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

                                    FORM 10-Q

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

      For the quarterly period ended September 30, 2005

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

                                 (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 |_|

      Indicate by check mark whether the registrant is an accelerated  filer (as
defined in Rule 12 b-2 of the Exchange Act).

YES |_| NO |X|

      Indicate  by check mark  whether  the  registrant  is a shell  company (as
defined in Rule 12 b-2 of the Exchange Act).

YES |_| NO |X|

      Shares outstanding as of November 08, 2005: 2,356,568 shares Common Stock,
$.01 par value.

<PAGE>

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

                                      INDEX
                                      -----

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

Item 1.   Financial Statements

          Consolidated Balance Sheet as of
          September 30, 2005 and June 30, 2005
          (Unaudited)                                                         3

          Consolidated Statement of Income
          for the Three Months Ended
          September 30, 2005 and 2004 (Unaudited)                             4

          Consolidated Statement of Cash Flows
          for the Three Months Ended September 30,
          2005 and 2004 (Unaudited)                                           5

          Consolidated Statement of Changes in
          Stockholders' Equity for the Three Months
          Ended September 30, 2005 (Unaudited)                                7

          Notes to Unaudited Consolidated
          Financial Statements                                                8

Item 2.   Management's Discussion and Analysis of
          Financial Condition and Results of
          Operations for the Three Months
          Ended September 30, 2005                                           10

Item 3.   Quantitative and Qualitative Disclosures
          about Market Risk                                                  15

Item 4.   Controls and Procedures                                            20

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

Item 1.   Legal Proceedings                                                  21
Item 2.   Unregistered Sales of Equity Securities and
          Use of Proceeds                                                    21
Item 3.   Defaults upon Senior Securities                                    21
Item 4.   Submission of Matters to a Vote of Security Holders                22
Item 5.   Other Information                                                  22
Item 6.   Exhibits                                                           22
          Signatures                                                         23


                                       2
<PAGE>

                       WVS FINANCIAL CORP. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET
                                   (UNAUDITED)
                                 (In thousands)

<TABLE>
<CAPTION>
                                                                   September 30, 2005   June 30, 2005
                                                                   ------------------   -------------
          Assets
          ------
<S>                                                                    <C>                <C>
Cash and due from banks                                                $   1,279          $     900
Interest-earning demand deposits                                           1,245              2,666
                                                                       ---------          ---------
Total cash and cash equivalents                                            2,524              3,566
Investment securities available-for-sale (amortized cost of
   $ 8,775 and $9,155)                                                     8,765              9,155
Investment securities held-to-maturity (market value of
   $159,202 and $174,323)                                                158,974            173,911
Mortgage-backed securities available-for-sale (amortized cost of
   $2,261 and $2,893)                                                      2,408              3,120
Mortgage-backed securities held-to-maturity (market value of
   $180,662 and $159,566)                                                179,976            159,031
Net loans receivable (allowance for loan losses of $1,055 and
   $1,121)                                                                59,099             60,151
Accrued interest receivable                                                2,338              2,057
Federal Home Loan Bank stock, at cost                                      7,464              7,769
Premises and equipment                                                       907                939
Other assets                                                               1,275              1,345
                                                                       ---------          ---------
          TOTAL ASSETS                                                 $ 423,730          $ 421,044
                                                                       =========          =========

          Liabilities and Stockholders' Equity
          ------------------------------------
Liabilities:
Savings Deposits:
   Non-interest-bearing accounts                                       $  20,697          $  11,926
   NOW accounts                                                           19,545             25,396
   Savings accounts                                                       41,541             44,323
   Money market accounts                                                  14,920             13,625
   Certificates of deposit                                                69,050             68,319
   Advance payments by borrowers for taxes and insurance                     417              1,117
                                                                       ---------          ---------
    Total savings deposits                                               166,170            164,706
Federal Home Loan Bank advances                                          156,911            155,036
Other borrowings                                                          69,205             69,680
Accrued interest payable                                                   1,376              1,260
Other liabilities                                                          1,314              1,161
                                                                       ---------          ---------
     TOTAL LIABILITIES                                                 $ 394,976          $ 391,843

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;
   3,762,618 and 3,762,618 shares issued                                      38                 38
Additional paid-in capital                                                20,726             20,726
Treasury stock: 1,406,050 and 1,368,508 shares at cost,
   Respectively                                                          (21,208)           (20,594)
Retained earnings, substantially restricted                               29,110             28,885
Accumulated other comprehensive income                                        91                149
Unreleased shares - Recognition and Retention Plans                           (3)                (3)
                                                                       ---------          ---------
     TOTAL STOCKHOLDERS' EQUITY                                        $  28,754          $  29,201
                                                                       ---------          ---------
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                   $ 423,730          $ 421,044
                                                                       =========          =========
</TABLE>

     See accompanying notes to unaudited consolidated financial statements.


                                       3
<PAGE>

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

<TABLE>
<CAPTION>
                                                                Three Months Ended
                                                                   September 30,
                                                           ----------------------------
                                                               2005             2004
                                                           -----------      -----------
<S>                                                        <C>              <C>
INTEREST AND DIVIDEND INCOME:
     Loans                                                 $     1,052      $     1,095
     Investment securities                                       1,856            2,724
     Mortgage-backed securities                                  1,882              583
     Interest-earning deposits with other institutions               3                2
     Federal Home Loan Bank stock                                   47               26
                                                           -----------      -----------
          Total interest and dividend income                     4,840            4,430
                                                           -----------      -----------

INTEREST EXPENSE:
     Deposits                                                      711              515
     Federal Home Loan Bank advances                             2,007            2,044
     Other borrowings                                              667              193
                                                           -----------      -----------
          Total interest expense                                 3,385            2,752
                                                           -----------      -----------

NET INTEREST INCOME                                              1,455            1,678
PROVISION (RECOVERY) FOR LOAN LOSSES                               (66)              78
                                                           -----------      -----------
NET INTEREST INCOME AFTER PROVISION (RECOVERY) FOR
     LOAN LOSSES                                                 1,521            1,600
                                                           -----------      -----------

