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

                                    FORM 10-Q

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

     For the quarterly period ended September 30, 2002

                                       or

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

    For the transition period from                    to
                                  --------------------  ------------------------
                         Commission File Number: 0-22444

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

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

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

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


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

     Shares outstanding as of November 12, 2002:  2,624,342 shares Common Stock,
$.01 par value.


<PAGE>


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

                                      INDEX
                                      -----

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

Item 1.                    Financial Statements

                           Consolidated Statement of Financial
                           Condition as of September 30, 2002
                           and June 30, 2002 (Unaudited)                     3

                           Consolidated Statement of Income
                           for the Three Months Ended
                           September 30, 2002 and 2001 (Unaudited)           4

                           Consolidated Statement of Cash Flows
                           for the Three Months Ended September 30,
                           2002 and 2001 (Unaudited)                         5

                           Consolidated Statement of Changes in
                           Stockholders' Equity for the Three Months
                           Ended September 30, 2002 (Unaudited)              7

                           Notes to Unaudited Consolidated
                           Financial Statements                              8

Item 2.                    Management's Discussion and Analysis of
                           Financial Condition and Results of
                           Operations for the Three Months
                           Ended September 30, 2002                         10

Item 3.                    Quantitative and Qualitative Disclosures
                           about Market Risk                                16

Item 4.                    Controls and Procedures                          21

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

Item 1.                    Legal Proceedings                                22
Item 2.                    Changes in Securities and Use of Proceeds        22
Item 3.                    Defaults upon Senior Securities                  22
Item 4.                    Submission of Matters to a Vote of
                           Security Holders                                 22
Item 5.                    Other Information                                22
Item 6.                    Exhibits and Reports on Form 8-K                 22
                           Signatures                                       23
                           Certification of Chief Executive Officer         24
                           Certification of Chief Accounting Officer        25

                                       2

<PAGE>

<TABLE>
<CAPTION>
                       WVS FINANCIAL CORP. AND SUBSIDIARY
                  CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
                                   (UNAUDITED)
                                 (In thousands)
                                                                          September 30, 2002      June 30, 2002
                                                                          ------------------      -------------
   <S>                                                                       <C>                    <C>
          Assets
          ------
   Cash and due from banks                                                   $     989              $     879
   Interest-earning demand deposits                                              2,198                  2,298
   Investment securities available-for-sale (amortized cost of
      $2,712 and $8,375)                                                         2,834                  8,426
   Investment securities held-to-maturity (market value of
      $160,297 and $146,146)                                                   156,682                142,958
   Mortgage-backed securities available-for-sale (amortized cost of
      $5,795 and $6,196)                                                         6,085                  6,450
   Mortgage-backed securities held-to-maturity (market value of
      $63,191 and $76,819)                                                      62,298                 76,093
   Federal Home Loan Bank stock, at cost                                         8,394                  8,281
   Net loans receivable (allowance for loan losses of $2,776 and $2,758)       143,616                152,905
   Accrued interest receivable                                                   3,520                  3,903
   Premises and equipment                                                          985                    996
   Deferred taxes and other assets                                               1,469                  1,722
                                                                             ---------              ---------
             TOTAL ASSETS                                                    $ 389,070              $ 404,911
                                                                             =========              =========

             Liabilities and Stockholders' Equity
             ------------------------------------
   Liabilities:
   Savings Deposits:
      Non-interest-bearing accounts                                          $  16,212              $  12,615
      NOW accounts                                                              19,544                 20,872
      Savings accounts                                                          41,130                 41,620
      Money market accounts                                                     14,229                 14,843
      Certificates of deposit                                                   84,039                 84,709
                                                                             ---------              ---------
       Total savings deposits                                                  175,154                174,659
   Federal Home Loan Bank advances                                             159,937                159,937
   Other borrowings                                                             19,139                 33,731
   Advance payments by borrowers for taxes and insurance                           940                  3,013
   Accrued interest payable                                                      1,745                  1,698
   Other liabilities                                                             1,668                  1,620
                                                                             ---------              ---------
        TOTAL LIABILITIES                                                      358,583                374,658

   Stockholders' equity:
   Preferred stock:
      5,000,000 shares, no par value per share, authorized; none
      outstanding                                                                  ---                    ---
   Common stock:
      10,000,000 shares, $.01 par value per share, authorized;
      3,730,258 and 3,729,858 shares issued                                         37                     37
   Additional paid-in capital                                                   20,039                 20,037
   Treasury stock: 1,078,472 and 1,051,872 shares at cost, respectively        (15,556)               (15,133)
   Retained earnings, substantially restricted                                  25,757                 25,183
   Accumulated other comprehensive income                                          272                    201
   Unallocated shares - Recognition and Retention Plans                            (62)                   (72)
                                                                             ---------              ---------
        TOTAL STOCKHOLDERS' EQUITY                                              30,487                 30,253
                                                                             ---------              ---------
             TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                      $ 389,070              $ 404,911
                                                                             =========              =========
</TABLE>

          See accompanying notes to consolidated financial statements.

                                       3


<PAGE>

<TABLE>
<CAPTION>
                       WVS FINANCIAL CORP. AND SUBSIDIARY
                        CONSOLIDATED STATEMENT OF INCOME
                                   (UNAUDITED)
                      (In thousands, except per share data)
                                                                       Three Months Ended
                                                                          September 30,
                                                                      -------------------
                                                                      2002            2001
                                                                      ----            ----
   <S>                                                             <C>             <C>
   INTEREST AND DIVIDEND INCOME:
        Loans                                                      $    2,809      $    3,551
        Investment securities                                           1,742           1,882
        Mortgage-backed securities                                        808             975
        Interest-earning deposits with other institutions                   4               4
        Federal Home Loan Bank stock                                       69             139
                                                                   ----------      ----------
             Total interest and dividend income                         5,432           6,551
                                                                   ----------      ----------
   INTEREST EXPENSE:
        Deposits                                                          959           1,608
        Borrowings                                                      2,223           2,245
        Advance payments by borrowers for taxes and insurance               6               6
                                                                   ----------      ----------
             Total interest expense                                     3,188           3,859
                                                                   ----------      ----------
   NET INTEREST INCOME                                                  2,244           2,692
   PROVISION FOR LOAN LOSSES                                               18              37
                                                                   ----------      ----------
   NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES                  2,226           2,655
                                                                   ----------      ----------
   NON-INTEREST INCOME:
        Service charges on deposits                                       100             104
        Gain on sale of investments                                        64             ---
        Other                                                              79              69
                                                                   ----------      ----------
             Total non-interest income                                    243             173
                                                                   ----------      ----------
   NON-INTEREST EXPENSE:
        Salaries and employee benefits                                    601             627
        Occupancy and equipment                                            89              89
        Deposit insurance premium                                           7               8
        Data processing                                                    49              45
        Correspondent bank service charges                                 40              44
        Other                                                             334             163
                                                                   ----------      ----------
             Total non-interest expense                                 1,120             976
                                                                   ----------      ----------
   INCOME BEFORE INCOME TAXES                                           1,349           1,852
   INCOME TAXES                                                           349             611
                                                                   ----------      ----------
   NET INCOME                                                      $    1,000      $    1,241
                                                                   ==========      ==========
   EARNINGS PER SHARE:
        Basic                                                      $     0.38      $     0.45
        Diluted                                                    $     0.37      $     0.45

