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, 2008

                                       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 [ ]

      Indicate  by check mark  whether  the  registrant  is a large  accelerated
filer, an accelerated  filer, a  non-accelerated  filer, or a smaller  reporting
company.  See the definitions of "large accelerated filer,"  "accelerated filer"
and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer [ ]                   Accelerated filer [ ]
Non-accelerated filer [ ] (Do not check if a  Smaller reporting company [X]
                          smaller reporting
                          company)

      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 February 11, 2009: 2,117,285 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
               December 31, 2008 and June 30, 2008
               (Unaudited)                                                   3

               Consolidated Statement of Income
               for the Three and Six Months Ended
               December 31, 2008 and 2007 (Unaudited)                        4

               Consolidated Statement of Changes in
               Stockholders' Equity for the Six Months
               Ended December 31, 2008 (Unaudited)                           5

               Consolidated Statement of Cash Flows
               for the Six Months Ended December 31,
               2008 and 2007 (Unaudited)                                     6

               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, 2008                                      15

Item 3.        Quantitative and Qualitative Disclosures
               about Market Risk                                            22

Item 4.        Controls and Procedures                                      28

Item 4T.       Controls and Procedures                                      28

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

Item 1.        Legal Proceedings                                            29
Item 1A.       Risk Factors                                                 29
Item 2.        Unregistered Sales of Equity Securities and
               Use of Proceeds                                              30
Item 3.        Defaults Upon Senior Securities                              30
Item 4.        Submission of Matters to a Vote of Security Holders          30
Item 5.        Other Information                                            31
Item 6.        Exhibits                                                     31
               Signatures                                                   32

                                        2

<PAGE>

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

<TABLE>
<CAPTION>
                                                                    December 31, 2008   June 30, 2008
                                                                    -----------------   -------------
<S>                                                                 <C>                 <C>
         Assets
         ------
Cash and due from banks                                             $             677   $         628
Interest-earning demand deposits                                                1,172           1,198
                                                                    -----------------   -------------
Total cash and cash equivalents                                                 1,849           1,826
Certificates of deposit                                                        23,025           9,398
Investment securities available-for-sale (amortized cost of
   $500 and $ 7,994)                                                              489           7,978
Investment securities held-to-maturity (market value of
   $137,069 and $122,055)                                                     135,649         120,559
Mortgage-backed securities available-for-sale (amortized cost of
   $2,082 and $2,101)                                                           2,138           2,215
Mortgage-backed securities held-to-maturity (market value of
   $183,227 and $211,113)                                                     209,427         213,690
Net loans receivable (allowance for loan losses of $977 and $956)              57,731          56,477
Accrued interest receivable                                                     1,848           2,117
Federal Home Loan Bank stock, at cost                                          10,876           6,931
Premises and equipment                                                            741             766
Other assets                                                                      979           1,152
                                                                    -----------------   -------------
         TOTAL ASSETS                                               $         444,752   $     423,109
                                                                    =================   =============

         Liabilities and Stockholders' Equity
         ------------------------------------
Liabilities:
Savings Deposits:
   Non-interest-bearing accounts                                               13,600          11,780
   NOW accounts                                                                17,925          17,569
   Savings accounts                                                            31,413          32,025
   Money market accounts                                                       24,845          23,593
   Certificates of deposit                                                     58,879          64,251
   Advance payments by borrowers for taxes and insurance                          627             924
                                                                    -----------------   -------------
      Total savings deposits                                                  147,289         150,142
Federal Home Loan Bank advances: long-term                                    135,579         135,579
Federal Home Loan Bank advances: short-term                                        --              --
Federal Reserve Bank short-term borrowings                                    126,785          80,600
Other short-term borrowings                                                        --          20,000
Accrued interest payable                                                        1,316           1,539
Other liabilities                                                               2,110           3,101
                                                                    -----------------   -------------
      TOTAL LIABILITIES                                                       413,079         390,961
                                                                    -----------------   -------------

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;
      3,805,636 and 3,805,636 shares issued                                        38              38
Additional paid-in capital                                                     21,379          21,376
Treasury stock: 1,673,851 and 1,578,857 shares at cost,
   Respectively                                                               (25,556)        (24,041)
Retained earnings, substantially restricted                                    35,783          34,712
Accumulated other comprehensive income                                             30              64
Unallocated shares - Recognition and Retention Plans                               (1)             (1)
                                                                    -----------------   -------------
      TOTAL STOCKHOLDERS' EQUITY                                               31,673          32,148
                                                                    -----------------   -------------
         TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                 $         444,752   $     423,109
                                                                    =================   =============
</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           Six Months Ended
                                                       December 31,                December 31,
                                                -------------------------   -------------------------
                                                    2008          2007          2008          2007
                                                -----------   -----------   -----------   -----------
<S>                                             <C>           <C>           <C>           <C>
INTEREST AND DIVIDEND INCOME:
   Loans                                        $     1,010   $     1,107   $     2,037   $     2,231
   Investment securities                              1,784         2,969         3,489         6,352
   Mortgage-backed securities                         2,003         2,294         3,978         4,227
   Certificates of deposit                              153            --           239            --
   Interest-earning deposits with other
      institutions                                       --            --             1             2
   Federal Home Loan Bank stock                          47           127           137           223
                                                -----------   -----------   -----------   -----------
      Total interest and dividend income              4,997         6,497         9,881        13,035
                                                -----------   -----------   -----------   -----------

INTEREST EXPENSE:
   Deposits                                             593         1,056         1,299         2,194
   Federal Home Loan Bank advances                    1,990         2,401         3,938         4,760
   Federal Reserve Bank short-term borrowings            65            --           150            --
   Other short-term borrowings                            3           708           299         1,445
                                                -----------   -----------   -----------   -----------
      Total interest expense                          2,651         4,165         5,686         8,399
                                                -----------   -----------   -----------   -----------

NET INTEREST INCOME                                   2,346         2,332         4,195         4,636
PROVISION (RECOVERY) FOR LOAN LOSSES                     27            11            21            (6)
                                                -----------   -----------   -----------   -----------
NET INTEREST INCOME AFTER PROVISION
   (RECOVERY) FOR LOAN LOSSES                         2,319         2,321         4,174         4,642
                                                -----------   -----------   -----------   -----------

NON-INTEREST INCOME:
   Service charges on deposits                           82            83           173           169
   Investment securities gains                           --            --            --             1
   Other                                                 74            62           150           131
                                                -----------   -----------   -----------   -----------
      Total non-interest income                         156           145           323           301
                                                -----------   -----------   -----------   -----------

NON-INTEREST EXPENSE:
   Salaries and employee benefits                       561           517         1,069         1,025
   Occupancy and equipment                               82            87           165           175
   Data processing                                       62            65           125           127
   Correspondent bank service charges                    21            24            46            50
   Other                                                236           262           531           519
                                                -----------   -----------   -----------   -----------
      Total non-interest expense                        962           955         1,936         1,896
                                                -----------   -----------   -----------   -----------

INCOME BEFORE INCOME TAXES                            1,513         1,511         2,561         3,047
INCOME TAXES                                            501           463           793           975
                                                -----------   -----------   -----------   -----------
NET INCOME                                      $     1,012   $     1,048   $     1,768   $     2,072
                                                ===========   ===========   ===========   ===========

EARNINGS PER SHARE:
   Basic                                        $      0.47   $      0.46   $      0.81   $      0.91
   Diluted                                      $      0.47   $      0.46   $      0.81   $      0.91

AVERAGE SHARES OUTSTANDING:
   Basic                                          2,159,271     2,261,544     2,175,524     2,272,527
   Diluted                                        2,159,560     2,261,783     2,175,672     2,273,084
</TABLE>

     See accompanying notes to unaudited consolidated financial statements.

                                        4

<PAGE>

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

<TABLE>
<CAPTION>
                                                                                      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, 2008           $   38   $   21,376   $  (24,041)  $      34,712   $        64   $        (1)  $ 32,148

Comprehensive income:

   Net Income                                                                 1,768                                  1,768
   Other comprehensive
      income:
         Change in unrealized
            holding gains on
            securities, net of
            income tax effect of
            $18                                                                               (34)                     (34)
                                                                                                                  --------

Comprehensive income                                                                                                 1,734

Purchase of 94,994 shares
   of treasury stock                                         (1,515)                                                (1,515)

Exercise of stock options              --           --                                                                  --

Effect of compensation
   expense for stock options                         3                                                                   3

Cash dividends declared
   ($0.32 per share)                                                           (697)                                  (697)

Other, net                             --           --           --              --            --            --         --
                                   ------   ----------   ----------   -------------   -----------   -----------   --------

Balance at Dec. 31, 2008           $   38   $   21,379   $  (25,556)  $      35,783   $        30   $        (1)  $ 31,673
                                   ======   ==========   ==========   =============   ===========   ===========   ========
</TABLE>

     See accompanying notes to unaudited consolidated financial statements.