NON-INTEREST INCOME:
     Service charges on deposits                                    95               95
     Investment securities gains                                    30              237
     Other                                                          82               76
                                                           -----------      -----------
          Total non-interest income                                207              408
                                                           -----------      -----------

NON-INTEREST EXPENSE:
     Salaries and employee benefits                                469              503
     Occupancy and equipment                                       101              105
     Data processing                                                67               64
     Correspondent bank service charges                             36               35
     Other                                                         216              171
                                                           -----------      -----------
          Total non-interest expense                               889              878
                                                           -----------      -----------

INCOME BEFORE INCOME TAXES                                         839            1,130
INCOME TAXES                                                       231              296
                                                           -----------      -----------
NET INCOME                                                 $       608      $       834
                                                           ===========      ===========

EARNINGS PER SHARE:
     Basic                                                 $      0.25      $      0.34
     Diluted                                               $      0.25      $      0.34

AVERAGE SHARES OUTSTANDING:
     Basic                                                   2,387,653        2,453,189
     Diluted                                                 2,391,294        2,458,926
</TABLE>

     See accompanying notes to unaudited consolidated financial statements.


                                       4
<PAGE>

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

<TABLE>
<CAPTION>
                                                                                Three Months Ended
                                                                                   September 30,
                                                                              ------------------------
                                                                                 2005           2004
                                                                              ---------      ---------
<S>                                                                           <C>            <C>
OPERATING ACTIVITIES

Net income                                                                    $     608      $     834
Adjustments to reconcile net income to cash provided by operating
 activities:
   (Recovery) provision for loan losses                                             (66)            78
   Depreciation                                                                      46             47
   Investment securities gains                                                      (30)          (237)
   Amortization of discounts, premiums and deferred loan fees                       (61)          (179)
   Sale of trading securities                                                        --          1,000
   Increase in accrued and deferred taxes                                           161            217
   (Increase) decrease in accrued interest receivable                              (281)           159
   Increase in accrued interest payable                                             116             21
   Other, net                                                                        91            (97)
                                                                              ---------      ---------
         Net cash provided by operating activities                                  584          1,843
                                                                              ---------      ---------

INVESTING ACTIVITIES

Available-for-sale:
   Purchases of investments                                                        (687)       (13,113)
   Proceeds from repayments of investments and mortgage-backed securities         1,080          2,975
   Proceeds from sale of investment and mortgage-backed securities                1,016          1,127
Held-to-maturity:
   Purchases of investments                                                     (24,997)       (63,832)
   Purchases of mortgage-backed securities                                      (61,159)       (31,807)
   Proceeds from repayments of investments                                       39,966        132,478
   Proceeds from repayments of mortgage-backed securities                        39,887         10,697
Decrease in net loans receivable                                                  1,110          4,769
Purchase of Federal Home Loan Bank stock                                         (2,049)        (1,521)
Redemption of Federal Home Loan Bank stock                                        2,354          1,471
Acquisition of premises and equipment                                               (14)           (21)
                                                                              ---------      ---------
         Net cash (used for) provided by investing activities                    (3,493)        43,223
                                                                              ---------      ---------
</TABLE>


                                       5
<PAGE>

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

<TABLE>
<CAPTION>
                                                                            Three Months Ended
                                                                               September 30,
                                                                          ----------------------
                                                                            2005          2004
                                                                          --------      --------
<S>                                                                       <C>           <C>
FINANCING ACTIVITIES

Net increase (decrease) in transaction and passbook accounts                 1,433        (2,133)
Net increase (decrease) in certificates of deposit                             731        (1,027)
Net increase in FHLB short-term advances                                     1,875         1,900
Net decrease in other borrowings                                              (475)      (41,376)
Net decrease in advance payments by borrowers for taxes and insurance         (700)         (882)
Cash dividends paid                                                           (383)         (393)
Funds used for purchase of treasury stock                                     (614)         (339)
                                                                          --------      --------
         Net cash provided by (used for)  financing activities               1,867       (44,250)
                                                                          --------      --------

         (Decrease) increase in cash and cash equivalents                   (1,042)          816

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD                         3,566         3,054
                                                                          --------      --------

CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                            $  2,524      $  3,870
                                                                          ========      ========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

   Cash paid during the period for:
      Interest on deposits, escrows and borrowings                        $  3,269      $  2,731
      Income taxes                                                        $     40      $      2
</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
                                                                             Retained       Other
                                               Additional                    Earnings      Compre-     Unallocated
                                   Common       Paid-In       Treasury    Substantially    hensive     Shares Held
                                   Stock        Capital        Stock        Restricted      Income        by RRP          Total
                                   -----        -------        -----        ----------      ------        ------          -----
<S>                               <C>           <C>           <C>            <C>           <C>           <C>            <C>
Balance at June 30, 2005          $     38      $ 20,726      $(20,594)      $ 28,885      $    149      $     (3)      $ 29,201

Comprehensive income:

   Net Income                                                                     608                                        608
   Other comprehensive
     income:
      Change in unrealized
          holding gains on
          securities, net of
          income tax effect
          of $30                                                                                (58)                         (58)
                                                                                                                        --------

Comprehensive income                                                                                                         550

Purchase of shares for
   treasury stock                                                 (614)                                                     (614)

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

Exercise of stock options               --            --                                                                      --

Cash dividends declared
   ($0.16 per share)                                                             (383)                                      (383)
                                  --------      --------      --------       --------      --------      --------       --------

Balance at Sept 30, 2005          $     38      $ 20,726      $(21,208)      $ 29,110      $     91      $     (3)      $ 28,754
                                  ========      ========      ========       ========      ========      ========       ========
</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
U.S.  generally  accepted  accounting   principles.   However,  all  adjustments
(consisting  only of normal  recurring  adjustments)  which,  in the  opinion of
management,  are  necessary  for a fair  presentation  have been  included.  The
results of operations  for the three months ended  September  30, 2005,  are not
necessarily  indicative  of the  results  which may be  expected  for the entire
fiscal year.