   AVERAGE SHARES OUTSTANDING:
        Basic                                                       2,661,933       2,753,358
        Diluted                                                     2,667,220       2,763,744

</TABLE>
          See accompanying notes to consolidated financial statements.

                                       4


<PAGE>

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

                                                                                   Three Months Ended
                                                                                       September 30,
                                                                                   --------------------
                                                                                    2002           2001
                                                                                    ----           ----
OPERATING ACTIVITIES

   <S>                                                                            <C>            <C>
   Net income                                                                     $  1,000       $  1,241
   Adjustments to reconcile net income to cash provided by operating
    activities:
      Provision for loan and real estate owned losses                                   33             37
      Gain on sale of investments                                                      (64)           ---
      Depreciation and amortization, net                                                29             29
      Amortization of discounts, premiums and deferred loan fees                       841           (120)
      Amortization of ESOP, RRP and deferred and unearned
         compensation                                                                   10             22
      Decrease in accrued interest receivable                                          383            875
      Increase (decrease)  in accrued interest payable                                  47           (152)
      Increase in accrued and deferred taxes                                            66            635
      Other, net                                                                        (5)          (117)
                                                                                  --------       --------
            Net cash provided by operating activities                                2,340          2,450
                                                                                  --------       --------
   INVESTING ACTIVITIES

   Available-for-sale:
      Purchases of investments and mortgage-backed securities                       (1,381)        (2,073)
      Proceeds from repayments of investments and mortgage-backed securities         6,901            486
      Proceeds from sale of investments and mortgage-backed securities                 610            ---
   Held-to-maturity:
      Purchases of investments and mortgage-backed securities                      (24,030)       (44,383)
      Proceeds from repayments of investments and mortgage-backed securities        23,319         72,742
   Decrease in net loans receivable                                                  9,209          6,587
   Sale of real estate owned                                                           190              5
   Increase in FHLB stock                                                             (113)           (37)
   Purchases of premises and equipment                                                 (18)           (87)
                                                                                  --------       --------
            Net cash provided by investing activities                               14,687         33,240
                                                                                  --------       --------

</TABLE>
                                        5


<PAGE>


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

                                                                                  Three Months Ended
                                                                                     September 30,
                                                                                 --------------------
                                                                                 2002            2001
                                                                                 ----            ----
   <S>                                                                         <C>            <C>
   FINANCING ACTIVITIES

   Net increase in transaction and passbook accounts                             1,165            186
   Net decrease in certificates of deposit                                        (670)        (7,055)
   Net decrease in FHLB advances                                                   ---         (5,837)
   Net decrease in other borrowings                                            (14,592)       (19,660)
   Net decrease in advance payments by borrowers for taxes and insurance        (2,073)        (2,176)
   Net proceeds from issuance of common stock                                        2             38
   Funds used for purchase of treasury stock                                      (423)          (140)
   Cash dividends paid                                                            (426)          (441)
                                                                               -------        -------
            Net cash used for financing activities                             (17,017)       (35,085)
                                                                               -------        -------

            Increase in cash and cash equivalents                                   10            605

   CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD                          3,177          2,993
                                                                               -------        -------
   CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                             $  3,187       $  3,598
                                                                              ========       ========

   SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

      Cash paid during the period for:
         Interest on deposits, escrows and borrowings                         $  3,141       $  4,011
         Income taxes                                                         $    320       $     20

          See accompanying notes to consolidated financial statements.

</TABLE>
                                       6


<PAGE>


<TABLE>
<CAPTION>
                       WVS FINANCIAL CORP. AND SUBSIDIARY
            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                                   (UNAUDITED)
                                 (In thousands)

                                                                                                 Accumulated    Retained
                                               Additional             Unallocated Unallocated  Other Compre-   Earnings
                                      Common    Paid-In    Treasury  Shares Held Shares Held     hensive    Substantially
                                       Stock    Capital     Stock      by ESOP    by RRP          Income      Restricted   Total
                                       -----    -------     -----      -------    ------          ------      ----------   -----
   <S>                               <C>       <C>        <C>          <C>      <C>              <C>           <C>        <C>
   Balance at June 30, 2002          $     37  $ 20,037   $(15,133)    $ ---    $    (72)        $    201      $ 25,183   $ 30,253

      Comprehensive income:

         Net Income                                                                                               1,000      1,000
         Other comprehensive
           income:
            Change in unrealized
                holding gains on
                securities, net of
                income tax effect of
                $36                                                                                    71                       71
                                                                                                                           ---------
      Comprehensive income                                                                                                    1,071

      Purchase of shares for
         treasury stock                                       (423)                                                            (423)


      Accrued compensation
         expense for Recognition
         and Retention Plans (RRP)                                                    10                                        10

      Exercise of stock options                       2                                                                          2

      Cash dividends declared
         ($0.16 per share)                                                                                         (426)       (426)

                                     --------  --------   --------     -----    --------         --------      --------   --------
      Balance at Sept. 30, 2002      $     37  $ 20,039   $(15,556)    $ ---    $    (62)        $    272      $ 25,757   $ 30,487
                                     ========  ========   ========     =====    ========         ========      ========   ========

</TABLE>

          See accompanying notes to consolidated financial statements.

