2




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

                                    FORM 10-Q

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

                  For the quarterly period ended March 31, 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 May 13, 2002:  2,682,486 shares Common Stock, $.01
par value.

<PAGE>



<TABLE>
<CAPTION>


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

                                      INDEX
                                      -----

PART I.   Financial Information                                               Page
-------   ---------------------                                               ----
<S>                                                                           <C>
Item 1.   Financial Statements

          Consolidated Statements of Financial
          Condition as of March 31, 2002
          and June 30, 2001 (Unaudited)                                         3

          Consolidated Statements of Income
          for the Three and Nine Months Ended
          March 31, 2002 and 2001 (Unaudited)                                   4

          Consolidated Statements of Cash Flows
          for the Nine Months Ended March 31,
          2002 and 2001 (Unaudited)                                             5

          Consolidated Statements of Changes in
          Stockholders' Equity for the Nine Months
          Ended March 31, 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 and Nine Months
          Ended March 31, 2002                                                 10

Item 3.   Quantitative and Qualitative Disclosures
          about Market Risk                                                    16

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

Item 1.   Legal Proceedings                                                    20
Item 2.   Changes in Securities and Use of Proceeds                            20
Item 3.   Defaults upon Senior Securities                                      20
Item 4.   Submission of Matters to a Vote of
          Security Holders                                                     20
Item 5.   Other Information                                                    20
Item 6.   Exhibits and Reports on Form 8-K                                     20
  --      Signatures                                                           21
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

                       WVS FINANCIAL CORP. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                   (UNAUDITED)
                                 (In thousands)

                                                                             March 31, 2002       June 30, 2001
                                                                             --------------       -------------
<S>                                                                            <C>                 <C>
          Assets
          ------
Cash and due from banks                                                        $     846           $     696
Interest-earning demand deposits                                                   1,723               2,297
Investment securities available-for-sale (amortized cost of
   $1,882 and $1,380)                                                              1,925               1,379
Investment securities held-to-maturity (market value of
   $130,630 and $129,191)                                                        129,536             128,213
Mortgage-backed securities available-for-sale (amortized cost of
   $6,593 and $8,386)                                                              6,770               8,551
Mortgage-backed securities held-to-maturity (market value of
   $74,572 and $56,082)                                                           74,089              55,582
Federal Home Loan Bank stock, at cost                                              8,752               8,150
Net loans receivable (allowance for loan losses of $2,752 and $2,763)            161,275             185,179
Accrued interest receivable                                                        3,085               3,837
Premises and equipment                                                             1,003               1,001
Deferred taxes and other assets                                                    1,809               1,555
                                                                               ---------           ---------
          TOTAL ASSETS                                                         $ 390,813           $ 396,440
                                                                               =========           =========

          Liabilities and Stockholders' Equity
          ------------------------------------
Liabilities:
Savings Deposits:
   Non-interest-bearing accounts                                               $  10,647           $  11,634
   NOW accounts                                                                   20,919              18,411
   Savings accounts                                                               40,258              36,589
   Money market accounts                                                          15,021              12,095
   Certificates of deposit                                                        85,053              99,300
                                                                               ---------           ---------
    Total savings deposits                                                       171,898             178,029
Federal Home Loan Bank advances                                                  173,787             161,494
Other borrowings                                                                   9,078              20,660
Advance payments by borrowers for taxes and insurance                              2,555               3,310
Accrued interest payable                                                           1,774               2,441
Other liabilities                                                                  1,960               1,861
                                                                               ---------           ---------
     TOTAL LIABILITIES                                                           361,052             367,795

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;
   3,726,280 and 3,708,590 shares issued                                              37                  37
Additional paid-in capital                                                        19,901              19,742
Treasury stock: 1,025,934 and 955,144 shares at cost, respectively               (14,719)            (13,589)
Retained earnings, substantially restricted                                       24,478              22,478
Accumulated other comprehensive income                                               145                 108
Unallocated shares - Recognition and Retention Plans                                 (81)               (131)
Unallocated shares - Employee Stock Ownership Plan                                    --                  --
                                                                               ---------           ---------
     TOTAL STOCKHOLDERS' EQUITY                                                   29,761              28,645
                                                                               ---------           ---------
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                           $ 390,813           $ 396,440
                                                                               =========           =========
</TABLE>



     See accompanying notes to unaudited consolidated financial statements.

                                       3

<PAGE>


                       WVS FINANCIAL CORP. AND SUBSIDIARY
                       CONSOLIDATED STATEMENTS OF INCOME
                                  (UNAUDITED)
                     (In thousands, except per share data)

<TABLE>
<CAPTION>

                                                                   Three Months Ended              Nine Months Ended
                                                                        March 31,                       March 31,
                                                               --------------------------      -------------------------
                                                                  2002            2001            2002            2001
                                                               ----------      ----------      ----------      ----------
<S>                                                            <C>             <C>             <C>             <C>
INTEREST AND DIVIDEND INCOME:
     Loans                                                     $    3,156      $    3,666      $   10,160      $   11,029
     Investment securities                                          1,613           2,212           5,123           7,072
     Mortgage-backed securities                                       700           1,194           2,516           3,744
     Interest-earning deposits with other
         institutions                                                   3               9              11              31
     Federal Home Loan Bank stock                                      96             146             364             386
                                                               ----------      ----------      ----------      ----------
          Total interest and dividend income                        5,568           7,227          18,174          22,262
                                                               ----------      ----------      ----------      ----------