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

      In June 2005, the FASB issued FAS No. 154,  Accounting  Changes and Errors
Corrections,  a  replacement  of APB Opinion No. 20 and FAS No. 3. The Statement
applies to all  voluntary  changes in  accounting  principle,  and  changes  the
requirements  for  accounting  for  and  reporting  of a  change  in  accounting
principle.  FAS No. 154 requires  retrospective  application  to prior  periods'
financial  statements of a voluntary change in accounting principle unless it is
impractical.  APB Opinion No. 20 previously required that most voluntary changes
in  accounting  principle be recognized by including in net income of the period
of the change the cumulative effect of changing to the new accounting principle.
FAS No.154 improves the financial reporting because its requirements enhance the
consistency of financial  reporting  between periods.  The provisions of FAS No.
154 are  effective  for  accounting  changes and  corrections  of errors made in
fiscal years beginning after December 15, 2005.

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

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

<TABLE>
<CAPTION>
                                                                     Three Months Ended
                                                                        September 30,
                                                                 ---------------------------
                                                                    2005             2004
                                                                 ----------       ----------
<S>                                                              <C>              <C>
Weighted average common shares issued                             3,762,618        3,762,968
Average treasury stock shares                                    (1,374,965)      (1,309,779)
                                                                 ----------       ----------

Weighted average common shares and common stock equivalents
  used to calculate basic earnings per share                      2,387,653        2,453,189
Additional common stock equivalents (stock options) used to
  calculate diluted earnings per share                                3,641            5,737
                                                                 ----------       ----------

Weighted average common shares and common stock equivalents
  used to calculate diluted earnings per share                    2,391,294        2,458,926
                                                                 ==========       ==========
</TABLE>

      All options at September  30, 2005 and September 30, 2004 were included in
the computation of diluted earnings per share.


                                       8
<PAGE>

4. STOCK BASED COMPENSATION DISCLOSURE
   -----------------------------------

      In December 2004, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards No. 123 (revised 2004),  Share-Based
Payment  (FAS No.  123R).  FAS No.  123R  revised FAS No.  123,  Accounting  for
Stock-Based  Compensation,  and  supersedes  APB Opinion No. 25,  Accounting for
Stock Issued to Employees, and its related implementation guidance. FAS No. 123R
requires  compensation costs related to share-based  payment  transactions to be
recognized in the financial statement (with limited  exceptions).  The amount of
compensation  cost will be measured  based on the  grant-date  fair value of the
equity or liability  instruments  issued.  Compensation  cost will be recognized
over the period that an employee provides service in exchange for the award.

      In April 2005, the Securities and Exchange  Commission  adopted a new rule
that amends the compliance  dates for FAS No. 123R. The Statement  requires that
compensation cost relating to share-based payment  transactions be recognized in
financial  statements  and that this cost be measured based on the fair value of
the equity or liability  instruments issued. FAS No. 123R covers a wide range of
share-based compensation arrangements including share options,  restricted share
plans,  performance-based  awards, share appreciation rights, and employee share
purchase plans. The Company adopted FAS No. 123R on July 1, 2005. Management has
determined that unless additional  options are granted,  there will be no impact
on future earnings as a result of the adoption.

5. COMPREHENSIVE INCOME
   --------------------

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

<TABLE>
<CAPTION>
                                               Three Months Ended September 30,
                                            ---------------------------------------
                                                  2005                   2004
                                            ----------------       ----------------
<S>                                         <C>        <C>         <C>        <C>
            Net income                                 $ 608                  $ 834
            Other comprehensive
            (loss) income:
                Unrealized (losses)
                gains on available for
                sale securities             $  58                  $ (11)

                 Less:

                 Reclassification
                 adjustment for
                  gain included in
                  net income                  (30)                  (237)
                                            -----      -----       -----      -----
            Other comprehensive
            loss before tax                              (88)                  (226)
            Income tax benefit
                related to other
                comprehensive loss                       (30)                   (77)
                                                       -----                  -----
            Other comprehensive
             loss, net of tax                            (58)                  (149)
                                                       -----                  -----
            Comprehensive income                       $ 550                  $ 685
                                                       =====                  =====
</TABLE>


                                       9
<PAGE>

ITEM 2.

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005

FORWARD LOOKING STATEMENTS

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

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

GENERAL

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

      West View Savings  Bank is a  Pennsylvania-chartered,  SAIF-insured  stock
savings bank conducting  business from six offices in the North Hills suburbs of
Pittsburgh.  The  Savings  Bank  converted  to the stock  form of  ownership  in
November 1993. The Savings Bank had no subsidiaries at September 30, 2005.

      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.

FINANCIAL CONDITION

      The  Company's  assets  totaled  $423.7  million at September 30, 2005, as
compared to $421.0  million at June 30, 2005.  The $2.7 million or 0.6% increase
in total assets was primarily  comprised of a $20.2 million or 12.5% increase in
mortgage-backed  securities  and a $281  thousand  or 13.7%  increase in accrued
interest  receivable,  which were  partially  offset by a $15.6  million or 8.2%
decrease  in  investment  securities  and FHLB  stock,  a $1.1  million  or 1.8%
decrease in net loans  receivable  and a $1.0 million or 29.2%  decrease in cash
and cash equivalents. The increase in mortgage-backed securities is attributable
to purchases of floating rate collateralized mortgage obligations in response to
increases in short-term market interest rates,  while the


                                       10
<PAGE>

decrease in investment  securities and FHLB stock was  attributable  to calls of
U.S.  Government Agency securities and tax-free  municipal bonds. See "Asset and
Liability Management".

      The Company's total  liabilities  increased $3.2 million or 0.8% to $395.0
million as of September 30, 2005,  from $391.8  million as of June 30, 2005. The
$3.2 million  increase in total  liabilities  was primarily  comprised of a $1.9
million or 1.2% increase in short-term  FHLB advances and a $1.5 million or 0.9%
increase  in total  savings  deposits,  which  were  partially  offset by a $475
thousand  or 0.7%  decrease  in other  short-term  borrowings.  Demand  deposits
increased  $2.9  million,  money market  accounts  increased  $1.3 million while
savings accounts  decreased $2.8 million and advanced  payments by borrowers for
taxes and insurance decreased $700 thousand. The increase in demand deposits was
principally  attributable  to  seasonal  increases  in  local  real  estate  tax
collector  accounts.  Management believes that the decreases in savings accounts
and  advance  payments  by  borrowers  for taxes and  insurance  were  primarily
attributable to seasonal payments of local and school real estate taxes.

