     10,359       556      7.67     13,276       737      8.00
      FHLB stock                            9,506       433      4.56      6,815       370      5.43      7,033       276      3.92
      Interest-bearing deposits               422         4      0.95        459        10      2.18        924        15      1.62
      Certificates of deposits              2,468        87      3.53         --        --        --         --        --        --
                                         --------  --------  --------   --------  --------  --------   --------  --------  --------
      Total interest-earning assets       417,551    23,681      5.72%   399,489    24,310      6.15%   426,382    22,248      5.29%
                                                   --------  ========             --------   ========            --------  ========
      Non-interest-earning assets           4,239                          4,485                          3,897
                                         --------                       --------                       --------
            Total assets                 $421,790                       $403,974                       $430,279
                                         ========                       ========                       ========

Interest-bearing liabilities:
      Interest-bearing deposits and
      escrows                            $140,875  $  3,927      2.79%  $143,406  $  4,190      2.92%  $142,327  $  3,123      2.19%
      FHLB long-term advances             134,937     7,397      5.48    133.532     7.409      5.55    141,558     7,828      5.53
      FHLB short-term advances             52,440     1,902      3.63      6,596       354      5.37      2,421       106      4.38
      Other short-term borrowings          44,488     1,917      4.31     74,659     4,032      5.40     99,634     4,403      4.42
                                         --------  --------  --------   --------  --------  --------   --------  --------  --------
      Total interest-bearing liabilities  372,740    15,143      4.06%   358,193    15,985      4.46%   385,940    15,460      4.01%
                                                   --------  ========             --------   ========            --------  ========
      Non-interest-bearing accounts        13,787                         12,927                         12,513
                                         --------                       --------                       --------
      Total interest-bearing
      liabilities and
         non-interest-bearing accounts    386,527                        371,120                        398,453
      Non-interest-bearing liabilities      3,915                          2,829                          2,976
                                         --------                       --------                       --------
            Total liabilities             390,442                        373,949                        141,558
Equity                                     31,348                         30,025                         28,850
                                         --------                       --------                       --------
Total liabilities and equity             $421,790                       $403,974                       $430,279
                                         ========                       ========                       ========
Net interest income                                $  8,538                       $  8,325                       $  6,788
                                                   ========                       ========                       ========
Interest rate spread                                             1.66%                          1.69%                          1.28%
                                                              ========                       ========                       ========
Net yield on interest-earning assets(3)                          2.10%                          2.14%                          1.67%
                                                              ========                       ========                       ========
Ratio of interest-earning assets to
   interest-bearing liabilities                                112.02%                        111.53%                        110.48%
                                                              ========                       ========                       ========

----------------
(1)  Includes non-accrual loans.
(2)  Yields  on  tax-exempt  securities   (tax-exempt  for  federal  income  tax
     purposes)  are  shown  on a fully  taxable  equivalent  basis  utilizing  a
     calculation  that reflects the tax-exempt  coupon,  a 20% interest  expense
     disallowance and a federal tax rate of 34%.
(3)  Net interest income divided by average interest-earning assets.

                                       8
</TABLE>
<PAGE>

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

<TABLE>
<CAPTION>
                                                                          Year Ended June 30,
                                                           2008 vs. 2007                      2007 vs. 2006
                                                 --------------------------------    --------------------------------
                                                  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                       $     32    $    (84)   $    (52)   $     52    $    289    $    341
      Mortgage-backed securities                    1,500      (1,730)       (230)     (1,727)      1,556        (171)
      Investments - taxable                        (1,051)        636        (415)        289       1,695       1,984
      Investments - tax-free                         (114)         38         (76)       (139)        (42)       (181)
      FHLB stock                                      129         (66)         63          (9)        103          94
      Interest-bearing deposits                        --          (6)         (6)         (9)          4          (5)
      Certificates of deposit                          87          --          87          --          --          --
                                                 --------    --------    --------    --------    --------    --------
            Total interest-earning assets             583      (1,212)       (629)     (1,543)      3,605       2,062
Interest-bearing liabilities:
      Interest-bearing deposits and
         Escrows                                      (31)       (232)       (263)        278         789       1,067
      FHLB long-term borrowings                        82         (94)        (12)       (447)         28        (419)
      FHLB short-term borrowings                    1,699        (151)      1,548         219          29         248
      Other short-term borrowings                  (1,507)       (608)     (2,115)     (1,232)        861        (371)
                                                 --------    --------    --------    --------    --------    --------
            Total interest-bearing liabilities        243      (1,085)       (842)     (1,182)      1,707         525
                                                 --------    --------    --------    --------    --------    --------
Change in net interest income                    $    340    $   (127)   $    213    $   (361)   $  1,898    $  1,537
                                                 ========    ========    ========    ========    ========    ========
</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.  Net interest  income  increased by $213 thousand or 2.6% in fiscal
2008 and $1.5 million or 22.6% in fiscal  2007.  The increase in fiscal 2008 was
the result of a decrease in interest expense of $842 thousand or 5.3%, which was
partially  offset by a decrease in interest and dividend income of $629 thousand
or 2.6%.  The  increase in fiscal 2007 was the result of an increase in interest
and dividend  income of $2.1 million or 9.3%,  which was partially  offset by an
increase in interest expense of $525 thousand or 3.4%.

Interest Income. Total interest income decreased by $629 thousand or 2.6% during
fiscal 2008 and  increased  by $2.1  million or 9.3%  during  fiscal  2007.  The
decrease  in fiscal 2008 was  primarily  the result of  decreased  yields on the
Company's  interest-earning  assets which more than offset the increase in total
interest-earning assets. The increase in fiscal 2007 was primarily the result of
increased yields on the Company's interest-earning assets which more than offset
the  decrease  in total  interest  earning  assets.  Due to changes in the U. S.
Treasury yield curve,  weakness in the economy,  rising  inventories of existing
homes available for sale and lower construction starts, the Company adjusted its
asset mix to maintain  net  interest  income.  Within the  Company's  investment
portfolio,  proceeds  from  repayments  on taxable  investment  securities  were
partially  redeployed to U.S.  Government  Agency floating rate  mortgage-backed
securities.

Interest income on investment  securities decreased $491 thousand or 4.5% during
fiscal 2008 and increased $1.8 million or 20.0% during fiscal 2007. The decrease
in fiscal 2008 was primarily  attributable  to a $15.9  million  decrease in the
average balance of investments  outstanding  which was partially  offset by a 22
basis point increase in the weighted  average yield on the Company's  investment
securities portfolio.  The increase in fiscal 2007 was primarily attributable to
an 81 basis  point  increase  in the  weighted  average  yield on the  Company's
investment  securities  portfolio  and a $3.2  million  increase  in the average
balance of investments outstanding.

                                       9
<PAGE>

Interest income on  mortgage-backed  securities  decreased $230 thousand or 2.6%
during fiscal 2008 and decreased  $171 thousand or 1.9% during fiscal 2007.  The
decrease in fiscal 2008 was primarily attributable to a 119 basis point decrease
in the  weighted  average  yield  on the  Company's  mortgage-backed  securities
portfolio which was partially  offset by a $28.4 million increase in the average
balance of mortgage-backed securities portfolio. The decrease in fiscal 2007 was
primarily attributable to a $30.2 million decrease in the average balance of the
mortgage-backed  securities portfolio, which was partially offset by a 101 basis
point  increase in the weighted  average yield on the Company's  mortgage-backed
securities portfolio.

Interest  income on net loans  receivable  decreased $52 thousand or 1.2% during
fiscal 2008 and increased $341 thousand or 8.5% during fiscal 2007. The decrease
in fiscal  2008 was  primarily  the result of a 14 basis  point  decrease in the
yield earned on the Company's  loan  portfolio  which was partially  offset by a
$407  thousand  increase in the average  balance of net loans  outstanding.  The
increase in fiscal 2007 was primarily the result of a 49 basis point increase in
the yield earned on the Company's loan portfolio,  and a $756 thousand  increase
in the average balance of net loans outstanding.  As part of its asset/liability
management  strategy,  weakness in the economy,  rising  inventories of existing
homes available for sale, and lower construction  starts the Company 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 2008 and 2007, as well as focusing
on  multi-family  and commercial  real estate loans,  construction  loans,  land
acquisition and development loans, consumer loans, small business and commercial
loans.  Management  anticipates  weakness in the real estate  market to continue
into fiscal 2009.

Dividend income on FHLB stock increased $63 thousand or 17.0% during fiscal 2008
and $94  thousand or 34.1% during  fiscal 2007.  The increase in fiscal 2008 was
primarily attributable to a $2.7 million increase in the average balance of FHLB
stock outstanding which was partially offset by a 87 basis point decrease in the
weighted  average  yield  earned  on  the  Company's   holdings  of  FHLB  stock
outstanding.  The increase in fiscal 2007 was  primarily  attributable  to a 151
basis point  increase in the  weighted  average  yield  earned on the  Company's
holdings of FHLB stock which was partially offset by a $218 thousand decrease in
the average balance of FHLB stock outstanding.

Interest  income on  certificates  of deposit  increased  $87 thousand or 100.0%
during fiscal 2008. The increase during 2008 was  attributable to a $2.5 million
increase  in the  average  balance of the  Company's  holdings  of FDIC  insured
certificates of deposit.

Interest Expense.  Total interest expense decreased $842 thousand or 5.3% during
fiscal 2008 and  increased  by $525  thousand or 3.4% during  fiscal  2007.  The
decrease  in fiscal  2008 was  primarily  attributable  to lower  rates  paid on
interest-bearing  liabilities due to lower market interest rates which more than
offset a $14.5  million  increase  in total  interest-bearing  liabilities.  The
increase  in fiscal  2007 was  primarily  attributable  to higher  rates paid on
interest-bearing  liabilities  due to higher  market  interest  rates which were
partially  offset  by  decreases  in the  average  balances  of  borrowed  funds
outstanding.

Interest  expense  on  interest-bearing  deposits  and  escrows  decreased  $263
thousand or 6.3% in fiscal 2008 and  increased  $1.1  million or 34.2% in fiscal
2007. The decrease in fiscal 2008 was primarily attributable to lower rates paid
on money  market  and time  deposits  and  decreased  average  balances  of time
deposits and passbook accounts, which were partially offset by increased average
balances  of money  market  accounts.  Average  rates on money  market  and time
deposits  decreased  by 71 and  13  basis  points  respectively,  while  average
balances of time  deposits  and passbook  savings  decreased by $3.5 million and
$2.8 million, respectively.  Average balances of money market accounts increased
$4.7  million.  The increase in fiscal 2007 was  primarily  the result of higher
average rates paid on, and higher average balances outstanding, of time deposits
and money market accounts which were partially  offset by lower average balances
in  passbook  accounts.  Average  rates paid on time and money  market  deposits
during   fiscal  2007   increased  by   ninety-two   and  eighty  basis  points,
respectively.