                                        5

<PAGE>

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

<TABLE>
<CAPTION>
                                                                                     Six Months Ended
                                                                                       December 31,
                                                                                  -----------------------
                                                                                     2008         2007
                                                                                  ---------    ---------
<S>                                                                               <C>          <C>
OPERATING ACTIVITIES

Net income                                                                        $   1,768    $   2,072
Adjustments to reconcile net income to cash provided by operating
   activities:
   Provision (recovery) for loan losses                                                  21           (6)
      Depreciation                                                                       53           65
      Investment securities gains                                                        --           (1)
      Amortization of discounts, premiums and deferred loan fees                       (242)        (135)
      Accretion of discounts - commercial paper                                        (262)        (494)
      Increase in accrued and deferred taxes                                            357            8
      Decrease in accrued interest receivable                                           269          170
      (Decrease) increase in accrued interest payable                                  (223)         235
      (Decrease) increase in deferred director compensation payable                    (805)          32
      Other, net                                                                         33           11
                                                                                  ---------    ---------
         Net cash provided by operating activities                                      969        1,957
                                                                                  ---------    ---------

INVESTING ACTIVITIES

Available-for-sale:
      Purchases of investments securities                                                --      (85,398)
      Proceeds from repayments of investments and mortgage-backed securities          7,521       74,412
      Proceeds from sale of mortgage-backed securities                                   --           49
Held-to-maturity:
      Purchases of investment securities                                           (109,748)     (34,050)
      Purchases of mortgage-backed securities                                            --      (54,373)
      Proceeds from repayments of investments                                        94,991       64,722
      Proceeds from repayments of mortgage-backed securities                          4,446        9,286
      Proceeds from sale of investments and mortgage-backed securities                   --          216
Purchases of certificates of deposit                                                (16,256)          --
Maturities/redemptions of certificates of deposit                                     2,623           --
(Increase) decrease in net loans receivable                                          (1,291)         595
Purchase of Federal Home Loan Bank stock                                            (13,242)     (12,245)
Redemption of Federal Home Loan Bank stock                                            9,298        8,841
Acquisition of premises and equipment                                                   (28)         (36)
Other, net                                                                               --           --
                                                                                  ---------    ---------
         Net cash used for investing activities                                     (21,686)     (27,981)
                                                                                  ---------    ---------
</TABLE>

                                        6

<PAGE>

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

<TABLE>
<CAPTION>
                                                                              Six Months Ended
                                                                                December 31,
                                                                            --------------------
                                                                              2008        2007
                                                                            --------    --------
<S>                                                                         <C>         <C>
FINANCING ACTIVITIES

Net increase in transaction and savings accounts                               2,436          11
Net decrease in certificates of deposit                                       (5,372)     (5,955)
Proceeds from Federal Home Loan Bank long-term advances                           --      10,000
Repayments of Federal Home Loan Bank long-term advances                           --      (5,000)
Net increase in FHLB short-term advances                                          --      38,600
Net increase in Federal Reserve Bank short-term borrowings                    46,185          --
Net decrease in other short-term borrowings                                  (20,000)    (10,107)
Net decrease in advance payments by borrowers for taxes and insurance           (297)       (320)
Cash dividends paid                                                             (697)       (729)
Funds used for purchase of treasury stock                                     (1,515)     (1,136)
Net proceeds from exercise of stock options                                       --         205
                                                                            --------    --------
         Net cash provided by financing activities                            20,740      25,569
                                                                            --------    --------

         Increase (decrease) in cash and cash equivalents                         23        (455)

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD                           1,826       2,675
                                                                            --------    --------

CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                              $  1,849    $  2,220
                                                                            ========    ========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

   Cash paid during the period for:
      Interest on deposits, escrows and borrowings                          $  5,909    $  8,164
      Income taxes                                                          $    421    $    980

   Non-cash items:
      Unfunded Security Commitment                                                --    $  5,004
      Due to Federal Reserve Bank                                           $    841    $  1,260
      Educational Improvement Tax Credit                                    $    135    $    135
</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 and six months ended December 31, 2008, are
not  necessarily  indicative of the results which may be expected for the entire
fiscal year.

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

      In June 2008,  the FASB  ratified  EITF  Issue No.  08-4,  Accounting  for
Convertible  Securities  with  Beneficial  Conversion  Features or  Contingently
Adjusted   Conversion  Ratios.  This  Issue  provides  transition  guidance  for
conforming  changes  made to EITF Issue No.  98-5,  Accounting  for  Convertible
Securities  with  Beneficial   Conversion  Features  or  Contingently   Adjusted
Conversion Ratios, that resulted from EITF Issue No. 00-27, Application of Issue
No. 98-5 to Certain  Convertible  Instruments,  and FAS No. 150,  Accounting for
Certain Financial Instruments with Characteristics of both Liability and Equity.
The conforming changes are effective for financial  statements issued for fiscal
years ending after December 15, 2008, with earlier  application  permitted.  The
adoption of this FSP is not expected to have a material  effect on the Company's
results of operations or financial position.

      In May 2008, the FASB issued FSP No. APB 14-1,  Accounting for Convertible
Debt Instruments That May Be Settled in Cash upon Conversion  (Including Partial
Cash Settlement). This FSP provides guidance on the accounting for certain types
of convertible  debt  instruments  that may be settled in cash upon  conversion.
Additionally,  this  FSP  specifies  that  issuers  of such  instruments  should
separately account for the liability and equity components in a manner that will
reflect the entity's  nonconvertible  debt  borrowing rate when interest cost is
recognized in subsequent periods.  The FSP is effective for financial statements
issued for fiscal years  beginning  after December 15, 2008, and interim periods
within  those fiscal  years.  The adoption of this FSP is not expected to have a
material effect on the Company's results of operations or financial position.

      In  February  2008,  the FASB  issued FSP No. FAS  140-3,  Accounting  for
Transfers of Financial Assets and Repurchase  Financing  Transactions.  This FSP
concludes that a transferor and transferee  should not separately  account for a
transfer of a financial asset and a related repurchase  financing unless (a) the
two  transactions  have a valid and  distinct  business or economic  purpose for
being entered into  separately and (b) the repurchase  financing does not result
in the initial transferor regaining control over the financial asset. The FSP is
effective for financial statements issued for fiscal years beginning on or after
November 15, 2008, and interim  periods within those fiscal years.  The adoption
of this FSP is not expected to have a material  effect on the Company's  results
of operations or financial position.

      In February 2007, the FASB issued FSP No. FAS 158-1, Conforming Amendments
to the  Illustrations  in FASB Statements No. 87, No. 88, and No. 106 and to the
Related Staff Implementation  Guides. This FSP provides conforming amendments to
the  illustrations  in FAS  Statements  No. 87, 88, and 106 and to related staff
implementation  guides as a result of the issuance of FAS Statement No. 158. The
conforming  amendments  made by this FSP are effective as of the effective dates
of  Statement  No. 158. The  unaffected  guidance  that this FSP  codifies  into
Statements No. 87, 88, and 106 does not contain new  requirements  and therefore
does not require a separate effective date or transition method. The adoption of
this FSP is not expected to have a material  effect on the Company's  results of
operations or financial position.

                                        8

<PAGE>

      In October 2008, the FASB issued FSP No. 157-3, Determining the Fair Value
of a  Financial  Asset When the Market  for That Asset Is Not  Active.  This FSP
clarifies the application of FAS Statement No. 157, Fair Value Measurements,  in
a  market  that  is not  active  and  provides  an  example  to  illustrate  key
considerations  in  determining  the fair  value of a  financial  asset when the
market for that financial asset is not active.  This FSP shall be effective upon
issuance,  including prior periods for which financial  statements have not been
issued.  Revisions  resulting  from a change in the  valuation  technique or its
application  shall be  accounted  for as a change in  accounting  estimate  (FAS
Statement No. 154,  Accounting  Changes and Error  Corrections).  The disclosure
provisions of Statement 154 for a change in accounting estimate are not required
for revisions resulting from a change in valuation technique or its application.
The  adoption  of this FSP is not  expected  to have a  material  effect  on the
Company's results of operations or financial position.

      In December  2007,  the FASB issued FAS No. 141 (revised  2007),  Business
Combinations  ("FAS 141(R)),  which establishes  principles and requirements for
how an  acquirer  recognizes  and  measures  in  its  financial  statements  the
identifiable assets acquired,  the liabilities  assumed,  and any noncontrolling
interest in an acquiree,  including the  recognition and measurement of goodwill
acquired in a business combination. FAS No. 141(R) is effective for fiscal years
beginning on or after December 15, 2008.  Earlier  adoption is  prohibited.  The
adoption  of this  standard  is not  expected  to have a material  effect on the
Company's results of operations or financial position.

      In September  2006, the FASB issued FAS No. 157, Fair Value  Measurements,
which  provides  enhanced  guidance  for using fair value to measure  assets and
liabilities.  The standard  applies  whenever other standards  require or permit
assets or liabilities to be measured at fair value. The Standard does not expand
the use of fair value in any new  circumstances.  FAS No. 157 is  effective  for
financial  statements  issued for fiscal years beginning after November 15, 2007
and interim periods within those fiscal years. In February 2008, the FASB issued
Staff  Position  No.  157-1,  Application  of  FASB  Statement  No.  157 to FASB
Statement  No. 13 and Other  Accounting  Pronouncements  That Address Fair Value
Measurements for Purposes of Lease Classification or Measurement under Statement
13,  which  removed  leasing  transactions  accounted  for  under FAS No. 13 and
related  guidance from the scope of FAS No. 157. Also in February 2008, the FASB
issued  Staff  Position  No.157-2,  Partial  Deferral of the  Effective  Date of
Statement  157,  which  deferred  the  effective  date  of FAS  No.  157 for all
nonfinancial assets and nonfinancial liabilities to fiscal years beginning after
November  15,  2008.  The  adoption of this  standard is not  expected to have a
material effect on the Company's results of operations or financial position.

      In September 2006, the FASB issued FAS No. 158, Employers'  Accounting for
Defined Benefit  Pension and Other Post  Retirement  Plans, an amendment of FASB
Statements No. 87, 88, 106 and 132(R).  This  Statement  requires that employers
measure  plan  assets  and  obligations  as of  the  balance  sheet  date.  This
requirement  is effective for fiscal years ending after  December 15, 2008.  The
other  provisions  of the Statement  were  effective as of the end of the fiscal
year ending after December 15, 2006, for public companies.  The adoption of this
standard is not expected to have a material  effect on the Company's  results of
operations or financial position.

      In December 2007, the FASB issued FAS No. 160, Noncontrolling Interests in
Consolidated  Financial  Statements  -- an  amendment of ARB No. 51. FAS No. 160
amends  ARB No. 51 to  establish  accounting  and  reporting  standards  for the
noncontrolling  interest  in a  subsidiary  and  for  the  deconsolidation  of a
subsidiary.  It clarifies that a noncontrolling interest in a subsidiary,  which
is sometimes referred to as minority  interest,  is an ownership interest in the
consolidated  entity  that  should be  reported  as  equity in the  consolidated
financial  statements.   Among  other  requirements,   this  statement  requires
consolidated  net income to be  reported  at amounts  that  include  the amounts
attributable  to both  the  parent  and  the  noncontrolling  interest.  It also
requires  disclosure,  on the face of the consolidated income statement,  of the
amounts  of  consolidated  net  income  attributable  to the  parent  and to the
noncontrolling  interest. FAS No. 160 is effective for fiscal years beginning on
or after December 15, 2008. Earlier adoption is prohibited. The adoption of this
standard is not expected to have a material  effect on the Company's  results of
operations or financial position.