      Total  stockholders'  equity  decreased  $447  thousand  or 1.5% to  $28.8
million as of September 30, 2005,  from  approximately  $29.2 million as of June
30, 2005.  Capital  expenditures for the Company's stock repurchase  program and
cash  dividends  totaled $614  thousand  and $383  thousand,  respectively,  and
accumulated  other  comprehensive  income  decreased  $58  thousand,  which were
partially  offset by net  income of $608  thousand  for the three  months  ended
September 30, 2005.

RESULTS OF OPERATIONS

      General.  WVS  reported  net  income  of $608  thousand  or $0.25  diluted
earnings  per share for the three months ended  September  30, 2005.  Net income
decreased by $226  thousand or 27.1% and diluted  earnings  per share  decreased
$0.09 or 26.5% for the three months ended  September 30, 2005,  when compared to
the same period in 2004.  The decrease in net income was primarily  attributable
to a $223 thousand  decrease in net interest income, a $201 thousand decrease in
non-interest income and an $11 thousand increase in non-interest expense,  which
were partially offset by a $166 thousand  recovery for loan losses compared to a
$78  thousand  provision  for loan losses in the 2004 quarter and a $65 thousand
decrease in income tax expense.

      Net Interest  Income.  The Company's net interest income decreased by $223
thousand or 13.3% for the three months ended  September 30, 2005,  when compared
to the same period in 2004.  The decrease in net  interest  income for the three
month period was principally attributable to lower levels of accreted investment
security  discounts and  premiums,  a lower  proportion of tax-exempt  income in
proportion to total interest  income,  increased  funding costs  attributable to
higher  short-term  market  interest rates and the pronounced  flattening of the
Treasury yield curve  associated with the Federal  Reserve Board's  increases to
the targeted federal funds rate.

      Interest Income.  Interest on net loans receivable  decreased $43 thousand
or 3.9% for the three months ended September 30, 2005, when compared to the same
period in 2004.  The decrease for the three months ended  September 30, 2005 was
attributable  to a decrease of $5.4 million in the average  balance of net loans
receivable  outstanding  which was  partially  offset by an increase of 30 basis
points in the  weighted  average  yield earned on net loans  receivable  for the
three months ended September 30, 2005, when compared to the same period in 2004.
The decrease in the average loan balance  outstanding for the three months ended
September 30, 2005 was  attributable  in part to the  Company's  asset/liability
management  strategy.  The  Company has limited  its  portfolio  origination  of
longer-term  fixed  rate  loans to  mitigate  its  exposure  to a rise in market
interest rates.  The Company will continue to originate  longer-term  fixed rate
loans for sale on a correspondent  basis to increase  non-interest income and to
contribute to net income.

      Interest on  mortgage-backed  securities  increased $1.3 million or 222.8%
for the three months ended  September 30, 2005, when compared to the same period
in 2004.  The  increase  for the  three  months  ended  September  30,  2005 was
primarily  attributable  to a $94.7 million  increase in the average  balance of
mortgage-backed  securities  outstanding  for the period  and a 125 basis  point
increase in the average yield earned on mortgage-backed securities for the three
months ended  September 30, 2005 when  compared to


                                       11
<PAGE>

the same period in 2004.  The increase in the weighted  average  yield earned on
mortgage-backed  securities was consistent with higher market interest rates for
the three months ended September 30, 2005. The increase in the average  balances
of  mortgage-backed  securities during the three months ended September 30, 2005
was  primarily  attributable  to  purchases  of  floating  rate  mortgage-backed
securities funded with proceeds from redemptions of other investment  securities
(discussed below) and Company borrowings.

      Interest  and  dividend  income on  interest-bearing  deposits  with other
institutions,   investment   securities   and  FHLB  stock  ("other   investment
securities")  decreased  by $846  thousand or 30.7% for the three  months  ended
September 30, 2005 when compared to the same period in 2004.  Approximately $754
thousand of the decrease in interest  income on other  investment  securities is
attributable  to a $71.1  million  decrease  in  average  balances  outstanding.
Average  outstanding   balances  of  taxable  (primary  U.S.  Government  agency
obligations)  and  tax-exempt   securities  declined  $57.6  million  and  $12.9
respectively  when  compared to the same  period in 2004.  These  declines  were
associated  with early  redemptions  and the Company's  reinvestment of proceeds
into floating-rate mortgage-backed securities. Approximately $92 thousand of the
decrease in interest earned on other investment  securities is attributable to a
$138 thousand decrease in recognized  investment  discounts and premiums,  which
were partially offset by higher market interest rates, when compared to the same
period in 2004.

      Interest Expense.  Interest expense on deposits and escrows increased $196
thousand or 38.1% for the three months ended September 30, 2005 when compared to
the same period in 2004.  The  increase in interest  expense on deposits for the
three  months  ended  September  30, 2005 was  attributable  to a 53 basis point
increase in the weighted  average rate paid on  interest-bearing  deposits and a
$1.2 million  increase in the average balance of  interest-bearing  deposits for
the three months ended  September 30, 2005,  when compared to the same period in
2004. The average yield paid on interest-bearing  deposits reflects increases in
rates paid on deposits for the three months ended September 30, 2005.

      Interest on FHLB advances and other borrowings  increased $437 thousand or
19.5% for the three months ended  September  30, 2005 when  compared to the same
period in 2004.  The increase for the three months ended  September 30, 2005 was
attributable to a $15.4 million increase in the average balance of FHLB advances
and  other  borrowings  for the  period  and a 50 basis  point  increase  in the
weighted  average rate paid on such  borrowings when compared to the same period
in 2004.  The weighted  average rate paid on FHLB advances and other  borrowings
increased due to increases in short-term market interest rates.

      Provision  (Recovery)  for Loan Losses.  A provision  (recovery)  for loan
losses is charged  (credited)  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.