INTEREST EXPENSE:
     Deposits                                                       1,103           1,704           4,035           5,094
     Borrowings                                                     2,208           2,748           6,759           9,337
     Advance payments by borrowers for taxes
       and insurance                                                   10              11              23              25
                                                               ----------      ----------      ----------      ----------
          Total interest expense                                    3,321           4,463          10,817          14,456
                                                               ----------      ----------      ----------      ----------

NET INTEREST INCOME                                                 2,247           2,764           7,357           7,806
PROVISION FOR LOAN LOSSES                                               0             150              57             150
                                                               ----------      ----------      ----------      ----------
NET INTEREST INCOME AFTER PROVISION
   FOR LOAN LOSSES                                                  2,247           2,614           7,300           7,656
                                                               ----------      ----------      ----------      ----------
NON-INTEREST INCOME:
     Service charges on deposits                                       97              86             308             278
     Other                                                             75              76             253             244
                                                               ----------      ----------      ----------      ----------
          Total non-interest income                                   172             162             561             522
                                                               ----------      ----------      ----------      ----------

NON-INTEREST EXPENSE:
     Salaries and employee benefits                                   607             637           1,852           1,867
     Occupancy and equipment                                           98              94             281             277
     Deposit insurance premium                                          8               8              25              26
     Data processing                                                   49              46             142             140
     Correspondent bank service charges                                38              39             122             113
     Other                                                            178             165             641             529
                                                               ----------      ----------      ----------      ----------
          Total non-interest expense                                  978             989           3,063           2,952
                                                               ----------      ----------      ----------      ----------

INCOME BEFORE INCOME TAXES                                          1,441           1,787           4,798           5,226
INCOME TAXES                                                          476             643           1,483           1,881
                                                               ----------      ----------      ----------      ----------
NET INCOME                                                     $      965      $    1,144      $    3,315      $    3,345
                                                               ==========      ==========      ==========      ==========

EARNINGS PER SHARE:
     Basic                                                     $     0.36      $     0.41      $     1.21      $     1.19
     Diluted                                                   $     0.35      $     0.41      $     1.21      $     1.18

AVERAGE SHARES OUTSTANDING:
     Basic                                                      2,714,480       2,778,839       2,736,254       2,817,336
     Diluted                                                    2,720,976       2,787,946       2,745,783       2,830,674
</TABLE>


     See accompanying notes to unaudited consolidated financial statements.

                                       4

<PAGE>


                       WVS FINANCIAL CORP. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                                 (In thousands)
<TABLE>
<CAPTION>
                                                                                   Nine Months Ended
                                                                                       March 31,
                                                                              --------------------------
                                                                                  2002           2001
                                                                               ---------       ---------
<S>                                                                            <C>             <C>
OPERATING ACTIVITIES

Net income                                                                     $   3,315       $   3,345
Adjustments to reconcile net income to cash provided by operating
 activities:
   Provision for loan losses                                                          57             150
   Depreciation and amortization, net                                                 92              83
   Amortization of discounts, premiums and deferred loan fees                         61            (181)
   Amortization of ESOP, RRP and deferred and unearned
      compensation                                                                    50              68
   Decrease (increase) in accrued interest receivable                                752           1,420
   Decrease in accrued interest payable                                             (667)           (354)
   Decrease in accrued and deferred taxes                                            343             953
   Other, net                                                                       (131)             58
                                                                               ---------       ---------
         Net cash provided by operating activities                                 3,872           5,542
                                                                               ---------       ---------
INVESTING ACTIVITIES

Available-for-sale:
   Purchases of investments and mortgage-backed securities                       (19,960)             --
   Proceeds from repayments of investments and mortgage-backed securities         21,375           1,170
Held-to-maturity:
   Purchases of investments and mortgage-backed securities                      (259,520)        (22,856)
   Proceeds from repayments of investments and mortgage-backed securities        239,699          46,337
Decrease (increase) in net loans receivable                                       23,241          (1,934)
Increase in Federal Home Loan Bank stock                                            (602)         (3,682)
Purchases of premises and equipment                                                  (95)            (18)
Proceeds from sale of Other Real Estate Owned                                         27              --
                                                                               ---------       ---------
         Net cash provided by investing activities                                 4,165          19,017
                                                                               ---------       ---------
</TABLE>


                                       5

<PAGE>

<TABLE>
<CAPTION>


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

                                                                              Nine Months Ended
                                                                                    March 31,
                                                                           --------------------------
                                                                              2002           2001
                                                                           --------       -----------
<S>                                                                        <C>            <C>
FINANCING ACTIVITIES

Net increase (decrease) in transaction and passbook accounts                  8,116         (1,000)
Net (decrease) increase in certificates of deposit                          (14,247)         5,956
Net (decrease) increase in FHLB short-term advances                            (986)        35,850
Net decrease in other borrowings                                            (11,582)       (94,496)
Proceeds from FHLB long-term advances                                        23,279         84,000
Repayments of FHLB long-term advances                                       (10,000)       (50,000)
Net decrease in advance payments by borrowers for taxes and insurance          (755)          (953)
Net proceeds from issuance of common stock                                      159             91
Funds used for purchase of treasury stock                                    (1,130)        (1,563)
Cash dividends paid                                                          (1,315)        (1,355)
                                                                           --------       --------
         Net cash used for financing activities                              (8,461)       (23,470)
                                                                           --------       --------

