Exhibit 10.4

                         SEVERANCE AND RELEASE AGREEMENT

         THIS  SEVERANCE AND RELEASE  AGREEMENT (the  "Agreement")  is made this
19th day of June 1998 by and  between  Robert C. Sinewe  (the  "Employee"),  WVS
Financial  Corp.,  a  Pennsylvania  corporation  (the  "Company")  and West View
Savings Bank, a Pennsylvania-chartered  savings bank and wholly-owned subsidiary
of the Company (the "Bank"). The Company and the Bank are sometimes collectively
referred to herein as the Employers.


                                   WITNESSETH:

         WHEREAS, the Employee currently serves as President and Chief Executive
Officer of the  Company  and the Bank and as a director  of the  Company and the
Bank;

         WHEREAS,  the Employers and Employee have had discussions  prior to the
date hereof with respect to the  termination  of Employee's  employment  and the
payments the Employers would agree to make pursuant to such termination; and

         WHEREAS, the Employers and the Employee have previously entered into an
employment agreement dated July 1, 1997 (the "Employment Agreement");

         NOW,  THEREFORE,  in consideration of the mutual premises and covenants
contained  herein,  and  intending  to be legally  bound,  the parties  agree as
follows:

         1.   Termination of Employment and Directorship.  With the execution of
              this  Agreement,  the  Employee  shall no  longer  be an  officer,
              director or  employee of the Company or the Bank and shall  deemed
              to have resigned as an officer and employee of the Company and the
              Bank and as a member of the Board of  Directors of the Company and
              of the Bank.

         2.   Payments and Benefits to the Employee.

              (a) The Employers agree to make a lump-sum  payment of $135,000 to
              Employee  payable as of July 31, 1998. In addition,  the Employers
              agree to pay to the Employee an aggregate of $421,200, such amount
              to be paid in seventy-two (72) equal semi-monthly  installments of
              $5,850 due the  fifteenth  day and the last day of each month with
              the first payment to be paid on July 15, 1998 and the last payment
              to be made on June 30, 2001 (as W-2  wages).  From the date hereof
              through  June 30, 1998,  you will be paid your current  salary and
              will continue to participate  in the  Employers'  group health and
              tax-qualified   retirement  plans.  The  Employer  shall  have  no
              obligation to make  contributions  for service  subsequent to June
              30,  1998 to its tax  qualified  retirement  plans  on  behalf  of
              Employee  and  Employee  shall  have no right to  participate  for
              service subsequent to June 30, 1998.

              (b)  The  Employee   shall  be  entitled  to  participate  in  the
              Employer's  Health  Assurance  Medical Plan and other group health
              plans  (including the Employer's  Cancer Plan and Dental Plan) and
              the  Employee's  wife  shall be  entitled  to  participate  in the
              Employer's  Health  Assurance  Medical Plan,  each for a period of
              thirty-six  (36) months from July 1, 1998 through June 30, 2001 at
              no cost to the Employee or his wife.
<PAGE>
              (c) The Employers  will pay the Employee a monthly cash  allowance
              of $400 for a twelve (12) month period  commencing on July 1, 1998
              and ending on June 30, 1999.  Subsequent to July 1, 1998, Employee
              shall  have  no  right  to the  continued  use  of the  automobile
              currently provided by the Employer.

              (d) All of Employee's  accrued and vested  benefits as of June 30,
              1998 held under the  Employers'  tax  qualified  retirement  plans
              shall be  available  for  distribution  which shall be made in the
              ordinary course of business in accordance with such plan terms and
              past practice of the Employers.

        3.    Stock Incentive and Recognition  Plans. It is acknowledged that no
              additional arrangements are being provided by the Employers to the
              Employee  under the  Employer's  1993 Stock  Incentive Plan or the
              Recognition  and Retention  Plan and Trust for Officers,  and that
              awards previously made by the Employers to the Employee which have
              not as yet vested  under each of such plans  shall not  accelerate
              and are intended to terminate in accordance with the terms of such
              plans.  All stock options  vested as of June 30, 1998 shall remain
              exercisable through September 30, 1998.

         4.   Indemnification.  The  Employers  agree to indemnify  the Employee
              against any judicial or administrative  proceeding,  or threatened
              proceeding,  whether  civil  or  criminal,  against  the  Employee
              arising out of the  Employee's  position as an  employee,  officer
              and/or director of the Employers to the fullest extent  authorized
              by the Employer's  charter,  bylaws or other governing  instrument
              and applicable law and regulations, including the payment of legal
              fees and documented  out-of-pocket  expenses in defending  against
              claims,  actions  or  proceedings.  If  Employee  wishes  to claim
              indemnification  under this  Section 4 he shall upon  learning  of
              such  claim,   action  or  proceeding  promptly  notify  Employers
              thereof.  Employers  shall  have the right to assume  the  defense
              thereof and shall not be liable to Employee for any legal expenses
              of other counsel  subsequently  incurred by Employee in connection
              with the defense thereof,  except if Employer elects not to assume
              such defense.