                                       7

<PAGE>

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

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


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

     The  accompanying  unaudited  consolidated  financial  statements have been
     prepared in accordance with the instructions for Form 10-Q and therefore do
     not include information or footnotes necessary for a complete  presentation
     of financial condition, results of operations, and cash flows in conformity
     with generally accepted  accounting  principles.  However,  all adjustments
     (consisting only of normal recurring  adjustments) which, in the opinion of
     management,  are necessary for a fair presentation have been included.  The
     results of operations  for the three months ended  September 30, 2002,  are
     not  necessarily  indicative  of the results  which may be expected for the
     entire fiscal year.

2.   RECENT ACCOUNTING PRONOUNCEMENTS
     --------------------------------

     On October 1, 2002, the Financial  Accounting Standards Board (FASB) issued
     Statement of Financial Accounting Standards (FAS) No. 147,  Acquisitions of
     Certain  Financial  Institutions,  effective for all business  combinations
     initiated  after October 1, 2002.  This  Statement  addresses the financial
     accounting and reporting for the  acquisition of all or part of a financial
     institution,   except  for  a  transaction   between  two  or  more  mutual
     enterprises. This Statement removes acquisitions of financial institutions,
     other than transactions  between two or more mutual  enterprises,  from the
     scope of FAS No. 72,  Accounting  for  Certain  Acquisitions  of Banking or
     Thrift  Institutions,  and FASB Interpretation No. 9, Applying APB Opinions
     No. 16 and 17 When a Savings and Loan Association or a Similar  Institution
     Is Acquired in a Business Combination Accounted for by the Purchase Method.
     The  acquisition of all or part of a financial  institution  that meets the
     definition of a business combination shall be accounted for by the purchase
     method in accordance with FAS No. 141, Business  Combinations,  and FAS No.
     142,  Goodwill and Other  Intangible  Assets.  This Statement also provides
     guidance  on the  accounting  for the  impairment  or  disposal of acquired
     long-term  customer-relationship  intangible assets (such as depositor- and
     borrower-relationship  intangible assets and credit  cardholder  intangible
     assets),  including  those  acquired  in  transactions  between two or more
     mutual  enterprises.  The adoption of FAS No. 147 is not expected to have a
     material  effect  on  the  Company's   financial  position  or  results  of
     operations.

                                       8


<PAGE>


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

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

<TABLE>
<CAPTION>
                                                                           Three Months Ended
                                                                              September 30,
                                                                        ----------------------
                                                                        2002              2001
                                                                        ----              ----
  <S>                                                                 <C>               <C>
   Weighted average common shares outstanding                         3,729,910         3,710,677
   Average treasury stock shares                                     (1,067,977)         (957,319)
   Average unearned ESOP shares                                             ---               ---
                                                                    -----------       -----------
   Weighted average common shares and common stock equivalents
     used to calculate basic earnings per share                       2,661,933         2,753,358
   Additional common stock equivalents (stock options) used to
     calculate diluted earnings per share                                 5,287            10,386
                                                                    -----------       -----------
   Weighted average common shares and common stock equivalents
     used to calculate diluted earnings per share                     2,667,220         2,763,744
                                                                    ===========       ===========
   Net income                                                       $   999,845       $ 1,240,538
                                                                    ===========       ===========

   Earnings per share:
      Basic                                                         $      0.38       $      0.45
      Diluted                                                       $      0.37       $      0.45

</TABLE>

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

                                                Three Months Ended
                                                   September 30,
                                              -----------------------
                                               2002             2001
                                               ----             ----
Net Income                                    $1,000           $1,241
Other comprehensive income:                       71               85
                                              ------           ------
     Total comprehensive income               $1,071           $1,326
                                              ======           ======
                                       9


<PAGE>


ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002

FORWARD LOOKING STATEMENTS

     When used in this Form 10-Q or, in future  filings by the Company  with the
Securities  and Exchange  Commission,  in the Company's  press releases or other
public  or  shareholder  communications,  or in oral  statements  made  with the
approval of an authorized  executive officer,  the words or phrases "will likely
result",  "are expected to",  "will  continue",  "is  anticipated",  "estimate",
"project"  or similar  expressions  are  intended to identify  "forward  looking
statements" within the meaning of the Private  Securities  Litigation Reform Act
of 1995.  Such  statements  are  subject  to  certain  risks  and  uncertainties
including changes in economic  conditions in the Company's market area,  changes
in policies by regulatory  agencies,  fluctuations in interest rates, demand for
loans in the  Company's  market area and  competition  that could  cause  actual
results  to differ  materially  from  historical  earnings  and those  presently
anticipated  or projected.  The Company  wishes to caution  readers not to place
undue reliance on any such forward  looking  statements,  which speak only as of
the date made.  The Company  wishes to advise  readers  that the factors  listed
above  could  affect the  Company's  financial  performance  and could cause the
Company's  actual  results  for  future  periods to differ  materially  from any
opinions or statements  expressed  with respect to future periods in any current
statements.

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

GENERAL

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

     West View  Savings  Bank is a  Pennsylvania-chartered,  SAIF-insured  stock
savings bank conducting  business from six offices in the North Hills suburbs of
Pittsburgh.  The  Savings  Bank  converted  to the stock  form of  ownership  in
November 1993. The Savings Bank had no subsidiaries at September 30, 2002.

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

     The Company's strategy focuses on community-based  lending,  growth of core
deposits, capital management, maintaining strong non-interest expense ratios and
steadily increasing book value per share.

                                       10

<PAGE>


FINANCIAL CONDITION

     The  Company's  assets  totaled  $389.1  million at September  30, 2002, as
compared to $404.9  million at June 30, 2002. The $15.8 million or 3.9% decrease
in total assets was  primarily  comprised of a $9.3 million or 6.1%  decrease in
net  loans  receivable,  a $5.9  million  or 2.4%  decrease  in  investment  and
mortgage-backed  securities,  including  FHLB  Stock,  a $383  thousand  or 9.8%
decrease in accrued interest  receivable,  and a $205 thousand or 87.2% decrease
in real estate owned.