         Increase (decrease) in cash and cash equivalents                      (424)         1,089

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD                          2,993          2,915
                                                                           --------       --------
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                             $  2,569       $  4,004
                                                                           ========       ========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

   Cash paid during the period for:
      Interest on deposits, escrows and borrowings                         $ 11,484       $ 12,306
      Income taxes                                                         $  1,160       $  1,427

   Non-cash item:
      Mortgage Loan Transferred to Other Real Estate Owned                 $    388             --
      Pennsylvania Education Tax Credit                                    $    100             --
</TABLE>




     See accompanying notes to unaudited consolidated financial statements.

                                       6

<PAGE>

<TABLE>
<CAPTION>

                                             WVS FINANCIAL CORP. AND SUBSIDIARY
                                 CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                                                         (UNAUDITED)
                                                       (In thousands)

                                                                                               Accumulated
                                                                                                  Other        Retained
                                         Additional              Unallocated     Unallocated     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, 2001       $    37     $19,742    $(13,589)   $    --       $     (131)      $   108         $22,478   $28,645

Comprehensive income:

   Net Income                                                                                                     3,315      3,315
   Other comprehensive
     income:
      Change in unrealized
          holding gains on
          securities, net of
          income tax effect
               of $19                                                                                 37                        37
                                                                                                                           -------
Comprehensive income                                                                                                         3,352

Purchase of shares for
   treasury stock                                       (1,130)                                                             (1,130)


Accrued compensation
   expense for Recognition
   and Retention Plans (RRP)                                                            50                                      50

Exercise of stock options                      159                                                                             159

Cash dividends declared
   ($0.48 per share)                                                                                             (1,315)    (1,315)

Balance at Mar. 31, 2002       $    37     $19,901    $(14,719)  $     --          $   (81)    $     145         $24,478   $29,761
                               =======     =======    ========   ========          =======     =========         =======   =======

</TABLE>


     See accompanying notes to unaudited 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  accounting  principles  generally
         accepted in the United  States of  America.  However,  all  adjustments
         (consisting only of normal recurring adjustments) which, in the opinion
         of  management,  are  necessary  for  a  fair  presentation  have  been
         included. The results of operations for the three and nine months ended
         March 31, 2002, are not necessarily indicative of the results which may
         be expected for the entire fiscal year.

2.       RECENT ACCOUNTING PRONOUNCEMENTS
         --------------------------------
         In July 2001, the Financial  Accounting Standards Board ("FASB") issued
         Statement of Financial  Accounting  Standards ("FAS") No. 141, Business
         Combinations,  effective for all business combinations  initiated after
         June 30, 2001,  as well as all business  combinations  accounted for by
         the purchase  method that are  completed  after June 30, 2001.  The new
         statement  requires that the purchase  method of accounting be used for
         all   business    combinations   and   prohibits   the   use   of   the
         pooling-of-interests  method.  The  adoption  of  FAS  No.  141  is not
         expected to have a material effect on the Company's  financial position
         or results of operations.

         In  July  2001,  the  FASB  issued  FAS No.  142,  Goodwill  and  Other
         Intangible Assets,  effective for fiscal years beginning after December
         15, 2001.  The statement  changes the  accounting  for goodwill from an
         amortization method to an impairment-only  approach. Thus, amortization
         of goodwill, including goodwill recorded in past business combinations,
         will cease upon adoption of this statement.  However, the new statement
         did not  amend FAS No.  72,  Accounting  for  Certain  Acquisitions  of
         Banking  or  Thrift   Institutions,   which  requires  recognition  and
         amortization  of  unidentified   intangible   assets  relating  to  the
         acquisition of financial institutions or branches thereof. The FASB has
         decided  to  undertake  a  limited  scope  project  to  reconsider  the
         provisions  of FAS No. 72 in 2002.  Therefore,  the adoption of FAS No.
         142  is not  expected  to  have  a  material  effect  on the  Company's
         financial position or results of operations.

          In August  2001,  the FASB  issued FAS No. 143,  Accounting  for Asset
          Retirement  Obligations,  which  requires  that  the  fair  value of a
          liability  be  recognized  when  incurred  for  the  retirement  of  a
          long-lived  asset  and the  value of the  asset be  increased  by that
          amount.  The statement  also requires that the liability be maintained
          at its  present  value in  subsequent  periods  and  outlines  certain
          disclosures  for such  obligations.  The  adoption of this  statement,
          which is effective January 1, 2003, is not expected to have a material
          effect on the Company's financial statements.

          In October  2001,  the FASB  issued FAS No.  144,  Accounting  for the
          Impairment or Disposal of Long-Lived  Assets.  FAS No. 144  supercedes
          FAS  No.  121  and  applies  to  all  long-lived   assets   (including
          discontinued  operations) and consequently  amends APB Opinion No. 30,
          Reporting Results of Operations-Reporting the Effects of Disposal of a
          Segment of a Business.  FAS No. 144 requires  that  long-lived  assets
          that are to be  disposed  of by sale be  measured at the lower of book
          value or fair value less costs to sell.  FAS No. 144 is effective  for
          financial  statements issued for fiscal years beginning after December
          15,  2001  and,   generally,   its   provisions   are  to  be  applied
          prospectively.  The adoption of this statement is not expected to have
          a material effect on the Company's financial statements.

