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 December 31, 1999

                                       or

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

                 For the transition period from ______ to ______

                         Commission File Number: 0-22444

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

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

                  9001 Perry Highway


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

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


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

         Shares  outstanding  as of February 4, 2000:  2,955,916  shares  Common
Stock, $.01 par value.

<PAGE>
                       WVS FINANCIAL CORP. AND SUBSIDIARY

                                      INDEX

PART I.                    Financial Information                            Page

Item 1.                    Financial Statements

                           Consolidated Statements of Financial
                           Condition as of December 31, 1999
                           and June 30, 1999 (Unaudited)                      3

                           Consolidated Statements of Income
                           for the Three and Six Months Ended
                           December 31, 1999 and 1998 (Unaudited)             4

                           Consolidated Statements of Cash Flows
                           for the Six Months Ended December 31,
                           1999 and 1998 (Unaudited)                          5

                           Consolidated Statements of Changes in
                           Stockholders' Equity for the Six Months
                           Ended December 31, 1999 (Unaudited)                7

                           Notes to Unaudited Consolidated
                           Financial Statements                               8

Item 2.                    Management's Discussion and Analysis of
                           Financial Condition and Results of
                           Operations for the Three and Six Months
                           Ended December 31, 1999                           10

Item 3.                    Quantitative and Qualitative Disclosures
                           about Market Risk                                 17

PART II.                   Other Information                                Page

Item 1.                    Legal Proceedings                                 21
Item 2.                    Changes in Securities                             21
Item 3.                    Defaults upon Senior Securities                   21
Item 4.                    Submission of Matters to a Vote of
                           Security Holders                                  21
Item 5.                    Other Information                                 21
Item 6.                    Exhibits and Reports on Form 8-K                  21
  --                       Signatures                                        22

                                      2
<PAGE>
<TABLE>
<CAPTION>
                       WVS FINANCIAL CORP. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                   (UNAUDITED)
                                 (in thousands)
                                                                                  December 31, 1999    June 30, 1999
                                                                                  -----------------    -------------
<S>                                                                                  <C>                 <C>
          Assets

Cash and due from banks                                                              $     895           $     745
Interest-earning demand deposits                                                         1,187               1,148
Investment securities available-for-sale (amortized cost of
   $1,380 and $1,380)                                                                    1,338               1,402
Investment securities held-to-maturity (market value of
   $102,935 and $87,850)                                                               110,712              90,764
Mortgage-backed securities available-for-sale (amortized cost of
   $9,321 and $9,342)                                                                    9,103               9,273
Mortgage-backed securities held-to-maturity (market value of
   $64,755 and $62,167)                                                                 66,768              63,107
Federal Home Loan Bank stock, at cost                                                    7,905               6,195
Net loans receivable (allowance for loan losses of $1,842)                             176,217             170,327
Accrued interest receivable                                                              3,775               3,105
Premises and equipment                                                                   1,103               1,154
Deferred taxes and other assets                                                          1,258               1,188
                                                                                     ---------           ---------
          TOTAL ASSETS                                                               $ 380,261           $ 348,408
                                                                                     =========           =========
          Liabilities and Stockholders' Equity

Liabilities:
Savings Deposits:
   Non-interest-bearing accounts                                                     $   9,152           $   9,037
   NOW accounts                                                                         17,579              16,668
   Savings accounts                                                                     37,099              38,923
   Money market accounts                                                                13,189              12,610
   Certificates of deposit                                                              91,539              93,876
                                                                                     ---------           ---------
    Total savings deposits                                                             168,558             171,114
Federal Home Loan Bank advances                                                        129,000             116,900
Other borrowings                                                                        50,205              25,820
Advance payments by borrowers for taxes and insurance                                    2,159               3,130
Accrued interest payable                                                                 2,346               1,929
Other liabilities                                                                        1,461               1,577
                                                                                     ---------           ---------
     TOTAL LIABILITIES                                                                 353,729             320,470
<PAGE>
<CAPTION>
                                                                                  December 31, 1999    June 30, 1999
                                                                                  -----------------    -------------
<S>                                                                                  <C>                 <C>
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;
   3,668,220 and 3,668,060 shares issued                                                    37                  37
Additional paid-in capital                                                              19,208              19,062
Treasury stock: 698,204 and 498,303 shares at cost, respectively                       (10,494)             (7,596)
Retained earnings, substantially restricted                                             18,376              17,024
Accumulated other comprehensive loss                                                      (172)                (31)
Unallocated shares - Recognition and Retention Plans                                      (272)               (326)
Unallocated shares - Employee Stock Ownership Plan                                        (151)               (232)
                                                                                     ---------           ---------
     TOTAL STOCKHOLDERS' EQUITY                                                         26,532              27,938
                                                                                     ---------           ---------
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                 $ 380,261           $ 348,408
                                                                                     =========           =========
</TABLE>


          See accompanying notes to consolidated financial statements.

                                       3
<PAGE>
<TABLE>
<CAPTION>
                       WVS FINANCIAL CORP. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (UNAUDITED)
                      (in thousands, except per share data)

                                                                Three Months Ended                         Six Months Ended
                                                                    December 31,                              December 31,
                                                                ------------------                         ----------------
                                                             1999               1998                    1999               1998
                                                          ----------         ---------               ---------          ---------
<S>                                                    <C>                  <C>                  <C>                  <C>

INTEREST AND DIVIDEND INCOME:
     Loans                                             $    3,481           $    3,189           $    6,897           $    6,378
     Investment securities                                  1,992                1,339                3,845                2,820
     Mortgage-backed securities                             1,311                1,069                2,527                1,857
     Interest-earning deposits with other
         institutions                                          13                   16                   20                   32
     Federal Home Loan Bank stock                             134                   97                  251                  178
                                                       ----------           ----------           ----------            ---------
          Total interest and dividend income                6,931                5,710               13,540               11,265
                                                       ----------           ----------           ----------            ---------

INTEREST EXPENSE:
     Deposits                                               1,555                1,662                3,138                3,351
     Borrowings                                             2,504                1,544                4,684                2,886
     Advance payments by borrowers for taxes
       and insurance                                            8                    7                   14                   15
                                                       ----------           ----------           ----------           ----------
          Total interest expense                            4,067                3,213                7,836                6,252
                                                       ----------           ----------           ----------           ----------