      In March 2008, the FASB issued FAS No. 161,  Disclosures  about Derivative
Instruments  and  Hedging  Activities,  to require  enhanced  disclosures  about
derivative instruments and hedging activities.

                                        9

<PAGE>

The new standard has revised financial reporting for derivative  instruments and
hedging  activities by requiring more  transparency  about how and why an entity
uses derivative instruments, how derivative instruments and related hedged items
are accounted for under FAS No. 133,  Accounting for Derivative  Instruments and
Hedging  Activities;  and how  derivative  instruments  and related hedged items
affect an entity's financial position,  financial  performance,  and cash flows.
FAS No. 161 requires disclosure of the fair values of derivative instruments and
their gains and losses in a tabular format. It also requires entities to provide
more  information  about their  liquidity by requiring  disclosure of derivative
features that are credit  risk-related.  Further, it requires  cross-referencing
within  footnotes  to  enable  financial  statement  users to  locate  important
information about derivative instruments. FAS No. 161 is effective for financial
statements  issued for fiscal years and interim periods beginning after November
15, 2008, with early  application  encouraged.  The adoption of this standard is
not expected to have a material effect on the Company's results of operations or
financial position.

      In  April  2008,   the  FASB  issued  FASB  Staff   Position  No.   142-3,
Determination of the Useful Life of Intangible  Assets ("FSP 142-3").  FSP 142-3
amends the factors that should be  considered in  developing  assumptions  about
renewal  or  extension  used in  estimating  the  useful  life  of a  recognized
intangible asset under FAS No. 142, Goodwill and Other Intangible  Assets.  This
standard is intended  to improve  the  consistency  between the useful life of a
recognized  intangible  asset under FAS No. 142 and the period of expected  cash
flows used to measure  the fair value of the asset  under FAS No. 141R and other
GAAP.  FSP 142-3 is effective for financial  statements  issued for fiscal years
beginning after December 15, 2008. The  measurement  provisions of this standard
will apply only to intangible assets of the Company acquired after the effective
date. The adoption of this FSP is not expected to have a material  effect on the
Company's results of operations or financial position.

      In June 2008,  the FASB issued FASB Staff  Position (FSP) No. EITF 03-6-1,
Determining Whether Instruments Granted in Share-Based Payment  Transactions Are
Participating  Securities,  to clarify that  instruments  granted in share-based
payment  transactions  can be  participating  securities  prior to the requisite
service  having been  rendered.  A basic  principle of the FSP is that  unvested
share-based  payment awards that contain  nonforfeitable  rights to dividends or
dividend equivalents  (whether paid or unpaid) are participating  securities and
are to be included in the  computation of EPS pursuant to the two-class  method.
The  provisions of this FSP are effective  for financial  statements  issued for
fiscal years beginning after December 15, 2008, and interim periods within those
years.  All  prior-period  EPS  data  presented   (including  interim  financial
statements,  summaries of earnings, and selected financial data) are required to
be adjusted  retrospectively  to conform  with the  provisions  of the FSP.  The
adoption of this FSP is not expected to have a material  effect on the Company's
results of operations or financial position.

      In  December  2008,  the FASB  issued  FASB Staff  Position  (FSP) No. FAS
132(R)-1,  Employers' Disclosures about Postretirement Benefit Plan Assets. This
FSP amends FASB Statement No. 132 (revised 2003),  Employers'  Disclosures about
Pensions and Other Postretirement Benefits, to improve an employer's disclosures
about plan assets of a defined benefit pension or other postretirement plan. The
disclosures  about plan assets required by the FSP are to be provided for fiscal
years ending after  December 15, 2009.  The adoption of this FSP is not expected
to have a material  effect on the  Company's  results of operations or financial
position.

                                       10

<PAGE>

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             Six Months Ended
                                                December 31,                  December 31,
                                        ---------------------------   ---------------------------
                                            2008           2007           2008           2007
                                        ------------   ------------   ------------   ------------
<S>                                     <C>            <C>            <C>            <C>
Weighted average common shares
   outstanding                             3,805,636      3,796,861      3,805,636      3,793,599

Average treasury stock shares             (1,646,365)    (1,535,317)    (1,630,112)    (1,521,072)
                                        ------------   ------------   ------------   ------------
Weighted average common shares
   and common stock equivalents
   used to calculate basic earnings
   per share                               2,159,271      2,261,544      2,175,524      2,272,527

Additional common stock
   equivalents (stock options) used
   to calculate diluted earnings
   per share                                     289            239            148            557
                                        ------------   ------------   ------------   ------------

Weighted average common shares
   and common stock equivalents
   used to calculate diluted earnings
   per share                               2,159,560      2,261,783      2,175,672      2,273,084
                                        ============   ============   ============   ============
</TABLE>

      All options at December 31, 2008 and  December  31, 2007 were  included in
the computation of diluted earnings per share.


                                       11
<PAGE>

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

         In December  2004,  the  Financial  Accounting  Standards  Board (FASB)
issued No. 123R (FAS No. 123R),  Share-Based  Payment which revised FAS No. 123,
Accounting for Stock-Based  Compensation,  and superseded  Accounting Principles
Bulletin (APB) Opinion No. 25, Accounting for Stock Issued to Employees (APB 25)
and related interpretations.  FAS No. 123R requires the grant-date fair value of
all  share-based  payment awards that are expected to vest,  including  employee
share  options  to be  recognized  as  employee  compensation  expense  over the
requisite  service period.  The Company adopted FAS No. 123R on July 1, 2005 and
applied  the  modified  prospective  transition  method.  Under this  transition
method,  the  Company  (1)  did  not  restate  any  prior  periods  and  (2) are
recognizing  compensation  expense for all share-based  payment awards that were
outstanding,  but not yet vested,  as of December 31, 2008,  based upon the same
estimated grant-date fair values and service periods used to prepare FAS No. 123
pro-forma disclosures.

         The  Company's  2008  Stock   Incentive  Plan  (the  Plan),   which  is
shareholder  approved,  permits the grant of share  options to its directors and
employees for up to 152,000 share options.  Option awards are generally  granted
with an exercise  price equal to the market price of the Company's  stock at the
date of  grant:  those  option  awards  generally  vest  based on five  years of
continuous service and have ten year contractual terms.

         During the  periods  ended  December  31,  2008 and 2007,  the  Company
recorded $3 thousand and $0,  respectively,  in compensation  expense related to
our  share-based  compensation  awards.  As of  December  31,  2008,  there  was
approximately $79 thousand of unrecognized compensation cost related to unvested
share-based  compensation  awards  granted in 2008.  That cost is expected to be
recognized over the next five years.

         FAS 123R requires  that the cash flows from the tax benefits  resulting
from  tax  deductions  in  excess  of  the  compensation   cost  recognized  for
stock-based awards (excess tax benefits) be classified as financing cash flows.

         For  purposes of  computing  results,  the Company  estimated  the fair
values of stock options using the Black-Scholes  option-pricing model. The model
requires the use of subjective assumptions that can materially affect fair value
estimates.  The fair value of each option is amortized into compensation expense
on a straight  line basis between the grant date for the option and each vesting
date.  The fair value of each  stock  option  granted  was  estimated  using the
following weighted-average assumptions:

                                                          2008
               Assumptions
               -----------
               Volatility                                 7.73%
               Interest Rates                             3.68%
               Dividend Yields                            3.94%
               Weighted Average Life (in years)           5.00%

         The Company had 87,500 non-vested stock options outstanding at December
31, 2008 and no unvested stock options  outstanding at December 31, 2007. During
the six months ended December 31, 2008 and December 31, 2007, the Company issued
87,500 and 0 options, respectively.

         The weighted  average fair value of each stock option  granted for 2008
was $0.94.  There were no options exercised during the six months ended December
31, 2008 which were granted in 2008.

                                       12
<PAGE>

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               Six Months Ended
                                         December 31,                    December 31,
                                -----------------------------   ------------------------------
                                     2008            2007            2008             2007
                                --------------   ------------   --------------   -------------
                                                    (Dollars in Thousands)
<S>                             <C>     <C>      <C>   <C>      <C>     <C>      <C>    <C>
Net income                              $1,012         $1,048           $1,768          $2,072
Other comprehensive
   income (loss):
   Unrealized gains
     (losses) on available
     for sale securities        $ (13)           $14            $ (52)           $59

     Less:
       Reclassification
         adjustment for gain
         included in net
         income                    --             --               --             (1)
                                -----   ------   ---   ------   -----   ------   ---   -------
Other comprehensive
   gain (loss) before tax                  (13)            14              (52)             58
Income tax expense
   (benefit) related to other
   comprehensive income
   (loss)                                   (4)             5              (18)             20
                                        ------         ------           ------         -------
Other comprehensive gain
   (loss) net of tax                        (9)             9              (34)             38
                                        ------         ------           ------         -------
Comprehensive income                    $1,003         $1,057           $1,734         $ 2,110
                                        ======         ======           ======         =======
</TABLE>

6.    FAIR VALUE MEASUREMENTS (SFAS NO. 157)
      --------------------------------------

      Effective July 1, 2008,  the Company  adopted SFAS No. 157,  which,  among
other things, requires enhanced disclosures about assets and liabilities carried
at fair  value.  SFAS No. 157  establishes  a  hierarchal  disclosure  framework
associated with the level of pricing observability  utilized in measuring assets
and  liabilities  at fair value.  The three broad levels defined by SFAS No. 157
hierarchy are as follows:

Level I:    Quoted prices are available in active  markets for identical  assets
            or liabilities as of the reported date.