Interest expense on FHLB advances  increased $1.5 million or 19.8% during fiscal
2008 and decreased  $171  thousand or 2.2% during  fiscal 2007.  The increase in
fiscal 2008 was primarily  attributable to increases in

                                       10
<PAGE>

the average balances of FHLB short-term  advances and FHLB long-term advances of
$45.8 million and $1.4 million,  respectively,  which were  partially  offset by
decreases in the weighted average rate paid on FHLB short-term advances and FHLB
long-term advances of 174 and 7 basis points  respectively.  The decrease in the
average  rate on FHLB  short-term  advances  reflects  lower  short-term  market
interest  rates.  The decrease in fiscal 2007 was primarily  attributable  to an
$8.0  million  decrease  in the  average  balances  of FHLB  long-term  advances
outstanding which was partially offset by a $4.2 million increase in the average
balance of FHLB short-term  advances  outstanding,  a 99 basis point increase in
the weighted  average rate paid on FHLB short-term  advances and a 2 basis point
increase in the weighted average rate paid on FHLB long-term advances.

Interest expense on other short-term  borrowings decreased $2.1 million or 52.5%
during fiscal 2008 and decreased  $371 thousand or 8.4% during fiscal 2007.  The
decrease in fiscal 2008 was primarily  attributable to a $33.4 million  decrease
in the average balance of other short-term borrowings outstanding and a 93 basis
point decrease in the weighted average rate paid on other short-term borrowings,
which were partially offset by a $3.2 million increase in the average balance of
FRB short-term borrowings outstanding. The decrease in the average rate on other
short-term  borrowings  reflects lower  short-term  market interest  rates.  The
decrease  during  fiscal  2007 was  primarily  attributable  to a $25.0  million
decrease in the average balance of other short-term borrowings outstanding which
was partially  offset by a 98 basis point increase in the weighted  average rate
paid on other short-term borrowings.

Recovery 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 recovery of
$123  thousand  in fiscal 2008  compared  to a provision  for loan losses of $13
thousand in fiscal  2007.  The credit  provision  for fiscal 2008 was  primarily
attributable  to  recoveries on previously  charged-off  commercial  real estate
loans.

Non-interest Income. Total non-interest income decreased by $29 thousand or 4.6%
in fiscal  2008 and  decreased  by $79  thousand  or 11.2% in fiscal  2007.  The
decrease in fiscal 2008 was primarily attributable to a $34 thousand decrease in
deposit  account fee income and a $7 thousand  increase in pre-tax  gains on the
sale of  investment  securities.  The  decrease  in  fiscal  2007 was  primarily
attributable  to the  absence  of a $30  thousand  pre-tax  gain on the  sale of
mortgage-backed  securities in fiscal 2006, a decrease of deposit fee income and
decreases in ATM and debit card fee income.

Non-interest Expense. Total non-interest expense increased $107 thousand or 3.0%
in fiscal  2008,  and  increased  $8 thousand or 0.2% during  fiscal  2007.  The
increase in fiscal 2008 was  primarily  attributable  to increases in charitable
contributions  eligible  for PA tax credits and  increases  in employee  related
costs,  which were  partially  offset by decreases in fixed asset  depreciation,
data processing costs and  correspondent  bank service charges.  The increase in
fiscal 2007 was primarily  attributable  to increases in employee  related costs
which were partially offset by decreases in  correspondent  bank service charges
and other operating costs.

Income Taxes. Income taxes increased $87 thousand or 4.9% during fiscal 2008 and
increased  $476  thousand or 37.0%  during  fiscal 2007.  The  increases in both
fiscal  year  2008 and 2007 were  primarily  attributable  to  higher  levels of
taxable  income.  State mutual  thrift tax expense for fiscal 2008 was favorably
impacted by $145 thousand of PA Education  Improvement  tax credits.  For fiscal
2007, PA Mutual Thrift tax expense was reduced by higher  proportional  holdings
of state  tax-exempt FHLB bonds. The Company's  combined  effective tax rate was
32.9% at June 30, 2008 and 32.6% at June 30, 2007.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity is often analyzed by reviewing the cash flow statement.  Cash and cash
equivalents decreased by $849 thousand during fiscal 2008 primarily due to $16.1
million of net cash used for investing  activities which was partially offset by
$11.1  million  provided by financing  activities  and $4.2 million  provided by
operating activities.

                                       11
<PAGE>

Funds provided by operating  activities  totaled $4.2 million during fiscal 2008
as compared to $3.2 million  during fiscal 2007.  Net cash provided by operating
activities  was  primarily  comprised  of $3.8  million of net income and a $1.6
million decrease in accrued interest receivable,  which were partially offset by
$1.2 million of amortization  and accretion of discounts,  premiums and deferred
loan fees.

Funds used for investing  activities totaled $16.1 million during fiscal 2008 as
compared to $16.0 million provided by investing  activities  during fiscal 2007.
Primary  uses of funds  during  fiscal 2008  included  purchases  of  investment
securities,  mortgage-backed  securities, FHLB stock and certificates of deposit
totaling  $230.2  million,  $117.6  million,  $19.5  million  and  $9.4  million
respectively,   which  were   partially   offset  by  repayments  of  investment
securities,  mortgage-backed  securities,  FHLB Stock totaling  $314.2  million,
$23.6 million and $18.9 million,  respectively,  and a $4.0 million  decrease in
net loans  receivable.  Investment  purchases were comprised  primarily of fixed
rate callable U.S.  Government  Agency bonds and investment grade corporate debt
obligations   including   short-term   commercial  paper.  The   mortgage-backed
securities  purchases were U.S. Government Agency floating rate instruments that
reprice on a monthly basis.  Certificates of deposits  purchased  ranged in term
from five to twenty-four months.

Funds provided by financing  activities totaled $11.1 million for fiscal 2008 as
compared to $17.8 million used for financing  activities in fiscal 2007. Primary
sources of funds for fiscal 2008 were a $80.6 million increase in FRB short-term
borrowings  and a $5.0 million  increase in FHLB  long-term  advances which were
partially offset by a $62.9 million decrease in other short-term  borrowings,  a
$8.6  million  decrease  in total  deposits,  $1.8  million  in  treasury  stock
purchases and $1.4 million in cash dividends paid on the Company's common stock.
The $8.6 million decrease in total deposits consisted of a $9.9 million decrease
in  certificates  of deposit  primarily  due to accounts  not renewed by a local
county  government,  a $1.8 million decrease in transaction  accounts and a $912
thousand  decrease in passbook  accounts,  which were partially offset by a $3.4
million  increase in money market  accounts.  During  fiscal  2008,  the Company
purchased 107,376 shares of Company common stock for approximately $1.8 million.
Management has determined  that it currently is maintaining  adequate  liquidity
and   continues  to  match   funding   sources   with  lending  and   investment
opportunities.

The  Company's  primary  sources of funds are  deposits,  repayments on existing
loans,  investment portfolio cash flow, funds from operations and funds obtained
through  various  borrowings.   At  June  30,  2008,  the  total  approved  loan
commitments outstanding amounted to $237 thousand. At the same date, commitments
under  unused  letters  and lines of credit  amounted  to $5.7  million  and the
unadvanced   portion  of   construction   loans   approximated   $10.8  million.
Certificates  of  deposit  scheduled  to  mature in one year or less at June 30,
2008, totaled $50.7 million.  Management  believes that a significant portion of
maturing deposits will remain with the Company.

The Company's contractual obligations at June 30, 2008 were 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                $  135,579   $    5,500   $  107,579   $    5,000   $   17,500
Operating lease obligations          343           49           81           80          133
                              ----------   ----------   ----------   ----------   ----------
                              $  135,922   $    5,549   $  107,660   $    5,080   $   17,633
</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 FHLB  advances,  the Federal  Reserve Bank Primary Credit  Program,  and
other  borrowings  and  through  the retail  deposit  market to provide the cash
utilized in investing activities. Management believes that the Company currently
has adequate liquidity available to respond to liquidity demands.

                                       12
<PAGE>

On July 21, 2008, the Company's  Board of Directors  declared a cash dividend of
$0.16 per share  payable on August  21,  2008 to  shareholders  of record at the
close of business on August 11, 2008. Dividends are subject to determination and
declaration  by the Board of  Directors,  which take into account the  Company's
financial  condition,  statutory and regulatory  restrictions,  general economic
conditions and other  factors.  There can be no assurance that dividends will in
fact be paid on the common stock in the future or that, if paid,  such dividends
will not be reduced or eliminated in future periods.

As of June 30,  2008,  WVS  Financial  Corp.  exceeded  all  regulatory  capital
requirements and maintained Tier I and total  risk-based  capital equal to $32.1
million  or  21.7%  and  $33.1   million  or  22.4%,   respectively,   of  total
risk-weighted  assets;  and Tier I leverage  capital of $32.1 million or 7.8% 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. The Company normally does
not accrue interest on loans past due 90 days or more, however,  interest may be
accrued if management  believes that it will collect on the loan.  The Company's
non-performing  assets at June 30, 2008  totaled  approximately  $1.6 million or
0.4% of total  assets  compared to $1.2 million or 0.03% of total assets at June
30, 2007.  Non-performing  assets at June 30, 2008  consisted of one  commercial
real estate loan totaling  $972  thousand,  one  speculative  construction  loan
totaling  $356  thousand  (which was paid off in full during  July  2008),  four
single-family  real estate loans totaling $232 thousand.  Non-performing  assets
increased  $378  thousand or 31.4% to $1.6 million or 0.4% of total  assets,  at
June 30, 2008.  The increase was  primarily the result of $453 thousand in loans
classified  as  non-performing  during the year ended June 30, 2008,  which were
partially   offset  by  $75  thousand  in  repayments  on  loans  classified  as
non-performing at June 30, 2007.

Impact of Inflation and Changing Prices. The consolidated  financial  statements
of the  Company  and  related  notes  presented  herein  have been  prepared  in
accordance with U.S. generally accepted accounting  principles 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 to the
Company's Consolidated Financial Statements.

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

                                       13
<PAGE>

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  2008,  the Federal  Open Market  Committee  reduced its targeted
federal  funds  rate from 5.25% to 2.00%.  The table  below  shows the  targeted
federal funds rate and the  benchmark  two and ten year treasury  yields at June
30, 2007,  September  30, 2007,  December 31, 2007,  March 31, 2008 and June 30,
2008. The difference in yields on the two year and ten year  Treasury's is often
used to  determine  the  steepness  of the yield  curve  and to assess  the term
premium of market interest rates.

<TABLE>
<CAPTION>
                                                  Yield on:
                                      -------------------------------
                       Targeted          Two (2)          Ten (10)              Shape of
                       Federal             Year             Year                  Yield
                        Funds            Treasury         Treasury                Curve
                    ---------------   -----------------------------------------------------------
<S>                     <C>               <C>               <C>                     <C>
     June 30, 2007      5.25%             4.87%             5.03%            Slightly positive
September 30, 2007      4.75%             3.97%             4.59%           Moderately positive
 December 31, 2007      4.25%             3.05%             4.04%                Positive
    March 31, 2008      2.25%             1.62%             3.45%                Positive
     June 30, 2008      2.00%             2.63%             3.99%                Positive
</TABLE>

These changes in intermediate  and long-term market interest rates, the changing
slope of the Treasury  yield curve,  and continued  high levels of interest rate
volatility  have impacted  prepayments  on the Company's  loan,  investment  and
mortgage-backed  securities  portfolios and have caused a marked  compression of
industry-wide  net  interest  margins.  Due  to its  asset/liability  management
initiatives,  the Company was able to  substantially  maintain both its interest
rate spread and net interest margin during fiscal 2008.