NET INTEREST INCOME                                         2,864                2,497                5,704                5,013
PROVISION FOR LOAN LOSSES                                     ---                  ---                  ---                  ---
                                                       ----------           ----------           ----------           ----------
NET INTEREST INCOME AFTER PROVISION
   FOR LOAN LOSSES                                          2,864                2,497                5,704                5,013
                                                       ----------           ----------           ----------           ----------

NON-INTEREST INCOME:
     Service charges on deposits                               72                   75                  148                  137
     Investment securities gains, net                         ---                   36                  ---                   36
     Other                                                     72                   51                  131                   91
                                                       ----------           ----------           ----------           ----------
          Total non-interest income                           144                  162                  279                  264
                                                       ----------           ----------           ----------           ----------

NON-INTEREST EXPENSE:
     Salaries and employee benefits                           804                  717                1,560                1,408
     Occupancy and equipment                                   87                   90                  178                  184
     Deposit insurance premium                                 26                   25                   51                   51
     Data processing                                           45                   42                   88                   88
     Correspondent bank service charges                        36                   32                   71                   61
     Other                                                    205                  207                  366                  382
                                                       ----------           ----------           ----------           ----------
          Total non-interest expense                        1,203                1,113                2,314                2,174
                                                       ----------           ----------           ----------           ----------
<PAGE>
<CAPTION>
                       WVS FINANCIAL CORP. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (UNAUDITED)
                      (in thousands, except per share data)

                                                                Three Months Ended                         Six Months Ended
                                                                    December 31,                              December 31,
                                                             1999               1998                    1999               1998
                                                          ----------         ---------               ---------          ---------
<S>                                                    <C>                  <C>                  <C>                  <C>

INCOME BEFORE INCOME TAXES                                  1,805                1,546                3,669                3,103
INCOME TAXES                                                  625                  563                1,352                1,170
                                                       ----------           ----------           ----------           ----------
NET INCOME                                             $    1,180           $      983           $    2,317           $    1,933
                                                       ==========           ==========           ==========           ==========

EARNINGS PER SHARE:
     Basic                                             $     0.40           $     0.28           $     0.77           $     0.55
     Diluted                                           $     0.39           $     0.28           $     0.76           $     0.54

AVERAGE SHARES OUTSTANDING:
     Basic                                              2,977,411            3,512,034            3,016,909            3,546,414
     Diluted                                            3,004,701            3,542,884            3,044,478            3,577,665
</TABLE>

          See accompanying notes to consolidated financial statements.

                                        4
<PAGE>
<TABLE>
<CAPTION>
                       WVS FINANCIAL CORP. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                                 (in thousands)

                                                                                       Six Months Ended
                                                                                         December 31,
                                                                                     ---------------------
                                                                                      1999           1998
                                                                                    --------       --------
<S>                                                                             <C>              <C>
OPERATING ACTIVITIES

Net income                                                                      $   2,317        $   1,933
Adjustments to reconcile net income to cash provided by operating
 activities:
   Gain on sale of investments and mortgage-backed securities                         ---              (36)
   Depreciation and amortization, net                                                  58               59
   Amortization of discounts, premiums and deferred loan fees                         (32)              (6)
   Amortization of ESOP, RRP and deferred and unearned
      compensation                                                                    280              175
   Increase in accrued interest receivable                                           (671)            (113)
   Increase (decrease) in accrued interest payable                                    416              (28)
   Increase in accrued and deferred taxes                                             (84)            (141)
   Other, net                                                                          (6)             110
                                                                                ----------       ----------
         Net cash provided by operating activities                                  2,278            1,953
                                                                                ----------       ----------
INVESTING ACTIVITIES

Available-for-sale:
   Purchases of investments and mortgage-backed securities                         (1,351)         (26,908)
   Proceeds from repayments of investments and mortgage-backed securities           1,375           35,235
   Proceeds from sale of investments and mortgage-backed securities                   ---              905
Held-to-maturity:
   Purchases of investments and mortgage-backed securities                        (33,464)        (116,596)
   Proceeds from repayments of investments and mortgage-backed securities          10,001           83,317
(Increase) decrease in net loans receivable                                        (6,008)           5,066
Increase in FHLB stock                                                             (1,710)          (1,520)
Other, net                                                                            (21)             ---
Purchases of premises and equipment                                                    (6)             (45)
                                                                                ----------       ----------
         Net cash used for investing activities                                   (31,184)         (20,546)
                                                                                ----------       ----------

</TABLE>
                                       5
<PAGE>
<TABLE>
<CAPTION>
                       WVS FINANCIAL CORP. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                                 (in thousands)


                                                                           Six Months Ended
                                                                             December 31,
                                                                        --------------------
                                                                           1999        1998
                                                                        --------    --------
<S>                                                                     <C>         <C>
FINANCING ACTIVITIES

Net decrease in transaction and passbook accounts                           (219)       (400)
Net (decrease) increase in certificates of deposit                        (2,337)      1,518
Net increase in FHLB borrowings                                           12,100      12,643
Net increase in other borrowings                                          24,385      11,260
Net decrease in advance payments by borrowers for taxes and insurance       (970)     (1,251)
Net proceeds from issuance of common stock                                     1         232
Funds used for purchase of treasury stock                                 (2,898)     (1,893)
Cash dividends paid                                                         (967)     (1,104)
                                                                        --------    --------
         Net cash provided by financing activities                        29,095      21,005
                                                                        --------    --------
         Increase in cash and cash equivalents                               189       2,412

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD                       1,893       2,506
                                                                        --------    --------

CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                          $  2,082    $  4,918
                                                                        ========    ========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

   Cash paid during the period for:
      Interest on deposits, escrows and borrowings                      $  7,420    $  6,281
      Income taxes                                                      $  1,366    $  1,368
</TABLE>



          See accompanying notes to consolidated financial statements.

