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

                                    FORM 10-Q

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

      For the quarterly period ended March 31, 2004

                                       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 an  accelerated  filer (as
defined in Rule 12 b-2 of the Exchange Act).

YES |_|  NO |X|
            ---

      Shares outstanding as of May 13, 2004: 2,479,822 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
                  March 31, 2004 and June 30, 2003
                  (Unaudited)                                                3

                  Consolidated Statement of Income
                  for the Three and Nine Months Ended
                  March 31, 2004 and 2003 (Unaudited)                        4

                  Consolidated Statement of Cash Flows
                  for the Nine Months Ended March 31,
                  2004 and 2003 (Unaudited)                                  5

                  Consolidated Statement of Changes in
                  Stockholders' Equity for the Nine Months
                  Ended March 31, 2004 (Unaudited)                           7

                  Notes to Unaudited Consolidated
                  Financial Statements                                       8

Item 2.           Management's Discussion and Analysis of
                  Financial Condition and Results of
                  Operations for the Three and Nine Months
                  Ended March 31, 2004                                       11

Item 3.           Quantitative and Qualitative Disclosures
                  about Market Risk                                          17

Item 4.           Controls and Procedures                                    22

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

Item 1.           Legal Proceedings                                          22
Item 2.           Changes in Securities, Use of Proceeds and
                  Issuer Purchases of Equity Securities                      23
Item 3.           Defaults upon Senior Securities                            23
Item 4.           Submission of Matters to a Vote of Security Holders        23
Item 5.           Other Information                                          23
Item 6.           Exhibits and Reports on Form 8-K                           24
                  Signatures                                                 25


                                       2
<PAGE>

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

<TABLE>
<CAPTION>
                                                                     March 31, 2004     June 30, 2003
                                                                     --------------     -------------
<S>                                                                     <C>               <C>
          Assets
          ------
Cash and due from banks                                                 $     747         $     921
Interest-earning demand deposits                                            2,309             1,894
                                                                        ---------         ---------
Total cash and cash equivalents                                             3,056             2,815
Investment securities available-for-sale (amortized cost of
   $8,864 and $25,310)                                                      9,320            25,641
Investment securities held-to-maturity (market value of
   $216,228 and $126,036)                                                 212,165           121,841
Mortgage-backed securities available-for-sale (amortized cost of
   $3,560 and $4,219)                                                       3,714             4,387
Mortgage-backed securities held-to-maturity (market value of
   $88,791 and $107,914)                                                   88,621           107,492
Federal Home Loan Bank stock, at cost                                       7,552             7,797
Net loans receivable (allowance for loan losses of $1,235 and
   $2,530)                                                                 70,373            91,669
Accrued interest receivable                                                 2,677             2,800
Premises and equipment                                                      1,115             1,231
Other assets                                                                1,587             1,515
                                                                        ---------         ---------
          TOTAL ASSETS                                                  $ 400,180         $ 367,188
                                                                        =========         =========

          Liabilities and Stockholders' Equity
          ------------------------------------
Liabilities:
Savings Deposits:
   Non-interest-bearing accounts                                        $  10,765         $  11,302
   NOW accounts                                                            19,868            19,215
   Savings accounts                                                        44,060            44,152
   Money market accounts                                                   13,326            14,691
   Certificates of deposit                                                 66,298            79,956
   Advance payments by borrowers for taxes and insurance                      948             1,610
                                                                        ---------         ---------
    Total savings deposits                                                155,265           170,926
Federal Home Loan Bank advances                                           149,736           153,390
Other borrowings                                                           62,718             9,453
Accrued interest payable                                                    1,272             1,449
Other liabilities                                                           1,651             1,352
                                                                        ---------         ---------
    TOTAL LIABILITIES                                                     370,642           336,570

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;
   3,763,088 and 3,736,750 shares issued                                       38                37
Additional paid-in capital                                                 20,701            20,212
Treasury stock: 1,265,866 and 1,153,591 shares at cost,
    Respectively                                                          (18,813)          (16,767)
Retained earnings, substantially restricted                                27,215            26,857
Accumulated other comprehensive income                                        403               329
Unreleased shares - Recognition and Retention Plans                            (6)              (50)
                                                                        ---------         ---------
    TOTAL STOCKHOLDERS' EQUITY                                             29,538            30,618
                                                                        ---------         ---------
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                    $ 400,180         $ 367,188
                                                                        =========         =========
</TABLE>

     See accompanying notes to unaudited consolidated financial statements.