         5.   Use of Customer Lists, etc. The Employee acknowledges that, except
              as required by law or in his own good faith use in any proceeding,
              he has no right personally to use or disclose to any person,  firm
              or corporation, information concerning any customer list, business
              secrets or  confidential  financial  information  of the Employers
              that he knew was intended by the Employers to be confidential  and
              that he did not  have  reason  to  believe  had been  made  public
              (collectively,   "Confidential  Information").   Accordingly,  the
              Employee  covenants and agrees that he shall not use or permit the
              use of any  Confidential  Information,  and shall not  divulge any
              Confidential  Information  to any  person,  firm  or  corporation,
              except as may be  required  by  applicable  law arising out of his
              employment with or participation in the affairs of the Employers.
<PAGE>
         6.   Release of the Employers and Related Parties.

              (a) For, and in  consideration  of the commitments  made herein by
              the  Employers,  including  specifically  the release in Section 7
              below, the Employee, for himself and for his heirs, successors and
              assigns,  does hereby release completely and forever discharge the
              Employers   and   their   respective   subsidiaries,   affiliates,
              stockholders,  attorneys,  officers, directors, agents, employees,
              successors and assigns,  and any other party  associated  with the
              Employers  (the  "Released   Parties"),   to  the  fullest  extent
              permitted  by  applicable  law,  from any and all claims,  rights,
              demands, actions,  liabilities,  obligations,  causes of action of
              any and all  kinds,  nature  and  character  whatsoever,  known or
              unknown, in any way connected with his employment by the Employers
              or  termination  thereof;  provided  that no such waiver  shall be
              effective  with  respect to  Employee's  rights  related to COBRA,
              ERISA or the  Employer's  Cancer  Policy  and Term Life  Insurance
              Policy.  It is  expressly  understood  that to the extent that the
              Employee  has any right to convert the Cancer  Policy or Term Life
              Insurance Policy to a personal policy, such conversion shall be at
              no expense to the Employer.

              (b) The Employee hereby specifically and unconditionally  releases
              the  Released  Parties  from any and all claims which the Employee
              may have against any of them and which arose on or before the date
              of this Agreement under the Age  Discrimination  in Employment Act
              (the   "ADEA"),   including,   but  not   limited  to,  any  claim
              attributable  to the  Employers'  solicitation  of the  Employee's
              consent to the terms of this Agreement,  and further  acknowledges
              and represents that

                      (i) the Employee  waives the Employee's  claims under ADEA
                      knowingly and  voluntarily in exchange for the commitments
                      made  herein  by the  Employers,  and  that  the  benefits
                      provided  thereby  constitute  consideration  of  value to
                      which the Employee would not otherwise have been entitled;

                      (ii) the  Employee  has been  advised  in  writing  by the
                      Employers to consult an attorney in  connection  with this
                      Agreement;

                      (iii)  the  Employee  has been  given a period  of 2l days
                      within which to consider the terms hereof;

                      (iv) the Employee may revoke the waiver of ADEA claims set
                      forth in this  paragraph  6 for a period of seven (7) days
                      following  the   execution  of  this   Agreement  and  the
                      Employee's  waiver  of ADEA  claims  hereunder  shall  not
                      become effective until the revocation period has expired;

                      (v) if the  Employee  revokes the waiver of ADEA claims in
                      accordance  with  subparagraph  (iv) above,  the  Employee
                      shall cease to receive the payments and benefits specified
                      in paragraph 2 hereof,  but such  revocation  shall not be
                      effective  with respect to the remainder of this Agreement
                      and the  consideration  received by the Employee  prior to
                      the revocation  shall be valid and adequate  consideration
                      with respect to the remainder of this Agreement; and
<PAGE>
                      (vi) this Agreement  complies in all respects with Section
                      7(f) of ADEA,  the waiver  provisions  of the Older Worker
                      Benefit Protection Act.

              (c) Notwithstanding  the foregoing,  the Employee does not release
              the  Employers  from  claims  arising  out of any  breach  of this
              Agreement.

7.       General  Release of the  Employee.  For,  and in  consideration  of the
         commitments  made herein by the Employee,  including  specifically  the
         release in Section 6 above,  the  Employers,  for  themselves,  and for
         their  respective  successors and assigns do hereby release  completely
         and  forever  discharge  the  Employee  and his heirs,  successors  and
         assigns,  to the fullest extent  permitted by applicable  law, from any
         and all claims, rights,  demands,  actions,  liabilities,  obligations,
         causes of action of any kinds, nature and character  whatsoever,  known
         or unknown,  in any way connected  with the  Employee's  position as an
         employee,  officer  or  director  of  the  Employers.   Notwithstanding
         anything in the foregoing to the contrary, the Employers do not release
         the Employee from claims arising out of any breach of this Agreement.