     The Company's total  liabilities  decreased $16.1 million or 4.3% to $358.6
million as of September 30, 2002,  from $374.7  million as of June 30, 2002. The
$16.1 million decrease in total  liabilities was primarily  comprised of a $14.6
million  or 43.3%  decrease  in other  borrowings,  and a $2.1  million or 68.8%
decrease in advance  payments by borrowers  for taxes and  insurance  due to the
seasonal  payment of local real estate taxes,  which were partially  offset by a
$495 thousand or 0.3% increase in total savings deposits.

     Total stockholders' equity increased $234 thousand or 0.8% to $30.5 million
as of  September  30,  2002,  from $30.3  million as of June 30,  2002.  Capital
expenditures  for the  Company's  stock  repurchase  program and cash  dividends
totaled  $423  thousand and $426  thousand,  respectively,  which were  entirely
funded by net income of $1.0 million for the three months  ended  September  30,
2002.


RESULTS OF OPERATIONS

     General. WVS reported net income of $1.0 million, or $0.37 diluted earnings
per share for the three months ended September 30, 2002. Net income decreased by
$241 thousand or 19.4% and diluted  earnings per share  decreased $0.08 or 17.8%
for the three months ended  September 30, 2002, when compared to the same period
in 2001.  The  decrease  in net  income  was  primarily  attributable  to a $448
thousand  decrease  in net  interest  income,  and a $144  thousand  increase in
non-interest expense, which were partially offset by a $262 thousand decrease in
income tax expense,  a $70 thousand increase in non-interest  income,  and a $19
thousand decrease in provisions for loan losses.

     Net Interest  Income.  The Company's net interest income  decreased by $448
thousand or 16.6% for the three months ended  September 30, 2002,  when compared
to the same period in 2001.  The decrease in net interest  income was  primarily
attributable  to lower  rates  earned  on  Company  assets  due to lower  market
interest  rates which was  partially  offset by lower rates paid on deposits and
borrowings.  The Company  experienced  higher  levels of repayments on its loan,
investment  and  mortgage-backed   securities   portfolios  due  to  refinancing
activities.

     Interest  Income.  Interest  on net  loans  receivable  decreased  by  $742
thousand or 20.9% for the three months ended  September 30, 2002,  when compared
to the same period in 2001. The decrease was attributable to a decrease of $34.3
million  in the  average  balance  of net  loans  receivable  outstanding  and a
decrease of 24 basis  points in the weighted  average  yield earned on net loans
receivable for the three months ended  September 30, 2002,  when compared to the
same period in 2001. The decreases in the average loan balance  outstanding  for
the three months ended  September  30, 2002,  was primarily  attributable  to an
increased  level of mortgage  prepayments and  refinancings  due to lower market
rates on mortgages.  As part of its  asset/liability  management  strategy,  the
Company has limited its origination of longer-term  fixed rate loans to mitigate
its exposure to a rise in market interest rates.

     Interest  and  dividend  income on  interest-bearing  deposits  with  other
institutions,   investment   securities   and  FHLB  stock  ("other   investment
securities")  decreased  by $210  thousand or 10.4% for the three  months  ended
September 30, 2002,  when compared to the same period in 2001.  The decrease was
primarily  attributable  to a 202 basis point  decrease in the weighted  average
yield earned on  investment  securities  which was  partially  offset by a $38.7
million increase in the average balance of investment securities outstanding for
the three months ended  September 30, 2002,  when compared to the same period in
2001.  The decrease in the weighted  average  yield earned was  consistent  with
market conditions for the three months ended September 30, 2002. The increase in
the average balance of investment securities

                                       11


<PAGE>


during  the  three  month  period  ended  September  30,  2002  was  principally
attributable to the  reinvestment of a portion of its loan payment proceeds into
shorter-term corporate bonds.

     Interest on  mortgage-backed  securities ("MBS") decreased by $167 thousand
or 17.1% for the three months ended  September  30, 2002,  when  compared to the
same period in 2001. The decrease was attributable to a 213 basis point decrease
in the weighted average yield earned on  mortgage-backed  securities,  which was
partially  offset  by a  $15.9  million  increase  in  the  average  balance  of
mortgage-backed  securities for the three months ended  September 30, 2002, when
compared to the same period in 2001. The decrease in the weighted  average yield
earned on  mortgage-backed  securities was consistent with market conditions for
the three months ended September 30, 2002 and reflects the higher  proportion of
floating  rate MBS in the  portfolio.  The  increase in the  average  balance of
mortgage-backed  securities  during the three month period ended  September  30,
2002 was principally  attributable to the  reinvestment of a portion of its loan
payment proceeds into floating rate MBS.

     Interest  Expense.  Interest  expense on deposits and escrows  decreased by
$649  thousand or 40.4% for the three months  ended  September  30,  2002,  when
compared  to the same  period in 2001.  The  decrease  in  interest  expense  on
deposits and escrows was principally  attributable to a 152 basis point decrease
in the average yield paid on deposits and escrows,  and a $3.2 million  decrease
in the average  balance of  interest-bearing  deposits and escrows for the three
months ended  September 30, 2002,  when compared to the same period in 2001. The
average  yield paid on  interest-bearing  deposits  was  consistent  with market
conditions for the three months ended September 30, 2002.

     Interest  expense on FHLB  advances and other  borrowings  decreased by $22
thousand or 1.0% for the three months ended September 30, 2002, when compared to
the same period in 2001. The decrease was primarily  attributable  to a 70 basis
point  decrease in the  weighted  average rate paid on such  borrowings  for the
three  months ended  September  30, 2002 which was  partially  offset by a $22.1
million  increase in the average balance of such borrowings  outstanding  during
the  three  months  ended   September  30,  2002.  The  increase  in  borrowings
outstanding was primarily to fund purchases of investments  and  mortgage-backed
securities.  The weighted  average rate paid  declined less than deposits due to
the longer average maturity of the Company's FHLB advances outstanding.

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

     The Company recorded a $18 thousand  provision for possible losses on loans
for the three months ended September 30, 2002,  compared to $37 thousand for the
same period in 2001. At September 30, 2002,  the Company's  total  allowance for
loan  losses  amounted  to $2.8  million  or 1.9% of the  Company's  total  loan
portfolio,  as compared  to $2.8  million or 1.5% at  September  30,  2001.  The
Company  believes  that the  additional  loan  loss  reserves  are  prudent  and
warranted at this time due to the weakening of the national economy.