                                       3
<PAGE>

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

<TABLE>
<CAPTION>
                                                    Three Months Ended               Nine Months Ended
                                                         March 31,                       March 31,
                                                ---------------------------     ---------------------------
                                                   2004            2003            2004            2003
                                                -----------     -----------     -----------     -----------
<S>                                             <C>             <C>             <C>             <C>
INTEREST AND DIVIDEND INCOME:
     Loans                                      $     1,205     $     2,227     $     4,063     $     7,617
     Investment securities                            2,287           1,675           5,929           5,146
     Mortgage-backed securities                         540             663           1,739           2,115
     Interest-earning deposits with other
         institutions                                     1               1               7               8
     Federal Home Loan Bank stock                        34              70              95             206
                                                -----------     -----------     -----------     -----------
          Total interest and dividend income          4,067           4,636          11,833          15,092
                                                -----------     -----------     -----------     -----------

INTEREST EXPENSE:
     Deposits                                           544             752           1,804           2,578
     Borrowings                                       2,168           2,083           6,432           6,454
     Advance payments by borrowers for taxes
       and insurance                                      4               6               9              16
                                                -----------     -----------     -----------     -----------
          Total interest expense                      2,716           2,841           8,245           9,048
                                                -----------     -----------     -----------     -----------

NET INTEREST INCOME                                   1,351           1,795           3,588           6,044
PROVISION FOR LOAN LOSSES                               (14)            (89)           (771)            (71)
                                                -----------     -----------     -----------     -----------
NET INTEREST INCOME AFTER PROVISION
   FOR LOAN LOSSES                                    1,365           1,884           4,359           6,115
                                                -----------     -----------     -----------     -----------

NON-INTEREST INCOME:
     Service charges on deposits                         91              82             289             278
     Gain on sale of investments                         --              --              --              64
     Other                                               72              70             230             224
                                                -----------     -----------     -----------     -----------
          Total non-interest income                     163             152             519             566
                                                -----------     -----------     -----------     -----------

NON-INTEREST EXPENSE:
     Salaries and employee benefits                     494             613           1,511           1,824
     Occupancy and equipment                            112             107             322             291
     Deposit insurance premium                            7               8              20              23
     Data processing                                     58              56             171             155
     Correspondent bank service charges                  32              37             108             113
     Other                                              196             154             598             733
                                                -----------     -----------     -----------     -----------
          Total non-interest expense                    899             975           2,730           3,139
                                                -----------     -----------     -----------     -----------

INCOME BEFORE INCOME TAXES                              629           1,061           2,148           3,542
INCOME TAXES                                            165             329             562           1,029
                                                -----------     -----------     -----------     -----------
NET INCOME                                      $       464     $       732     $     1,586     $     2,513
                                                ===========     ===========     ===========     ===========

EARNINGS PER SHARE:
     Basic                                      $      0.18     $      0.28     $      0.62     $      0.96
     Diluted                                    $      0.18     $      0.28     $      0.62     $      0.95

AVERAGE SHARES OUTSTANDING:
     Basic                                        2,525,612       2,593,546       2,553,860       2,629,122
     Diluted                                      2,533,697       2,598,775       2,562,887       2,634,468
</TABLE>

          See accompanying notes to consolidated financial statements.


                                       4
<PAGE>

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

<TABLE>
<CAPTION>
                                                                                Nine Months Ended
                                                                                    March 31,
                                                                             -----------------------
                                                                                2004          2003
                                                                             ---------     ---------
<S>                                                                          <C>           <C>
OPERATING ACTIVITIES

Net income                                                                   $   1,586     $   2,513
Adjustments to reconcile net income to cash provided by operating
 activities:
   Provision for loan losses                                                      (771)          (71)
   Gain on sale of investments                                                      --           (64)
   Depreciation and amortization, net                                              141           109
   Amortization of discounts, premiums and deferred loan fees                    1,052         2,608
   Amortization of RRP and deferred and unearned
      compensation                                                                   5            21
   Decrease in accrued interest receivable                                         123           867
   Decrease in accrued interest payable                                           (177)         (219)
   Increase in accrued and deferred taxes                                          340           221
   Other, net                                                                      (66)         (242)
                                                                             ---------     ---------
         Net cash provided by operating activities                               2,233         5,743
                                                                             ---------     ---------