                                        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                  Nine Months Ended
                                                      March 31,                          March 31,
                                           -----------------------------       -----------------------------

                                               2002              2001              2002              2001
                                           -----------       -----------       -----------       -----------
<S>                                        <C>               <C>               <C>               <C>
Weighted average common shares
   outstanding                               3,722,989         3,698,581         3,715,153         3,691,998

Average treasury stock shares               (1,008,509)         (919,742)         (978,899)         (874,662)

Average unearned ESOP shares                        --                --                --                --
                                           -----------       -----------       -----------       -----------

Weighted average common shares
   and common stock equivalents
   used to calculate basic earnings
   per share                                 2,714,480         2,778,839         2,736,254         2,817,336

Additional common stock
   equivalents (stock options) used
   to calculate diluted earnings per
   share                                         6,496             9,107             9,529            13,338
                                           -----------       -----------       -----------       -----------

Weighted average common shares
   and common stock equivalents
   used to calculate diluted earnings
   per share                                 2,720,976         2,787,946         2,745,783         2,830,674
                                           ===========       ===========       ===========       ===========

Net income                                 $   965,123       $ 1,143,570       $ 3,314,490       $ 3,344,595
                                           ===========       ===========       ===========       ===========

Earnings per share:
     Basic                                 $      0.36       $      0.41       $      1.21       $      1.19
     Diluted                               $      0.35       $      0.41       $      1.21       $      1.18
                                           ===========       ===========       ===========       ===========
</TABLE>





All  options  at March 31,  2002 were  included  in the  computation  of diluted
earnings per share, however,  78,600 options at March 31, 2001 at prices $12.875
to $15.625 were not included in the  computation  of diluted  earnings per share
because to do so would have been anti-dilutive.

                                       9


<PAGE>


ITEM 2.

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 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 connection with the
conversion of the Savings Bank to the stock form of ownership 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 had no subsidiaries at March 31, 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,   generating  consistent  earnings  growth,   capital  management  and
maintaining strong non-interest expense ratios.



                                       10
<PAGE>


FINANCIAL CONDITION

     The Company's  assets totaled $390.8 million at March 31, 2002, as compared
to $396.4  million at June 30, 2001.  The $5.6 million or 1.4% decrease in total
assets was primarily comprised of a $23.9 million or 12.9% decrease in net loans
receivable,   and  a  $752  thousand  or  19.6%  decrease  in  accrued  interest
receivables,  which was partially  offset by a $19.2 million or 9.5% increase in
investment and mortgage-backed securities, including FHLB stock.

     The Company's  total  liabilities  decreased $6.7 million or 1.8% to $361.1
million as of March 31, 2002,  from $367.8 million as of June 30, 2001. The $6.7
million decrease in total liabilities was primarily comprised of a $11.6 million
or 56.1% decrease in other borrowings,  a $6.1 million or 3.4% decrease in total
savings  deposits,  a $755  thousand or 22.8%  decrease  in advance  payments by
borrowers  for taxes and  insurance  and a $667  thousand  or 27.3%  decrease in
accrued interest payable,  which was partially offset by a $12.3 million or 7.6%
increase in FHLB  advances.  During the nine months ended March 31,  2002,  time
deposits  decreased  $14.2 million due to the  Company's  decision to reduce its
offerings of municipal cash management  deposits  attributable to more favorable
wholesale  borrowing  costs  and a $5.2  million  increase  in  transaction  and
passbook  accounts.  Management  believes that the increase in  transaction  and
passbook balances was attributable to a temporary change in customer preferences
for  short-term  liquid  investments  due to the  relatively low level of market
interest rates and the September 11, 2001 World Trade Center attacks.

     Total stockholders'  equity increased $1.1 million or 3.9% to $29.8 million
as of  March  31,  2002,  from  $28.6  million  as of  June  30,  2001.  Capital
expenditures  for the  Company's  stock  repurchase  program and cash  dividends
totaled $1.1 million and $1.4 million, respectively,  which were entirely funded
by net income of $3.3 million for the nine months ended March 31, 2002.


RESULTS OF OPERATIONS

     General.  WVS  reported  net  income  of $965  thousand,  or $0.35  diluted
earnings per share,  and $3.3 million,  or $1.21 diluted earnings per share, for
the  three and nine  months  ended  March 31,  2002,  respectively.  Net  income
decreased by $179  thousand or 15.6% and diluted  earnings  per share  decreased
$0.06 or 14.6% for the three months ended March 31, 2002,  when  compared to the
same period in 2001. The decrease in net income was primarily  attributable to a
$517 thousand  decrease in net interest income,  which was partially offset by a
$167  thousand  decrease  in income tax  expense,  a $150  thousand  decrease in
provision for loan losses, a $11 thousand decrease in non-interest  expense, and
a $10 thousand increase in non-interest  income. For the nine months ended March
31, 2002, net income  decreased by $30 thousand or 0.9% and diluted earnings per
share  increased  $0.03 or 2.5% when  compared to the same  period in 2001.  The
decrease was principally the result of a $449 thousand  decrease in net interest
income  and a  $111  thousand  increase  in  non-interest  expense,  which  were
partially  offset by a $398  thousand  decrease  in income  tax  expense,  a $93
thousand  decrease in provision for loan losses,  and a $39 thousand increase in
non-interest  income.  The decrease in income tax expense for both the three and
nine month  periods  ended  March 31,  2002 was  principally  attributable  to a
decrease  in taxable  income  and a $100  thousand  Pennsylvania  tax credit for
charitable contributions made in support of local educational programs.