      During the quarter  ended  September 30, 2005,  the Company  reallocated a
portion of its allowance for loan and lease losses  attributable  to off-balance
sheet liabilities  (builder letters of credit) to a separate reserve account for
financial reporting purposes.  The provision for loan losses was reduced by, and
a  non-interest  expense  was  charged,  $35  thousand in  connection  with this
reallocation of allowances.

      The Company  recorded a credit  provision  for loan losses of $66 thousand
for the three months ended  September  30, 2005 compared to a provision for loan
loss of $78  thousand  for the same  period  in 2004.  The $66  thousand  credit
provision during the quarter ended September 30, 2005 was primarily attributable
to the $35 thousand  allowance  reallocation  discussed above and a $23 thousand
reduction due to the payoff of one non-accrual  loan. At September 30, 2005, the
Company's  total  allowance for loan losses  amounted to $1.1 million or 1.5% of
the Company's total loan portfolio,  as compared to $1.1 million or 1.5% at June
30, 2005.

      Non-Interest  Income.  Non-interest  income  decreased by $201 thousand or
49.3% for the three months ended  September  30, 2005 when  compared to the same
period in 2004.  The decrease was primarily  attributable  to a decrease of $207
thousand decrease in pre-tax gains on the sale of investment securities.


                                       12
<PAGE>

      Non-Interest Expense.  Non-interest expense increased $11 thousand or 1.3%
for the three months ended  September  30, 2005 when compared to the same period
in 2004. The increase was principally  attributable to a $35 thousand  provision
for loss on off balance sheet items,  a $6 thousand  increase in printing  costs
and a $5 thousand  increase in legal fees which were  partially  offset by a $34
thousand decrease in payroll and benefit related costs when compared to the same
period in 2004.

      Income Tax Expense. Income tax expense decreased $65 thousand or 22.0% for
the three months ended  September  30, 2005 when  compared to the same period in
2004. The decrease was primarily  attributable  to a decreased  level of taxable
income for the three months ended  September  30, 2005 when compared to the same
period in 2004.  The Company's  effective tax rate  increased from 17.7% at June
30,  2005 to 27.6% at  September  30,  2005  primarily  due to $10.0  million of
tax-exempt municipal securities redeemed prior to maturity.

LIQUIDITY AND CAPITAL RESOURCES

      Net cash provided by operating activities totaled $584 thousand during the
three months ended September 30, 2005. Net cash provided by operating activities
was  primarily  comprised  of $608  thousand of net income  which was  partially
offset by a $30 thousand pre-tax security gain.

      Funds used for investing  activities totaled $3.5 million during the three
months ended  September 30, 2005.  Primary uses of funds during the three months
ended September 30, 2005,  included purchases of investment and  mortgage-backed
securities totaling $25.7 and $61.2,  respectively,  which were partially offset
by repayments of  investments  and  mortgage-backed  securities  totaling  $41.0
million and $39.9 million,  respectively,  a $1.1 million  decrease in net loans
receivable and $1.0 million from the sale of mortgage-backed securities from the
Company's portfolio.

      Funds provided by financing  activities totaled $1.9 million for the three
months ended  September 30, 2005.  The primary  sources  included a $1.9 million
increase in  short-term  FHLB  advances and a $1.5 million  increase in deposits
which were partially offset by $614 thousand in treasury stock purchases, a $475
thousand  decrease  in other  short-term  borrowings  and $383  thousand in cash
dividends  paid on the  Company's  common  stock.  Management  believes  that it
currently is  maintaining  adequate  liquidity  and  continues to match  funding
sources with lending and investment opportunities.

      During the quarter ended  September 30, 2005, the Company  incurred $859.7
million in other short-term borrowings with a weighted average rate of 3.52% and
incurred  approximately $24.2 million in various short-term FHLB borrowings with
a weighted  average rate of 3.68%.  During the three months ended  September 30,
2005,  the Company  repaid $860.2 million of other  short-term  borrowings  with
weighted  average  rates of 3.48% and  repaid  approximately  $22.3  million  in
various  short-term  borrowings  from the FHLB with a weighted  average  rate of
3.38%.

      The  Company's  primary  sources  of  funds  are  deposits,  amortization,
repayments  and  maturities of existing  loans,  mortgage-backed  securities and
investment  securities,  funds from operations,  and funds obtained through FHLB
advances and other  borrowings.  At September 30, 2005,  the total approved loan
commitments  outstanding amounted to $76 thousand. At the same date, commitments
under unused lines of credit amounted to $6.5 million and the unadvanced portion
of  construction  loans  approximated  $11.4  million.  Certificates  of deposit
scheduled  to mature in one year or less at  September  30, 2005  totaled  $46.6
million.  Management  believes that a significant  portion of maturing  deposits
will remain with the Company.

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


                                       13
<PAGE>

      On September  27, 2005 the  Company's  Board of Directors  authorized  its
Eighth  Common  Stock  Buyback  Program  in the  amount of  125,000.  See Issuer
Purchases of Equity Securities, in Part II, Item 2 of this Form 10-Q.

      On October 25, 2005,  the  Company's  Board of  Directors  declared a cash
dividend of $0.16 per share payable November 17, 2005, to shareholders of record
at the  close of  business  on  November  7,  2005.  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.

      As of September 30, 2005,  WVS  Financial  Corp.  exceeded all  regulatory
capital requirements and maintained Tier I and total risk-based capital equal to
$28.7  million  or 20.9% and $29.8  million  or  21.7%,  respectively,  of total
risk-weighted  assets,  and Tier I leverage capital of $28.7 million or 6.87% 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  September  30,  2005  totaled
approximately $755 thousand or 0.18% of total assets as compared to $1.1 million
or 0.25% of total assets at June 30, 2005. Nonperforming assets at September 30,
2005  consisted of: one land loan totaling  $377  thousand,  one loan secured by
commercial real estate  totaling $178 thousand,  one  single-family  real estate
loan  totaling $58 thousand,  one home equity loan  totaling $17  thousand,  one
unsecured  consumer loan totaling $56 thousand and one single-family real estate
owned property with a book value of approximately $70 thousand.