The term  premium  of  market  interest  rates is often  used to  determine  the
relative  merits  of taking on  additional  interest  rate risk and to gauge the
market's  expectation  of future  interest  rates.  Due to  changes  in the term
premium of market  interest  rates  experienced in fiscal year 2008, the Company
adjusted its  asset/liability  strategy in several ways. The Company's  proceeds
from  repayments on investment  securities were used primarily to purchase U. S.
Government  agency  bonds  and  floating-rate  mortgage-backed  securities.  The
Company believes that by strategically increasing the balance sheet, it was able
to

                                       14
<PAGE>

 substantially maintain net interest income, various capital ratios and better
position  its  interest  rate and  liquidity  risks in light of high  levels  of
interest rate volatility.

Principal  repayments  on the Company's  loan,  investment  and U.S.  Government
Agency mortgage-backed  securities portfolios for the fiscal year ended June 30,
2008, totaled $21.5 million, $314.2 million and $23.6 million, respectively. Due
to a marked  reduction  of  Treasury  yields,  high  market  volatility  and the
changing spreads available on  mortgage-backed  and investment  securities,  the
Company  chose to  rebalance  its  investment  portfolio  during  fiscal 2008 by
reinvestments  proceeds  from calls of U.S.  Government  Agency  bonds into U.S.
Government  Agency floating rate  mortgage-backed  securities,  investment grade
corporate  obligations  (including short-term commercial paper) and FDIC insured
certificates of deposit. A portion of these cash flows were also reinvested back
into callable U.S.  Government Agency bonds with maturities  generally less than
ten years.  This strategy has allowed the Company to maintain  operating margins
and capital ratios while managing overall interest rate risk.

Due to the term structure of market interest rates,  weakness in the economy, an
excess supply of existing homes  available for sale, and lower levels of housing
starts, the Company continued to reduce its portfolio  originations of long-term
fixed rate  mortgages  while  continuing to offer such loans on a  correspondent
basis.  The Company also makes  available for origination  residential  mortgage
loans with interest rates which adjust pursuant to a designated index,  although
customer acceptance has been somewhat limited in the Savings Bank's market area.
We expect that the housing  market may continue to be weak into fiscal 2009. The
Company  will  continue  to  selectively  offer  commercial  real  estate,  land
acquisition and development,  and shorter-term  construction loans (primarily on
residential  properties),  and commercial  loans on business assets to partially
increase interest income while limiting interest rate risk. The Company has also
emphasized  higher  yielding  commercial  and small  business  loans to existing
customers and seasoned prospective customers.

Within the investment and mortgage-backed securities portfolio, the Company used
cash flow from maturities,  early  redemptions and repayments of investments and
mortgage-backed  securities  to purchase new fixed rate U.S.  Government  Agency
bonds, intermediate-term corporate bonds, investment grade short-term commercial
paper and floating rate  mortgage-backed  securities in order to provide current
income and in response to changing term premiums of market interest rates.  This
strategy has also helped to better match the  interest-rate  and liquidity risks
associated with the Savings Bank's customers'  liquidity  preference for shorter
term deposit products.

During fiscal 2008 principal  investment  purchases were comprised of:  callable
fixed rate government agency bonds with initial lock-out periods as follows: 0 -
3 months - $16.9 million with a weighted  average yield to call of approximately
6.15%;  3 - 6 months - $15.0  million with a weighted  average  yield to call of
approximately 5.95%; 6 - 12 months - $20.0 million with a weighted average yield
to call of  approximately  5.61%;  short-term  commercial paper - $157.2 million
with a weighted average yield of approximately  4.85%;  U.S.  Government  Agency
floating rate collateralized mortgage obligations which reprice monthly - $117.6
million with an original weighted average yield of 5.33%;  fixed-rate investment
grade  corporate  bonds - $15.4 million with a weighted  average yield of 4.38%;
floating-rate  investment  grade  corporate bonds - $5.7 million with a weighted
average yield of 5.04%;  and bank  certificates of deposit - $9.4 million with a
weighted  average yield of 3.56%.  Major  investment  proceeds  received  during
fiscal 2008 were:  callable  government  agency  bonds - $145.2  million  with a
weighted  average yield of  approximately  5.85%;  mortgage-backed  securities -
$23.6  million;  short-term  commercial  paper - $165.1  million with a weighted
average yield of 5.02%;  tax-free municipal bonds - $1.7 million with a weighted
average taxable equivalent yield of approximately 6.13%; taxable municipal bonds
- $140  thousand  with  a  weighted  average  yield  of  6.63%;  and  fixed-rate
investment grade corporate bonds - $2.0 million with a weighted average yield of
3.58%.

As of June 30, 2008, the implementation of these asset and liability  management
initiatives resulted in the following:

         1)       $213.7  million  or  99.0%  of  the  Company's   portfolio  of
                  mortgage-backed  securities (including collateralized mortgage
                  obligations   -  "CMOs")  were   comprised  of  floating  rate
                  instruments that reprice on a monthly basis.

                                       15
<PAGE>

         2)       $93.0 million or 72.4% of the Company's  investment  portfolio
                  was comprised of fixed-rate  callable U.S.  Government  Agency
                  bonds which are callable as follows:  3 months or less - $35.9
                  million;  3 - 6 months - $23.8 million;  6 - 12 months - $30.3
                  million;  and over 1 year - $3.0  million.  These bonds may or
                  may not actually be redeemed prior to maturity  (i.e.  called)
                  depending  upon the  level of market  interest  rates at their
                  respective call dates.
         3)       $7.5 million or 5.8% of the Company's investment portfolio was
                  comprised of investment grade commercial paper with maturities
                  of less than thirty days.
         4)       $13.4 million or 10.4% of the Company's  investment  portfolio
                  consisted of investment grade fixed-rate  corporate bonds with
                  remaining maturities between one and fifteen months;
         5)       $5.7  million or 4.4% of the  Company's  investment  portfolio
                  consisted of investment  grade  floating-rate  corporate bonds
                  which will reprice  within three months and will mature within
                  six to eleven months;
         6)       $9.2 million or 2.2% of the Company's  total assets  consisted
                  of FDIC insured bank  certificates  of deposit with  remaining
                  maturities ranging from two to twenty-one months;
         7)       An aggregate of $32.0  million or 55.7% of the  Company's  net
                  loan portfolio had adjustable  interest rates or maturities of
                  less than 12 months; and
         8)       The maturity  distribution  of the Company's  borrowings is as
                  follows:  1 month or less - $100.6  million  or 42.6%;  3 - 12
                  months - $5.5 million or 2.3%; 1 - 3 years - $107.6 million or
                  45.6%;  3 - 5 years - $5.0 million or 2.1%; and over 5 years -
                  $17.5 million or 7.4%.

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

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

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

                                                          June 30,
                                              --------------------------------
                                                2008        2007        2006
                                              --------    --------    --------
                                                    (Dollars in Thousands)
Interest-earning assets maturing or
   repricing within one year                  $377,916    $206,136    $273,884
Interest-bearing liabilities maturing or
   repricing within one year                   207,133     187,494     194,509
                                              --------    --------    --------

Interest sensitivity gap                      $170,783    $ 18,642    $ 79,375
                                              ========    ========    ========
Interest sensitivity gap as a percentage of
   total assets                                  40.36%       4.57%      18.82%
Ratio of assets to liabilities
   maturing or repricing within one year        182.45%     109.94%     140.81%

During fiscal 2008, the Company  managed its one year interest  sensitivity  gap
by: (1) limiting the portfolio  origination of long-term  fixed rate  mortgages;
(2)  emphasizing  loans  with  shorter  terms  or  repricing  frequencies;   (3)
purchasing floating rate U.S. Government Agency CMO's which reprice on a monthly
basis; (4) adjusting its investment  portfolio to include investment grade fixed
and floating rate corporate  bonds;  (5)

                                       16
<PAGE>

higher average holdings of short-term investment grade commercial paper; and (6)
investing in shorter-term FDIC insured certificates of deposit.

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, 2008. The table estimates the impact of an upward or downward change in
market interest rates of 100 and 200 basis points.

<TABLE>
<CAPTION>
                                                 Cumulative Stressed Repricing Gap
                                                 ---------------------------------

                      Month 3       Month 6     Month 12       Month 24      Month 36      Month 60       Long Term
                      -------       -------     --------       --------      --------      --------       ---------
                                                        (Dollars in Thousands)
<S>                      <C>           <C>          <C>            <C>            <C>          <C>              <C>
Base Case Up 200 bp
-------------------
Cummulative
  Gap ($'s)           101,393        84,651       77,794         50,552       (37,976)      (43,110)         33,078
% of Total
  Assets                 24.0%         20.0%        18.4%          11.9%         -9.0%        -10.2%            7.8%
Base Case Up 100 bp
-------------------
Cummulative
  Gap ($'s)           101,803        85,362       78,827         51,517       (36,850)       24,633          33,078
% of Total
  Assets                 24.1%         20.2%        18.6%          12.2%         -8.7%          5.8%            7.8%
Base Case No Change
-------------------
Cummulative
  Gap ($'s)           137,291       145,387      170,783        149,612        61,785        57,081          33,078
% of Total
  Assets                 32.4%         34.4%        40.4%          35.4%         14.6%         13.5%            7.8%
Base Case Down 100 bp
---------------------
Cummulative
  Gap ($'s)           140,390       149,756      176,927        157,315        69,605        62,762          33,078
% of Total
  Assets                 33.2%         35.4%        41.8%          37.2%         16.5%         14.8%            7.8%
Base Case Down 200 bp
---------------------
Cummulative
  Gap ($'s)           140,909       150,706      178,491        159,019        71,136        63,228          33,078
% of Total
  Assets                 33.3%         35.6%        42.2%          37.6%         16.8%         14.9%            7.8%
</TABLE>

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

                                       17
<PAGE>

The following  table presents the simulated  impact of a 100 and 200 basis point
upward or downward  (parallel)  shift in market  interest  rates on net interest
income,  return on average equity, return on average assets and the market value
of portfolio  equity at June 30, 2008.  This analysis was done assuming that the
interest-earning assets will average approximately $408 million over a projected
twelve month period for the estimated  impact on change in net interest  income,
return on average equity and return on average assets.  The estimated changes in
market value of equity were  calculated  using  balance sheet levels at June 30,
2008.

<TABLE>
<CAPTION>
                               Analysis of Sensitivity to Changes in Market Interest Rates
                               -----------------------------------------------------------

                                                                Modeled Change in Market Interest Rates
                          ---------------------------------------------------------------------------------------------------------
                                              June 30, 2008                                           June 30, 2007
                          --------------------------------------------------    ---------------------------------------------------
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
interest income             -4.8%     -4.9%      0.00%      13.5%      27.8%      -16.6%      -6.0%       0.00%      1.8%     -7.4%

Return on average           7.91%     7.87%      8.47%     10.22%     12.05%       9.31%     11.07%      12.05%    12.31%    10.86%
equity

Return on average           0.61%     0.61%      0.66%      0.80%      0.96%       0.70%      0.83%       0.92%     0.93%     0.81%
assets

Market value of
equity (in thousands)    $21,224   $25,327    $28,671    $30,605    $27,457     $31,575    $36,391     $36,168   $24,967    $8,142
</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,
2008.