INVESTING ACTIVITIES

Available-for-sale:
   Purchases of investments and mortgage-backed securities                     (21,861)       (3,481)
   Proceeds from repayments of investments and mortgage-backed securities       38,982         8,762
   Proceeds from sale of investment securities                                      --           639
Held-to-maturity:
   Purchases of investments and mortgage-backed securities                    (302,413)     (176,725)
   Proceeds from repayments of investments and mortgage-backed securities      230,043       166,702
Decrease in net loans receivable                                                21,348        44,921
Sale of real estate owned                                                          500           220
Purchase of Federal Home Loan Bank stock                                        (1,390)         (407)
Redemption of Federal Home Loan Bank stock                                       1,635            --
Purchases of premises and equipment                                                (25)         (383)
Other, net                                                                          23            --
                                                                             ---------     ---------
         Net cash provided by (used for) investing activities                  (33,158)       40,248
                                                                             ---------     ---------
</TABLE>


                                       5
<PAGE>

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

<TABLE>
<CAPTION>
                                                                           Nine Months Ended
                                                                               March 31,
                                                                         ---------------------
                                                                           2004         2003
                                                                         --------     --------
<S>                                                                      <C>          <C>
FINANCING ACTIVITIES

Net decrease in transaction and passbook accounts                          (1,341)      (1,888)
Net decrease in certificates of deposit                                   (13,658)      (7,756)
Net (decrease) increase in FHLB short-term advances                        (3,875)       2,550
Net increase (decrease) in other borrowings                                53,265      (22,307)
Proceeds from FHLB long-term advances                                         500           --
Repayments of FHLB long-term advances                                        (279)     (11,000)
Net decrease in advance payments by borrowers for taxes and insurance        (662)      (1,670)
Net proceeds from issuance of common stock                                    490           46
Funds used for purchase of treasury stock                                  (2,046)      (1,521)
Cash dividends paid                                                        (1,228)      (1,262)
                                                                         --------     --------
         Net cash provided by (used for) financing activities              31,166      (44,808)
                                                                         --------     --------

        Increase  in cash and cash equivalents                                241        1,183

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD                        2,815        3,177
                                                                         --------     --------

CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                           $  3,056     $  4,360
                                                                         ========     ========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

   Cash paid during the period for:
      Interest on deposits, escrows and borrowings                       $  8,422     $  9,267
      Income taxes                                                       $    550     $    846

   Non-cash items:
      Pennsylvania Education Tax Credit                                  $     --     $    100
      Cancellation of unallocated RRP shares                             $     39     $     --
      Mortgage Loans Transferred to Other Assets                         $    550     $     --
</TABLE>

     See accompanying notes to unaudited consolidated financial statements.


                                       6
<PAGE>

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

<TABLE>
<CAPTION>
                                                                                  Accumulated
                                                                       Retained      Other
                                            Additional                 Earnings      Compre-   Unreleased   Unreleased
                                  Common     Paid-In     Treasury   Substantially    hensive   Shares Held Shares Held
                                  Stock      Capital      Stock       Restricted     Income      by ESOP      by RRP        Total
                                ----------  ----------  ----------  ------------- ------------ ----------- -----------   ----------
<S>                             <C>         <C>         <C>           <C>          <C>          <C>         <C>          <C>
Balance at June 30, 2003        $       37  $   20,212  $  (16,767)   $   26,857   $      329   $       --  $      (50)  $   30,618

Comprehensive income:

   Net Income                                                              1,586                                              1,586
   Other comprehensive
     income:

      Change in unrealized
          holding gains on
          securities, net of
          income tax effect of
          $38                                                                              74                                    74
                                                                                                                         ----

Comprehensive income                                                                                                          1,660

Purchase of shares for
   treasury stock                                           (2,046)                                                          (2,046)

Accrued compensation
   expense for Recognition
   and Retention Plans (RRP)                                                                                         5            5

Cancellation of Unallocated
   RRP Shares                                                                                                       39           39

Exercise of stock options                1         489                                                                          490

Cash dividends declared                                                   (1,228)                                            (1,228)
   ($0.48 per share)
                                ----------  ----------  ----------    ----------   ----------   ----------  ----------   ----------

Balance at March 31, 2004       $       38  $   20,701  $  (18,813)   $   27,215   $      403   $       --  $       (6)  $   29,538
                                ==========  ==========  ==========    ==========   ==========   ==========  ==========   ==========
</TABLE>


     See accompanying notes to unaudited consolidated financial statements.