      The $302 thousand decrease in nonperforming assets during the three months
ended September 30, 2005 was primarily attributable to the payoff in full of one
non-performing  mortgage secured by land totaling  approximately  $456 thousand,
the  reclassification of an $11 thousand home equity loan from non-performing to
performing and principal  paydowns  totaling  approximately  $13 thousand on two
loans related to a bankruptcy  discussed  below,  which were partially offset by
the  addition to  non-accrual  status of one loan  totaling  approximately  $178
thousand secured by commercial real estate. These loans are in various stages of
collection activity.

      At September 30, 2005, the Company had one non-performing  loan secured by
undeveloped  land totaling  $387  thousand and one  unsecured  loan totaling $59
thousand  to two  borrowers.  During the  fourth  quarter  of fiscal  2004,  the
Bankruptcy  Court  approved  a  secured  claim  totaling  $440  thousand  and an
unsecured  claim  totaling $76 thousand be paid in accordance  with a Bankruptcy
Plan of Reorganization.  All Court ordered plan payments have been received in a
timely manner.  In accordance  with generally  accepted  accounting  principles,
payments received are being applied on a cost recovery basis.

      During  the three  months  ended  September  30,  2005,  approximately  $8
thousand of interest income would have been recorded on loans accounted for on a
non-accrual  basis  and  troubled  debt  restructurings  if such  loans had been
current  according to the original loan agreements for the entire period.  These
amounts were not included in the Company's interest income for the quarter ended
September  30,  2005.  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.


                                       14
<PAGE>

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ASSET AND LIABILITY MANAGEMENT

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

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

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

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

      During the quarter  ended  September  30,  2005,  the Federal  Open Market
Committee  increased  its  targeted  federal  funds rate by 50 basis points from
3.25% to 3.75%.  Economic  conditions  were adversely  impacted by energy supply
disruptions caused by Hurricane Katrina. The benchmark two and ten year treasury
yields were 4.18% and 4.34%, respectively,  at September 30, 2005 as compared to
3.66%  and  3.94%,  respectively,  at June 30,  2005.  These  changes  in short,
intermediate and long-term market interest rates, the flattening of the Treasury
yield  curve  and  continued  high  levels  of  interest  rate  volatility  have
precipitated  continued  prepayments  in  the  Company's  loan,  investment  and
mortgage-backed securities portfolios.

      Principal repayments on the Company's loan, investment and mortgage-backed
securities  portfolios  for the three months ended  September 30, 2005,  totaled
$7.7 million,  $41.0  million and $39.9  million,  respectively.  In response to
higher  levels  of  liquidity  the  Company  continued  to  rebalance  its loan,
investment and  mortgage-backed  securities  portfolios.  Due to the current low
level of intermediate and long-term market interest rates the Company  continued
to reduce its portfolio of long-term  fixed rate mortgages  while  continuing to
offer consumer home equity loans and builder speculative construction loans. The
Company reinvested proceeds from U.S. Government Agency and tax-exempt municipal
securities   into


                                       15
<PAGE>

floating rate mortgage-backed securities.  Within the mortgage-backed securities
portfolio,   the  Company  continued  to  aggressively  purchase  floating  rate
securities in order to provide current income and in response to continued rises
in short-term market interest rates. Each of the aforementioned  strategies also
helped to better the  interest-rate  and  liquidity  risks  associated  with the
Savings  Bank's  customers'   liquidity  preference  for  shorter  term  deposit
products.

      The Company also makes  available  for  origination  residential  mortgage
loans with interest rates which adjust pursuant to a designated index,  although
customer acceptance has been somewhat limited in the Savings Bank's market area.
The Company will continue to  selectively  offer  commercial  real estate,  land
acquisition and development,  and shorter-term  construction loans, primarily on
residential  properties,  to partially  increase  interest income while limiting
interest rate risk. The Company has also emphasized  higher yielding home equity
and  small  business  loans  to  existing  customers  and  seasoned  prospective
customers.

      During  the  quarter  ended  September  30,  2005,   principal  investment
purchases were comprised of: floating rate collateralized  mortgage  obligations
which reprice monthly - $61.2 million with an original weighted average yield of
approximately  4.39%; and callable  floating rate government  agency bonds which
will reprice within  thirty-three months - $25.0 million with a weighted average
yield of  approximately  5.07%.  Major investment  proceeds  received during the
quarter ended September 30, 2005 were:  callable government agency bonds - $30.0
million  with a weighted  average  yield of  approximately  3.28%;  and tax-free
municipal bonds - $10.0 million with a weighted  average yield of  approximately
5.91%.

As of  September  30,  2005,  the  implementation  of these asset and  liability
management initiatives resulted in the following:

      1)    $180.0   million   or   98.7%   of  the   Company's   portfolio   of
            mortgage-backed   securities  (including   collateralized   mortgage
            obligations - "CMOs") were  comprised of floating  rate  instruments
            that reprice on a monthly basis;

      2)    $112.9  million or 67.3% of the Company's  investment  portfolio was
            comprised of floating  rate bonds which will  reprice as follows:  3
            months or less - $15.0 million; 3 - 6 months - $15.0 million; 6 - 12
            months - $10.0 million; and over 1 year - $72.9 million;

      3)    $30.1  million or 17.9% of the  Company's  investment  portfolio was
            comprised of U.S. Government Agency Step-up bonds which will reprice
            as follows:  1 year or less - $15.0 million from 4.00% to 7.00%; 1 -
            2 years - $8.5  million  from 4.00% to 7.00% and $2.0  million  from
            4.40% to 7.00%; and over 2 years - $4.7 million from 4.70% to 6.00%;

      4)    $8.3  million  or 4.9% of the  Company's  investment  portfolio  was
            comprised of corporate  demand notes issued by Ford Motor Credit and
            General Motors Acceptance Corp;

      5)    an aggregate  of $32.6  million or 54.2% of the  Company's  net loan
            portfolio had  adjustable  interest rates or maturities of less than
            12 months;

      6)    the maturity distribution of the Company's borrowings is as follows:
            1 month  or less - $83.4  million  or  36.9%;  1 - 6  months  - $4.0
            million or 1.7%; 6 - 12 months - $157  thousand or 0.1%; 1 - 3 years
            - $3.0  million or 1.3%; 3 - 5 years - $56.1  million or 24.8%;  and
            over 5 years - $79.5 million or 35.2%.