                            Anticipated Transactions
      ---------------------------------------------------------------------
                                                     (Dollars in Thousands)
      Undisbursed construction and development loans
            Fixed rate                                     $    4,359
                                                                 7.40%

            Adjustable rate                                $    6,454
                                                                 5.78%

      Undisbursed lines of credit
            Adjustable rate                                $    5,109
                                                                 6.25%

      Loan origination commitments
            Fixed rate                                     $      237
                                                                 7.26%

            Adjustable rate                                $        0

      Letters of credit
            Adjustable rate                                $      594
                                                                 6.00%

                                                           ----------
                                                           $   16,753
                                                           ==========

                                       18
<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, 2008 and 2007, 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, 2008. 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, 2008 and 2007, and the results of their operations
and their cash flows for each of the years in the  three-year  period ended June
30, 2008, in conformity with U.S. generally accepted accounting principles.

We were not engaged to examine management's assertion about the effectiveness of
WVS Financial  Corp.'s internal control over financial  reporting as of June 30,
2008, which is included in Item 9A(T) of Form 10-K and,  accordingly,  we do not
express an opinion thereon.

/s/ S.R. Snodgrass, A.C.

Wexford, PA
September 8, 2008


                                       19
<PAGE>
<TABLE>
<CAPTION>
                                    WVS FINANCIAL CORP.
                                 CONSOLIDATED BALANCE SHEET
                           (In thousands, except per share data)

                                                                           June 30,
                                                                       2008         2007
                                                                     ---------    ---------
<S>                                                                      <C>          <C>
ASSETS
      Cash and due from banks                                        $     628    $     630
      Interest-earning demand deposits                                   1,198        2,045
                                                                     ---------    ---------
      Total cash and cash equivalents                                    1,826        2,675
      Certificates of deposit                                            9,398           --
      Investment securities available for sale (amortized
         cost of $7,994 and $8,957)                                      7,978        8,933
      Investment securities held to maturity (market value
         of $122,055 and $201,510)                                     120,559      202,664
      Mortgage-backed securities available for sale
         (amortized cost of $2,101 and $2,186)                           2,215        2,246
      Mortgage-backed securities held to maturity
         (market value of $211,113 and $119,646)                       213,690      119,271
      Net loans receivable (allowance for loan losses of
         $956 and $986)                                                 56,477       60,350
      Accrued interest receivable                                        2,117        3,714
      Federal Home Loan Bank stock, at cost                              6,931        6,340
      Premises and equipment                                               766          813
      Other assets                                                       1,152        1,070
                                                                     ---------    ---------

              TOTAL ASSETS                                           $ 423,109    $ 408,076
                                                                     =========    =========

LIABILITIES
      Deposits                                                       $ 150,142    $ 159,377
      Federal Home Loan Bank advances: long-term                       135,579      130,579
      Federal Home Loan Bank advances: short-term                           --           --
      Federal Reserve Bank short-term borrowings                        80,600           --
      Other short-term borrowings                                       20,000       82,950
      Accrued interest payable                                           1,539        1,669
      Other liabilities                                                  3,101        2,208
                                                                     ---------    ---------
TOTAL LIABILITIES                                                      390,961      376,783
                                                                     ---------    ---------

STOCKHOLDERS' EQUITY
      Preferred stock, no par value; 5,000,000 shares authorized;
         none outstanding                                                   --           --
      Common stock, par value $0.01; 10,000,000 shares authorized;
         3,805,636 and 3,790,336 shares issued                              38           38
      Additional paid-in capital                                        21,376       21,137
      Treasury stock (1,578,857 and 1,471,481 shares at cost)          (24,041)     (22,286)
      Retained earnings - substantially restricted                      34,712       32,382
      Accumulated other comprehensive income                                64           23
      Unallocated shares - Recognition and Retention Plans                  (1)          (1)
                                                                     ---------    ---------
TOTAL STOCKHOLDERS' EQUITY                                              32,148       31,293
                                                                     ---------    ---------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                           $ 423,109    $ 408,076
                                                                     =========    =========

See accompanying notes to the consolidated financial statements.

                                            20
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

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

                                                              Year Ended June 30,
                                                       2008           2007          2006
                                                   -----------    -----------   -----------
<S>                                                     <C>            <C>            <C>
INTEREST AND DIVIDEND INCOME
      Loans                                        $     4,298    $     4,350   $     4,009
      Investment securities                             10,341         10,832         9,029
      Mortgage-backed securities                         8,518          8,748         8,919
      Certificates of deposit                               87             --            --
      Interest-earning demand deposits                       4             10            15
      Federal Home Loan Bank stock                         433            370           276
                                                   -----------    -----------   -----------
          Total interest and dividend income            23,681         24,310        22,248
                                                   -----------    -----------   -----------

INTEREST EXPENSE
      Deposits                                           3,927          4,190         3,123
      Federal Home Loan Bank advances                    9,299          7,763         7,934
      Federal Reserve Bank short-term borrowings            72             --            --
      Other short-term borrowings                        1,845          4,032         4,403
                                                   -----------    -----------   -----------
          Total interest expense                        15,143         15,985        15,460
                                                   -----------    -----------   -----------

NET INTEREST INCOME                                      8,538          8,325         6,788
(Recovery) provision for loan losses                      (123)            13          (161)
                                                   -----------    -----------   -----------
NET INTEREST INCOME AFTER (RECOVERY)
      PROVISION FOR LOAN LOSSES                          8,661          8,312         6,949
                                                   -----------    -----------   -----------

NONINTEREST INCOME
      Service charges on deposits                          325            359           380
      Investment securities gains                            7             --            30
      Other                                                265            267           295
                                                   -----------    -----------   -----------
          Total noninterest income                         597            626           705
                                                   -----------    -----------   -----------

NONINTEREST EXPENSE
      Salaries and employee benefits                     2,090          2,011         1,970
      Occupancy and equipment                              351            380           387
      Data processing                                      252            270           271
      Correspondent bank charges                           103            118           132
      Other                                                840            750           761
                                                   -----------    -----------   -----------
          Total noninterest expense                      3,636          3,529         3,521
                                                   -----------    -----------   -----------

Income before income taxes                               5,622          5,409         4,133

Income taxes                                             1,850          1,763         1,287
                                                   -----------    -----------   -----------

NET INCOME                                         $     3,772    $     3,646   $     2,846
                                                   ===========    ===========   ===========

EARNINGS PER SHARE:
      Basic                                        $      1.67    $      1.57   $      1.21
      Diluted                                             1.67           1.57          1.21

AVERAGE SHARES OUTSTANDING:
      Basic                                          2,252,604      2,319,928     2,357,217
      Diluted                                        2,252,906      2,321,536     2,359,996

See accompanying notes to the consolidated financial statements.

                                            21
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

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

                                                                                  Retained     Accumulated
                                                       Additional                 Earnings-       Other     Unallocated
                                              Common     Paid-in     Treasury   Substantially Comprehensive Shares Held
                                              Stock      Capital       Stock      Restricted  Income (Loss)    By RRP       Total
                                            ----------  ----------   ----------   ----------  ------------  ----------   ----------
<S>                                        <C>             <C>         <C>       <C>          <C>          <C>          <C>
Balance June 30, 2005                       $       38  $   20,726   $  (20,594)  $   28,885   $      149   $       (3)  $   29,201

Net income                                                                             2,846                                  2,846
Unrealized loss on available-
 for-sale securities, net of taxes of $65                                                            (126)                     (126)
Exercise of stock options (7,320)                               91                                                               91
Purchase of treasury stock (66,098)                                      (1,085)                                             (1,085)
Cash dividends declared ($0.64 per share)                                             (1,510)                                (1,510)
Other, net                                                                                                           1            1
                                            ----------  ----------   ----------   ----------   ----------   ----------   ----------

Balance June 30, 2006                               38      20,817      (21,679)      30,221           23           (2)      29,418

Net income                                                                             3,646                                  3,646
Exercise of stock options (20,498)                             320                                                              320
Purchase of treasury stock (36,875)                                        (607)                                               (607)
Cash dividends declared ($0.64 per share)                                             (1,485)                                (1,485)
Other, net                                                                                                           1            1
                                            ----------  ----------   ----------   ----------   ----------   ----------   ----------

Balance June 30, 2007                               38      21,137      (22,286)      32,382           23           (1)      31,293

Net income                                                                             3,772                                  3,772
Unrealized gain on available-
 for-sale securities, net of taxes of $21                                                              41                        41
Exercise of stock options (15,300)                             235                                                              235
Purchase of treasury stock (107,376)                                     (1,755)                                             (1,755)
Cash dividends declared ($0.64 per share)                                             (1,442)                                (1,442)
Other, net                                                       4                                                                4
                                            ----------  ----------   ----------   ----------   ----------   ----------   ----------

Balance June 30, 2008                       $       38  $   21,376   $  (24,041)  $   34,712   $       64   $       (1)  $   32,148
                                            ==========  ==========   ==========   ==========   ==========   ==========   ==========


See accompanying notes to the consolidated financial statements.


                                                                   22
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                                               WVS FINANCIAL CORP.
                                       CONSOLIDATED STATEMENT OF CASH FLOWS
                                                  (In thousands)
                                                                                       Year Ended June 30,
                                                                                 2008         2007         2006
                                                                              ---------    ---------    ---------
<S>                                                                               <C>           <C>          <C>
OPERATING ACTIVITIES
      Net income                                                              $   3,772    $   3,646    $   2,846
      Adjustments to reconcile net income to net cash
        provided by operating activities:
           (Recovery) provision for loan losses                                    (123)          13         (161)
           Depreciation                                                             124          137          154
           Investment securities gains                                               (7)          --          (30)
           Amortization (accretion) of discounts, premiums, and
             deferred loan fees                                                  (1,180)        (188)        (234)
           Deferred income taxes                                                    (70)         (26)         181
           Decrease (increase) in accrued interest receivable                     1,597         (793)        (864)
           Increase (decrease) in accrued interest payable                         (130)         218          191
           Other, net                                                               234          211          377
                                                                              ---------    ---------    ---------
               Net cash provided by operating activities                          4,217        3,218        2,460
                                                                              ---------    ---------    ---------

INVESTING ACTIVITIES
      Available for sale:
           Purchase of investment and mortgage-backed
             securities                                                        (157,231)     (12,440)      (8,690)
           Proceeds from repayments of investment and
             mortgage-backed securities                                         158,664       12,042        9,395
           Proceeds from sales of investment and
             mortgage-backed securities                                             326           --        1,016
      Held to maturity:
           Purchase of investment and mortgage-backed
             securities                                                        (190,620)    (138,272)    (202,891)
           Proceeds from repayments of investment and
             mortgage-backed securities                                         178,820      157,938      194,306
      Purchase of certificates of deposit                                        (9,401)          --           --
      Net (increase) decrease in net loans receivable                             3,962       (4,681)       4,581
      Purchase of Federal Home Loan Bank stock                                  (19,504)      (4,227)      (5,994)
      Redemption of Federal Home Loan Bank stock                                 18,913        5,748        5,902
      Acquisition of premises and equipment                                         (77)         (86)         (79)
      Other, net                                                                      2           --           60
                                                                              ---------    ---------    ---------
               Net cash (used for) provided by investing activities             (16,146)      16,022       (2,394)
                                                                              ---------    ---------    ---------

FINANCING ACTIVITIES
      Net increase (decrease) in deposits                                        (8,608)       8,259      (12,993)
      Net increase (decrease) in Federal Home Loan Bank short-term advances          --      (23,150)      10,850
      Net increase in Federal Reserve Bank short-term borrowings                 80,600           --           --
      Net increase (decrease) in other short-term borrowings                    (62,950)       6,902        6,368
      Proceeds from Federal Home Loan Bank long-term advances                    10,000           --           --
      Repayments of Federal Home Loan Bank long-term advances                    (5,000)      (8,000)      (4,157)
      Net proceeds from exercise of stock options                                   235          320           91
      Cash dividends paid                                                        (1,442)      (1,485)      (1,510)
      Purchase of treasury stock                                                 (1,755)        (607)      (1,085)
                                                                              ---------    ---------    ---------
             Net cash provided by (used for) financing activities                11,080      (17,761)      (2,436)
                                                                              ---------    ---------    ---------

(Decrease) increase in cash and cash equivalents                                   (849)       1,479       (2,370)

CASH AND CASH EQUIVALENTS AT BEGINNING
        OF YEAR                                                                   2,675        1,196        3,566
                                                                              ---------    ---------    ---------

CASH AND CASH EQUIVALENTS AT END OF YEAR                                      $   1,826    $   2,675    $   1,196
                                                                              =========    =========    =========

SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the year for:
        Interest                                                              $  15,273    $  15,767    $  15,269
        Taxes                                                                     1,902        1,764          915
Non cash item
        Due to Federal Reserve Bank                                               1,221          595           --

See accompanying notes to the consolidated financial statements.