                                        6

<PAGE>
<TABLE>
<CAPTION>


                       WVS FINANCIAL CORP. AND SUBSIDIARY
           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                                   (UNAUDITED)
                                 (in thousands)
                                                                                             Accum.
                                                                                             Other       Retained
                                           Add'l.               Unallocated   Unallocated   Compre-      Earnings
                                Common    Paid-In   Treasury    Shares Held   Shares Held   hensive    Substantially
                                Stock     Capital    Stock        by ESOP       by RRP        Loss      Restricted      Total
                              ----------  -------  ---------  -------------  ------------  ---------  --------------  ----------
<S>                           <C>         <C>      <C>        <C>            <C>           <C>        <C>             <C>

Balance at June 30, 1999      $       37  $19,062  $(7,596)   $      (232)   $      (326)  $    (31)  $17,024         $27,938

Comprehensive income:

   Net Income                                                                                           2,317           2,317
   Other comprehensive
     income:
      Change in unrealized
          holding losses on
          securities, net of
          income tax benefit
          of $73                                                                    (141)                                (141)
                                                                                                                      ----------

Comprehensive income                                                                                                    2,176

Purchase of shares for
   treasury stock                                    (2,898)                                                           (2,898)

Release of earned
   Employee Stock
   Ownership Plan (ESOP)
   shares                                     145                     81                                                  226

Accrued compensation
   expense for Recognition
   and Retention Plans (RRP)                                                          54                                   54

Exercise of stock options                       1                                                                           1

Cash dividends declared
   ($0.32 per share)                                                                                     (965)           (965)
                              ----------  -------  ---------  -------------  ------------  ---------  --------------  ----------
Balance at Dec. 31, 1999      $       37  $19,208  $(10,494)  $    (151)     $      (272)  $   (172)  $18,376         $26,532
                              ==========  =======  =========  =============  ============  =========  ==============  ==========

</TABLE>

          See accompanying notes to consolidated financial statements.

                                        7

<PAGE>
                       WVS FINANCIAL CORP. AND SUBSIDIARY

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


1.       BASIS OF PRESENTATION

         The accompanying  unaudited consolidated financial statements have been
         prepared  in  accordance  with  the  instructions  for  Form  10-Q  and
         therefore  do not include  information  or  footnotes  necessary  for a
         complete  presentation of financial  condition,  results of operations,
         and  cash  flows  in  conformity  with  generally  accepted  accounting
         principles.   However,  all  adjustments  (consisting  only  of  normal
         recurring  adjustments)  which,  in  the  opinion  of  management,  are
         necessary for a fair  presentation  have been included.  The results of
         operations  for the three and six months ended  December 31, 1999,  are
         not necessarily indicative of the results which may be expected for the
         entire fiscal year.


2.       RECENT ACCOUNTING PRONOUNCEMENTS

         In June 1998, the Financial Accounting Standards Board issued Statement
         of Financial  Accounting  Standards No. 133, "Accounting for Derivative
         Instruments and Hedging Activities".  The statement provides accounting
         and reporting standards for derivative  instruments,  including certain
         derivative  instruments  embedded in other contracts,  by requiring the
         recognition of those items as assets or liabilities in the statement of
         financial position, recorded at fair value. Statement No. 133 precludes
         a  held-to-maturity  security  from being  designated as a hedged item,
         however,  at the date of  initial  application  of this  statement,  an
         entity is permitted to transfer any held-to-maturity  security into the
         available-for-sale  or trading categories.  The unrealized holding gain
         or loss on such  transferred  securities  shall be reported  consistent
         with the  requirements  of Statement No. 115,  "Accounting  for Certain
         Investments in Debt and Equity Securities". Such transfers do not raise
         an issue  regarding an entity's intent to hold other debt securities to
         maturity  in  the  future.  In  June  1999,  the  Financial  Accounting
         Standards Board issued Statement of Financial  Accounting Standards No.
         137,  "Accounting for Derivative  Instruments and Hedging  Activities -
         Deferral of the Effective Date of FASB Statement No. 133 - an amendment
         of FASB Statement No. 133." This  statement  delayed the effective date
         of Statement No. 133 for one year, to fiscal years beginning after June
         15, 2000.  Earlier  adoption is permitted  for any fiscal  quarter that
         begins after the issue date of this statement.

         The  Company  does not  believe  the  effect  of the  adoption  of this
         accounting statement will be material.

                                       8
<PAGE>
3.       EARNINGS PER SHARE

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

<TABLE>
<CAPTION>
                                               Three Months Ended               Six Months Ended
                                                  December 31,                    December 31,
                                         ---------------------------     ---------------------------
                                             1999            1998            1999            1998
                                         -----------     -----------     -----------     -----------
<S>                                      <C>             <C>             <C>             <C>
Weighted average common shares
   outstanding                             3,668,220       3,663,204       3,668,165       3,660,162

Average treasury stock shares               (653,964)        (94,158)       (610,379)        (54,715)

Average unearned ESOP shares                 (36,845)        (57,012)        (40,877)        (59,033)
                                         -----------     -----------     -----------     -----------

Weighted average common shares
   and common stock equivalents
   used to calculate basic earnings
   per share                               2,977,411       3,512,034       3,016,909       3,546,414

Additional common stock
   equivalents (stock options) used
   to calculate diluted earnings per
   share                                      27,290          30,850          27,569          31,251
                                         -----------     -----------     -----------     -----------

Weighted average common shares
   and common stock equivalents
   used to calculate diluted earnings
   per share                               3,004,701       3,542,884       3,044,478       3,577,665
                                         ===========     ===========     ===========     ===========

Net income                               $ 1,180,008     $   983,321     $ 2,316,869     $ 1,933,443
                                         ===========     ===========     ===========     ===========

Earnings per share:
     Basic                               $      0.40     $      0.28     $      0.77     $      0.55
     Diluted                             $      0.39     $      0.28     $      0.76     $      0.54
                                         ===========     ===========     ===========     ===========
</TABLE>

                                        9
<PAGE>
ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS  FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 1999


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 December 31, 1999.

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

         The Company's strategy focuses on community-based lending,  maintaining
asset quality and generating consistent earnings growth.


FINANCIAL CONDITION

         The Company's  assets  totaled  $380.3 million at December 31, 1999, as
compared to $348.4  million at June 30, 1999. The $31.9 million or 9.1% increase
in total assets was primarily  comprised of a $25.1 million or 14.7% increase in
investment  and  mortgage-backed  securities,  including  Federal Home Loan Bank
("FHLB")  stock,  a $5.9 million or 3.5% increase in net loans  receivable and a
$670 thousand or 21.6% increase in accrued  interest  receivable.  The Company's
investment  securities  increased  from $98.4  million to $120.0  million  while
mortgage-backed  securities  increased  from $72.4 million to $75.9 million from
June 30 to December 31, 1999.

         The Company's  total  liabilities  increased  $33.2 million or 10.4% to
$353.7 million as of December 31, 1999, from $320.5 million as of June 30, 1999.
The $33.2 million  increase in total  liabilities  was primarily  comprised of a
$36.5 million or 25.5% increase in FHLB advances and other  borrowings which was
partially  offset by a $2.6  million or 1.5%  decrease  in  deposits  and a $971
thousand decrease in advance payments by borrowers for taxes and insurance.