Level II:   Pricing inputs are other than quoted prices in active markets, which
            are either  directly or  indirectly  observable  as of the  reported
            date. The nature of these assets and  liabilities  include items for
            which quoted prices are available  but traded less  frequently,  and
            items that are fair valued using other  financial  instruments,  the
            parameters of which can be directly observed.

Level III:  Assets and liabilities that have little to no pricing  observability
            as of the reported date. These items do not have two-way markets and
            are measured using  management's best estimate of fair value,  where
            the inputs into the determination of fair value require  significant
            management judgment or estimation.


                                       13
<PAGE>

      The  following  table  presents  the assets  reported on the  consolidated
statements of financial condition at their fair value as of December 31, 2008 by
level within the fair value  hierarchy.  As required by SFAS No. 157,  financial
assets and  liabilities  are  classified in their  entirety  based on the lowest
level of input that is significant to the fair value measurement.

<TABLE>
<CAPTION>
                                                             At December 31, 2008
                                                   ----------------------------------------
                                                   Level I   Level II   Level III    Total
                                                   -------   --------   ---------   -------
<S>                                                <C>       <C>        <C>         <C>
Assets:

   Investment securities available for sale        $   489   $     --   $      --   $   489

   Mortgage-backed securities available for sale   $    --   $  2,138   $      --   $ 2,138

     Total                                         $   489   $  2,138   $      --   $ 2,627
</TABLE>

                                       14
<PAGE>

ITEM 2.

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2008

FORWARD LOOKING STATEMENTS

      In the  normal  course  of  business,  we,  in an  effort to help keep our
shareholders and the public informed about our operations, may from time to time
issue or make  certain  statements,  either in writing  or  orally,  that are or
contain forward-looking  statements, as that term is defined in the U.S. federal
securities  laws.  Generally,  these  statements  relate  to  business  plans or
strategies, projected or anticipated benefits from acquisitions made by or to be
made by us, projections involving anticipated revenues, earnings,  profitability
or other  aspects of  operating  results  or other  future  developments  in our
affairs or the industry in which we conduct business. Forward-looking statements
may be  identified  by reference to a future  period or periods or by the use of
forward-looking   terminology  such  as  "anticipated,"   "believe,"   "expect,"
"intend," "plan," "estimate" or similar expressions.

      Although we believe  that the  anticipated  results or other  expectations
reflected in our forward-looking statements are based on reasonable assumptions,
we can give no assurance  that those results or  expectations  will be attained.
Forward-looking statements involve risks, uncertainties and assumptions (some of
which are  beyond  our  control),  and as a result  actual  results  may  differ
materially  from those  expressed in  forward-looking  statements.  Factors that
could cause actual results to differ from  forward-looking  statements  include,
but are not  limited to, the  following,  as well as those  discussed  elsewhere
herein:

            o     our  investments in our  businesses and in related  technology
                  could require additional  incremental spending,  and might not
                  produce  expected  deposit  and loan  growth  and  anticipated
                  contributions to our earnings;

            o     general   economic  or  industry   conditions  could  be  less
                  favorable  than  expected,  resulting  in a  deterioration  in
                  credit quality, a change in the allowance for loan losses or a
                  reduced demand for credit or fee-based products and services;

            o     changes in the  interest  rate  environment  could  reduce net
                  interest income and could increase credit losses;

            o     the conditions of the securities  markets could change,  which
                  could  adversely  affect,  among  other  things,  the value or
                  credit quality of our assets,  the  availability  and terms of
                  funding  necessary to meet our liquidity needs and our ability
                  to originate loans and leases;

            o     changes  in  the  extensive  laws,  regulations  and  policies
                  governing bank holding companies and their  subsidiaries could
                  alter our business environment or affect our operations;

            o     the potential need to adapt to industry changes in information
                  technology  systems,  on which we are highly dependent,  could
                  present  operational  issues or  require  significant  capital
                  spending;

            o     competitive   pressures   could   intensify   and  affect  our
                  profitability,  including  as a result of  continued  industry
                  consolidation,   the  increased   availability   of  financial
                  services from non-banks,  technological  developments  such as
                  the internet or bank regulatory reform; and

            o     acts or threats of terrorism  and actions  taken by the United
                  States  or  other  governments  as a  result  of such  acts or
                  threats,  including  possible  military action,  could further
                  adversely  affect  business  and  economic  conditions  in the
                  United States  generally and in our principal  markets,  which
                  could have an adverse effect on our financial  performance and
                  that of our  borrowers  and on the  financial  markets and the
                  price of our common stock.

                                       15
<PAGE>

      You  should  not put undue  reliance  on any  forward-looking  statements.
Forward-looking  statements  speak  only as of the date  they are  made,  and we
undertake no  obligation  to update them in light of new or future events except
to the extent required by federal securities laws.

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,  FDIC-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, 2008.

      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  $444.8  million at December 31, 2008,  as
compared to $423.1  million at June 30, 2008. The $21.7 million or 5.1% increase
in total assets was primarily  comprised of a $15.1 million or 12.5% increase in
investment  securities - held to maturity, a $13.6 million or 145.0% increase in
FDIC  insured  certificates  of  deposit,  a $3.9  million or 56.9%  increase in
Federal Home Loan Bank  ("FHLB")  stock,  and a $1.3 million or 2.2% increase in
net loans  receivable,  which were  partially  offset by a $7.5 million or 93.9%
decrease in  investment  securities - available for sale, a $4.3 million or 2.0%
decrease in  mortgage-backed  securities - held to maturity,  a $269 thousand or
12.7%  decrease in accrued  interest  receivable,  and a $173  thousand or 15.0%
decrease  in  deferred  taxes and  other  assets.  The  increase  in  investment
securities - held to maturity was primarily  attributable  to purchases of $72.1
million of  short-term  investment  grade  commercial  paper,  $30.3  million of
fixed-rate U.S.  Government agency bonds, $5.4 million of investment grade fixed
rate  corporate  bonds,  and $2.0  million  of  investment  grade  floating-rate
corporate  bonds,  which  were  partially  offset  by $47.3  million  of  issuer
redemptions prior to maturity (i.e. calls) of fixed-rate U.S.  Government agency
bonds,  $45.4 million of maturities of short-term  investment  grade  commercial
paper,  and $2.3 million of maturities of investment  grade corporate bonds. The
increase in FDIC insured certificates of deposit was attributable to an increase
of $16.2 million in bank  certificates of deposit which was partially  offset by
$2.6  million  in  maturities  and early  redemptions  of bank  certificates  of
deposit.  The increase in FHLB stock was  attributable  to higher levels of FHLB
borrowings  during the six months ended December 31, 2008,  and associated  FHLB
stock purchase  requirements.  The decrease in investment securities - available
for sale was attributable to $7.5 million of maturities of short-term investment
grade commercial paper, while the decrease in mortgage-backed  securities - held
to maturity  was  attributable  primarily to principal  payments  received.  See
"Asset and Liability Management".

      The Company's total liabilities  increased $22.1 million or 5.7% to $413.1
million as of December  31, 2008 from $391.0  million as of June 30,  2008.  The
$22.1 million increase in total  liabilities was primarily  comprised of a $46.2
million or 57.3% increase in Federal Reserve Bank short-term  borrowings,  which
was partially  offset by a $20.0 million or 100.0% decrease in other  short-term
borrowings,  a 2.8 million or 1.9%  decrease in total savings  deposits,  a $991
thousand or 32.0%  decrease in other  liabilities  and a $223  thousand or 14.5%
decrease in accrued  interest  payable.  The  respective  changes in  short-term
borrowings were primarily due to more  competitive  Federal Reserve Bank ("FRB")
pricing in contrast to the  short-term  repurchase  agreement  and FHLB markets.
Certificates of deposit decreased $5.4 million, savings accounts

                                       16
<PAGE>

decreased  $612  thousand,  and  advance  payments  by  borrowers  for taxes and
insurance decreased $297 thousand,  while demand deposits increased $2.2 million
and money market  accounts  increased  $1.3 million.  The change in money market
accounts and  certificates  of deposit may be in response to lower market yields
on certificates of deposit and increased liquidity  preferences by depositors in
response to unsettled financial markets. Management believes that the changes in
savings  accounts and advance payments by borrowers for taxes and insurance were
primarily  attributable  to seasonal  payments of county,  local and school real
estate  taxes,  and  transactional  needs.  The change in other  liabilities  is
primarily  attributable to decreases in deferred director  compensation accounts
and clearing balances due to the Federal Reserve, which were partially offset by
increases  in accrued  income  taxes  payable and accrued  contributions  to the
Employee Stock Ownership Plan.

      Total  stockholders'  equity  decreased  $475  thousand  or 1.5% to  $31.7
million as of December 31, 2008, from approximately $32.1 million as of June 30,
2008.  Capital  expenditures for the Company's stock repurchase program and cash
dividends totaled $1.5 million and $697 thousand,  respectively, and accumulated
other comprehensive  income decreased $34 thousand,  which were partially offset
by net income of $1.8 million for the six months ended  December 31, 2008.  Book
value per share increased to $14.86 at December 31, 2008 from $14.44 at June 30,
2008.

RESULTS OF OPERATIONS

      General.  WVS reported  net income of $1.0  million or $0.47  earnings per
share (basic and  diluted)  and $1.8 million or $0.81  earnings per share (basic
and diluted) for the three and six months ended December 31, 2008, respectively.
Net income  decreased  by $36 thousand or 3.4% and earnings per share (basic and
diluted)  increased  $0.01 or 2.2% for the three months ended December 31, 2008,
when  compared  to the same  period in 2007.  The  decrease  in net  income  was
primarily  attributable to a $38 thousand increase in income tax expense,  a $16
thousand  increase in provisions for loan losses,  and a $7 thousand increase in
non-interest expense,  which were partially offset by a $14 thousand increase in
net interest income and an $11 thousand increase in non-interest income. For the
six months ended December 31, 2008, net income  decreased $304 thousand or 14.7%
when  compared  to the same  period in 2007.  The  decrease  in net  income  was
primarily attributable to a $441 thousand decrease in net interest income, a $40
thousand  increase  in  non-interest  expense,  and a $27  thousand  increase in
provisions  for loan  losses,  which were  partially  offset by a $182  thousand
decrease  in income tax  expense and a $22  thousand  increase  in  non-interest
income.