                                                       23
</TABLE>
<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  that  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,  FDIC-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 U.S.  generally
         accepted  accounting  principles.  The  Company's  fiscal  year-end for
         financial reporting is June 30. For regulatory and income tax reporting
         purposes, WVS reports on a December 31 calendar-year basis.

         In preparing  the  consolidated  financial  statements,  management  is
         required to make  estimates  and  assumptions  that 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.

                                       24
<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.

                                       25
<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  accounts for  stock-based  compensation in accordance with
         Financial  Accounting  Standard  (FAS)  No.  123R.  FAS  123R  requires
         compensation  costs related to share-based  payment  transactions to be
         recognized in the financial statements (with limited  exceptions).  The
         amount of  compensation  cost is measured based on the grant-date  fair
         value of the equity or liability instruments issued.  Compensation cost
         is  recognized  over the period  that an employee  provides  service in
         exchange for the award.  The Company did not have any non-vested  stock
         options  outstanding  during the periods ended June 30, 2008, 2007, and
         2006.  There were no options  issued  during the periods ended June 30,
         2008, 2007, and 2006.

                                       26
<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 Note 3.

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

                  In December 2007, the FASB issued FAS No. 160,  Noncontrolling
         Interests in Consolidated  Financial  Statements -- an amendment of ARB
         No.  51. FAS No. 160  amends  ARB No. 51 to  establish  accounting  and
         reporting standards for the noncontrolling interest in a subsidiary and
         for  the   deconsolidation  of  a  subsidiary.   It  clarifies  that  a
         noncontrolling interest in a subsidiary, which is sometimes referred to
         as minority  interest,  is an  ownership  interest in the  consolidated
         entity that should be reported as equity in the consolidated  financial
         statements.   Among  other   requirements,   this  statement   requires
         consolidated  net income to be  reported  at amounts  that  include the
         amounts   attributable  to  both  the  parent  and  the  noncontrolling
         interest. It also requires disclosure,  on the face of the consolidated
         income   statement,   of  the  amounts  of   consolidated   net  income
         attributable to the parent and to the noncontrolling  interest. FAS No.
         160 is effective  for fiscal years  beginning on or after  December 15,
         2008. Earlier adoption is prohibited.  The adoption of this standard is
         not  expected  to have a material  effect on the  Company's  results of
         operations or financial position.

                  In March 2008, the FASB issued FAS No. 161,  Disclosures about
         Derivative  Instruments  and Hedging  Activities,  to require  enhanced
         disclosures about derivative  instruments and hedging  activities.  The
         new standard has revised financial reporting for derivative instruments
         and hedging activities by requiring more transparency about how and why
         an entity uses derivative  instruments,  how derivative instruments and
         related  hedged items are accounted  for under FAS No. 133,  Accounting
         for Derivative  Instruments and Hedging Activities;  and how derivative
         instruments  and related  hedged  items  affect an  entity's  financial
         position,  financial performance,  and cash flows. FAS No. 161 requires
         disclosure of the fair values of derivative instruments and their gains
         and losses in a tabular  format.  It also requires  entities to provide
         more  information  about their  liquidity  by requiring  disclosure  of
         derivative features that are credit risk-related.  Further, it requires
         cross-referencing  within footnotes to enable financial statement users
         to locate important information about derivative  instruments.  FAS No.
         161 is effective for financial  statements  issued for fiscal years and
         interim   periods   beginning  after  November  15,  2008,  with  early
         application encourage. The adoption of this standard is not expected to
         have a  material  effect on the  Company's  results  of  operations  or
         financial position.

                                       27
<PAGE>

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

1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

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

                  In May 2008,  the FASB issued FAS No. 162,  The  Hierarchy  of
         Generally Accepted  Accounting  Principles.  FAS No. 162 identifies the
         sources of  accounting  principles  and the framework for selecting the
         principles  used  in  the   preparation  of  financial   statements  of
         nongovernmental   entities  that  are  presented  in  conformity   with
         generally accepted accounting principles (the GAAP hierarchy).  FAS No.
         162 will become  effective 60 days  following the SEC's approval of the
         Public Company Accounting Oversight Board amendments to AU Section 411,
         The Meaning of Present  Fairly in Conformity  With  Generally  Accepted
         Accounting Principles.  The Company does not expect the adoption of FAS
         No. 162 to have a material  effect on its  results  of  operations  and
         financial position.

                  In April 2008,  the FASB issued FASB Staff Position No. 142-3,
         Determination  of the Useful Life of Intangible  Assets ("FSP  142-3").
         FSP 142-3 amends the factors that should be  considered  in  developing
         assumptions  about renewal or extension  used in estimating  the useful
         life of a recognized  intangible asset under FAS No. 142,  Goodwill and
         Other  Intangible  Assets.  This  standard  is  intended to improve the
         consistency  between the useful life of a recognized  intangible  asset
         under FAS No. 142 and the period of expected cash flows used to measure
         the fair  value of the asset  under FAS No.  141R and other  GAAP.  FSP
         142-3 is effective  for  financial  statements  issued for fiscal years
         beginning after December 15, 2008. The  measurement  provisions of this
         standard will apply only to intangible  assets of the Company  acquired
         after the effective date.

                  In June 2008,  the FASB issued FASB Staff  Position  (FSP) No.
         EITF 03-6-1,  Determining  Whether  Instruments  Granted in Share-Based
         Payment  Transactions  Are  Participating  Securities,  to clarify that
         instruments  granted  in  share-based   payment   transactions  can  be
         participating  securities  prior to the requisite  service  having been
         rendered.  A basic  principle of the FSP is that  unvested  share-based
         payment  awards that  contain  nonforfeitable  rights to  dividends  or
         dividend   equivalents  (whether  paid  or  unpaid)  are  participating
         securities and are to be included in the computation of EPS pursuant to
         the  two-class  method.  The  provisions  of this FSP are effective for
         financial  statements  issued for fiscal years beginning after December
         15, 2008, and interim periods within those years.  All prior-period EPS
         data presented  (including interim financial  statements,  summaries of
         earnings,  and  selected  financial  data) are  required to be adjusted
         retrospectively to conform with the provisions of the FSP. The adoption
         of this FSP is not expected to have a material  effect on the Company's
         results of operations or financial position.

                                       28
<PAGE>

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

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>
                                                            2008          2007          2006
                                                         ----------    ----------    ----------
<S>                                                       <C>           <C>           <C>
         Weighted-average common shares
               issued                                     3,799,015     3,778,561     3,765,511

         Average treasury stock shares                   (1,546,411)   (1,458,633)   (1,408,294)
                                                         ----------    ----------    ----------

         Weighted-average common shares and
               common stock equivalents used to
               calculate basic earnings per share         2,252,604     2,319,928     2,357,217

         Additional common stock equivalents
               (stock options) used to calculate
               diluted earnings per share                       302         1,608         2,779
                                                         ----------    ----------    ----------

         Weighted-average common shares and
               common stock equivalents used
               to calculate diluted earnings per share    2,252,906     2,321,536     2,359,996
                                                         ==========    ==========    ==========
</TABLE>

         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>
                                                                               2008      2007      2006
                                                                             -------   -------   -------
<S>                                                                          <C>       <C>       <C>
         Net Income                                                          $ 3,772   $ 3,646   $ 2,846
         Other comprehensive income:
                Unrealized gains (losses) on available-for-sale securities        55        --      (221)
                Reclassification adjustment for gains included
                in net income                                                      7        --        30
                                                                             -------   -------   -------
         Other comprehensive income (loss) before tax                             62        --      (191)
         Income tax effect related to other
                comprehensive income (loss)                                       21        --       (65)
                                                                             -------   -------   -------
         Other comprehensive income (loss), net of tax                            41        --      (126)
                                                                             -------   -------   -------
         Comprehensive income                                                $ 3,813   $ 3,646   $ 2,720
                                                                             =======   =======   =======
</TABLE>

                                       29
<PAGE>

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

4.       INVESTMENT SECURITIES

         The amortized cost and fair values of investments are as follows:
<TABLE>
<CAPTION>
                                                              Gross        Gross
                                               Amortized    Unrealized   Unrealized      Fair
                                                  Cost        Gains        Losses        Value
                                               ----------   ----------   ----------    ----------
<S>                                                <C>              <C>        <C>         <C>
         2008
         ----
         AVAILABLE FOR SALE
         Corporate debt securities             $    7,494   $       --   $       --    $    7,494
         Equity securities                            500           --          (16)          484
                                               ----------   ----------   ----------    ----------

               Total                           $    7,994   $       --   $      (16)   $    7,978
                                               ==========   ==========   ==========    ==========

         HELD TO MATURITY
         U.S. government agency securities     $   93,414   $    1,159   $       --    $   94,573
         Corporate debt securities                 19,092           56         (177)       18,971
         Obligations of states and political
           subdivisions                             8,053          458           --         8,511
                                               ----------   ----------   ----------    ----------

               Total                           $  120,559   $    1,673   $     (177)   $  122,055
                                               ==========   ==========   ==========    ==========
<CAPTION>

                                                              Gross        Gross
                                               Amortized    Unrealized   Unrealized      Fair
                                                  Cost        Gains        Losses        Value
                                               ----------   ----------   ----------    ----------
<S>                                                <C>              <C>        <C>         <C>
         2007
         ----
         AVAILABLE FOR SALE
         Corporate debt securities             $    8,402   $       --   $       --    $    8,402
         Equity securities                            555           --          (24)          531
                                               ----------   ----------   ----------    ----------

               Total                           $    8,957   $       --   $      (24)   $    8,933
                                               ==========   ==========   ==========    ==========

         HELD TO MATURITY
         U.S. government agency securities     $  186,667   $       17   $   (1,567)   $  185,117
         Corporate debt securities                  6,198           --           --         6,198
         Obligations of states and political
           subdivisions                             9,799          399           (3)       10,195
                                               ----------   ----------   ----------    ----------

               Total                           $  202,664   $      416   $   (1,570)   $  201,510
                                               ==========   ==========   ==========    ==========
</TABLE>

         In 2008,  2007,  and 2006,  the Company  recorded  realized  investment
         security  gains,  and  unrealized  holding gains and losses for trading
         securities  of $7,  $0,  and $30.  Proceeds  from  sales of  investment
         securities and  mortgage-backed  securities during 2008, 2007, and 2006
         were $326, $0, and $1,016.