     Net Interest  Income.  The Company's  net interest  income  decreased  $517
thousand or 18.7% and $449 thousand or 5.8% for the three and nine month periods
ended March 31, 2002,  respectively,  when compared to the same periods in 2001.
The  decreases  were  principally  attributable  to  decreased  interest  income
associated with the Company's investment,  mortgage-backed  securities, and loan
portfolios which was partially offset by decreased  wholesale borrowing and time
deposit  costs due to  decreases  in rates paid and average  volumes  during the
period.

                                       11
<PAGE>


     Interest  Income.  Interest income decreased $1.7 million or 23.0% and $4.1
million  or  18.4%  for  the  three  and  nine  months  ended  March  31,  2002,
respectively,  when compared to the same periods in 2001.  Interest and dividend
income  on  interest-bearing   deposits  with  other  institutions,   investment
securities  and FHLB stock  ("other  investment  securities")  decreased by $655
thousand or 27.7% for the three months ended March 31,  2002,  when  compared to
the same period in 2001. The decrease was primarily  attributable to a 236 basis
point  decrease in the weighted  average yield earned on  investment  securities
which was partially offset by a $13.9 million increase in the average balance of
investment  securities  outstanding  for the three  months ended March 31, 2002,
when  compared  to the  same  period  in  2001.  Interest  on  other  investment
securities  decreased  $2.0 million or 26.7% for the nine months ended March 31,
2002,  when compared to the same period in 2001. The decrease in interest income
on investment  securities was  attributable to a 175 basis point decrease in the
weighted  average  yield  earned on  investment  securities  and a $2.6  million
decrease in the average  balance of investment  securities  outstanding  for the
nine months ended March 31, 2002, when compared to the same period in 2001.

     Interest on net loans  receivable  decreased by $510  thousand or 13.9% for
the three months ended March 31, 2002, when compared to the same period in 2001.
The  decrease  was  attributable  to a decrease of $18.0  million in the average
balance of net loans receivable outstanding and a decrease of 37 basis points in
the weighted  average yield earned on net loans  receivable for the three months
ended March 31, 2002, when compared to the same period in 2001.  Interest on net
loans  receivable  decreased by $869  thousand or 7.9% for the nine months ended
March 31,  2002,  when  compared to the same period in 2001.  The  decrease  was
attributable  to a 30 basis point decrease in the weighted  average yield earned
on net loans receivable and a decrease of $8.0 million in the average balance of
net loans receivable  outstanding for the nine months ended March 31, 2002, when
compared to the same period in 2001.  The  decreases in the average loan balance
outstanding  for the three and nine months ended March 31, 2002,  was  primarily
attributable to an increased level of mortgage  prepayments and refinancings due
to lower market rates on mortgages.

     Interest on mortgage-backed  securities decreased by $494 thousand or 41.4%
for the three months ended March 31, 2002,  when  compared to the same period in
2001.  The  decrease  was  attributable  to a 214 basis  point  decrease  in the
weighted average yield earned on mortgage-backed securities, and a $10.2 million
decrease  in the average  balance of  mortgage-backed  securities  for the three
months ended March 31, 2002, when compared to the same period in 2001.  Interest
on  mortgage-backed  securities  decreased  $1.2  million  or 32.8% for the nine
months ended March 31, 2002.  The decrease was primarily  attributable  to a 147
basis point  decrease in the weighted  average  yield earned on  mortgage-backed
securities   and  a  $10.7   million   decrease  in  the   average   balance  of
mortgage-backed securities outstanding for the nine months ended March 31, 2002,
when compared to the same period in 2001. The decrease in the average balance of
mortgage-backed  securities was primarily  attributable  to increased  levels of
prepayments and refinancings due to lower mortgage market rates.

     Interest Expense. Interest expense decreased $1.1 million or 25.6% and $3.6
million  or  25.2%  for  the  three  and  nine  months  ended  March  31,  2002,
respectively,  when  compared to the same periods in 2001.  Interest  expense on
deposits and escrows  decreased  by $602  thousand or 35.1% for the three months
ended March 31, 2002,  when compared to the same period in 2001. The decrease in
interest  expense on deposits and escrows was principally  attributable to a 149
basis point  decrease in the average  yield paid on deposits and escrows,  which
was  partially  offset by a $512  thousand  increase in the  average  balance of
interest-bearing deposits and escrows for the three months ended March 31, 2002,
when  compared to the same  period in 2001.  Interest  expense on  deposits  and
escrows  decreased  $1.1  million or 20.7% for the nine  months  ended March 31,
2002.  The decrease was primarily  attributable  to a 95 basis point decrease in
the  weighted  average  yield paid on deposits and escrows  which was  partially
offset by a $3.1  million  increase in the average  balance of  interest-bearing
deposits and escrows for the nine months ended March 31, 2002,  when compared to
the same period in 2001. The average yield paid on interest-bearing deposits and
escrows  decreased  during  both  periods  due to lower  rates paid on  deposits
accounts.