      Net Interest  Income.  The Company's net interest income  increased by $14
thousand  or 0.6% and  decreased  $441  thousand  or 9.5% for the  three and six
months ended December 31, 2008, respectively,  when compared to the same periods
in 2007.  For the three  months  ended  December  31,  2008,  approximately  $63
thousand  of the  increase  in net  interest  income  can be  attributed  to the
favorable  overall  impact of declining  market  interest rates on the Company's
financial assets and  liabilities,  which was partially offset by a $23 thousand
decrease in net interest income  attributable  to lower overall  balances in the
Company's  financial  assets and liabilities when compared to the same period in
2007. For the six months ended December 31, 2008, approximately $424 thousand of
the decrease in net interest  income can primarily be attributed to decreases in
average balances of the Company's financial assets of approximately $7.0 million
and financial  liabilities  of  approximately  $7.5 million when compared to the
same period in 2007.

      During the six months ended  December  31,  2008,  the Federal Open Market
Committee  (FOMC) reduced its targeted federal funds level from 2.00% to a range
of 0.00% to 0.25%. See also "Asset and Liability Management."

      Interest  Income.  Interest on  investment  securities  decreased  by $1.2
million or 39.9% and $2.9  million  or 45.1% for the three and six months  ended
December 31, 2008,  when compared to the same periods in 2007. The decreases for
the three and six months ended December 31, 2008, were primarily attributable to
a $1.4 million and $3.0 million  decrease,  respectively,  in interest income on
callable U.S.  Government Agency bonds (principally due to issuer redemptions of
securities prior to scheduled maturities). The changes in interest income on the
various  segments of the  investment  portfolio  are primarily  attributable  to
changes in the average balances of the respective segments.

                                       17
<PAGE>

      Interest on  mortgage-backed  securities  decreased $291 thousand or 12.7%
and $249 thousand or 5.9% for the three and six months ended  December 31, 2008,
respectively,  when compared to the same periods in 2007.  The decreases for the
three and six months ended  December  31, 2008 were  primarily  attributable  to
decreases  of 203  basis  points  and 230  basis  points,  respectively,  in the
weighted  average  yield  earned  on  U.S.   government   agency   floating-rate
mortgage-backed  securities for the three and six months, decreases of 267 basis
points and 273 basis points, respectively,  in the weighted-average yield earned
on private label mortgage-backed  securities for the three and six months, which
were  partially  offset by $59.0  million  and $75.8  million  increases  in the
average   balance   outstanding   of  U.S.   Government   floating-rate   agency
mortgage-backed securities for the three and six months ended December 31, 2008,
respectively,  when  compared to the same  periods in 2007.  The decrease in the
weighted average yield earned on mortgage-backed  securities was consistent with
lower  short-term  market  interest  rates for the three  and six  months  ended
December 31, 2008,  when  compared to the same periods in 2007.  The increase in
the average balances of U.S. government agency mortgage-backed securities during
the three and six months ended December 31, 2008 was primarily  attributable  to
purchases of floating rate U.S.  government  agency  mortgage-backed  securities
during the period. All  mortgage-backed  securities  purchased during the period
were guaranteed by agencies of the U.S. government.

      Interest on FDIC  insured  bank  certificates  of deposit  increased  $153
thousand  or 100.0%  and $239  thousand  or 100.0%  for the three and six months
ended December 31, 2008,  when compared to the same periods in 2007. The Company
continued  to purchase  FDIC  insured  certificates  of deposit due to favorable
funding spreads and lower levels of suitable other investments due to distressed
market  conditions.  The certificates  have original maturity terms from five to
twenty-four months.

      Interest on net loans  receivable  decreased $97 thousand or 8.8% and $194
thousand or 8.7% for the three and six months  ended  December  31,  2008,  when
compared to the same periods in 2007. The decreases for the three and six months
ended  December 31, 2008 were primarily  attributable  to decreases of 50 and 43
basis points,  respectively,  in the weighted  average yield earned on net loans
receivable for the three and six months ended  December 31, 2008,  when compared
to the same periods in 2007, and a $1.3 million and $1.9 million decrease in the
average balance of net loans receivable  outstanding,  when compared to the same
periods in 2007. The decrease in the weighted  average yield earned on net loans
receivable  for the three and six months ended  December 31, 2008, was primarily
attributable  to rate  reductions  on the  adjustable  rate  portion of the loan
portfolio  due to lower market  rates on which the  adjustments  are based.  The
decrease in the average loan balances  outstanding  for the three and six months
ended December 31, 2008 were attributable to low levels of consumer  confidence,
rising levels of unemployment,  continued and deepening weakness in the economy,
an excess  supply of existing  homes  available  for sale,  and lower  levels of
housing starts.  The Company continues to offer  competitively  priced mortgages
through its  correspondent  lending program,  however,  consumer demand has been
very weak.

      Dividends on FHLB stock  decreased  $80 thousand or 63.0% and $86 thousand
or 38.6% for the three and six months ended December 31, 2008,  when compared to
the same  periods in 2007.  The  decreases  for the three and six  months  ended
December  31,  2008  were  attributable  to 363 and 207 basis  point  decreases,
respectively,  in the average  yield  earned on FHLB stock when  compared to the
same periods in 2007,  which were  partially  offset by increases in the average
balance of FHLB stock held for the three and six months ended  December 31, 2008
of $1.3  million  and $441  thousand,  respectively,  when  compared to the same
periods in 2007.  The increases in average  balances of FHLB stock held resulted
from increased  levels of FHLB  borrowings  and  associated  FHLB stock purchase
requirements  during the  periods.  In  December  2008,  the FHLB of  Pittsburgh
announced  that it was  suspending  the payment of dividends and  redemptions of
excess capital stock from members. The FHLB's stated purpose of these actions is
to build retained earnings to ensure adequate  regulatory  capital.  The FHLB of
Pittsburgh  anticipates providing further information to its members, along with
its December 31, 2008 quarterly earnings, sometime in February 2009.

      Interest Expense.  Interest paid on other short-term  borrowings decreased
$705  thousand or 99.6% and $1.1 million or 79.3%,  respectively,  for the three
and six months  ended  December  31, 2008 when  compared to the same  periods in
2007.  The decrease for the three months ended  December 31, 2008 was  primarily
attributable  to a 414 basis point  decrease  in rates paid on other  short-term
borrowings and a $55.8

                                       18
<PAGE>

million decrease in average balances of other short-term  borrowings  during the
period when compared to the same period in 2007. The decrease for the six months
ended  December  31,  2008,  was  primarily  attributable  to a 297 basis  point
decrease  in  rates  paid on other  short-term  borrowings  and a $28.6  million
decrease in average  balances of other short-term  borrowings  during the period
when  compared to the same period in 2007.  The  decrease in rates paid  reflect
lower short-term market interest rates while the decrease in average balances of
other  short-term  borrowings  is  attributable  to  more  favorable  short-term
borrowing rates offered by the Federal Reserve Bank.

      Interest expense on deposits and escrows  decreased $463 thousand or 43.8%
and $895 thousand or 40.8% for the three and six months ended December 31, 2008,
when  compared to the same period in 2007.  The decrease in interest  expense on
deposits for the three months ended December 31, 2008 was primarily attributable
to a 164  basis  point  decrease  in the  weighted  average  rate  paid  on time
deposits,  a 234 basis point decrease in the weighted average rate paid on money
market  accounts,  and an $8.0 million  decrease in the average  balance of time
deposits,  which were partially offset by a $3.3 million increase in the average
balance of money market accounts,  when compared to the same period in 2007. The
decrease for the six months ended December 31, 2008, was primarily  attributable
to a 150  basis  point  decrease  in the  weighted  average  rate  paid  on time
deposits,  a 222 basis point decrease in the weighted average rate paid on money
market  accounts,  and a $9.3  million  decrease in the average  balance of time
deposits,  which were partially offset by a $3.7 million increase in the average
balance of money market accounts,  when compared to the same period in 2007. The
decrease in average yields of time deposits and money market  accounts  reflects
lower market  rates for the three and six months  ended  December 31, 2008 while
the change in average  balances for time deposits and money market  accounts may
be in response to increased  liquidity  preferences by depositors in response to
unsettled financial markets.

      Interest paid on FHLB advances  decreased  $411 thousand or 17.1% and $822
thousand or 17.3% for the three and six months ended  December  31,  2008,  when
compared to the same  periods in 2007.  The  decrease for the three months ended
December 31, 2008 was  attributable  to a 390 basis point decrease in rates paid
on FHLB  short-term  advances,  which was  partially  offset by a $11.3  million
increase in the average balance of FHLB short-term advances when compared to the
same period in 2007.  The decrease  for the six months ended  December 31, 2008,
was  primarily  attributable  to a 385 basis  point  decrease  in rates  paid on
short-term  FHLB advances and a $5.9 million  decrease in the average balance of
short-term FHLB advances, when compared to the same period in 2007. The decrease
in rates paid reflect lower short-term market interest rates.

      Interest paid on FRB short-term  borrowings increased $65 thousand or 100%
and $150 thousand or 100% for the three and six months ended  December 31, 2008,
when  compared to the same  periods in 2007.  The increase for the three and six
months ended  December 31, 2008 was  attributable  to increases of $48.4 million
and $31.7  million,  respectively,  in the average  balances  of FRB  short-term
borrowings.  The increase in average  balances of FRB  short-term  borrowings is
attributable to more favorable short-term borrowing rates offered by the Federal
Reserve Bank, when compared to other short-term funding sources.

      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.