                                       30
<PAGE>

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

4.       INVESTMENT SECURITIES (Continued)

         The amortized cost and fair values of debt securities at June 30, 2008,
         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    $      7,494   $         --   $         --   $         --   $      7,494
            Fair value               7,494             --             --             --          7,494

         HELD TO MATURITY
            Amortized cost    $     17,815          2,575   $     69,411   $     30,758   $    120,559
            Fair value              17,703          2,642         70,273         31,437        122,055
</TABLE>

Investment  securities  with  amortized  costs of $59,430  and  $96,460 and fair
values of $59,872  and  $95,797 at June 30,  2008 and 2007,  respectively,  were
pledged to secure public deposits, repurchase agreements, and for other purposes
as required by law.

5.       MORTGAGE-BACKED SECURITIES

         The amortized cost and fair values of mortgage-backed securities are as
         follows:
<TABLE>
<CAPTION>
                                                                 Gross         Gross
                                                Amortized      Unrealized    Unrealized         Fair
                                                   Cost          Gains         Losses           Value
                                               ------------   ------------   ------------    ------------
<S>                                            <C>            <C>            <C>             <C>
         2008
         ----
         AVAILABLE FOR SALE

         Government National Mortgage
           Association certificates            $      2,101   $        114   $         --    $      2,215
                                               ------------   ------------   ------------    ------------

              Total                            $      2,101   $        114   $         --    $      2,215
                                               ============   ============   ============    ============


         HELD TO MATURITY

         Collateralized mortgage obligations   $    213,690   $        523   $     (3,100)   $    211,113
                                               ------------   ------------   ------------    ------------

              Total                            $    213,690   $        523   $     (3,100)   $    211,113
                                               ============   ============   ============    ============
</TABLE>

                                       31
<PAGE>

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

5.       MORTGAGE-BACKED SECURITIES (Continued)

<TABLE>
<CAPTION>
                                                                 Gross         Gross
                                                Amortized      Unrealized    Unrealized         Fair
                                                   Cost          Gains         Losses           Value
                                               ------------   ------------   ------------    ------------
<S>                                            <C>            <C>            <C>             <C>
         2007
         ----
         AVAILABLE FOR SALE

         Government National Mortgage
           Association certificates            $      2,137   $         58   $         --    $      2,195
         Collateralized mortgage obligations             49              2             --              51
                                               ------------   ------------   ------------    ------------

              Total                            $      2,186   $         60   $         --    $      2,246
                                               ============   ============   ============    ============

         HELD TO MATURITY

         Collateralized mortgage obligations   $    119,271   $        582   $       (207)   $    119,646
                                               ------------   ------------   ------------    ------------

              Total                            $    119,271   $        582   $       (207)   $    119,646
                                               ============   ============   ============    ============
</TABLE>

         The amortized cost and fair value of mortgage-backed securities at June
         30, 2008, 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    $           --   $           --   $           --   $        2,101   $        2,101
            Fair value                    --               --               --            2,215            2,215

         HELD TO MATURITY
            Amortized cost    $           --   $           --   $           --   $      213,690   $      213,690
            Fair value                    --               --               --          211,113          211,113
</TABLE>

         At June 30, 2008 and 2007, mortgage-backed securities with an amortized
         cost of $208,382 and $120,435 and fair values of $205,920 and $120,873,
         were pledged to secure  borrowings  with the Federal Home Loan Bank and
         the Federal Reserve.

                                       32
<PAGE>

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

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, 2008 and 2007.
<TABLE>
<CAPTION>
                                                                             2008
                                          -----------------------------------------------------------------------------
                                          Less Than Twelve Months   Twelve Months or Greater              Total
                                          -----------------------------------------------------------------------------
                                                         Gross                      Gross                      Gross
                                            Fair       Unrealized      Fair       Unrealized      Fair       Unrealized
                                            Value        Losses        Value        Losses        Value        Losses
                                          ----------   ----------    ----------   ----------    ----------   ----------
<S>                                           <C>          <C>           <C>          <C>          <C>           <C>
         U.S. government agencies
           securities                     $       --   $       --    $       --   $       --    $       --   $       --
         Obligations of states and
           political subdivisions                 --           --            --           --            --           --
         Corporate debt securities            12,593         (177)           --           --        12,593         (177)
         Corporate equity securities              --           --           484          (16)          484          (16)
         Collateralized mortgage
           obligations                        97,644       (1,418)       53,531       (1,682)      151,175       (3,100)
                                          ----------   ----------    ----------   ----------    ----------   ----------

               Total                      $  110,237   $   (1,595)   $   54,015   $   (1,698)   $  164,252   $   (3,293)
                                          ==========   ==========    ==========   ==========    ==========   ==========
<CAPTION>
                                                                             2007
                                          -----------------------------------------------------------------------------
                                          Less Than Twelve Months   Twelve Months or Greater              Total
                                          -----------------------------------------------------------------------------
                                                         Gross                      Gross                      Gross
                                            Fair       Unrealized      Fair       Unrealized      Fair       Unrealized
                                            Value        Losses        Value        Losses        Value        Losses
                                          ----------   ----------    ----------   ----------    ----------   ----------
<S>                                           <C>          <C>           <C>          <C>          <C>           <C>
         U.S. government agencies
           securities                     $  102,015   $     (817)   $   59,108   $     (750)   $  161,123   $   (1,567)
         Obligations of states and
           political subdivisions                 99           (1)        1,300           (2)        1,399           (3)
         Corporate equity securities              --           --           476          (24)          476          (24)
         Collateralized mortgage
           obligations                        10,108          (35)       53,415         (172)       63,523         (207)
                                          ----------   ----------    ----------   ----------    ----------   ----------

               Total                      $  112,222   $     (853)   $  114,299   $     (948)   $  226,521   $   (1,801)
                                          ==========   ==========    ==========   ==========    ==========   ==========
</TABLE>

         The  policy of the  Company  is to  recognize  an  other-than-temporary
         impairment  of  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. There are 48 positions that are temporarily impaired at June
         30, 2008. The Company  reviews its position  quarterly and has asserted
         that at June  30,  2008,  the  declines  outlined  in the  above  table
         represent  temporary  declines and the Company does have the intent and
         ability  to hold  those  securities  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  changes,  or  Company-specific
         rating changes that are not expected to result in the  noncollection of
         principal and interest during the period.

                                       33
<PAGE>

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

7.       NET LOANS RECEIVABLE

         Major classifications of loans are summarized as follows:

                                                               2008      2007
                                                             --------  --------
         First mortgage loans:
               1 - 4 family dwellings                        $ 16,020  $ 17,102
               Construction                                    23,012    25,679
               Land acquisition and development                 1,992     2,195
               Multi-family dwellings                           6,897     6,458
               Commercial                                       6,622     7,699
                                                             --------  --------
                                                               54,543    59,133
                                                             --------  --------
         Consumer loans:
               Home equity                                      6,223     6,852
               Home equity lines of credit                      2,509     3,006
               Other                                              737       551
                                                             --------  --------
                                                                9,469    10,409
                                                             --------  --------

         Commercial loans                                       4,328     3,988
                                                             --------  --------

         Less:
               Undisbursed construction and land development   10,813    12,090
               Net deferred loan fees                              94       104
               Allowance for loan losses                          956       986
                                                             --------  --------
                                                               11,863    13,180
                                                             --------  --------

         Net loans receivable                                $ 56,477  $ 60,350
                                                             ========  ========

         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,  2008  and  2007,  the  Company  had
         approximately $15 million and $17 million, respectively, of outstanding
         loans for land  development  and  construction in the local trade area.
         Although the Company had a diversified  loan portfolio at June 30, 2008
         and 2007, loans outstanding to individuals and businesses are dependent
         upon the local economic conditions in its immediate trade area.

                                       34
<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:

                                       2008     2007     2006
                                      ------   ------   ------

         Principal outstanding        $1,582   $1,204   $  308
                                      ------   ------   ------
         Interest income that would
           have been recognized          117       82       23
         Interest income recognized       70       81       10
                                      ------   ------   ------

         Interest income foregone     $   47   $    1   $   13
                                      ======   ======   ======

         The following table is a summary of the loans considered to be impaired
         as of June 30:
<TABLE>
<CAPTION>
                                                            2008        2007        2006
                                                         ---------   ---------   ---------
<S>                                                      <C>         <C>         <C>
         Impaired loans with an allocated allowance      $     972   $     972   $      --
         Impaired loans without an allocated allowance          --          --          --
                                                         ---------   ---------   ---------
               Total impaired loans                      $     972   $     972   $      --
                                                         =========   =========   =========
         Allocated allowance on impaired loans           $     340   $     341   $      --
         Average impaired loans                                972         245          --
         Income recognized on impaired loans                    34          23          --
</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 $120,000 during the years ended June 30 are as follows:

                                    2008       2007
                                  -------    -------

         Balance, July 1          $ 2,455    $   373
              Additions               436      2,163
              Amounts collected      (507)       (81)
                                  -------    -------

         Balance, June 30         $ 2,384    $ 2,455
                                  =======    =======

8.       ALLOWANCE FOR LOAN LOSSES

         Changes in the allowance for loan losses are as follows:

                                                       2008      2007     2006
                                                     -------   -------  -------

         Balance, July 1                             $   986   $   957  $ 1,121
         Add:
               (Recovery) provision for loan losses     (123)       13     (161)
               Recoveries                                 93        16        4
         Less:
               Loans charged off                          --        --        7
                                                     -------   -------  -------

         Balance, June 30                            $   956   $   986  $   957
                                                     =======   =======  =======

                                       35
<PAGE>

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

9.       ACCRUED INTEREST RECEIVABLE

         Accrued interest receivable consists of the following:

                                                      2008     2007
                                                     ------   ------

         Investment and mortgage-backed securities   $1,834   $3,398
         Loans receivable                               283      316
                                                     ------   ------

               Total                                 $2,117   $3,714
                                                     ======   ======

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 0.75 percent of the outstanding  unused FHLB
         borrowing capacity and 4.75 percent of its outstanding FHLB borrowings,
         as calculated throughout the year.

11.      PREMISES AND EQUIPMENT

         Major  classifications  of premises and  equipment  are  summarized  as
         follows:

                                               2008     2007
                                              ------   ------

         Land and improvements                $  246   $  246
         Buildings and improvements            1,995    2,015
         Furniture, fixtures, and equipment    1,044      993
                                              ------   ------
                                               3,285    3,254
         Less accumulated depreciation         2,519    2,441
                                              ------   ------
              Total                           $  766   $  813
                                              ======   ======

         Depreciation  charged to operations  was $124,  $137, and $154, for the
         years ended June 30, 2008, 2007, and 2006, respectively.