                                       12
<PAGE>

     Interest  expense on FHLB advances and other  borrowings  decreased by $540
thousand or 19.7% for the three months ended March 31,  2002,  when  compared to
the same period in 2001. The decrease was primarily  attributable  to a 74 basis
point decrease in the weighted  average rate paid on such borrowings and a $14.7
million or 7.6% decrease in the average balance of such  borrowings  outstanding
for the three months ended March 31, 2002. Interest expense on FHLB advances and
other borrowings decreased $2.6 million or 27.6% for the nine months ended March
31, 2002 when  compared to the same period in 2001.  The decrease was  primarily
attributable to a 105 basis point decrease in the weighted  average rate paid on
such  borrowings and a $25.9 million or 12.9% decrease in the average balance of
such  borrowings for the nine months ended March 31, 2002,  when compared to the
same period in 2001. The reduction of average borrowings  outstanding was funded
by issuer  redemptions  of higher rate  investment  securities  in the Company's
portfolio.

     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 no provision  for possible  loan losses for the three
month period ended March 31, 2002 and a $57 thousand provision for possible loan
losses for the nine month period ended March 31,  2002.  At March 31, 2002,  the
Company's  total  allowance for loan losses  amounted to $2.8 million or 1.7% of
the Company's total loan portfolio,  as compared to $2.8 million or 1.5% at June
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 $10 thousand or
6.2% and $39  thousand  or 7.5% for the three and nine  months  ended  March 31,
2002,  respectively,  when compared to the same periods in 2001. The increase in
non-interest  income for the three months ended March 31, 2002, was  principally
attributable to increases in deposit related service fee income. The increase in
non-interest  income for the nine months  ended March 31,  2002,  was  primarily
attributable  to increases in deposit related service fee income and late charge
income collected on the Company's mortgage loan portfolio.

     Non-Interest Expense.  Total non-interest expense decreased $11 thousand or
1.1% for the three months ended March 31, 2002, when compared to the same period
in 2001. The decrease in  non-interest  expense for the three months ended March
31, 2002, was primarily  attributable to a $30 thousand decrease in compensation
and  employee  benefits  which  was  partially  offset  by  a  $14  increase  in
advertising costs.  Total  non-interest  expense increased $111 thousand or 3.8%
for the nine months  ended March 31, 2002,  when  compared to the same period in
2001. The increase in  non-interest  expense for the nine months ended March 31,
2002, was  principally  attributable  to a $100 thousand  increase in charitable
contributions for local educational  programs,  when compared to the same period
in 2001.




LIQUIDITY AND CAPITAL RESOURCES

     Net cash provided by operating  activities  totaled $3.9 million during the
nine months ended March 31, 2002. Net cash provided by operating  activities was
primarily  comprised of $3.3 million of net income, a $752 thousand  decrease in
accrued interest receivable and a $343 thousand decrease in accrued and deferred
taxes,  which  was  partially  offset by a $667  thousand  decrease  in  accrued
interest payable.

     Funds provided by investing activities totaled $4.2 million during the nine
months  ended March 31,  2002.  Primary  sources of funds during the nine months
ended March 31, 2002,  included  $261.1  million of proceeds from  repayments of
investment and  mortgage-backed  securities,  and $23.2 million  decrease in net



                                       13
<PAGE>

loans receivable,  which were partially offset by $280.1 million of purchases of
investments and  mortgage-backed  securities,  including  Federal Home Loan Bank
stock. During the quarter ended March 31, 2002,  principal  investment purchases
were  comprised of:  investment  grade  commercial  paper - $42.1 million with a
weighted average yield of approximately 2.62%,  callable government agency bonds
- $14.5 million with a weighted  average yield to call of  approximately  3.70%;
and investment  grade  corporate  bonds - $17.6 million with a weighted  average
yield of  approximately  3.70%.  Major investment  proceeds  received during the
quarter  ended  March 31, 2002 were:  callable  government  agency  bonds - $3.9
million with a weighted  average rate of  approximately  6.78%;  and  investment
grade  commercial  paper  - $96.7  million  with a  weighted  average  yield  of
approximately 2.93%.

     At March 31,  2002,  the  Company  held $80.9  million  of  mortgage-backed
securities  with an  approximate  weighted  average  yield of 4.3%.  In order to
mitigate  risk  associated  with  a  general  rise  in  market  interest  rates,
approximately $55.4 million or 68.5% of the Company's mortgage-backed securities
portfolio  were  floating rate with a weighted  average  yield of  approximately
3.09%.  During the quarter  ended March 31, 2002,  the Company  purchased  $36.2
million of floating rate CMO's at an approximate  spread of one month LIBOR plus
123.4 basis points.

     Funds used for  financing  activities  totaled  $8.5  million  for the nine
months ended March 31,  2002.  Primary  uses of funds  included a $11.6  million
decrease in other short-term borrowings, a $6.9 million decrease in deposits and
escrows,  $1.3 million in cash dividends paid on the Company's common stock, and
$1.1 million in purchased treasury stock, which were partially offset by a $12.3
million  increase in FHLB  advances.  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 March 31, 2002, the Company borrowed approximately
$19.8 million in various  borrowings from the FHLB with a weighted  average rate
of 2.12%, and incurred $42.4 million in other borrowings with a weighted average
rate of 1.87%.  During the three months ended March 31, 2002, the Company repaid
$10.5  million  of FHLB  advances  and $65.7  million of other  borrowings  with
weighted average rates of 5.20% and 1.87%, respectively.