      The Company  recorded  provisions  for loan losses of $27 thousand and $21
thousand  for the three and six months ended  December  31, 2008,  respectively,
compared to a provision  for loan losses of $11 thousand and a recovery for loan
losses of $6  thousand  for the same  periods in 2007.  The  increases  for both
periods in fiscal 2009 can be  primarily  attributable  to higher  average  loan
balances.  At December 31, 2008, the Company's  total  allowance for loan losses
amounted to $977  thousand or 1.7% of the  Company's  total loan  portfolio,  as
compared to $956 thousand or 1.7% at June 30, 2008.

      Non-Interest Income. Non-interest income increased by $11 thousand or 7.6%
and $22 thousand or 7.3% for the three and six months  ended  December 31, 2008,
respectively, when compared to the same

                                       19
<PAGE>

periods in 2007. The increase was primarily  attributable to increased levels of
ATM and debit card fee income.

      Non-Interest  Expense.  Non-interest expense increased $7 thousand or 0.7%
and $40 thousand or 2.1% for the three and six months  ended  December 31, 2008,
respectively,  when  compared to the same periods in 2007.  The increase for the
three  months  ended  December 31, 2008 was  principally  attributable  to a $44
thousand  increase in employee  related costs,  which were partially offset by a
decrease in charitable  contributions  eligible for PA tax credits when compared
to the same period in 2007.  The increase for the six months ended  December 31,
2008 was primarily  attributable  to increases in employee  related costs,  when
compared to the same period in 2007.

      Income Tax Expense.  Income tax expense increased $38 thousand or 8.2% for
the three months ended  December 31, 2008,  and decreased $182 thousand or 18.7%
for the six months ended December 31, 2008, when compared to the same periods in
2007.  The increase for the three months ended  December 31, 2008 was  primarily
due to a decrease  in the  Company's  deferred  tax assets  attributable  to the
deferred director compensation plan, while the decrease for the six months ended
December 31, 2008 was attributable to lower levels of taxable income.

LIQUIDITY AND CAPITAL RESOURCES

      Net cash provided by operating activities totaled $969 thousand during the
six months ended  December 31, 2008.  Net cash provided by operating  activities
was primarily  comprised of $1.8 million of net income, a $357 thousand increase
in accrued and deferred taxes, and a $269 thousand  decrease in accrued interest
receivable,  which were partially offset by a $805 thousand decrease in deferred
director  compensation  accounts,  $262  thousand in  accretion  of discounts on
commercial paper, $242 thousand in accretion of discounts, premiums and deferred
loan fees, and a $223 thousand decrease in accrued interest payable.

      Funds used for investing  activities  totaled $21.7 million during the six
months  ended  December  31,  2008.  Primary uses of funds during the six months
ended  December 31, 2008,  included  purchases  of  investments,  FHLB stock and
certificates  of  deposit  totaling  $109.7  million,  $13.2  million  and $16.3
million,  respectively,  and a $1.3  million  increase in net loans  receivable,
which  were  partially   offset  by  maturities  and  repayments  of  investment
securities,  mortgage-backed  securities, FHLB stock and certificates of deposit
totaling  $102.5  million,   $4.5  million,  $9.3  million,  and  $2.6  million,
respectively. Short-term investment grade commercial paper purchases included in
investment  securities  purchases  totaled  $72.1  million;  and  maturities  of
short-term  commercial paper totaled $52.9 million.  Fixed rate U.S.  Government
agency bonds  purchased  during the period  totaled $30.3  million,  while early
redemptions  by issuers of  fixed-rate  callable  U.S.  Government  agency bonds
during the six months totaled $47.3 million.

      Funds provided by financing  activities  totaled $20.7 million for the six
months ended  December 31, 2008.  The primary  sources  included a $46.2 million
increase in FRB  short-term  borrowings  which was  partially  offset by a $20.0
million  decrease in other  short-term  borrowings,  a $3.2 million  decrease in
deposits,  $1.5 million in treasury  stock  purchases  and $697 thousand in cash
dividends  paid on the Company's  common stock.  The increase in FRB  short-term
borrowings reflects lower short-term rates available through the FRB compared to
other short-term  funding  sources.  The $3.2 million decrease in total deposits
consisted of a $5.4 million decrease in time deposits,  a $612 thousand decrease
in passbook  accounts,  and a $297 decrease in mortgage escrow  accounts,  which
were partially  offset by a $2.2 million  increase in demand deposits and a $1.3
million increase in money market deposits.  The decrease in time deposits may be
attributable  to  customer  disintermediation  to other  financial  institutions
paying above market interest rates on CDs and  approximately $1 million of state
and  political  subdivision  time  deposits  not renewed by the Bank due to rate
considerations.  The increase in money market  balances may be  attributable  to
lower  market  yields  on  certificates  of  deposits  and  increased  liquidity
preferences  by  depositors  in response to  unsettled  financial  markets.  The
decreases in passbook and escrow  accounts were due primarily to the payments of
local property taxes by and for customers. Management believes that it currently
is maintaining  adequate  liquidity and continues to match funding  sources with
lending and investment opportunities.

                                       20
<PAGE>

      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 FRB and other borrowings. At December 31, 2008, total approved loan
commitments  outstanding  amounted to approximately  $413 thousand.  At the same
date,  commitments under unused lines of credit amounted to $4.7 million and the
unadvanced   portion  of   construction   loans   approximated   $11.5  million.
Certificates of deposit  scheduled to mature in one year or less at December 31,
2008 totaled $44.0 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 FRB and other  borrowings,  to provide the cash utilized in
investing  activities.  Management  believes  that  the  Company  currently  has
adequate liquidity available to respond to liquidity demands.

      On January 27, 2009,  the  Company's  Board of  Directors  declared a cash
dividend of $0.16 per share payable February 19, 2009, to shareholders of record
at the  close of  business  on  February  9,  2009.  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.

      On January 28,  2009,  the Company  announced  its Tenth Stock  Repurchase
Program.  The Company's Tenth Stock Repurchase Program will total 106,000 shares
and will begin upon completion of its Ninth Stock Repurchase Program.

      West  View  Savings  Bank  has  elected  to   participate  in  the  FDIC's
Transaction  Account  Guarantee  Program.  This program provides  unlimited FDIC
deposit insurance on non-interest  bearing bank checking accounts.  Neither West
View  Savings  Bank,  or the Company,  have  applied for funding  under the U.S.
Treasury's Troubled Asset Relief Program.

      As of December 31,  2008,  WVS  Financial  Corp.  exceeded all  regulatory
capital requirements and maintained Tier I and total risk-based capital equal to
$31.6  million  or 18.3% and $32.6  million  or  18.9%,  respectively,  of total
risk-weighted  assets,  and Tier I leverage capital of $31.6 million or 7.39% 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  December  31,  2008  totaled
approximately  $1.5  million or 0.3% of total assets as compared to $1.6 million
or 0.4% of total assets at June 30, 2008.  Nonperforming  assets at December 31,
2008 consisted of: one commercial real estate loan totaling $972 thousand,  five
single-family real estate loans totaling $523 thousand,  one home equity line of
credit  totaling  $19  thousand  and one  secured  line of credit  totaling  $17
thousand. These loans are in various stages of collection activity.

      The $59 thousand  decrease in  nonperforming  assets during the six months
ended  December  31,  2008  was  attributable  to the  payoff  in full of a $356
thousand  non-performing  speculative  construction  loan,  which was  partially
offset by the addition to  non-accrual  status of one single  family real estate
loan  totaling  $293  thousand  and one home equity line of credit  totaling $19
thousand.

                                       21
<PAGE>

      At December  31, 2008,  the Company had one  previously  restructured  and
non-performing  commercial  real estate loan to a retirement  village located in
the North Hills totaling $972 thousand. The Savings Bank's outstanding principal
balance  totaled  $2.0  million  at June 30,  2003.  During  the  quarter  ended
September 30, 2003,  the Savings Bank  redeemed  $388 thousand of  participating
interests.  During the quarter  ended  December 31, 2003,  the Bank sold a forty
percent participating interest to another financial institution at par resulting
in proceeds  totaling $979 thousand.  The Savings Bank's  outstanding  principal
balance  totaled  $972  thousand at June 30,  2008.  The  Company  had  recorded
interest  received on this credit on a cost recovery  basis until  September 30,
2003 when it began to  recognize  interest  income.  During the six months ended
December 31, 2008 the Company  received and  recognized $24 thousand of interest
income. The project is experiencing lower than desired levels of occupancy,  and
the borrower is working to increase occupancy. The Company is in negotiations to
work-out this credit,  however,  at this time,  the Company  cannot  predict the
final form or outcome of the work-out negotiations.

      At December 31, 2008,  the Company had one  previously  restructured  loan
secured  by   undeveloped   land  totaling  $314  thousand  and  one  previously
restructured  unsecured loan totaling $15 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,  the Company had  recorded  interest  payments
received  on a cost  recovery  basis  until June 30,  2006 and is now  recording
interest income.

      During the six months ended December 31, 2008,  approximately $17 thousand
of  interest  income  would  have  been  recorded  on loans  accounted  for on a
non-accrual  basis 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 six months  ended  December  31,  2008.  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.

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.

                                       22
<PAGE>

      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 three months ending December 31, 2008,  liquidity conditions in
the short-term  credit (e.g.  LIBOR,  repurchase  agreement,  commercial  paper)
markets continued to significantly  deteriorate.  The continued deterioration of
liquidity in the short-term credit markets can be traced to: losses at financial
institutions,  particularly  large money center and  investment  banks, a marked
slow-down in the U.S.  economy and a marked "flight to quality" into  short-term
U.S.  Treasurys.  The Company  noticed several  anomalies:  1) low, and at times
negative,  short-term U.S.  treasury yields; 2) a diversion between a decreasing
targeted  U.S.  Federal  Funds  rate  and  short-term  LIBOR  rates;  and  3)  a
significant increase in market rates for short-term commercial paper. During the
quarter ended  December 31, 2008, the Company  capitalized  on these  short-term
anomalies  by: 1) increasing  purchases of bank  certificates  of deposit,  with
maturities  generally  within one year,  to lock in  attractive  fixed  rates of
return;  and 2) increasing  purchases of investment  grade  commercial  paper to
capitalize  on calendar  year-end  pricing  pressures.  Combined,  these factors
contributed to a higher than  anticipated  level of net interest  income for the
quarter ended December 31, 2008.  Should these factors  reverse,  in whole or in
part,  Company net interest  income could decline.  Management used a variety of
wholesale  short-term  borrowing  sources  for  funding,   including  repurchase
agreements, FHLB advances, and various FRB programs.