                                       36
<PAGE>

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

12.      DEPOSITS

Deposit accounts are summarized as follows:
<TABLE>
<CAPTION>
                                                     2008                          2007
                                         ---------------------------    ---------------------------
                                                         Percent of                     Percent of
                                            Amount       Portfolio         Amount       Portfolio
                                         ------------   ------------    ------------   ------------
<S>                                      <C>                     <C>    <C>                     <C>
         Non-interest-earning checking   $     11,780            7.9%   $     12,363            7.8%
         Interest-earning checking             17,569           11.7          18,741           11.8
         Savings accounts                      32,025           21.3          32,937           20.7
         Money market accounts                 23,593           15.7          20,146           12.6
         Advance payments by borrowers
            for taxes and insurance               924            0.6           1,013            0.6
                                         ------------   ------------    ------------   ------------
                                               85,891           57.2          85,200           53.5
                                         ------------   ------------    ------------   ------------
         Savings certificates:
               2.00% or less                    9,288              6              --             --
               2.01 - 4.00%                    26,359           17.5          11,815            7.4
               4.01 - 6.00%                    28,547           19.0          62,277           39.0
               6.01 - 6.95%                        57            0.1              85            0.1
                                         ------------   ------------    ------------   ------------
                                               64,251           42.8          74,177           46.5
                                         ------------   ------------    ------------   ------------

               Total                     $    150,142          100.0%   $    159,377          100.0%
                                         ============   ============    ============   ============
</TABLE>

         The maturities of savings certificates at June 30, 2008, are summarized
         as follows:

         Within one year                           $50,671
         Beyond one year but within two years        8,335
         Beyond two years but within three years     2,908
         Beyond three years                          2,337
                                                   -------

              Total                                $64,251
                                                   =======

         The  aggregate  amount of time  certificates  of deposit with a minimum
         denomination  of $100,000 and  individual  retirement  accounts  with a
         minimum  denomination of $250,000 was $6,918 and $318 at June 30, 2008,
         respectively.  Time  certificates  of deposit in excess of $100,000 and
         individual  retirement accounts in excess of $250,000 are not federally
         insured.

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

                                                    2008     2007     2006
                                                   ------   ------   ------

         Interest-earning checking accounts        $   10   $   11   $   11
         Savings accounts                             217      236      280
         Money market accounts                        633      624      413
         Savings certificates                       3,056    3,308    2,408
         Advance payments by borrowers for taxes
           and insurance                               11       11       11
                                                   ------   ------   ------

              Total                                $3,927   $4,190   $3,123
                                                   ======   ======   ======

                                       37
<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         2008          2007
-----------------    ------------    ------------   -----------------   -------     -------   ----------    ----------
<S>                   <C>           <C>                   <C>           <C>         <C>     <C>           <C>
Convertible           03/19/09       07/27/17               5.40%         4.26%       6.10%   $  134,500    $  129,500
Fixed rate            03/12/09       05/03/10               3.24          2.91        3.53         1,079         1,079
                                                                                              ----------    ----------

                     Total                                                                    $  135,579    $  130,579
                                                                                              ==========    ==========
</TABLE>

         Maturities of FHLB long-term  advances at June 30, 2008, are summarized
         as follows:

                                                        Weighted-
              Maturing During                           Average
             Fiscal Year Ended                          Interest
                 June 30:                Amount           Rate
          -----------------------   --------------   ---------------

                   2009             $        5,500         4.99%
                   2010                     20,579         5.86
                   2011                     87,000         5.45
                   2012                      5,000         5.03
            2013 and thereafter             17,500         4.72
                                    --------------

                   Total            $      135,579         5.39%
                                    ==============

         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 convert from a fixed rate to a  predetermined  floating  rate on its
         conversion  date  or  quarterly  thereafter.   Should  the  advance  be
         converted,  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:

                                                             2008        2007
                                                           --------    --------

         FHLB revolving and short-term advances:
               Ending balance                              $     --    $     --
               Average balance during the year               52,440       6,598
               Maximum month-end balance during the year    114,325      67,235
               Average interest rate during the year           3.63%       5.37%
               Weighted-average rate at year-end                 --%         --%

         At June 30, 2008, the Company had remaining borrowing capacity with the
         FHLB of approximately $150 million.

                                       38
<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 and Federal  Reserve Bank  Borrowings.  These
         borrowings  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 $20,647 and $83,564 at
         June 30, 2008 and 2007, respectively,  as collateral for the repurchase
         agreements,  and investment  securities and mortgage-backed  securities
         with  carrying  values  of  $21,476  and  $73,146  at  June  30,  2008,
         respectively,  as collateral for the Federal Reserve Bank Borrowings as
         explained in Notes 4 and 5. The following  tables  present  information
         regarding other borrowings as of June 30:

         OTHER SHORT-TERM BORROWINGS

                                                       2008       2007
                                                     -------    -------

         Ending balance                              $20,000    $82,950
         Average balance during the year              41,293     74,659
         Maximum month-end balance during the year    75,950     92,900
         Average interest rate during the year          4.47%      5.40%
         Weighted-average rate at year-end              2.16%      5.30%

         FEDERAL RESERVE BANK BORROWINGS
                                                       2008       2007
                                                     -------    -------

         Ending balance                              $80,600    $    --
         Average balance during the year               3,195         --
         Maximum month-end balance during the year    80,600         --
         Average interest rate during the year          2.25%        --%
         Weighted-average rate at year-end              2.25%        --%

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 $16,753 and $20,733 at June 30, 2008
         and  2007,   respectively,   represent   financial   instruments   with
         off-balance  sheet risk. The commitments  outstanding at June 30, 2008,
         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  7),
         residential, commercial real estate, and consumer loan originations.

                                       39
<PAGE>

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

15.      COMMITMENTS AND CONTINGENT LIABILITIES (Continued)

         Loan Commitments (Continued)

         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.

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, 2008 and 2007, 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, 2008
                                                            --------------------------------------------------
                                                                   West View                 West View
                                                            -----------------------    -----------------------
                                                              Amount        Ratio        Amount       Ratio
                                                            ----------   ----------    ----------   ----------
<S>                                                             <C>           <C>          <C>           <C>
         Total Capital (to Risk-Weighted Assets)
         ---------------------------------------
         Actual                                             $   33,059        22.37%   $   30,647        20.82%
         To Be Well Capitalized                                 14,776        10.00        14,720        10.00
         For Capital Adequacy Purposes                          11,821         8.00        11,776         8.00

         Tier I Capital (to Risk-Weighted Assets)
         ----------------------------------------
         Actual                                             $   32,073        21.71%   $   29,661        20.15%
         To Be Well Capitalized                                  8,866         6.00         8,832         6.00
         For Capital Adequacy Purposes                           5,911         4.00         5,888         4.00

         Tier I Capital (to Average Total Assets)
         ----------------------------------------
         Actual                                             $   32,073         7.75%   $   29,661         7.17%
         To Be Well Capitalized                                 20,683         5.00        20,672         5.00
         For Capital Adequacy Purposes                          16,547         4.00        16,538         4.00
</TABLE>

                                       40
<PAGE>

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

16.      REGULATORY CAPITAL (Continued)

<TABLE>
<CAPTION>
                                                                      June 30, 2007
                                                    --------------------------------------------------
                                                           West View                 West View
                                                    -----------------------    -----------------------
                                                      Amount        Ratio        Amount       Ratio
                                                    ----------   ----------    ----------   ----------
<S>                                                     <C>           <C>          <C>           <C>
         Total Capital (to Risk-Weighted Assets)
         ---------------------------------------
         Actual                                     $   32,282        23.15%   $   29,786        21.69%
         To Be Well Capitalized                         13,943        10.00        13,734        10.00
         For Capital Adequacy Purposes                  11,155         8.00        10,987         8.00

         Tier I Capital (to Risk-Weighted Assets)
         ----------------------------------------
         Actual                                     $   31,254        22.41%   $   28,758        20.94%
         To Be Well Capitalized                          8,366         6.00         8,241         6.00
         For Capital Adequacy Purposes                   5,577         4.00         5,494         4.00

         Tier I Capital (to Average Total Assets)
         ----------------------------------------
         Actual                                     $   31,254         8.13%   $   28,758         7.48%
         To Be Well Capitalized                         19,214         5.00        19,224         5.00
         For Capital Adequacy Purposes                  15,371         4.00        15,379         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.  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.

                                       41
<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, 2005         39,312          4,414   $      14.99

               Granted                          --             --
               Exercised                    (7,320)            --          12.41
               Forfeited                        --             --
                                      ------------   ------------

         Outstanding, June 30, 2006         31,992          4,414   $      15.51

               Granted                          --             --
               Exercised                   (19,698)          (800)         15.61
               Forfeited                        --             --
                                      ------------   ------------

         Outstanding, June 30, 2007         12,294          3,614   $      15.39

               Granted                          --             --
               Exercised                   (12,294)        (3,006)         15.37
               Forfeited                        --             --
                                      ------------   ------------

         Outstanding, June 30, 2008             --            608   $      15.77
                                      ============   ============

         Exercisable at year-end                --            608   $      15.77
                                      ============   ============

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

         At June 30,  2008,  for officers  and  employees  there were no options
         outstanding.

         There were also 608 options  outstanding  and exercisable for directors
         with   a   weighted-average   exercise   price   of   $15.77,   and   a
         weighted-average remaining contractual life of 3.42 years.

                                       42
<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 was 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 $1 for each of the years ended June
         30, 2008, 2007, and 2006.

         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 $113,
         $113,  and $100 for the years  ended  June 30,  2008,  2007,  and 2006,
         respectively.  Total  ESOP  shares as of June 30,  2008 and 2007,  were
         237,255 and 227,113, respectively.

18.      DIRECTOR, OFFICER, AND EMPLOYEE BENEFITS

         Profit Sharing Plan

         The Company maintains a non-contributory profit sharing 401(k) 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, 2008, 2007, and 2006.

         Directors' Deferred Compensation Plan

         The Company  maintains a deferred  compensation  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, 2008, 2007, and 2006,  17,842,  29,341, and
         25,841 shares, respectively, were held by the plan.

                                       43
<PAGE>

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

19.      INCOME TAXES

         The provision for income taxes consists of:

                                2008       2007       2006
                              -------    -------    -------
         Currently payable:
               Federal        $ 1,767    $ 1,644    $   978
               State              153        145        128
                              -------    -------    -------
                                1,920      1,789      1,106
         Deferred                 (70)       (26)       181
                              -------    -------    -------

               Total          $ 1,850    $ 1,763    $ 1,287
                              =======    =======    =======

         The following  temporary  differences gave rise to the net deferred tax
         assets at June 30:
<TABLE>
<CAPTION>
                                                                       2008     2007
                                                                      ------   ------
<S>                                                                      <C>      <C>
         Deferred tax assets:
               Allowance for loan losses                              $  293   $  335
               Deferred compensation                                     415      339
               Reserve for uncollected interest                          207      187
               Reserve for off-balance sheet commitments                  10       14
               Other                                                      60       63
                                                                      ------   ------
                       Total gross deferred tax assets                   985      938
                                                                      ------   ------

         Deferred tax liabilities:
               Net unrealized gain on securities available for sale       33       12
               Deferred origination fees, net                            161      177
               Depreciation reserve                                       50       57
               Other                                                       1        1
                                                                      ------   ------
                       Total gross deferred tax liabilities              245      247
                                                                      ------   ------

               Net deferred tax assets                                $  740   $  691
                                                                      ======   ======
</TABLE>

         No valuation  allowance was  established  at June 30, 2008 and 2007, 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.