     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 March 31,  2002,  the total  approved  loan
commitments outstanding amounted to $930 thousand. At the same date, commitments
under unused lines of credit amounted to $7.1 million and the unadvanced portion
of  construction  loans  approximated  $11.1  million.  Certificates  of deposit
scheduled  to  mature  in one  year or less at March  31,  2002,  totaled  $57.9
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.  During the nine months ended March 31, 2002, the Company
experienced  large  issuer  redemptions  in  its  government  agency  investment
securities  portfolio  due to  aggressive  monetary  easing by the Federal  Open
Market  Committee,  and a general  downward trend in market  interest  rates. In
response to this phenomenon,  the Company purchased  investment grade commercial
paper and corporate bonds in order to partially  mitigate the issuer redemptions
of government  agency bonds.  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 April  30,  2002,  the  Company's  Board of  Directors  declared  a cash
dividend of $0.16 per share payable May 16, 2002, to  shareholders  of record at
the close of business on May 6, 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 in  future  periods  or that,  if paid,  such
dividends will not be reduced or eliminated.

                                       14
<PAGE>


     As of March 31, 2002, WVS Financial Corp.  exceeded all regulatory  capital
requirements and maintained Tier I and total  risk-based  capital equal to $29.6
million  or  14.3%  and  $32.2   million  or  15.5%,   respectively,   of  total
risk-weighted  assets,  and Tier I leverage capital of $29.6 million or 7.69% of
average quarterly assets.

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

     The Company's nonperforming assets at March 31, 2002, totaled approximately
$4.9 million or 1.3% of total assets as compared to $5.0 million or 1.3% at June
30, 2001.  Nonperforming  assets at March 31, 2002, consisted of $3.3 million in
commercial real estate loans,  $1.0 million in construction and land development
loans,  $244 thousand in  single-family  loans,  and $388 thousand in other real
estate owned. During the nine months ended March 31, 2002, the Company collected
and  recognized  approximately  $118  thousand  in  past  due  interest  on  its
nonperforming  loans.  Approximately $167 thousand of additional interest income
would have been  recorded  during the nine months ended March 31,  2002,  if the
Company's  nonaccrual and restructured loans had been current in accordance with
their original loan terms and outstanding throughout the nine months ended March
31, 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.

     During the quarter  ended March 31,  2002,  the  Company  transferred  $388
thousand from  nonaccrual  loans to other real estate  owned.  This transfer was
made in connection with a U.S.  Bankruptcy Court approved sale to the Company of
the loan's underlying  collateral.  The collateral consists of three residential
lots, one partially completed  single-family home and one finished single-family
home.  Subsequent to March 31, 2002,  the Company signed sales  agreements  with
respect to one  residential  lot and the partially  completed home with closings
scheduled  for the fourth  quarter of fiscal 2002.  The Company is marketing the
remaining properties.

     At  March  31,  2002,  the  recorded  investment  in three  loans  that are
considered  to be  impaired  under SFAS No. 114 was $3.6  million as compared to
$3.6 million at June 30, 2001. A related  allowance for loan losses totaled $1.6
million and $1.6 million at March 31, 2002 and June 30, 2001, respectively.  The
average recorded investment in impaired loans during the nine months ended March
31, 2002 totaled $3.6 million as compared to $3.6 million for the same period in
the prior fiscal year.  During the nine months ended March 31, 2002, the Company
recognized approximately $100 thousand in interest income 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 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.

     As of  March  31,  2002,  the  Company's  asset  and  liability  management
initiatives resulted in the following:

     1)  an  aggregate  of $49.9  million  or 30.4%  of the  Company's  net loan
         portfolio had  adjustable  interest rates or maturities of less than 12
         months;
     2)  $55.4  million or 68.5% of the Company's  portfolio of  mortgage-backed
         securities  (including  collateralized  mortgage  obligations - "CMOs")
         were secured by floating rate securities;
     3)  $43.7  million  or  19.8%  of the  Company's  investment  portfolio  is
         scheduled to mature within 24 months; and
     4)  the term structure of the Company's borrowings as of March 31, 2002 has
         been positioned as follows:  less than 1 year:  $34.2 million or 18.7%;
         3-5 years: $4.2 million or 2.3%; over 5 years: $144.5 million or 79.0%.


                                       16
<PAGE>


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

     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>
                                                  March 31,              June 30,
                                                  ---------              --------
                                                    2002            2001           2000
                                                 ---------       ---------       ---------
                                                            (Dollars in Thousands)
<S>                                              <C>             <C>             <C>
Interest-earning assets maturing or
   repricing within one year                     $ 218,176       $ 155,928       $  86,215
Interest-bearing liabilities maturing or
   repricing within one year                       146,323         137,232         275,814
                                                 ---------       ---------       ---------

Interest sensitivity gap                         $  71,853       $  18,696       $(189,599)
                                                 =========       =========       =========
Interest sensitivity gap as a percentage of

   total assets                                       18.4%            4.7%          (46.3)%
Ratio of assets to liabilities
   maturing or repricing within one year             149.1           113.6%           31.3%
</TABLE>


     During the nine months ended March 31, 2002, the Company markedly  improved
its one year interest  sensitivity gap by: (1) extending the term structure of a
portion of the Company's borrowings;  (2) increasing the amount of floating rate
CMO's and short-term  commercial paper  investments;  and (3) generally limiting
incremental  corporate  bond  purchases to those with  repricing  dates within 2
years.