      The table below shows the targeted  federal  funds rate and the  benchmark
two and ten year treasury yields at December 31, 2006,  March 31, 2007, June 30,
2007,  September  30, 2007,  December 31, 2007,  March 31, 2008,  June 30, 2008,
September 30, 2008,  and December 31, 2008.  The difference in yields on the two
and ten year  Treasury's  is often used to determine  the steepness of the yield
curve and to assess the term premium of market interest rates.

<TABLE>
<CAPTION>
                                                    Yield on:
                                               -------------------
                                                Two (2)   Ten (10)
                            Targeted Federal     Year       Year
                                 Funds         Treasury   Treasury   Shape of Yield Curve
                            ----------------   --------   --------   --------------------
<S>                         <C>                <C>        <C>        <C>
December 31, 2006                 5.25%          4.82%      4.71%          Inverted
March 31, 2007                    5.25%          4.58%      4.65%      Slightly Positive
June 30, 2007                     5.25%          4.87%      5.03%      Slightly Positive
September 30, 2007                4.75%          3.97%      4.59%     Moderately Positive
December 31, 2007                 4.25%          3.05%      4.04%          Positive
March 31, 2008                    2.25%          1.62%      3.45%          Positive
June 30, 2008                     2.00%          2.63%      3.99%          Positive
September 30, 2008                2.00%          2.00%      3.85%          Positive
December 31, 2008             0.00% - 0.25%      0.76%      2.25%          Positive
</TABLE>

      These changes in intermediate  and long-term  market  interest rates,  the
changing  slope of the  Treasury  yield  curve,  and  continued  high  levels of
interest rate  volatility  have  impacted  prepayments  on 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
six months ended  December 31, 2008,  totaled $9.7 million,  $102.5  million and
$4.5 million, respectively.  Included in the Company's investment repayments are
commercial paper maturities totaling $52.9 million, and issuer redemptions of

                                       23
<PAGE>

fixed rate U.S.  Government  agency bonds of $47.3 million.  While the Company's
short-term borrowings are highly responsive to changes in market interest rates,
deposit rates typically occur on a lagged basis.

      The term premium of market  interest  rates is often used to determine the
relative  merits  of taking an  additional  interest  rate risk and to gauge the
market's  expectation  of future  interest  rates.  Due to  changes  in the term
premium  of market  interest  rates  experienced  during  the six  months  ended
December 31, 2008 the Company adjusted its  asset/liability mix in several ways.
Intermediate  term callable U.S.  Government  Agency  securities  were purchased
early on during the six months  ended  December 31,  2008.  As financial  market
conditions  deteriorated,  the Company  purchased  short-term  investment  grade
commercial  paper. With respect to short-term  borrowings,  the Company replaced
broker repurchase agreements ("other short-term borrowings") with FRB short-term
borrowings due to lower borrowing costs at the FRB.

      Due to low levels of consumer  confidence,  rising levels of unemployment,
continued weakness in the economy,  an excess supply of existing homes available
for sale,  and lower  levels of housing  starts,  the demand for  mortgages  has
fallen  dramatically.  The  Company  continues  to  offer  competitively  priced
mortgages through its correspondent  lending program,  however,  consumer demand
has been very weak. 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.  We expect that the housing  market likely will continue to be weak
through  calendar  year 2009.  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.

      The Company purchased short-term investment grade commercial paper to earn
a favorable  financing  spread and to provide  higher levels of liquidity due to
turmoil in the world financial  markets.  The Company also continued to purchase
intermediate  term fixed rate  callable U. S.  Government  Agency bonds and FDIC
insured  bank  certificates  of  deposit in order to earn a spread  against  the
Company's  various  deposits and borrowings  while  limiting  interest rate risk
within the  portfolio.  Each of the  aforementioned  strategies  also  helped to
better match the  interest-rate  and liquidity risks associated with the Savings
Bank's  customers'  liquidity  preference for shorter term money market and time
deposit products.

      During  the six months  ended  December  31,  2008,  principal  investment
purchases were comprised of:  callable fixed rate U.S.  Government  agency bonds
with initial  lock-out  periods as follows:  0 - 3 months - $12.0 million with a
weighted  average yield to call of  approximately  9.19% and a weighted  average
yield to  maturity  of 6.03%;  4 - 12  months - $15.6  million  with a  weighted
average yield to call of approximately  4.50%; and over 36 months - $2.6 million
with a  weighted  average  yield  to call  of  approximately  6.09%;  short-term
investment  grade commercial paper - $72.1 million with a weighted average yield
of 5.42%;  investment  grade fixed rate  corporate  bonds - $5.4  million with a
weighted average yield of 6.14%; and investment  grade  floating-rate  corporate
bonds - $2.0 million with a weighted  average initial rate of 3.19%. The Company
also purchased $16.2 million of FDIC bank insured certificates of deposit with a
weighted average yield of 3.97%.  Major investment  proceeds received during the
six months ended  December  31, 2008 were:  callable  government  agency bonds -
$47.3 million with a weighted average yield of approximately  5.91%;  short-term
investment  grade commercial paper - $52.9 million with a weighted average yield
of  approximately  5.18%;   mortgage-backed   securities  -  $4.5  million;  and
investment grade corporate bonds - $2.3 million with a weighted average yield of
4.39%.  The Company also had $2.6 million in FDIC insured bank  certificates  of
deposit  mature or be redeemed with a weighted  average  yield of  approximately
3.68%.

            As  of  December 31, 2008,  the  implementation  of  these asset and
liability management initiatives resulted in the following:

   1) $209.4  million or 99.0% 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) $76.1 million or 55.9% of the Company's investment portfolio was comprised
      of fixed-rate  callable U.S. Government Agency bonds which are callable as
      follows: 3 months or less - $31.8 million; 3 - 6 months - $23.0 million; 6
      - 12 months - $12.8 million; and 1 - 3 years - $8.5 million; These

                                       24
<PAGE>

      bonds may or may not actually be redeemed prior to maturity (i.e.  called)
      depending upon the level of market interest rates at their respective call
      dates.

   3) $26.9 million or 19.8% of the Company's investment portfolio was comprised
      of investment grade commercial paper with maturities of less than 31 days.

   4) $18.1 million or 13.3% of the Company's  investment portfolio consisted of
      investment  grade fixed rate corporate bonds with  maturities  between one
      and nine months;

   5) $6.0 million or 4.4% of the Company's  investment  portfolio  consisted of
      investment  grade floating rate corporate  bonds which will reprice within
      three months and will mature within five to eight months;

   6) $23.0  million or 5.2% of the  Company's  total  assets  consisted of FDIC
      insured bank  certificates  of deposit with remaining  maturities  ranging
      from one to eighteen months;

   7) An aggregate of $32.2 million or 55.8% of the Company's net loan portfolio
      had adjustable interest rates or maturities of less than 12 months; and

   8) The maturity  distribution  of the Company's  borrowings is as follows:  3
      months or less - $132.3  million or 50.4%; 1 - 3 years - $112.6 million or
      42.9%; and over 5 years - $17.5 million or 6.7%.

      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.

      As part of its asset/liability management strategy, the Company maintained
an asset sensitive financial position. An asset sensitive financial position may
benefit  earnings  during a period of rising  interest rates and reduce earnings
during a period of declining interest rates.

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

<TABLE>
<CAPTION>
                                                                     June 30,
                                              December 31,   --------------------------
                                                 2008           2008            2007
                                              -----------    -----------    -----------
                                                        (Dollars in Thousands)
<S>                                         <C>                   <C>                <C>

Interest-earning assets maturing or
   repricing within one year                  $   334,984    $   377,916    $   206,136
Interest-bearing liabilities maturing or
   repricing within one year                      227,591        207,133        187,494
                                              -----------    -----------    -----------

Interest sensitivity gap                      $   107,393    $   170,783    $    18,642
                                              ===========    ===========    ===========
Interest sensitivity gap as a percentage of
   total assets                                     24.15%         40.36%          4.57%
Ratio of assets to liabilities
   maturing or repricing within one year           147.19%        182.45%        109.94%

</TABLE>

      During the six months ended December 31, 2008, the Company managed its one
year interest  sensitivity gap by: (1) emphasizing  loans with  shorter-terms or
repricing  frequencies;  (2) investing in short-term investment grade commercial
paper;  (3) investing in short-term FDIC insured bank  certificates of deposits;
and, (4) adjusting its investment  portfolio to include  investment  grade fixed
and floating rate corporate bonds.

                                       25
<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
December  31,  2008.  The table  estimates  the impact of an upward or  downward
change in market interest rates of 100 and 200 basis points.

<TABLE>
<CAPTION>
                                                 Cumulative Stressed Repricing Gap
                                                 ---------------------------------

                     Month 3       Month 6      Month 12      Month 24      Month 36      Month 60        Long Term
                     -------       -------      --------      --------      --------      --------        ---------
<S>                  <C>            <C>         <C>             <C>          <C>             <C>            <C>
                                                         (Dollars in Thousands)
Base Case Up 200 bp
-------------------
Cummulative
   Gap ($'s)         $99,736        $95,128     $100,625        $11,825      $(18,621)       $8,844         $31,790
% of Total
  Assets                22.4%          21.4%        22.6%           2.7%         -4.2%          2.0%            7.1%
Base Case Up 100 bp
-------------------
Cummulative
   Gap ($'s)        $100,260        $96,111     $102,139        $13,778      $(16,662)      $10,875         $31,790
% of Total
  Assets                22.5%          21.6%        23.0%           3.1%         -3.7%          2.4%            7.1%
Base Case No Change
-------------------
Cummulative
   Gap ($'s)        $102,184       $100,333     $107,393        $23,266       $(6,940)      $19,313         $31,790
% of Total
  Assets                23.0%          22.6%        24.1%           5.2%         -1.6%          4.3%            7.1%
Base Case Down 100 bp
---------------------
Cummulative
   Gap ($'s)        $134,613       $156,221     $176,705        $97,066       $69,344       $63,836         $31,790
% of Total
  Assets                30.3%          35.1%        39.7%          21.8%         15.6%         14.4%            7.1%
Base Case Down 200 bp
---------------------
Cummulative
   Gap ($'s)        $134,631       $156,254     $176,762        $97,142       $69,413       $63,844         $31,790
% of Total
  Assets                30.3%          35.1%        39.7%          21.8%         15.6%         14.4%            7.1%

</TABLE>

      The Company  utilizes 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.