     Non-Interest Income. Total non-interest income increased by $70 thousand or
40.5% for the three months ended  September 30, 2002,  when compared to the same
period in 2001. The increase in  non-interest  income for the three months ended
September 30, 2002, was primarily  attributable to sales of investments from the
Company's investment portfolio.

     Non-Interest Expense. Total non-interest expense increased $144 thousand or
14.8% for the three months ended  September  30, 2002 when  compared to the same
period in 2001.  The  increase was  primarily  attributable  to a $111  thousand
increase in  charitable  contributions  for local  educational  programs,  a $23
thousand  increase  in  legal  expenses,  and a $15  thousand  increase  in  the
provision  for losses on real estate  owned,  which were  partially  offset by a
decrease of $26 thousand in employee salaries and benefits, when compared to the
same period in 2001.

     Income Taxes.  Income tax expense  decreased $262 thousand or 42.9% for the
three months ended  September 30, 2002 when compared to the same period in 2001.
The  decrease  was  attributable  to a $100  thousand  Pennsylvania  tax  credit
associated  with the previously  mentioned  charitable  contributions  and lower
levels of taxable income.


                                       12


<PAGE>


LIQUIDITY AND CAPITAL RESOURCES

     Net cash provided by operating  activities  totaled $2.3 million during the
three months ended September 30, 2002. Net cash provided by operating activities
was  primarily  comprised  of $1.0  million  of net  income,  $841  thousand  in
amortization of discounts,  premiums and deferred loan fees, and a $383 thousand
decrease in accrued interest receivable.

     Funds  provided by investing  activities  totaled $14.7 million  during the
three months ended September 30, 2002. Primary sources of funds during the three
months  ended  September  30,  2002,  included  $30.2  million of proceeds  from
repayments of investment and mortgage-backed securities, a $9.2 million decrease
in net  loans  receivable,  and  $610  thousand  of  proceeds  from  the sale of
investment  securities,  which  were  partially  offset  by  $25.4  million  for
purchases of investments and mortgage-backed securities,  including Federal Home
Loan Bank stock.

     Funds used for  financing  activities  totaled  $17.0 million for the three
months ended  September  30, 2002.  The primary  financial  use included a $14.6
million  decrease in other  short-term  borrowings,  a $1.6 million  decrease in
deposits and escrows,  $426  thousand in cash  dividends  paid on the  Company's
common stock, and $423 thousand in purchased treasury stock. Management believes
that it currently is  maintaining  adequate  liquidity  and  continues to better
match funding sources with lending and investment opportunities.

     During the quarter ended  September 30, 2002,  the Company  incurred  $74.7
million in other  borrowings with a weighted  average rate of 1.81%.  During the
three months ended September 30, 2002, the Company repaid $89.3 million of other
borrowings.

     The  Company's  primary  sources  of  funds  are  deposits,   amortization,
prepayments  and maturities of existing  loans,  mortgage-backed  securities and
investment  securities,  funds from operations,  and funds obtained through FHLB
advances and other  borrowings.  At September 30, 2002,  the total approved loan
commitments outstanding amounted to $575 thousand. At the same date, commitments
under unused lines of credit amounted to $6.9 million and the unadvanced portion
of  construction  loans  approximated  $9.2  million.  Certificates  of  deposit
scheduled to mature in one year or less at September  30,  2002,  totaled  $56.1
million.  Management  believes that a significant  portion of maturing  deposits
will remain with the Company.

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

     On October 29,  2002,  the  Company's  Board of  Directors  declared a cash
dividend of $0.16 per share payable November 14, 2002, to shareholders of record
at the  close of  business  on  November  4,  2002.  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  or that,  if  paid,  such
dividends will not be reduced or eliminated in future periods.

     As of September  30, 2002,  WVS  Financial  Corp.  exceeded all  regulatory
capital requirements and maintained Tier I and total risk-based capital equal to
$30.2  million  or 13.3% and $33.0  million  or  14.6%,  respectively,  of total
risk-weighted  assets,  and Tier I leverage capital of $30.2 million or 7.59% of
average quarterly assets.

                                       13


<PAGE>


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

     The  Company's   nonperforming   assets  at  September  30,  2002,  totaled
approximately  $4.7  million or 1.2% of total assets as compared to $5.3 million
or 1.3% at June 30, 2002.  Nonperforming assets at September 30, 2002, consisted
of: five  commercial real estate loans totaling $3.6 million,  two  construction
and land  development  loans totaling $578  thousand,  two  single-family  loans
totaling $411  thousand,  one  commercial  loan  totaling $26 thousand,  and two
residential lots carried as real estate owned totaling $30 thousand.

     The $394 thousand  decrease in  non-accrual  loans during the quarter ended
September 30, 2002 was comprised of a $419 thousand decrease in construction and
land development loans, a $172 thousand decrease in commercial loans, and a $171
thousand decrease in single-family  loans, which were partially offset by a $368
thousand increase in commercial real estate loans.

     The land acquisition and development loan classified as non-accrual at June
30, 2002 was released by the Bankruptcy Court and sold in July 2002. The Savings
Bank recovered the full  principal  balance plus  approximately  $36 thousand in
previously unaccrued interest.

     As of June 30, 2002 the Company had one non-accruing commercial loan with a
principal  balance of $198 thousand.  The loan is secured by various  commercial
business  assets  including  photographic  equipment  and a truck along with the
personal  guarantees of both owners.  In July 2002,  the Company  entered into a
loan work-out  that  provided for reduced  monthly loan payments in exchange for
the pledging of additional  unrelated  business assets. The revised payment plan
went into  effect in August  2002 and the  borrowers  are  performing  under the
modified terms, therefore the loan is no longer classified as non-accrual.