      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.


                                       16
<PAGE>
<TABLE>
<CAPTION>

                                               September 30,               June 30,
                                               -------------    ------------------------------
                                                    2005             2005             2004
                                               -------------    -------------    -------------
<S>                                            <C>              <C>              <C>
                                                             (Dollars in Thousands)
Interest-earning assets maturing or
   repricing within one year                   $     300,648    $     318,015    $     288,451
Interest-bearing liabilities maturing or
   repricing within one year                         181,283          181,085          171,655
                                               -------------    -------------    -------------

Interest sensitivity gap                       $     119,365    $     136,930    $     116,796
                                               =============    =============    =============
Interest sensitivity gap as a percentage of
   total assets                                         28.2%            32.5%            26.9%
Ratio of assets to liabilities
   maturing or repricing within one year               165.8%           175.6%           168.0%

</TABLE>

      During the quarter ended  September 30, 2005, the Company  managed its one
year  interest  sensitivity  gap by: (1) limiting the portfolio  origination  of
long-term fixed rate  mortgages;  (2) emphasizing  loans with  shorter-terms  or
repricing frequencies; and (3) purchasing floating rate CMO's which reprice on a
monthly basis.


                                       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 September  30, 2005.  The table  estimates  the impact of an upward or
downward change in market interest rates of 100 and 200 basis points.

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

<TABLE>
<CAPTION>
                          Month 3      Month 6      Month 12     Month 24     Month 36     Month 60     Long Term
                          -------      -------      --------     --------     --------     --------     ---------
                                                          (Dollars in Thousands)
<S>                       <C>          <C>          <C>          <C>          <C>          <C>            <C>
Base Case Up 200 bp
-------------------
Cummulative
Gap ($'s)                  95,155       89,366      103,874      146,555      158,663      101,525       26,637
% of Total
  Assets                     22.5%        21.1%        24.5%        34.6%        37.4%        24.0%         6.3%
Base Case Up 100 bp
-------------------
Cummulative
Gap($'s)                  102,399       96,841      116,735      159,941      172,371      118,238       26,637
% of Total
  Assets                     24.2%        22.9%        27.5%        37.7%        40.7%        27.9%         6.3%
Base Case No Change
-------------------
Cummulative
Gap($'s)                  103,142       98,281      119,365      164,402      178,978      125,389       26,637
% of Total
  Assets                     24.3%        23.2%        28.2%        38.3%        42.2%        29.6%         6.3%
Base Case Down 100 bp
---------------------
Cummulative
Gap($'s)                  190,325      215,709      201,624      188,941      187,437      129,156       26,637
% of Total
  Assets                     44.9%        50.9%        47.6%        44.6%        44.2%        30.5%         6.3%
Base Case Down 200 bp
---------------------
Cummulative
Gap($'s)                  193,488      221,038      207,880      194,779      190,238      129,330       26,637
% of Total
  Assets                     45.7%        52.2%        49.1%        46.0%        44.9%        30.5%         6.3%

</TABLE>

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


                                       18
<PAGE>

      The following  table presents the simulated  impact of a 100 and 200 basis
point  upward  or  downward  (parallel)  shift in market  interest  rates on net
interest  income,  return on average  equity,  return on average  assets and the
market value of portfolio equity at September 30, 2005.

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

<TABLE>
<CAPTION>

                                                  Modeled Change in Market Interest Rates
                                   ------------------------------------------------------------------
<S>                                       <C>          <C>             <C>         <C>           <C>
Estimated impact on:                     -200         -100             0          +100          +200
-------------------
   Change in net interest income       -83.2%       -48.6%          0.00%         15.3%         32.2%

   Return on average equity            -4.50%         1.09%         8.41%        10.60%        12.96%

   Return on average assets            -0.28%         0.07%         0.56%         0.72%         0.89%

   Market value of equity (in
      thousands)                   $   20,775   $   28,567    $   34,207    $   34,868    $   28,929

</TABLE>

      The table  below  provides  information  about the  Company's  anticipated
transactions comprised of firm loan commitments and other commitments, including
undisbursed  letters  and  lines  of  credit.  The  Company  used no  derivative
financial instruments to hedge such anticipated transactions as of September 30,
2005.

                                     Anticipated Transactions
                  ---------------------------------------------------------
                                                     (Dollars in Thousands)
                  Undisbursed construction and
                      land development loans
                        Fixed rate                                 $ 6,950
                                                                      6.61%

                        Adjustable rate                            $ 4,430
                                                                      7.33%

                  Undisbursed lines of credit
                        Adjustable rate                            $ 6,467
                                                                      7.04%

                  Loan origination commitments
                        Fixed rate                                 $    51
                                                                      5.83%

                        Adjustable rate                            $    25
                                                                      5.25%

                  Letters of credit
                        Adjustable rate                            $   956
                                                                      7.76%

                                                                   $18,879
                                                                   =======


                                       19
<PAGE>

      In the ordinary course of its construction  lending business,  the Savings
Bank enters into performance standby letters of credit.  Typically,  the standby
letters of credit  are issued on behalf of a builder to a third  party to ensure
the timely  completion  of a certain  aspect of a  construction  project or land
development.  At  September  30, 2005,  the Savings  Bank had eight  performance
standby letters of credit outstanding totaling approximately $956 thousand. Four
letters of credit are secured by deposits with the Savings Bank,  two letters of
credit are secured by undisbursed  construction  loan funds,  and two letters of
credit are secured by  developed  property.  Seven of the letters of credit will
mature within twelve months,  while one letter of credit is  open-ended.  In the
event that the obligor is unable to perform its  obligations as specified in the
standby  letter of credit  agreement,  the Savings  Bank would be  obligated  to
disburse  funds up to the  amount  specified  in the  standby  letter  of credit
agreement.  The  Savings  Bank  maintains  adequate  collateral  that  could  be
liquidated to fund this contingent obligation.