         Total  stockholders'  equity  decreased  $1.4  million or 5.0% to $26.5
million as of December 31, 1999, from $27.9 million as of June 30, 1999. Capital
expenditures  for the  Company's  stock  repurchase  program and cash  dividends
totaled  $2.9  million and $965  thousand,  respectively,  which were  partially
funded by Company net income of $2.3 million for the six months  ended  December
31, 1999.

                                       10

<PAGE>
ASSET AND LIABILITY MANAGEMENT

          The Company  continued a strategy designed to reduce the interest rate
sensitivity of its financial  assets to its financial  liabilities.  The primary
elements of this strategy include:

     1)  expanding the Company's  investment  growth program in order to enhance
         net interest income;
     2)  maintaining  the Company's  level of short-term  liquid  investments by
         funding  loan   commitments  and  purchasing   longer-term   investment
         securities;
     3)  emphasizing the growth of lower-cost savings and checking accounts; and
     4)  pricing the Company's certificates of deposit and loan products nearer
         to the market  average  rate as  opposed  to the upper  range of market
         offered rates.

          The Company has continued its investment  growth  program,  originally
initiated in the third  quarter of fiscal 1994,  in order to realize  additional
net interest income.  Under this strategy, a longer-term callable or noncallable
investment  security,  or  mortgage-backed  security,  is  purchased  and funded
through the use of non-deposit liabilities, such as FHLB advances and short-term
borrowings.  With this strategy,  the Company increases its net interest income,
but also faces the risk, during periods of rising market interest rates, that it
may experience a decline in net interest  income if the rate paid on its various
borrowings rises above the rate earned on the investment security purchased.  In
order to mitigate this exposure,  the Board has placed certain  restrictions  on
the investment growth program, including:

     1)  the average  outstanding  daily balance of total  borrowings,  computed
         quarterly, may not exceed $195.0 million;
     2)  suitable  investments  shall be  restricted to those meeting the credit
         quality criteria outlined in the Company's investment policy;
     3)  each security purchased shall initially yield a minimum of one hundred
         and  twenty-five  basis  points  above  the  incremental  rate  paid on
         short-term borrowings, at the time of purchase; and
     4)  the  Company's  total  borrowed  funds   position,   allocated  to  the
         investment growth program, may not exceed $200.0 million.

          In most cases, the initial yield spread earned on investment  security
purchases ranged from approximately 225 to 250 basis points.

          During the six months ended December 31, 1999,  the Company  increased
its mortgage-backed  securities portfolio by $3.5 million or 4.83%. The increase
for the six months was  attributable to security  purchases  partially offset by
principal amortization.  Mortgage-backed securities purchases for the six months
totaled  approximately  $9.8 million with an estimated weighted average purchase
yield of 7.64%.  At  December  31,  1999,  the  Company  held  $75.9  million of
mortgage-backed   securities   with  an   approximate   yield  of   7.00%.   The
mortgage-backed  securities  purchases  were  made  in  order  to  mitigate  the
principal  calls on the Company's  callable bond  portfolio and to earn a higher
yield with an expected average life profile  comparable to longer-term  callable
agency bonds.
<PAGE>

         The Company has  continued to purchase  bonds with  optional  principal
redemption  features  ("callable  bonds")  in order to  capture  additional  net
interest income. Callable bonds generally provide investors with higher rates of
return than  noncallable  bonds  because the issuer has the option to redeem the
bonds before maturity.  While this strategy affords WVS the current  opportunity
to improve its net interest income, during a period of declining interest rates,
the Company  would be exposed to the risk that the  investment  will be redeemed
prior to its final stated maturity.  In order to mitigate this risk, the Company
has  funded a  significant  portion  of its  purchases  of  callable  bonds with
short-term borrowings.  Approximately $4.0 million of callable agency bonds with
an estimated  weighted average yield to call of 5.83% were called during the six
months ended  December 31, 1999.  During the six months ended December 31, 1999,
the Company  purchased  approximately  $20.7  million of callable  bonds with an
approximate  weighted  average  yield to call and  maturity  of 8.20% and 7.84%,
respectively.  The callable agency bond purchases,  totaling $20.7 million,  are
summarized  by initial  term to call as  follows:  $10.0  million  within  three
months,  $3.2 million with greater than three months and within six months, $4.0

                                       11
<PAGE>
million  with  greater  than six months and within one year,  $1.0  million with
greater than twelve months and within twenty-four  months, and $2.5 million with
greater than twenty-four months and within thirty-six months.

         During the six months ended  December 31,  1999,  the Company  borrowed
approximately $260.9 million in various borrowings from the FHLB with a weighted
average rate of 5.18% and incurred  $178.0  million in other  borrowings  with a
weighted  average rate of 5.41%.  During the six months ended December 31, 1999,
the Company  repaid $248.9  million of FHLB advances and $154.3 million of other
borrowings.

         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 its loan asset sensitivity. Due to
relatively low fifteen and thirty year mortgage loan yields, the Company intends
to emphasize  higher  yielding  commercial  real  estate,  home equity and small
business loans to existing customers and seasoned prospective customers.

         As of  December  31,  1999,  the  implementation  of  these  asset  and
liability management initiatives resulted in the following:

     1)  an  aggregate  of $52.1  million  or 29.2%  of the  Company's  net loan
         portfolio had  adjustable  interest rates or maturities of less than 12
         months;
     2)  $16.2  million or 21.3% of the Company's  portfolio of  mortgage-backed
         securities  (including  collateralized  mortgage  obligations - "CMOs")
         were secured by floating rate securities; and
     3)  $106.4  million  or  95.2%  of  the  Company's  investment   securities
         portfolio was comprised of callable bonds.

         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 when the amount of rate sensitive  assets
exceeds the amount of rate sensitive  liabilities.  A gap is considered negative
when the amount of interest sensitive liabilities exceeds the amount of interest
sensitive  assets.  During a period of falling  interest  rates,  a positive gap
would tend to adversely affect net interest  income,  while 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,  while a  negative  gap would  tend to  adversely  affect  net
interest income.