     As of September 30, 2002, the Company had five commercial real estate loans
classified as  non-accrual  loans.  One of the  commercial  real estate loans is
secured by a restaurant and real estate located in Wexford,  PA. The outstanding
principal  balance  of this loan  totals  $189  thousand  and is part of a court
supervised  bankruptcy plan. In brief,  the original  bankruptcy plan called for
payments in excess of the original loan terms to cure the deficiency  within the
next three years.  During the quarter  ended June 30, 2002,  the original  court
appointed  disbursing agent stopped making payments and is being investigated by
the U.S.  Attorney's Office for bankruptcy fraud and money  laundering.  On July
31,  2002 the  United  States  Bankruptcy  Court  for the  Western  District  of
Pennsylvania  appointed a successor  disbursing agent for the limited purpose of
disbursing  funds  currently held in escrow (rent payments) as well as regularly
scheduled  payments  due under the plan.  The Savings  Bank has not modified the
original terms of this loan and we are presently  providing a loan accounting to
the successor disbursing agent.

     The Company  has one  non-accrual  commercial  real  estate  loan,  and one
non-accrual  construction loan, to a retirement village located within the North
Hills  area.  Both loans  became  delinquent  in fiscal  2000.  The  outstanding
principal  balances  total $3.8  million  of which $2.6  million is owned by the
Company  and the  remaining  $1.2  million is  serviced  by the Company for four
participating  lenders.  Prior to January 2002, the borrower had been paying $15
thousand  per  month  towards  curing  the  arrearages.  See  Part  II  -  Other
Information - Item #1,  "Legal  Proceedings".  As of the date of this  Quarterly
Report on Form 10-Q, the Savings Bank and the debtor are working towards a final
work-out  of  these  credits  prior  to a  Court  review  of  the  Petition  for
Enforcement of Assignment of Rents and for Supplementary Aid of Execution during
November 2002.

     The Company  has one  non-accruing  commercial  real  estate  loan,  with a
principal balance of $980 thousand,  to a personal care home that was originally
part  of the  two  retirement  village  loans  discussed  above.  Due to the low
occupancy  of the  personal  care  home,  and  the  related  cash  drain  on the
retirement

                                       14


<PAGE>


village,  the Savings Bank "carved  out"  approximately  $1 million of loan debt
from the  retirement  village,  assigned that $1 million in debt to the personal
care  home,  and  allowed  one of the  obligors  - a  geriatric  physician  - to
separately  own and operate the personal care home as a separate  facility.  The
borrower was in compliance with a written loan work-out agreement until February
2002.  Sporadic  payments  have been  received  since March 2002.  The  borrower
alleges  insufficient  operating cash,  along with the loss of other income,  to
service the debt.  The Savings Bank also holds three other loans,  totaling $366
thousand,  secured by pledges of various real estate and  chattel,  to this same
borrower  which were  non-accrual  as of September 30, 2002.  During the quarter
ended  September  30,  2002,  the Company  began legal  proceedings  against the
debtors.  Legal  proceedings  at this point are  preliminary  and the Company is
exploring work-out options with legal counsel.

     As of September 30, 2002, the Company had one non-accruing  commercial loan
with a principal  balance of $26 thousand.  This loan is unsecured and is in the
process of collection.

     The Company had two non-accrual  single-family  loans at September 30, 2002
which totaled $411 thousand. These loans are in the process of collection.

     Real estate  owned,  at September  30,  2002,  totaled $30 thousand and was
comprised  of two  undeveloped  residential  lots.  In August  2002 the  Company
entered into a sales  agreement to sell the two lots and recorded a $15 thousand
loss provision.  In October 2002, the two undeveloped residential lots were sold
with the Company realizing proceeds of approximately $30 thousand.

     During the three months ended September 30, 2002, the Company collected and
recognized  approximately $11 thousand in past due interest on its nonperforming
loans.  Approximately $89 thousand of additional interest income would have been
recorded  during the three months ended  September  30, 2002,  if the  Company's
nonaccrual  and  restructured  loans had been current in  accordance  with their
original loan terms and outstanding  throughout the three months ended September
30, 2002. The Company continues to work with the borrowers in an attempt to cure
the defaults and is also  pursuing  various legal avenues in order to collect on
these loans.

                                       15


<PAGE>


ITEM 3.


QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ASSET AND LIABILITY MANAGEMENT

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

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

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

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

     During the quarter ended  September 30, 2002, the level of market  interest
rates  remained  at  relatively   low  levels  due  to  the  Federal   Reserve's
accommodative  monetary  policy and the  weakness in the national  economy.  The
marked  decline in equity  market  prices and reduced  corporate  earnings  have
caused a  considerable  disintermediation  from the  equity to the fixed  income
markets,  further  compounding  the decline in market  interest rates across the
yield curve.

     Due to the rapid decline in market  interest  rates,  the  Company's  loan,
investment and  mortgage-backed  securities  portfolios  experienced much higher
then anticipated  levels of prepayments.  Principal  repayments on the Company's
loan, investment and mortgage-backed securities portfolios for the quarter ended
September  30, 2002,  totaled  $15.8  million,  $16.5  million and $14.2 million
respectively.

     In response to higher  levels of liquidity  the Company  began to rebalance
its loan, investment and mortgage-backed  securities portfolios.  Due to the low
level of market interest rates,  the Company began to reduce its originations of
long-term  fixed rate mortgages  while  continuing to offer consumer home equity
and construction loans. The Company's  commercial loan exposure was also reduced
in  recognition  of the  weaknesses  in the  national and local  economies.  The
Company began to purchase  investment grade commercial paper and corporate bonds
in order to earn a higher return with a shorter  maturity  profile and to reduce
the prepayment risk within the portfolio.  Each of the aforementioned strategies
also helped to improve the interest-rate and liquidity risks associated with the
Savings  Bank's  customers'   liquidity  preference  for  shorter  term  deposit
products.

     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

                                       16


<PAGE>


Bank's market area.  The Company will continue to selectively  offer  commercial
real estate,  land  acquisition and development,  and shorter-term  construction
loans, primarily on residential properties, to partially increase its loan asset
sensitivity.  The Company  intends to emphasize  higher yielding home equity and
small business loans to existing customers and seasoned prospective customers.