ITEM 4.

CONTROLS AND PROCEDURES

            Our  management  evaluated,  with  the  participation  of our  Chief
Executive  Officer  and  Chief  Financial  Officer,  the  effectiveness  of  our
disclosure  controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)
under the  Securities  Exchange Act of 1934) as of September 30, 2005.  Based on
such evaluation,  our Chief Executive  Officer and Chief Financial  Officer have
concluded  that our  disclosure  controls and  procedures are designed to ensure
that  information  required to be disclosed by us in the reports that we file or
submit  under  the  Securities  Exchange  Act of  1934 is  recorded,  processed,
summarized and reported within the time periods specified in the SEC's rules and
regulations and are operating in an effective manner.

            No change in our  internal  control  over  financial  reporting  (as
defined in Rules 13a-15(f) and 15(d)-15(f) under the Securities  Exchange Act of
1934)  occurred  during  the  first  fiscal  quarter  of  fiscal  2006  that has
materially affected,  or is reasonably likely to materially affect, our internal
control over financial reporting.


                                       20
<PAGE>

PART II - OTHER INFORMATION

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

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

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
        -----------------------------------------------------------

      (a)   Not applicable.

      (b)   Not applicable.

      (c)   The following table sets forth information with respect to purchases
            of common  stock of the Company  made by or on behalf of the Company
            during the three months ended September 30, 2005.

<TABLE>
<CAPTION>
      ---------------------------------------------------------------------------------------------------------
                                         ISSUER PURCHASES OF EQUITY SECURITIES
      ---------------------------------------------------------------------------------------------------------
                                                                     Total Number of         Maximum Number of
                                  Total                              Shares Purchased       Shares that May Yet
                                Number of                          as Part of Publicly        Be Repurchased
                                  Shares      Average Price         Announced Plans or      Under the Plans or
             Period             Purchased   Paid per Share ($)         Programs (1)           Programs (2)(3)
      ---------------------------------------------------------------------------------------------------------
<S>                               <C>             <C>                     <C>                     <C>
      07/01/05 - 07/31/05              0           0.00                        0                   24,493
      ---------------------------------------------------------------------------------------------------------
      08/01/05 - 08/31/05         15,000          16.44                   15,000                    9,943
      ---------------------------------------------------------------------------------------------------------
      09/01/05 - 09/30/05         22,542          16.26                   22,542                  112,401
      ---------------------------------------------------------------------------------------------------------
           Total                  37,542          16.33                   37,542                  112,401
      ---------------------------------------------------------------------------------------------------------
</TABLE>

----------

      (1)   All shares indicated were purchased under the Company's  Seventh and
            Eighth Stock Repurchase Programs.

      (2)   Seventh Stock Repurchase Program

                  (a)   Announced February 24, 2004.

                  (b)   125,000 common shares approved for repurchase.

                  (c)   No fixed date of expiration.

                  (d)   This Program was completed on September 28, 2005.

                  (e)   Not applicable.

      (3)   Eighth Stock Repurchase Program

                  (a)   Announced September 27, 2005.

                  (b)   125,000 common shares approved for repurchase.

                  (c)   No fixed date of expiration.

                  (d)   This  program has not  expired  and has  112,401  shares
                        remaining to be purchased at September 30, 2005.

                  (e)   Not applicable.

ITEM 3. Defaults Upon Senior Securities
        -------------------------------

      Not applicable.


                                       21
<PAGE>

ITEM 4. Submission of Matters to a Vote of Security Holders
        ---------------------------------------------------

      (a)   The  Company's  2005  Annual  Meeting  of  Stockholders  was held on
            October 25, 2005.

      (b)   Not applicable.

      (c)   Two matters  were voted upon at the annual  meeting  held on October
            25,  2005:  Item 1:  Proposal to elect one  director for a four-year
            term or until  her  successor  is  elected  and  qualified;  Item 2:
            Proposal to ratify the appointment by the Board of Directors of S.R.
            Snodgrass,  A.C.  as the  Company's  Independent  Registered  Public
            Accounting Firm for the fiscal year ending June 30, 2006.

            Each of the two proposals received stockholder approval.  There were
            2,389,110 shares  outstanding on the record date eligible to vote at
            the meeting and 2,015,139  shares were present in person or by proxy
            at the  meeting.  The voting  record with respect to each item voted
            upon is enumerated below:

             Item              Nominee
            Number         (if Applicable)              For     Against  Abstain
            ------         ---------------              ---     -------  -------

              1        Margaret VonDerau             1,976,161   38,978

              2        Ratification of Auditors      1,999,437    5,977   9,725

            There were no broker  non-votes  with  respect  to any matter  voted
            upon.

      (d)   Not applicable.

ITEM 5. Other Information
        -----------------

      Not applicable.

ITEM 6. Exhibits
        --------

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

<TABLE>
<CAPTION>
              Number      Description                                                    Page
              ------      ----------------------------------------------------------     ----
<S>                       <C>                                                             <C>
               31.1       Rule 13a-14(a) / 15d-14(a) Certification of the Chief           E-1
                          Executive Officer

               31.2       Rule 13a-14(a) / 15d-14(a) Certification of the Chief           E-2
                          Accounting Officer

               32.1       Section 1350 Certification of the Chief Executive Officer       E-3

               32.2       Section 1350 Certification of the Chief Accounting Officer      E-4

                99        Report of Independent Registered Public Accounting Firm         E-5
</TABLE>


                                       22
<PAGE>

                                   SIGNATURES

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

                                           WVS FINANCIAL CORP.


      November 10, 2005                 BY: /s/ David J. Bursic
                                            ------------------------------------
      Date                                  David J. Bursic
                                            President and Chief Executive
                                            Officer
                                            (Principal Executive Officer)


      November 10, 2005                 BY: /s/ Keith A. Simpson
                                            ------------------------------------
      Date                                  Keith A. Simpson
                                            Vice-President, Treasurer and Chief
                                            Accounting Officer
                                            (Principal Accounting Officer)


                                       23