         The Company's one year  cumulative  interest  rate  sensitivity  gap is
estimated at a negative  24.0% of total assets at December 31, 1999, as compared
to a  negative  8.9% at June  30,  1999,  in each  instance,  based  on  certain
assumptions  by management  with respect to the repricing of certain  assets and
liabilities.  At  December  31,  1999,  the  Company's  interest-earning  assets
maturing or repricing  within one year totaled $90.9 million while the Company's
interest-bearing  liabilities  maturing  or  repricing  within one year  totaled
$182.0  million,  providing  an  excess  of  interest-earning  liabilities  over
interest-bearing  assets of $91.1 million.  At December 31, 1999, the percentage
of the Company's assets to liabilities maturing or repricing within one year was
49.9%.
                                       12
<PAGE>
RESULTS OF OPERATIONS

           General.  WVS reported net income of $1.2  million,  or $0.39 diluted
earnings per share,  and $2.3 million,  or $0.76 diluted earnings per share, for
the three and six months  ended  December  31,  1999,  respectively.  Net income
increased by $197  thousand or 20.0% and diluted  earnings  per share  increased
$0.11 or 39.3% for the three months ended  December 31, 1999,  when  compared to
the same period in 1998.  The  increase  was  primarily  attributable  to a $367
thousand  increase in net interest  income,  partially  offset by a $90 thousand
increase  in  non-interest  expense  and a $62  thousand  increase in income tax
expense. Net income increased by $384 thousand or 19.9% and diluted earnings per
share  increased $0.22 or 40.7% for the six months ended December 31, 1999, when
compared to the same period in 1998. The increase was  principally the result of
a $691  thousand  increase in net interest  income,  partially  offset by a $140
thousand increase in non-interest expense and a $182 thousand increase in income
tax expense.

           Net Interest  Income.  The Company's net interest income increased by
$367  thousand or 14.7% for the three  months  ended  December  31,  1999,  when
compared to the same period in 1998. For the six months ended December 31, 1999,
net interest  income  increased by $691 thousand or 13.8%,  when compared to the
same period in 1998. Both increases were  principally  attributable to increases
in the Company's  investment,  mortgage-backed  securities  and loan  portfolios
which were primarily funded with FHLB advances and other borrowings.

           Interest  Income.  Interest and dividend  income on  interest-bearing
deposits with other institutions,  investment  securities and FHLB stock ("other
investment securities") increased by $687 thousand or 47.3% for the three months
ended December 31, 1999,  when compared to the same period in 1998. The increase
was primarily attributable to a $32.0 million increase in the average balance of
investment securities  outstanding and a 54 basis point increase in the weighted
average  yield  earned  on  investment  securities  for the three  months  ended
December 31, 1999,  when compared to the same period in 1998.  Interest on other
investment  securities  increased $1.1 million or 35.9% for the six months ended
December 31,  1999,  when  compared to the same period in 1998.  The increase in
interest  income on investment  securities was  attributable  to a $26.4 million
increase in the average  balance of investment  securities  outstanding and a 37
basis  point  increase  in the  weighted  average  yield  earned  on  investment
securities for the six months ended December 31, 1999, when compared to the same
period in 1998.  The increases in the average  balance of investment  securities
during  both the three and six month  periods  ended  December  31,  1999,  were
principally  attributable  to  purchases  of  investment  securities  under  the
Company's  investment growth program. The increase in the weighted average yield
earned was consistent with market  conditions for the three and six months ended
December 31, 1999.

           Interest on net loans  receivable  increased by $292 thousand or 9.2%
for the three months ended  December 31, 1999,  when compared to the same period
in 1998.  The increase was  attributable  to an increase of $19.9 million in the
average balance of net loans receivable outstanding,  which was partially offset
by a decrease of 27 basis  points in the  weighted  average  yield earned on net
loans  receivable for the three months ended December 31, 1999, when compared to
the same period in 1998.  Interest  on net loans  receivable  increased  by $519
thousand or 8.1% for the six months ended  December 31, 1999,  when  compared to
the same  period in 1998.  The  increase  was  attributable  to a $17.6  million
increase in the average balance of outstanding  loans which was partially offset
by a 23 basis point decrease in the weighted average yield earned on outstanding
loans for the six months ended  December 31, 1999.  The increases in the average
loan balance  outstanding  for the three and six months ended December 31, 1999,
were primarily  attributable to an increased level of mortgage  originations due
to a stronger local demand for permanent  mortgage  financing and an emphasis on
multi-family,  commercial  and consumer  loan  products in order to earn returns
greater than those offered in the single-family residential mortgage market.
<PAGE>

           Interest on mortgage-backed  securities increased by $242 thousand or
22.6% for the three months ended  December 31, 1999,  when  compared to the same
period in 1998. The increase was  attributable to a $9.0 million increase in the
average balance of mortgage-backed  securities  outstanding and a 51 basis point
increase in the weighted average yield earned on mortgage-backed  securities for
the three months ended  December 31, 1999,  when  compared to the same period in

                                       13
<PAGE>
1998.  Interest on mortgage-backed  securities  increased $670 thousand or 36.1%
for the  six  months  ended  December  31,  1999.  The  increase  was  primarily
attributable   to  a  $17.7   million   increase  in  the  average   balance  of
mortgage-backed  securities  outstanding  and a 26 basis  point  increase in the
weighted average yield earned on  mortgage-backed  securities for the six months
ended  December 31, 1999,  when compared to the same period in 1998. The Company
has increased its purchases of  mortgage-backed  securities in order to mitigate
the  principal  calls on the  Company's  callable  bond  portfolio and to earn a
higher yield with an expected  average life profile  comparable  to  longer-term
callable agency bonds.

           Interest Expense.  Interest expense on deposits and escrows decreased
by $106  thousand or 6.4% and  decreased by $214  thousand or 6.4% for the three
and six months ended December 31, 1999, respectively,  when compared to the same
periods in 1998.  The  decrease in interest  expense on deposits and escrows was
principally  attributable  to a $1.2 million  decrease in the average balance of
interest-bearing  deposits  and  escrows  and a 23 basis  point  decrease in the
average  yield paid on deposits and escrows for the three months ended  December
31,  1999,  when  compared to the same period in 1998.  For the six months ended
December 31, 1999, the decrease in interest  expense on deposits and escrows was
primarily attributable to a 27 basis point decrease in the average yield paid on
deposits and escrows which was partially  offset by a $501 thousand  increase in
the average balance of interest-bearing  deposits and escrows. The average yield
paid on deposits  and  escrows  decreased  due to the overall  decline in market
interest rates.