                                       7
<PAGE>

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

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. BASIS OF PRESENTATION
   ---------------------

     The  accompanying  unaudited  consolidated  financial  statements have been
prepared in accordance with the  instructions for Form 10-Q and therefore do not
include  information  or  footnotes  necessary  for a complete  presentation  of
financial  condition,  results of operations,  and cash flows in conformity with
accounting  principles  generally  accepted  in the  United  States of  America.
However,  all  adjustments  (consisting  only of normal  recurring  adjustments)
which, in the opinion of management,  are necessary for a fair presentation have
been  included.  The results of  operations  for the three and nine months ended
March 31,  2004,  are not  necessarily  indicative  of the results  which may be
expected for the entire fiscal year.

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

     In December 2003, the Financial  Accounting Standards Board ("FASB") issued
a revision to Interpretation  46,  Consolidation of Variable Interest  Entities,
which established standards for identifying a variable interest entity (VIE) and
for determining  under what  circumstances a VIE should be consolidated with its
primary beneficiary. Application of this Interpretation is required in financial
statements of public  entities that have interests in  special-purpose  entities
for periods  ending after  December 15, 2003.  Application  by public  entities,
other than small  business  issuers,  for all other types of VIEs is required in
financial  statements  for periods  ending after March 15, 2004.  Small business
issuers must apply this  Interpretation to all other types of VIEs at the end of
the first reporting  period ending after December 15, 2004. The adoption of this
Interpretation  has not and is not  expected  to have a  material  effect on the
Company's financial position or results of operations.


                                       8
<PAGE>

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

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

<TABLE>
<CAPTION>
                                              Three Months Ended              Nine Months Ended
                                                  March 31,                       March 31,
                                         ---------------------------     ---------------------------

                                             2004            2003            2004            2003
                                         -----------     -----------     -----------     -----------
<S>                                      <C>             <C>             <C>             <C>
Weighted average common shares
   outstanding                             3,757,062       3,732,233       3,742,789       3,730,790

Average treasury stock shares             (1,231,450)     (1,138,687)     (1,188,929)     (1,101,668)

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

Weighted average common shares
   and common stock equivalents
   used to calculate basic earnings
   per share                               2,525,612       2,593,546       2,553,860       2,629,122

Additional common stock
   equivalents (stock options) used
   to calculate diluted earnings per
   share                                       8,085           5,229           9,027           5,346
                                         -----------     -----------     -----------     -----------

Weighted average common shares
   and common stock equivalents
   used to calculate diluted earnings
   per share                               2,533,697       2,598,775       2,562,887       2,634,468
                                         ===========     ===========     ===========     ===========

Net income                               $   463,881     $   731,747     $ 1,586,006     $ 2,513,057
                                         ===========     ===========     ===========     ===========

Earnings per share:
     Basic                               $      0.18     $      0.28     $      0.62     $      0.96
     Diluted                             $      0.18     $      0.28     $      0.62     $      0.95
                                         ===========     ===========     ===========     ===========
</TABLE>

     All  options  at March 31,  2004 and March 31,  2003 were  included  in the
computation of diluted earnings per share.

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

     As permitted  under  Statement of Financial  Accounting  Standards  No. 123
"Accounting for Stock-based  Compensation,"  the Company has elected to continue
following  Accounting  Principles  Board Opinion No. 25,  "Accounting  for Stock
Issued to Employees" ("APB 25"), and related Interpretations,  in accounting for
stock-based awards to employees. Under APB 25, because the exercise price of the
Company's employee stock options equals the market price of the underlying stock
on the date of the grant, no compensation expense is recognized in the Company's
financial statements.  Had compensation expense included stock option plan costs
determined  based on the fair value at the grant dates for options granted under
these plans consistent with Statement No. 123, pro forma net income and earnings
per share would not have been  materially  different  than that presented on the
Consolidated Statement of Income.


                                       9
<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:

<TABLE>
<CAPTION>
                                          Three Months Ended                    Nine Months Ended
                                               March 31,                            March 31,
                                   --------------------------------     --------------------------------
                                        2004              2003               2004              2003
                                   --------------    --------------     --------------    --------------
                                                           (Dollars in Thousands)
<S>                                <C>     <C>       <C>     <C>        <C>     <C>       <C>     <C>
Net income                                 $  464            $  732             $1,586            $2,513
Other comprehensive
    income (loss):
     Unrealized gains
     (losses) on available for
     sale securities               $ 47              $(37)              $112              $177
      Less:
        Reclassification
        adjustment for gain
         included in net income      --                --                 --                64
                                   ----    ------    ----    ------     ----    ------    ----    ------
Other comprehensive
    income (loss) before tax                   47               (37)               112               113
Income tax expense
   (benefit) related to other
   comprehensive income (loss)                 16               (13)                38                38
                                           ------            ------             ------            ------
Other comprehensive
    income (loss), net of tax                  31               (24)                74                75
                                           ------            ------             ------            ------
Comprehensive income                       $  495            $  708             $1,660            $2,588
                                           ======            ======             ======            ======
</TABLE>


                                       10
<PAGE>

ITEM 2.