8.       Representation. The Employers and the Employee represent that they have
         reviewed  this  Agreement,  and that each of them is fully aware of the
         content of this Agreement and of its legal effect, and acknowledge that
         this is a legally valid and binding obligation of the parties.

9.       Withholding.  The  Employers  may make  such  provisions  as they  deem
         appropriate for the withholding pursuant to federal or state income tax
         laws of such amounts as the  Employers  determine  they are required to
         withhold in  connection  with the payments to be made  pursuant to this
         Agreement.

10.      Amendment and Waiver.  The terms of this  Agreement may not be modified
         other than in a writing signed by the parties.  No term or condition of
         this Agreement shall be deemed to have been waived,  nor shall there be
         any estoppel  against  enforcement of any provision of this  Agreement,
         except by written  instrument  of the party charged with such waiver or
         estoppel.  No such written  waiver shall be deemed a continuing  waiver
         unless specifically stated therein,  and each such waiver shall operate
         only as to the specific  term or condition  for the future or as to any
         act other than that specifically waived.

11.      Notices. All notices, demands, consents or other communication required
         or permitted  hereunder shall be in writing and shall be deemed to have
         been given when: (i) personally delivered, or (ii) sent postage prepaid
         by registered or certified mail, return receipt requested, such receipt
         showing  delivery to have been made, or (iii) sent overnight by prepaid
         receipt courier addressed as follows:

                  If to the Employee:       Robert C. Sinewe
                                            800 Academy Place
                                            Sewickley, Pennsylvania 15143

                  If to the Employers:      WVS Financial Corp.
                                            West View Savings Bank
                                            McCandless Office
                                            9001 Perry Highway
                                            Pittsburgh, Pennsylvania 15237
<PAGE>
12.      Entire Agreement.  This Agreement incorporates the entire understanding
         among the parties  relating to the subject matter  hereof,  recites the
         sole  consideration for the promises exchanged and supercedes any prior
         agreements  between the  Employers and the Employee with respect to the
         subject matter hereof,  including  without  limitation,  as of the date
         hereof, the Employment Agreement.  In reaching this Agreement, no party
         has relied upon any  representation  or promise  except those set forth
         herein.

13.      Invalid  Provisions.  If any provision of this  Agreement is held to be
         illegal,  invalid,  or  unenforceable  under  present  or  future  laws
         effective  during the term of this  Agreement,  such provision shall be
         fully  severable and this Agreement  shall be construed and enforced as
         if  such  illegal,   invalid  or  unenforceable   provision  had  never
         compromised a part of this Agreement,  and the remaining  provisions of
         this  Agreement  shall remain in full force and effect and shall not be
         affected by the illegal,  invalid or unenforceable  provision or by its
         severance from this Agreement.

14.      Bind and Inure.  This Agreement  shall be binding upon and inure to the
         benefit of the Employee and the  Employers and their  respective  heirs
         and/or successors and permitted assigns.

15.      Governing  Law.  This  Agreement  shall be governed by and construed in
         accordance with the laws of the Commonwealth of Pennsylvania, except to
         the  extent  that   applicable   federal  law   preempts  the  laws  of
         Commonwealth of Pennsylvania.

16.      Confidentiality.  No disclosure of the contents of this Agreement shall
         be made by either  party to this  Agreement  without the prior  written
         consent of the other party;  provided that such  disclosure  (including
         disclosures contained in Company press releases and regulatory filings)
         may be made as required in accordance  with federal  securities law and
         regulations.  The Employer will provide the Employee with a copy of the
         proposed  press release to be issued in connection  with this Agreement
         for review and comment.
<PAGE>

         IN WITNESS WHEREOF, the Company and the Bank have caused this Agreement
to be executed by their duly  authorized  representatives  and the  Employee has
executed this Agreement, all as of the day and year first above written.


WITNESSES:


                                         WVS FINANCIAL CORP.

/s/ James H. Ritchie            By:      /s/ James S. McKain, Jr.
--------------------                     ------------------------ 
                                Title:   Chairman of the Board

                                         WEST VIEW SAVINGS BANK

/s/ James H. Ritchie            By:      /s/ James S. McKain, Jr.
--------------------                     ------------------------ 
                                Title:   Chairman of the Board

                                         WVS FINANCIAL CORP.

/s/ Donald E. Hook              By:      /s/ David J. Bursic
------------------                       ------------------- 
                                Title:   President and Chief Executive Officer

                                         WEST VIEW SAVINGS BANK

/s/ Donald E. Hook              By:      /s/ David J. Bursic
------------------                       ------------------- 
                                Title:   President and Chief Executive Officer


                                         ROBERT C. SINEWE

/s/ James H. Ritchie                     /s/ Robert C. Sinewe
--------------------                    ----------------------