           Interest expense on FHLB advances and other  borrowings  increased by
$960  thousand and $1.8 million for the three and six months ended  December 31,
1999,  respectively,  when  compared to the same periods in 1998.  The increases
were  primarily  attributable  to a $66.7  million or 59.8% and $64.4 million or
61.5% increases in the average balance of such borrowings outstanding,  and an 8
and 3 basis point increase in the weighted  average rate paid on such borrowings
for the  three  and six  months  ended  December  31,  1999,  respectively.  The
increased  amount  of  borrowings  outstanding  was used to fund  the  Company's
investment growth program.

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

           The Company did not record a provision  for possible  losses on loans
for the three and six months  ended  December 31,  1999,  respectively.  At both
December 31 and June 30, 1999,  the  Company's  total  allowance for loan losses
amounted to $1.8 million or 1.0% of the Company's total loan portfolio.

           Non-Interest  Income.  Total  non-interest  income  decreased  by $18
thousand  and  increased  by $15  thousand  for the three and six  months  ended
December 31, 1999, respectively,  when compared to the same periods in 1998. The
decrease in  non-interest  income for the three months ended  December 31, 1999,
was  primarily  attributable  to the absence of $36 thousand in net gains on the
sale of investment  securities during the three months ended December 31, 1998,
which was partially offset by a $20 thousand  increase in ATM fees. The increase
in  non-interest  income  for  the six  months  ended  December  31,  1999,  was
principally  attributable to a $39 thousand  increase in other income  including
ATM fee and loan late  charge  income and an $11  thousand  increase  in service
charges on  deposits,  which were offset by the  absence of $36  thousand in net
gains on the sale of investment securities during 1998.

           Non-Interest  Expense.   Total  non-interest  expense  increased  $90
thousand or 8.1% and $140  thousand  or 6.4% for the three and six months  ended
December 31, 1999, respectively, when compared to the same periods in 1998.

                                       14
<PAGE>
           Compensation and employee  benefits expense increased $87 thousand or
12.1% and $152 thousand or 10.8% for the three and six months ended December 31,
1999,  respectively,  when  compared to the same periods in 1998.  The increases
were primarily attributable to increases in salaries and employee benefits.


LIQUIDITY AND CAPITAL RESOURCES

         Net cash provided by operating  activities  totaled $2.3 million during
the six  months  ended  December  31,  1999.  Net  cash  provided  by  operating
activities was primarily comprised of the $2.3 million of net income.

         Funds used by investing activities totaled $31.2 million during the six
months  ended  December  31,  1999.  Primary uses of funds during the six months
ended December 31, 1999,  included $36.5 million for purchases of investment and
mortgage-backed  securities and a $6.0 million  increase in net loans receivable
which were  partially  offset by $11.4  million of proceeds  from  repayments of
investment and mortgage-backed securities.

         Funds  provided by financing  activities  totaled $29.1 million for the
six months ended  December 31, 1999.  The primary  financial  source  included a
$36.5 million increase in FHLB advances and other borrowings which was partially
offset by $2.9 million in purchases of treasury stock, a $2.6 million  decrease
in deposits, a $970 thousand decrease in advance payments by borrowers for taxes
and insurance and $967 thousand of cash dividends  paid on the Company's  common
stock.  During the six months ended December 31, 1999,  the Company  repurchased
199,901  shares  of common  stock.  Management  believes  that it  currently  is
maintaining  adequate  liquidity and  continues to better match funding  sources
with lending and investment opportunities.

         The  Company's  primary  sources of funds are  deposits,  amortization,
prepayments  and maturities of existing  loans,  mortgage-backed  securities and
investment  securities,  funds  from  operations,  and  funds  obtained  through
short-term borrowings. At December 31, 1999, the total approved loan commitments
outstanding  amounted  to $102  thousand.  At the same date,  commitments  under
unused lines of credit  amounted to $10.5 million and the unadvanced  portion of
construction loans approximated $18.6 million. Certificates of deposit scheduled
to mature in one year or less at  December  31,  1999,  totaled  $58.5  million.
Management  believes that a significant portion of maturing deposits will remain
with the Company.

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

         On January 25, 2000, the Company's  Board of Directors  declared a cash
dividend of $0.16 per share payable February 17, 2000, to shareholders of record
at the  close of  business  on  February  7,  2000.  Dividends  are  subject  to
determination and declaration by the Board of Directors, which take into account
the  Company's  financial  condition,  statutory  and  regulatory  restrictions,
general  economic  conditions and other factors.  There can be no assurance that
dividends  will in fact be paid on the  Common  Stock  or that,  if  paid,  such
dividends will not be reduced or eliminated in future periods.

         As of December 31, 1999,  WVS Financial  Corp.  exceeded all regulatory
capital requirements and maintained Tier I and total risk-based capital equal to
$26.7  million  or 14.4% and $28.5  million  or  15.4%,  respectively,  of total
risk-weighted  assets,  and Tier I leverage capital of $26.7 million or 7.06% of
average quarterly assets.

                                       15
<PAGE>
         Nonperforming assets consist of nonaccrual loans and real estate owned.
A loan is placed on nonaccrual  status when, in the judgment of management,  the
probability of collection of interest is deemed  insufficient to warrant further
accrual.  When a loan is placed on  nonaccrual  status,  previously  accrued but
uncollected interest is deducted from interest income. The Company normally does
not accrue interest on loans past due 90 days or more, however,  interest may be
accrued if management believes that it will collect on the loan.

         The  Company's  nonperforming  assets at  December  31,  1999,  totaled
approximately  $658  thousand  or 0.18%  of total  assets  as  compared  to $765
thousand or 0.22% of total assets as of June 30, 1999.  Nonperforming  assets at
December 31, 1999,  consisted of $274 thousand in commercial  real estate loans,
$20 thousand in  single-family  loans,  $119  thousand in consumer  loans and $6
thousand in commercial loans.  Approximately $1 thousand of additional  interest
income would have been recorded  during the six months ended  December 31, 1999,
if  the  Company's  nonaccrual  and  restructured  loans  had  been  current  in
accordance  with their  original loan terms and  outstanding  throughout the six
months ended December 31, 1999.