     During the quarter ended September 30, 2002, principal investment purchases
were  comprised  of:  investment  grade  corporate  bonds - $20.9 million with a
weighted average yield of approximately 3.47%; investment grade commercial paper
- $3.6  million  with a  weighted  average  yield of  approximately  2.10%;  and
corporate equity securities - $867 thousand.  Major investment proceeds received
during the quarter ended September 30, 2002 were:  investment  grade  commercial
paper - $6.5  million  with a weighted  average  yield of  approximately  2.64%;
callable  government agency bonds - $3.5 million with a weighted average rate of
approximately  5.94%; and investment grade corporate bonds - $4.0 million with a
weighted average yield of approximately 3.33%. In most cases, the initial spread
earned on  investment  security  purchases  averaged  approximately  165.6 basis
points.


     As of September 30, 2002, the  implementation  of these asset and liability
management initiatives resulted in the following:

1)   the  Company's  liquidity  profile has improved by reducing the  investment
     portfolio's  stated final  maturities as follows:  less than 1 year:  $66.4
     million or 29.1%;  1-3 years:  $12.4 million or 5.5%; 3-5 years: $0 million
     or 0.0%; over 5 years: $149.1 million or 65.4%;
2)   $49.8  million  or  73.1% of the  Company's  portfolio  of  mortgage-backed
     securities  (including  collateralized  mortgage obligations - "CMOs") were
     secured by floating rate securities;
3)   the maturity  distribution of the Company's borrowings is as follows:  less
     than 1 year: $30.1 million or 16.8%; 1-3 years:  $279 thousand or 0.2%; 3-5
     years: $4.2 million or 2.3%; over 5 years: $144.5 million or 80.7%; and
4)   an aggregate of $40.2 million or 28.0% of the Company's net loan  portfolio
     had adjustable interest rates or maturities of less than 12 months.

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

                                       17


<PAGE>


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

<TABLE>
<CAPTION>
                                                     September 30,                June 30,
                                                     -------------                --------
                                                         2002             2002                2001
                                                         ----             ----                ----
                                                                 (Dollars in Thousands)
<S>                                                   <C>               <C>                <C>
Interest-earning assets maturing or
      repricing within one year                       $ 237,309         $ 252,467          $  155,928
   Interest-bearing liabilities maturing or
      repricing within one year                         127,244           142,823             137,232
                                                      ---------         ---------          ----------
   Interest sensitivity gap                           $ 110,065         $ 109,644          $   18,696
                                                      =========         =========          ==========
   Interest sensitivity gap as a percentage of
      total assets                                         28.3%             27.1%               (4.7)%
   Ratio of assets to liabilities
      maturing or repricing within one year               186.5%            176.8%              113.6%

</TABLE>

     During the quarter ended  September 30, 2002,  the Company  managed its one
year  interest  sensitivity  gap by:  (1)  reducing  the  amount  of  short-term
borrowings and (2) generally  limiting  incremental  corporate bond purchases to
those with repricing dates within 2 years.


                                       18


<PAGE>


     The following table illustrates the Company's estimated stressed cumulative
repricing gap - the difference between the amount of interest-earning assets and
interest-bearing  liabilities  expected to reprice at a given point in time - at
September  30,  2002.  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 ($'s)                  62,886        90,713       98,699        101,248       104,659         87,132     25,593
 % of Total
  Assets                       16.1%         23.3%        25.3%          26.0%         26.9%          22.4%       6.6%
Base Case Up 100 bp
-------------------
Cummulative
  Gap ($'s)                  63,983        92,724      102,017        106,587       115,538        102,489     25,593
% of Total
  Assets                       16.4%         23.8%        26.2%          27.4%         29.7%          26.3%       6.6%
Base Case No Change
-------------------
Cummulative
  Gap ($'s)                  70,003        99,935      110,065        114,852       122,801        108,668     28,332
% of Total
  Assets                       18.0%         25.7%        28.3%          29.5%         31.5%          27.9%       7.3%
Base Case Down 100 bp
-------------------
Cummulative
  Gap ($'s)                  68,908        99,040      109,244        113,516       121,433        107,069     25,593
% of Total
  Assets                       17.7%         25.4%        28.1%          29.2%         31.2%          27.5%       6.6%
Base Case Down 200 bp
-------------------
Cummulative
  Gap ($'s)                  69,837       100,436      110,690        115,391       123,264        108,384     25,593
% of Total
  Assets                       17.9%         25.8%        28.4%          29.6%         31.7%          27.8%       6.6%

</TABLE>

     Beginning in the third quarter of fiscal 2001, the Company began to utilize
an income  simulation model to measure interest rate risk and to manage interest
rate  sensitivity.  The Company  believes  that income  simulation  modeling may
enable the  Company to more  accurately  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.

                                       19


<PAGE>


     The following  table  presents the simulated  impact of a 100 and 200 basis
point upward or downward shift in market interest rates on net interest  income,
return on  average  equity,  return on average  assets  and the market  value of
portfolio equity at September 30, 2002.

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

                                           Modeled Change in Market Interest Rates
                                           -----------------------------------------------------------------------------------------
<S>                                        <C>                <C>                <C>               <C>                <C>
Estimated impact on:                       -200                  -100                  0              +100               +200
--------------------
   Change in net interest income           -20.6%               -11.9%               0.0%             10.4%              16.6%

   Return on average equity                7.58%                 9.24%             11.46%            13.38%             14.52%

   Return on average assets                0.59%                 0.72%              0.90%             1.06%              1.15%

   Market value of equity (in
      thousands)                           $18,781            $19,952            $21,089           $20,911            $20,489


</TABLE>

     The  table  below  provides  information  about the  Company's  anticipated
transactions comprised of firm loan commitments and other commitments, including
undisbursed  letters  and  lines  of  credit.  The  Company  used no  derivative
financial instruments to hedge such anticipated transactions as of September 30,
2002.

                    Anticipated Transaction
------------------------------------------------------------------
                                            (Dollars in Thousands)
Undisbursed construction and
    land development loans
      Fixed rate                                     $ 3,920
                                                        6.98%

      Adjustable rate                                $ 5,278
                                                        5.75%

Undisbursed lines of credit
      Adjustable rate                                $ 6,944
                                                        5.37%

Loan origination commitments
      Fixed rate                                     $   360
                                                        6.81%

      Adjustable rate                                $   215
                                                        5.55%

Letters of credit
      Adjustable rate                                $    82
                                                        7.75%
                                                     -------
                                                     $16,799
                                                     =======

                                       20


<PAGE>


ITEM 4.