                                       17
<PAGE>


     The following table illustrates the Company's estimated stressed cumulative
repricing gap - the difference between the amount of interest-earning assets and
interest-bearing  liabilities  expected to reprice at a given point in time - at
March 31, 2002. The table  estimates the impact of an upward or downward  change
in market interest rates of 100 and 200 basis points.

<TABLE>
<CAPTION>


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

                                                                                                        Long Term &
                                                                                                            Non
                      Month 3      Month 6      Month 12       Month 24      Month 36     Month 60       sensitive
                      -------      -------      --------       --------      --------     --------      ------------
                                                         (Dollars in Thousands)
<S>                    <C>          <C>          <C>             <C>           <C>          <C>               <C>
Base Case Up 200 bp
-------------------
Cummulative
 Gap ($'s)             32,041       17,489       16,862         -4,648        -4,475       -24,512               0
% of Total
  Assets                  8.2%         4.5%         4.3%          -1.2%         -1.1%         -6.3%            0.0%
Base Case Up 100 bp
-------------------
Cummulative
 Gap($'s)              33,139       19,304       34,575         29,073        44,020        38,456               0
% of Total
  Assets                  8.5%         4.9%         8.8%           7.4%         11.2%          9.8%            0.0%
Base Case No Change
-------------------
Cummulative
 Gap ($'s)             40,499       39,844       71,853         77,368        85,582       104,186               0
% of Total
  Assets                 10.3%        10.2%        18.4%          19.8%         21.9%         26.6%            0.0%
Base Case Down 100 bp
---------------------
Cummulative
 Gap($'s)              43,969       48,755       88,708         91,795       105,466       125,200               0
% of Total
  Assets                 11.2%        12.5%        22.7%          23.4%         26.9%         32.0%            0.0%
Base Case Down 200 bp
---------------------
Cummulative
 Gap ($'s)             50,842       58,394      100,393        106,992       121,841       140,791               0
% of Total
  Assets                 13.0%        14.9%        25.6%          27.3%         31.1%         36.0%            0.0%

</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.



                                       18
<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 March 31, 2002.


<TABLE>
<CAPTION>

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

                                                      Modeled Change in Market Interest Rates (Basis Points)
                                             -------------------------------------------------------------------------
<S>                                                   <C>            <C>              <C>          <C>          <C>
                                                      -200           -100             0           +100          +200
                                                       ---            ---             -            ---           ---
Estimated impact on:
--------------------
   Change in net interest income                     -25.0%         -11.7%            0            7.2%         16.4%

   Return on average equity                           8.34%         11.08%        13.43%         14.85%        16.61%

   Return on average assets                           0.65%          0.87%         1.06%          1.18%         1.33%

   Market value of equity (in
      thousands)                                     21,936         26,615        27,218         23,817        17,469

</TABLE>


     The  table  below  provides  information  about the  Company's  anticipated
transactions comprised of firm loan commitments and other commitments, including
undisbursed  letters  and  lines  of  credit.  The  Company  used no  derivative
financial  instruments to hedge such  anticipated  transactions  as of March 31,
2002.

                    Anticipated Transactions
-------------------------------------------------------------------
                                          (Dollars in Thousands/
                                          Weighted Average Rate)
Undisbursed construction and
    land development loans
      Fixed rate                                 $  5,388
                                                     7.33%

      Adjustable rate                            $  5,732
                                                     6.09%

Undisbursed lines of credit
      Adjustable rate                            $  7,069
                                                     5.54%

Loan origination commitments
      Fixed rate                                 $    850
                                                     7.71%

      Adjustable rate                            $     80
                                                     5.78%

Letters of credit
      Adjustable rate                            $    117
                                                     7.75%
                                                 --------
                                                  $19,236
                                                 ========



                                       19



<PAGE>


PART II - OTHER INFORMATION

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  tortious  interference  with  prospective  and  existing
          business relations and seeks damages of approximately $5.2 million. In
          January 2002, the Court dismissed the tortious interference claim. The
          Company  believes the remaining  counterclaims  are without merit.  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 legal proceedings are in the
          discovery  phase at this time.  The Savings  Bank  remains  willing to
          endeavor  to work  towards  a loan  work-out  with  respect  to  these
          credits.

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 exhibit is filed as part of this Form 10-Q, and
              this list includes the Exhibit Index.

                    Number        Description                            Page
                    ------        --------------------------------       ----
                      99          Independent Accountant's Report         E-1

          (b) The Company filed a Current Report on Form 8-K, dated February 27,
              2002,  reporting  under Item 5 that on February 27, 2002 Lawrence
              M. Lehman was elected as a director of the Company and the Savings
              Bank.



                                       20
<PAGE>


                                   SIGNATURES


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



                                    WVS FINANCIAL CORP.




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


     May 14, 2002                   BY:    /s/ Keith A. Simpson
                                           -------------------------------------
     Date                                  Keith A. Simpson
                                           Controller




                                       21