YEAR 2000 COMPLIANCE

         The  Company  outsources  substantially  all  of  its  data  processing
requirements and it is to a large extent  dependent upon vendor  cooperation for
systems used in its day-to-day  business.  The Company,  in conjunction with its
vendors,  tested its  computer  systems and  required  representations  from its
vendors that the  products  provided  are year 2000  compliant.  The Company has
developed  a plan of action to help ensure that its  operational  and  financial
systems will not be adversely affected by year 2000  software/hardware  failures
due to processing  errors  arising from  calculations  using the year 2000 date.
During the year 2000 rollover weekend, from December 31, 1999 through January 3,
2000, all Company computer systems were fully  operational.  The Company intends
to  increase  its  internal  audit  review of  customer  accounts  to ensure the
accuracy of various account postings. The Company has not and does not expect to
incur material  expenditures to address the year 2000 issue.  Based upon current
estimates, the Company does not expect to incur more than $75 thousand (pre-tax)
in year 2000 remediation expenses. Any year 2000 compliance failures,  which are
currently unknown, could result in additional expenses or business disruption to
the Company.

FORWARD LOOKING STATEMENTS

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

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


                                       16
<PAGE>
ITEM 3.


QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         The Company's  primary  market risk exposure is interest rate risk and,
to a lesser  extent,  liquidity  risk.  All of the  Company's  transactions  are
denominated in U.S.  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.

         The Federal Reserve Board,  together with the Office of the Comptroller
of the Currency and the Federal Deposit Insurance  Corporation,  adopted a Joint
Agency Policy  Statement on Interest  Rate Risk,  effective  June 26, 1996.  The
policy statement  provides  guidance to examiners and bankers on sound practices
for  managing  interest  rate  risk,  which  will  form the  basis  for  ongoing
evaluation  of the  adequacy  of interest  rate risk  management  at  supervised
institutions.  The policy statement also outlines  fundamental elements of sound
management  that have been  identified  in prior  Federal  Reserve  guidance and
discusses the importance of these  elements in the context of managing  interest
rate risk.  Specifically,  the guidance  emphasizes the need for active board of
director and senior  management  oversight and a  comprehensive  risk-management
process that effectively identifies,  measures, and controls interest rate risk.
Financial institutions derive their income primarily from the excess of interest
collected over interest paid. The rates of interest an institution  earns on its
assets and owes on its liabilities generally are established contractually for a
period of time.  Since market interest rates change over time, an institution is
exposed to lower profit  margins (or losses) if it cannot adapt to interest rate
changes. For example, assume that an institution's assets carry intermediate- or
long-term  fixed  rates  and that  those  assets  were  funded  with  short-term
liabilities.   If  market  interest  rates  rise  by  the  time  the  short-term
liabilities  must be  refinanced,  the  increase in the  institution's  interest
expense on its liabilities may not be sufficiently  offset if assets continue to
earn at the long-term fixed rates.  Accordingly,  an institution's profits could
decrease on existing assets because the  institution  will either have lower net
interest income or,  possibly,  net interest  expense.  Similar risks exist when
assets are subject to  contractual  interest rate  ceilings,  or rate  sensitive
assets are funded by longer-term,  fixed-rate  liabilities in a  decreasing-rate
environment.

         An  institution  may use several  techniques to minimize  interest rate
risk. One approach used by the Company is to periodically analyze its assets and
liabilities and make future financing and investment  decisions based on payment
streams,  interest rates,  contractual maturities,  and estimated sensitivity to
actual or potential changes in market interest rates. Such activities fall under
the broad  definition  of  asset/liability  management.  The  Company's  primary
asset/liability   management  technique  is  the  monitoring  of  the  Company's

                                       17
<PAGE>
asset/liability  gap which was  discussed in detail  under "Asset and  Liability
Management" commencing on page 11.

         An institution could also manage interest rate risk by selling existing
assets,  repaying  certain  liabilities  or matching  repricing  periods for new
assets  and  liabilities  (for  example,  by  shortening  terms of new  loans or
investments).  A large portion of an institution's liabilities may be short-term
or due on demand, while most of its assets may be invested in long-term loans or
investments.  Accordingly, the Company seeks to have in place sources of cash to
meet  short-term  demands.  These funds can be obtained by increasing  deposits,
borrowing,  or selling assets. Also, FHLB advances and wholesale borrowings have
become  increasingly  important sources of liquidity for the Company.  Financial
institutions  are also subject to prepayment risk in falling rate  environments.
For  example,  mortgage  loans and other  financial  assets  may be prepaid by a
debtor so that the  debtor  may  refund its  obligations  at new,  lower  rates.
Prepayments of assets carrying higher rates reduce the Company's interest income
and overall asset yields.

         An institution might also invest in more complex financial  instruments
intended  to hedge,  or  otherwise  change the  interest  rate risk of  existing
assets, liabilities,  or anticipated transactions.  Interest rate swaps, futures
contracts,  options on futures, and other such derivative financial  instruments
often are used for this  purpose.  Because  these  instruments  are sensitive to
interest rate changes,  they require management  expertise to be effective.  The
Company has not purchased derivative financial  instruments in the past and does
not presently intend to purchase such instruments in the near future.

         The following table provides  information about the Company's financial
instruments  that are sensitive to changes in interest  rates as of December 31,
1999,  based on the  information  and  assumptions  in the notes.  The Company's
assumptions  are based on  statistical  data  provided  by a federal  regulatory
agency in the  Company's  market area,  and are believed to be  reasonable.  The
Company had no  derivative  financial  instruments  or trading  portfolio  as of
December  31,  1999.  The expected  maturity  date values for loans  receivable,
mortgage-backed   securities,  and  investment  securities  were  calculated  by
adjusting  the  instrument's  contractual  maturity  date  for  expectations  of
prepayments.  Similarly, expected maturity date values for interest-bearing core
deposits  were  calculated  based upon  estimates  of the period  over which the
deposits would be  outstanding.  With respect to the Company's  adjustable  rate
instruments,  expected  maturity  date values were  measured  by  adjusting  the
instrument's   contractual   maturity  date  for  expectations  of  prepayments.
Substantially all of the Company's investment  securities portfolio is comprised
of callable  government agency securities.  From a risk management  perspective,
the Company  believes  that  repricing  dates,  as opposed to expected  maturity
dates, may be a more relevant metric in analyzing the value of such instruments.
Company  borrowings  were  tabulated by  contractual  maturity dates and without
regard to any conversion or repricing dates.