CONTROLS AND PROCEDURES

     Within 90 days  prior to the date of this  Quarterly  Report,  the  Company
carried out an evaluation,  under the supervision and with the  participation of
the Company's  management,  including the Company's Chief Executive  Officer and
Chief Accounting  Officer,  of the  effectiveness of the design and operation of
the Company's  disclosure  controls and procedures.  Based upon that evaluation,
the Chief  Executive  Officer and Chief  Accounting  Officer  concluded that the
Company's  disclosure  controls  and  procedures  are  effective.  There were no
significant  changes in the Company's internal controls or in other factors that
could  significantly  affect  these  controls  subsequent  to the  date of their
evaluation.

     Disclosure controls and procedures are the controls and other procedures of
the Company  that are  designed to ensure  that the  information  required to be
disclosed by the Company in its reports filed or submitted  under the Securities
Exchange  Act of 1934,  as  amended  ("Exchange  Act") is  recorded,  processed,
summarized and reported, within the time periods specified in the Securities and
Exchange  Commission's  rules and  forms.  Disclosure  controls  and  procedures
include,  without  limitation,  controls and procedures  designed to ensure that
information  required to be disclosed by the Company in its reports  filed under
the Exchange Act is accumulated and  communicated  to the Company's  management,
including the principal  executive officer and principal  financial officer,  as
appropriate to allow timely decisions regarding required disclosure.

                                       21


<PAGE>


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

     The  Savings   Bank  filed  a  Complaint  in  Mortgage   Foreclosure   (the
"Foreclosure")  in March 2000 against the Development  Group of Rose Valley (the
"Obligor"),  an obligor on two  previously  disclosed  impaired and  non-accrual
loans.  The  Foreclosure  was filed in the Court of  Common  Pleas of  Allegheny
County,  Pennsylvania  to  request  a  judicial  sale  of  the  underlying  real
properties securing the mortgage loans due to nonpayment as per the terms of the
mortgage  notes.  In November 2001, the Obligor filed an Answer,  New Matter and
Counterclaim to the Foreclosure.  The counterclaims  include breach of contract,
promissory estoppel,  breach of duty of good faith and fair dealing and tortuous
interference with prospective and existing business  relations and seeks damages
of approximately $5.2 million. In January 2002, the Court dismissed the tortuous
interference claim. The Company believes the remaining counterclaims are without
merit. The Company anticipates a January 2003 trial date for the Foreclosure. In
April 2002,  the Savings Bank filed a Petition for  Enforcement of Assignment of
Rents and for Supplementary  Aid of Execution.  This Petition seeks to sequester
$25 thousand per month to adequately  protect the Savings Bank's interest in the
loan during the pending litigation and any possible workout. The discovery phase
of the Petition is  substantially  complete.  During the quarter ended September
30, 2002,  the Savings Bank and the Obligor have made  considerable  progress in
resolving  this  credit.  In light of this  progress,  the Savings  Bank and the
Obligor have extended the Court  reviewed date for the Petition to November 2002
to allow time for negotiations to continue.


ITEM 2. Changes in Securities and Use of Proceeds
        -----------------------------------------
        Not applicable.

ITEM 3. Defaults Upon Senior Securities
        -------------------------------
        Not applicable.

ITEM 4. Submission of Matters to a Vote of Security Holders
        ---------------------------------------------------
        Not applicable.


ITEM 5. Other Information
        -----------------
        Not applicable.

ITEM 6. Exhibits and Reports on Form 8-K
        --------------------------------

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

<TABLE>
<CAPTION>
             Number      Description                                                         Page
             ------      -----------                                                         ----
              <S>        <C>                                                                  <C>
              99-1       Sarbanes-Oxley Act Certification of Chief Executive Officer          E-1
              99-2       Sarbanes-Oxley Act Certification of Chief Accounting Officer         E-2
              99-3       Independent Accountant's Report                                      E-3

</TABLE>


        (b)  The Company filed a current Report on Form 8-K, dated September 30,
             2002,  reporting  under  Item 5 that the  Company  filed its Annual
             Report on Form 10-K for the year ended June 30,  2002.  The Company
             included  as  exhibits  to the Form 8-K the  Certifications  of its
             Chief Executive and Chief Accounting  Officers  pursuant to Section
             906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).


                                       22


<PAGE>


                                   SIGNATURES


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



                                   WVS FINANCIAL CORP.




    November 14, 2002       BY:    /s/ David J. Bursic
                                   ---------------------------------------------
    Date                           David J. Bursic
                                   President and Chief Executive Officer
                                   (Principal Executive Officer)


    November 14, 2002       BY:    /s/ Keith A. Simpson
                                   ---------------------------------------------
    Date                           Keith A. Simpson
                                   Vice-President and Chief Accounting Officer


                                       23


<PAGE>


            SECTION 302 CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

I, David J. Bursic, certify that:

1. I have reviewed  this  quarterly  report on Form 10-Q of WVS Financial  Corp.
(the "Registrant");

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have;

     a)   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     b)   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent  evaluation,  to the  registrant's  auditors and Audit  committee of
registrant's   board  of  directors  (or  persons   performing   the  equivalent
functions):

     a)   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b)   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly report whether there were significant  changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent  evaluation,  including any corrective  actions with
regard to significant deficiencies and material weaknesses.


Date:  November 14, 2002


                                          /s/ David J. Bursic
                                          -------------------------------------
                                          David J. Bursic
                                          President and Chief Executive Officer

                                       24


<PAGE>


            SECTION 302 CERTIFICATION OF THE CHIEF ACCOUNTING OFFICER

I, Keith A. Simpson, certify that:

1. I have reviewed  this  quarterly  report on Form 10-Q of WVS Financial  Corp.
(the "Registrant");

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have;

     a)   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     b)   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent  evaluation,  to the  registrant's  auditors and Audit  committee of
registrant's   board  of  directors  (or  persons   performing   the  equivalent
functions):

     a)   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b)   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly report whether there were significant  changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent  evaluation,  including any corrective  actions with
regard to significant deficiencies and material weaknesses.


Date:  November 14, 2002


                                     /s/ Keith A. Simpson
                                     -------------------------------------------
                                     Keith A. Simpson
                                     Vice-President and Chief Accounting Officer

                                       25