                                       44
<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>
                                                    2008                        2007                      2006
                                            ----------------------     ----------------------     ----------------------
                                                           % of                       % of                        % of
                                                          Pretax                     Pretax                      Pretax
                                              Amount      Income        Amount       Income        Amount        Income
                                            ---------    ---------     ---------    ---------     ---------    ---------
<S>                                               <C>          <C>            <C>         <C>            <C>         <C>
         Provision at statutory rate        $   1,911         34.0%    $   1,839         34.0%    $   1,405         34.0%
         State income tax, net of federal
           tax benefit                            101          1.8            96          1.8            84          2.0
         Tax exempt income                       (163)        (2.9)         (189)        (3.5)         (251)        (6.1)
         Other, net                                 1           --            17          0.3            49          1.2
                                            ---------    ---------     ---------    ---------     ---------    ---------

         Actual tax expense and
           effective rate                   $   1,850         32.9%    $   1,763         32.6%    $   1,287         31.1%
                                            =========    =========     =========    =========     =========    =========
</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, 2008 and 2007,  the Savings Bank had
         required reserves of $578 and $669, 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, 2008, surplus funds of $3,363 were not available for dividends.

                                       45
<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>
                                                               2008                      2007
                                                      -----------------------   -----------------------
                                                      Carrying       Fair        Carrying      Fair
                                                        Amount       Value        Amount       Value
                                                      ----------   ----------   ----------   ----------
<S>                                                       <C>          <C>          <C>          <C>
         FINANCIAL ASSETS
         Cash and cash equivalents                    $    1,826   $    1,826   $    2,675   $    2,675
         Certificates of deposit                           9,398        9,392           --           --
         Investment securities                           128,537      130,033      211,597      210,443
         Mortgage-backed securities                      215,905      213,328      121,517      121,892
         Net loans receivable                             56,477       58,722       60,350       61,399
         Accrued interest receivable                       2,117        2,117        3,714        3,714
         FHLB stock                                        6,931        6,931        6,340        6,340

         FINANCIAL LIABILITIES
         Deposits                                     $  150,142   $  150,497   $  159,377   $  159,224
         FHLB advances                                   135,579      141,345      130,579      131,582
         Federal Reserve Bank short-term borrowings       80,600       80,600           --           --
         Other short-term borrowings                      20,000       20,000       82,950       82,950
         Accrued interest payable                          1,539        1,539        1,669        1,669
</TABLE>

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

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

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

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

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

                                       46
<PAGE>

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

21.      FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)

         Cash and Cash Equivalents, 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,  Certificates  of Deposit  Owned,  and  Customer
         -----------------------------------------------------------------------
         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  owned and customer
         time  deposits 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.

                                       47
<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:
<TABLE>
<CAPTION>
                                      CONDENSED BALANCE SHEET

                                                                        June 30,
                                                                    2008        2007
                                                                  --------    --------
<S>                                                                 <C>         <C>
              ASSETS
                 Interest-earning deposits with subsidiary bank   $  1,696    $    424
                 Certificates of deposit                               198          --
                 Investment securities available for sale              501          57
                 Investment securities held to maturity                 --       2,000
                 Investment in subsidiary bank                      29,736      28,800
                 Accrued interest receivable and other assets           21          58
                                                                  --------    --------

              TOTAL ASSETS                                        $ 32,152    $ 31,339
                                                                  ========    ========

              LIABILITIES AND STOCKHOLDERS' EQUITY
                 Other liabilities                                $      4    $     46
                 Stockholders' equity                               32,148      31,293
                                                                  --------    --------

              TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY          $ 32,152    $ 31,339
                                                                  ========    ========
<CAPTION>

                                   CONDENSED STATEMENT OF INCOME

                                                                        Year Ended June 30,
                                                                    2008        2007        2006
                                                                  --------    --------    --------
<S>                                                                     <C>         <C>         <C>
         INCOME
              Investment and mortgage-backed securities           $     20    $      1    $     16
              Certificates of deposit                                    3          --          --
              Dividend from subsidiary                               2,900       2,700       2,400
              Investment securities gains, net                           6          --          --
              Interest-earning deposits with subsidiary bank            42          58          27
                                                                  --------    --------    --------

         Total income                                                2,971       2,759       2,443
                                                                  --------    --------    --------


         OTHER OPERATING EXPENSE                                       116          98          98
                                                                  --------    --------    --------

              Income before equity in undistributed
                earnings of subsidiary                               2,855       2,661       2,345
              Equity in undistributed earnings of subsidiary           895         978         501
                                                                  --------    --------    --------

              Income before income taxes                             3,750       3,639       2,846
              Income tax expense (benefit)                             (22)         (7)         --
                                                                  --------    --------    --------

         NET INCOME                                               $  3,772    $  3,646    $  2,846
                                                                  ========    ========    ========
</TABLE>

                                       48
<PAGE>

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

21.      PARENT COMPANY (Continued)
<TABLE>
<CAPTION>
                                     CONDENSED STATEMENT OF CASH FLOWS

                                                                         Year Ended June 30,
                                                                     2008        2007        2006
                                                                   --------    --------    --------
<S>                                                                     <C>          <C>        <C>
         OPERATING ACTIVITIES
            Net income                                             $  3,772    $  3,646    $  2,846
            Adjustments to reconcile net income to net cash
              provided by operating activities:
                Undistributed net income of subsidiary                 (895)       (978)       (501)
                 Investment securities gains                             (6)         --          --
                Other, net                                              (14)         21         (13)
                                                                   --------    --------    --------
            Net cash provided by operating activities                 2,857       2,689       2,332
                                                                   --------    --------    --------

         INVESTING ACTIVITIES
            Available for sale:
                Purchase of investment and
                  mortgage-backed securities                         (4,556)        (55)       (611)
                Proceeds from repayments of investment and
                  mortgage-backed securities                          4,070          --       1,942
                Proceeds from sales of investment securities             61          --          --
            Held to maturity:
                Purchases of investment and mortgage-backed
                  securities                                             --      (1,999)         --
            Proceeds from repayment of investment and
              mortgage-backed securities                              2,000          --          --
            Purchases of certificates of deposit                       (198)
                                                                   --------    --------    --------
            Net cash provided by (used for) investing activities      1,377      (2,054)      1,331
                                                                   --------    --------    --------

         FINANCING ACTIVITIES
            Net proceeds from exercise of stock options                 235         320          91
            Cash dividends paid                                      (1,442)     (1,485)     (1,510)
            Purchase of treasury stock                               (1,755)       (607)     (1,085)
                                                                   --------    --------    --------
            Net cash used for financing activities                   (2,962)     (1,772)     (2,504)
                                                                   --------    --------    --------

            Increase (decrease) in cash and cash equivalents          1,272      (1,137)      1,159

         CASH AND CASH EQUIVALENTS
           BEGINNING OF YEAR                                            424       1,561         402
                                                                   --------    --------    --------

         CASH AND CASH EQUIVALENTS
           END OF YEAR                                             $  1,696    $    424    $  1,561
                                                                   ========    ========    ========
</TABLE>

                                       49
<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
                                                     2007           2007          2008           2008
                                                  -----------    -----------   -----------    -----------
<S>                                                     <C>            <C>           <C>            <C>
         Total interest and dividend income       $     6,537    $     6,497   $     5,690    $     4,957
         Total interest expense                         4,234          4,165         3,600          3,144
                                                  -----------    -----------   -----------    -----------

         Net interest income                            2,303          2,332         2,090          1,813
         (recovery) provision for loan losses             (17)            11           (57)           (60)
                                                  -----------    -----------   -----------    -----------

         Net interest income after
           (recovery) provision for loan losses         2,320          2,321         2,147          1,873

         Total noninterest income                         157            145           138            157
         Total noninterest expense                        942            955           848            891
                                                  -----------    -----------   -----------    -----------

         Income before income taxes                     1,535          1,511         1,437          1,139
         Income taxes                                     512            463           475            400
                                                  -----------    -----------   -----------    -----------

         Net income                               $     1,023    $     1,048   $       962    $       739
                                                  ===========    ===========   ===========    ===========

         Per share data:
         Net income
               Basic                              $      0.45    $      0.46   $      0.43    $      0.33
               Diluted                                   0.45           0.46          0.43           0.33
         Average shares outstanding
               Basic                                2,283,510      2,261,544     2,238,670      2,226,254
               Diluted                              2,284,384      2,261,783     2,238,758      2,226,260
</TABLE>

                                       50
<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
                                                 2006           2006          2007          2007
                                              -----------    -----------   -----------   -----------
<S>                                                 <C>            <C>           <C>           <C>
         Total interest and dividend income   $     6,118    $     6,230   $     6,051   $     5,911
         Total interest expense                     4,038          4,322         3,867         3,758
                                              -----------    -----------   -----------   -----------

         Net interest income                        2,080          1,908         2,184         2,153
         Recovery for loan losses                      (9)            --            34           (12)
                                              -----------    -----------   -----------   -----------

         Net interest income after
           recovery for loan losses                 2,089          1,908         2,150         2,165

         Total noninterest income                     152            161           152           161
         Total noninterest expense                    902            890           832           905
                                              -----------    -----------   -----------   -----------

         Income before income taxes                 1,339          1,179         1,470         1,421
         Income taxes                                 435            342           515           471
                                              -----------    -----------   -----------   -----------

         Net income                           $       904    $       837   $       955   $       950
                                              ===========    ===========   ===========   ===========

         Per share data:
         Net income
               Basic                          $      0.39    $      0.36   $      0.41   $      0.41
               Diluted                               0.39           0.36          0.41          0.41
         Average shares outstanding
               Basic                            2,327,183      2,310,596     2,322,962     2,322,962
               Diluted                          2,329,120      2,312,838     2,324,278     2,324,278
</TABLE>

                                       51
<PAGE>

COMMON STOCK MARKET PRICE AND DIVIDEND INFORMATION

WVS Financial Corp.'s common stock is traded on the Nasdaq Global MarketSM 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 2008                 $16.250        $15.900             $0.16
March 2008                 16.470         15.800              0.16
December 2007              17.190         16.000              0.16
September 2007             16.600         15.770              0.16

June 2007                 $17.200        $16.400             $0.16
March 2007                 17.200         16.330              0.16
December 2006              17.950         16.300              0.16
September 2006             16.990         16.190              0.16

There were ten Nasdaq Market Makers in the Company's common stock as of June 30,
2008:  Boenning  &  Scattergood  Inc.;  Sandler  O'Neill  &  Partners;   Citadel
Derivatives  Group LLC; Ryan Beck & Co.,  Inc.;  Morgan  Stanley & Co., Inc; UBS
Securities LLC; Ferris,  Baker Watts,  Inc.;  Citigroup  Global Markets;  Stifel
Nicolaus & Co. and Knight Equity Markets, L.P.

According  to  the  records  of  the  Company's   transfer  agent,   there  were
approximately  644  shareholders  of record at September 10, 2008. 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.


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