                                       18
<PAGE>
<TABLE>
<CAPTION>
                                                             EXPECTED MATURITY DATE-QUARTER ENDED DECEMBER 31,
                                       ------------------------------------------------------------------------------------------
                                                                                                 There-                    Fair
                                          2000        2001       2002       2003       2004      after        Total        Value
                                       ----------  ---------  ---------  ---------  ---------  ---------   ----------  ----------
<S>                                    <C>         <C>        <C>        <C>        <C>        <C>         <C>         <C>
ON-BALANCE SHEET FINANCIAL INSTRUMENTS
Interest-earning assets:
  Loans receivable (1)(2)(3)(4)
  Fixed rate                              $30,380    $18,055    $13,861  $12,232       $9,471    $52,376    $136,375     $134,108
    Average interest rate                   7.84%      7.61%      7.56%    7.55%        7.48%      7.41%

  Adjustable rate                          14,380      6,778      5,520    4,507        3,687      7,639      42,511       42,495
    Average interest rate(5)                7.81%      7.84%      7.88%    7.92%        7.95%      7.89%
  Mortgage-backed securities
  Fixed rate                                  ---        ---         92    1,345          ---     58,478      59,915       57,419
    Average interest rate                   0.00%      0.00%      7.10%    6.02%        0.00%      6.91%

  Adjustable rate                             ---        ---        ---      ---          ---     16,174      16,174       16,439
    Average interest rate(6)                0.00%      0.00%      0.00%    0.00%        0.00%      7.41%

  Investments(7)                            9,285        ---        ---      ---          ---    110,712     119,997      112,178
    Average interest rate                   6.83%      0.00%      0.00%    0.00%        0.00%      7.52%

  Interest-bearing deposits                 1,187        ---        ---      ---          ---        ---       1,187        1,187
   Average interest rate                    4.06%      0.00%      0.00%    0.00%        0.00%      0.00%
                                       ----------  ---------  ---------  ---------  ---------  ---------   ----------  ----------
         Total                             55,232     24,833     19,473   18,084       13,158    245,379     376,159      363,826


Interest-bearing liabilities:
  Interest-bearing deposits
   and escrows(8)(9)(10)                   88,815     20,157     20,157    9,228        9,228     23,132     170,717      170,285
    Average interest rate                   4.07%      3.47%      3.47%    3.58%        3.58%      2.19%

  Borrowings                               93,205      5,000     16,500      ---          ---     64,500     179,205      173,919
                                            5.36%      5.87%      5.79%    0.00%        0.00%      5.19%
    Average interest rate              ----------  ---------  ---------  ---------  ---------  ---------   ----------  ----------
        Total                            $182,020    $25,157    $36,657   $9,228       $9,228    $87,632    $349,922     $344,204

</TABLE>
 (1) Net of  undisbursed  loan  proceeds and does not include net deferred  loan
     fees or the allowance for loan losses.
 (2) For  single-family  residential  loans,  assumes  annual  amortization  and
     prepayment rate at 25% for adjustable rate loans,  and 10% to 42% for fixed
     rate loans. For  multi-family  residential  loans and other loans,  assumes
     amortization and prepayment rate of 12%.
 (3) For second mortgage loans,  assumes annual amortization and prepayment rate
     of 18%.
 (4) Consumer loans assumes amortization and prepayment rate of 13%.
 (5) Substantially  all of the  Company's  adjustable  rate loans  reprice on an
     annual basis based upon changes in the one-year  constant maturity treasury
     index with various market based annual and lifetime  interest rate caps and
     floors.
 (6) Substantially  all  of  the  Company's   adjustable  rate   mortgage-backed
     securities  reprice on a monthly  basis based upon changes in the one month
     LIBOR index with various lifetime caps and floors.
 (7) Totals include the Company's investment in Federal Home Loan Bank stock.
 (8) For regular savings accounts, assumes an annual decay rate of 17% for three
     years or less,  16% for more than three through five years and 14% for more
     than five years.
 (9) For NOW accounts, assumes an annual decay rate of 37% for one year or less,
     32% for more than one  through  three  years  and 17% for more  than  three
     years.
 (10)For money market deposit accounts,  assumes an annual decay rate of 79% for
     one year or less and 31% for more than one year.

                                       19
<PAGE>

         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 December 31,
1999.


                            Anticipated Transactions
                            ------------------------
     Undisbursed construction and
         land development loans

         Fixed rate                                   $8,441
                                                       8.03%

         Adjustable rate                             $10,143
                                                       9.03%
     Undisbursed lines of credit

         Adjustable rate                             $10,457
                                                       8.27%
     Loan origination commitments

         Fixed rate                                     $564
                                                       7.81%
     Unfunded security commitments

         Fixed rate (1)                               $6,549
                                                       8.35%
     Letters of credit

         Adjustable rate                                 $20
                                                      10.75%
                                                    --------
                                                     $36,174

(1) Taxable equivalent yield.

                                       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.    Changes in Securities

           Not applicable.

ITEM 3.    Defaults Upon Senior Securities

           Not applicable.

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

           (a) An annual meeting of stockholders was held on October 26, 1999.

           (b) Not applicable.

           (c) Two  matters  were voted upon at the annual  stockholder  meeting
               held on October 26, 1999: Item 1: Proposal to elect two directors
               for a four-year  term or until their  successors  are 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 auditors for the fiscal year ending June 30, 2000.

               Each of the two  proposals  received  stockholder  approval.  The
               voting  record with respect to each item voted upon is enumerated
               below:

           Item           Nominee
          Number      (if Applicable)             For        Against     Abstain
          ------      ---------------             ---        -------     -------
            1         Arthur H. Brandt         2,675,507      44,695
                     William J. Hoegel         2,710,301      9,901
            2       Election of Auditors       2,663,558      5,985       50,659

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

           (d) Not applicable.

ITEM 5.    Other Information

           Not applicable.

ITEM 6.    Exhibits and Reports on Form 8-K

           (a) The  following  exhibit is filed as part of this form  10-Q,  and
               this list includes the Exhibit Index.

                     Number       Description                    Page
                     ------       ------------------------       ----
                       27         Financial Data Schedule        E-1

           (b) Not applicable.

                                       21
<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.




 February 7, 2000           BY:    /s/ David J. Bursic
 ----------------                  ---------------------------------------------
 Date                              David J. Bursic
                                   President and Chief Executive Officer
                                   (Principal Executive and Financial Officer)


 February 7, 2000           BY:    /s/ Janell A. Butorac
 ----------------                  ---------------------------------------------
 Date                              Janell A. Butorac, CPA
                                   Assistant Vice President
                                   Principal Accounting Officer