                                       26
<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 December 31, 2008.  This  analysis was done
assuming  that the  interest-earning  assets  will  average  approximately  $440
million over a projected  twelve month period for the estimated impact on change
in net interest  income,  return on average equity and return on average assets.
The estimated  changes in market value of equity were  calculated  using balance
sheet levels at December 31, 2008.

           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     -37.2%     -39.4%                25.9%      52.1%

   Return on average equity           0.97%      0.76%     4.66%      7.12%      9.55%

   Return on average assets           0.07%      0.06%     0.33%      0.51%      0.69%

   Market value of equity (in
     thousands)                    $(4,089)     $(808)   $1,238     $6,273     $8,433
</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 December 31,
2008.

                          Anticipated Transactions
            --------------------------------------------------------
                                            (Dollars in Thousands)
            Undisbursed construction and
               land development loans
                 Fixed rate                               $   5,803
                                                               6.55%

                 Adjustable rate                          $   5,732
                                                               4.85%

            Undisbursed lines of credit
                 Adjustable rate                          $   4,687
                                                               5.54%

            Loan origination commitments
                 Fixed rate                               $     413
                                                               7.38%

            Letters of credit
                 Adjustable rate                          $     571
                                                               4.25%
                                                          ---------
                                                          $  17,206
                                                          =========

                                       27
<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 December 31, 2008, the Savings Bank had five performance standby
letters of credit  outstanding  totaling  approximately  $284  thousand  and two
financial letters of credit totaling $287 thousand.  All performance  letters of
credit are secured by developed  property while the financial  letters of credit
are secured by certificates of deposit. All of the letters of credit will mature
within  twelve  months.  In the event that the  obligor is unable to perform its
obligations  as  specified in the  applicable  letter of credit  agreement,  the
Savings Bank would be obligated to disburse funds up to the amount  specified in
the letter of credit agreement.  The Savings Bank maintains adequate  collateral
that could be liquidated to fund these contingent obligations.

ITEM 4.  CONTROLS AND PROCEDURES

      Not applicable.

ITEM 4T. CONTROLS AND PROCEDURES

      (a)   Management of the Company is responsible for establishing and
            maintaining adequate internal control over financial reporting (as
            defined in Rules 13a - 15(f) and 15d - 15(f) under the Securities
            Exchange Act of 1934).

            Management assessed the effectiveness of the Company's internal
            control over financial reporting as of December 31, 2008. In making
            this assessment, management used the criteria set forth by the
            Committee of Sponsoring Organizations of the Treadway Commission
            (COSO) in Internal Control - Integrated Framework.

            Based on this assessment, management believes that, as of December
            31, 2008, the Company's internal control over financial reporting
            was effective.

      (b)   No change in our  internal  control  over  financial  reporting  (as
            defined  in Rules  13a-15(f)  and  15d-15(f)  under  the  Securities
            Exchange Act of 1934) occurred during the first six months of fiscal
            2009  that has  materially  affected,  or is  reasonably  likely  to
            materially affect, our internal control over financial reporting.

                                       28
<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 1A. Risk Factors
         ------------

      The following risk factors are added to the risk factors  included in Item
1A of the  Company's  Annual  Report on Form 10-K for the fiscal year ended June
30, 2008.

Our deposit insurance premium could be substantially  higher in the future which
would have an adverse effect on our future earnings.

      Under the Federal Deposit  Insurance Act, the FDIC,  absent  extraordinary
circumstances,  must  establish  and  implement  a plan to restore  the  deposit
insurance reserve ratio to 1.15% of insured  deposits,  over a five-year period,
at any time that the reserve ratio falls below 1.15%.  The recent  failures of a
large  financial   institution  and  several  smaller  ones  have  significantly
increased the Deposit  Insurance Fund's loss provisions,  resulting in a decline
in the reserve  ratio to 1.01% as of June 30,  2008,  18 basis  points below the
reserve  ratio as of March 31,  2008.  The FDIC expects a higher rate of insured
institution  failures  in the next few years,  which may  result in a  continued
decline in the reserve ratio.

      On October 7, 2008,  the FDIC released a five-year  recapitalization  plan
and a proposal to raise premiums to recapitalize the fund. In order to implement
the restoration plan, the FDIC proposed to change both its risk-based assessment
system and its base assessment  rates.  Assessment rates would increase by seven
basis  points  across the range of risk  weightings.  Changes to the  risk-based
assessment system would include  increasing  premiums for institutions that rely
on excessive amounts of brokered deposits, increasing premiums for excessive use
of secured liabilities, and lowering premiums for smaller institutions with very
high capital levels.

The actions of the U.S.  Government for the purpose of stabilizing the financial
markets,  or market  response to those  actions,  may not  achieve the  intended
effect, and our results of operations could be adversely effected.

      In response  to the  financial  issues  affecting  the banking  system and
financial  markets and ongoing  concern  threats to  investment  banks and other
financial  institutions,  the  U.S.  Congress  recently  enacted  the  Emergency
Economic  Stabilization  Act of  2008  ("EESA").  The  EESA  provides  the  U.S.
Secretary of the  Treasury  with the  authority  to  establish a Troubled  Asset
Relief  Program to purchase from  financial  institutions  up to $700 billion of
residential  or commercial  mortgages and any  securities,  obligations or other
instruments  that are based on or related to such  mortgages,  that in each case
was  originated  or  issued on or before  March 14,  2008,  as well as any other
financial instrument that the U.S. Secretary of the Treasury, after consultation
with the Chairman of the Federal  Reserve,  determines  the purchase of which is
necessary to promote  financial  market  stability.  As of the date hereof,  the
Treasury has determined not to purchase  troubled  assets under the program.  As
part of the EESA,  the  Treasury  Department  has  developed a Capital  Purchase
Program to purchase up to $250 billion in senior preferred stock from qualifying
financial institutions.  The Capital Purchase Program was designed to strengthen
the capital and  liquidity  positions  of viable  institutions  and to encourage
banks and  thrifts to  increase  lending to  creditworthy  borrowers.  EESA also
increased deposit insurance on most accounts from $100,000 to $250,000 until the
end of 2009.

      Pursuant to the Federal Deposit Insurance Act, the FDIC also established a
Temporary Liquidity Guarantee Program that provides a guarantee for newly-issued
senior unsecured debt and non-interest  bearing transactions deposit accounts at
eligible insured  institutions.  For non-interest  bearing  transaction  deposit
accounts,  a 10 basis  point  annual rate  surcharge  will be applied to deposit
amounts in excess of $250,000. We have elected not to participate in the Capital
Purchase  Program but we have elected to participate in the Temporary  Liquidity
Guarantee Program.

      The U.S.  Congress  or federal  banking  regulatory  agencies  could adopt
additional regulatory requirements or restrictions in response to the threats to
the  financial  system and such changes may adversely  affect the  operations of
Company and the Savings  Bank.  In addition,  the EESA may not have the intended
beneficial impact on the financial markets

                                       29
<PAGE>

or the banking industry.  To the extent the market does not respond favorably to
the Troubled  Asset Relief Program or the program does not function as intended,
our prospects and results of operations could be adversely effected.

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 December 31, 2008.

<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>
10/01/08 - 10/31/08         0              --                     0                 45,339
------------------------------------------------------------------------------------------------
11/01/08 - 11/30/08     7,000           15.90                 7,000                 38,339
------------------------------------------------------------------------------------------------
12/01/08 - 12/31/08    28,739           15.96                28,739                  9,600
------------------------------------------------------------------------------------------------
   Total               35,739           15.95                35,739                  9,600
------------------------------------------------------------------------------------------------
</TABLE>

----------

      (1)   All shares indicated were purchased under the Company's Ninth Stock
            Repurchase Program.

      (2)   Ninth Stock Repurchase Program

                  (a)   Announced August 14, 2007 and amended August 26, 2008.

                  (b)   125,000 common shares approved for repurchase announced
                        on August 14, 2007. Additional 40,000 shares approved
                        for repurchase and announced on August 26, 2008 for an
                        amended total of 165,000 shares approved for repurchase.

                  (c)   No fixed date of expiration.

                  (d)   This program has not expired and has 9,600 shares
                        remaining to be repurchased at December 31, 2008.

                  (e)   Not applicable.

      (3)   Tenth Stock Repurchase Program

                  (a)   Announced January 29, 2009.

                  (b)   106,000 common shares approved for repurchase and
                        authorized to begin upon completion of Ninth Stock
                        Repurchase Program.

                  (c)   No fixed date of expiration.

                  (d)   Not applicable.

                  (e)   Not applicable.

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

        Not applicable.

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

        The results of the stockholders vote at the 2008 Annual Meeting of
Stockholders held on October 28, 2008 were previously reported.

                                       30
<PAGE>

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

        (a)   Not applicable.

        (b)   Not applicable.

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

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

 Number     Description                                                    Page
--------    ----------------------------------------------------------    ------
  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

                                       31
<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 13, 2009     BY: /s/ David J. Bursic
Date                      ------------------------------------------------------
                          David J. Bursic
                          President and Chief Executive Officer
                          (Principal Executive Officer)

February 13, 2009     BY: /s/ Keith A. Simpson
Date                      ------------------------------------------------------
                          Keith A. Simpson
                          Vice-President, Treasurer and Chief Accounting Officer
                          (Principal Accounting Officer)


                                       32