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2004

FORWARD LOOKING STATEMENTS

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

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

GENERAL

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

     West View  Savings  Bank is a  Pennsylvania-chartered,  SAIF-insured  stock
savings bank conducting  business from six offices in the North Hills suburbs of
Pittsburgh.  The  Savings  Bank  converted  to the stock  form of  ownership  in
November 1993. The Savings Bank had no subsidiaries at March 31, 2004.

     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 $400.2 million at March 31, 2004, as compared
to $367.2  million at June 30, 2003. The $33.0 million or 9.0% increase in total
assets  was  primarily  comprised  of a  $73.8  million  or  47.6%  increase  in
investment  securities  and FHLB stock and a $415 thousand or 21.9%  increase in
interest-bearing demand deposits, which were partially offset by a $21.3 million
or 23.2% decrease in net loans receivable,  a $19.5 million or 17.5% decrease in
mortgage-backed  securities,  a $174 thousand or 18.9%  decrease in cash and due
from banks, and a $123 thousand or 4.4% decrease in accrued interest receivable.


                                       11
<PAGE>

     The Company's total liabilities  increased $34.0 million or 10.1% to $370.6
million as of March 31, 2004, from $336.6 million as of June 30, 2003. The $34.0
million increase in total liabilities was primarily comprised of a $53.3 million
or 563.5% increase in other  short-term  borrowings and a $300 thousand or 22.2%
increase in other liabilities, which were partially offset by a $15.7 million or
9.2% decrease in total  savings  deposits and a $3.7 million or 2.4% decrease in
FHLB advances.  Certificates of deposit  decreased  $13.7 million,  money market
accounts  decreased  $1.4 million,  advance  payments by borrowers for taxes and
insurance  decreased $662 thousand and passbook accounts  decreased $92 thousand
while demand deposits increased $116 thousand.

     Total stockholders'  equity decreased $1.1 million or 3.5% to $29.5 million
as of March 31,  2004,  from  approximately  $30.6  million as of June 30, 2003.
Capital  expenditures  for the  Company's  stock  repurchase  program  and  cash
dividends  totaled  $2.0  million  and $1.2  million,  respectively,  which were
partially  funded by net income of $1.6  million for the nine months ended March
31, 2004, and stock option proceeds of $490 thousand.

RESULTS OF OPERATIONS

     General. WVS reported net income of $464 thousand or $0.18 diluted earnings
per share and $1.6 million or $0.62 diluted earnings per share for the three and
nine months ended March 31,  2004,  respectively.  Net income  decreased by $268
thousand or 36.6% and diluted  earnings per share  decreased  $0.10 or 35.7% for
the three months ended March 31, 2004, when compared to the same period in 2003.
The decrease in net income for the three month period was primarily attributable
to a $444 thousand  decrease in net interest income and a $75 thousand  decrease
in credit  provisions  for loan losses,  which were  partially  offset by a $164
thousand decrease in income tax expense, a $76 thousand decrease in non-interest
expense and a $11 thousand increase in non-interest  income. For the nine months
ended March 31, 2004, net income decreased by $927 thousand or 36.9% and diluted
earnings per share  decreased $0.33 or 34.7% when compared to the same period in
2003.  The decrease for the nine month  period was  principally  the result of a
$2.5  million  decrease in net interest  income and a $47  thousand  decrease in
non-interest  income, which were partially offset by a $700 thousand increase in
credit  provisions  for loan  losses,  a $467  thousand  decrease  in income tax
expense, and a $409 thousand decrease in non-interest expense.

     Net Interest  Income.  The Company's net interest income  decreased by $444
thousand or 24.7% and $2.5  million or 40.6% for the three and nine months ended
March 31, 2004,  respectively,  when  compared to the same periods in 2003.  The
decrease in net interest  income for both the three and nine month  periods were
principally  attributable  to  lower  rates  earned  on  Company  assets  due to
historically  low market  interest  rates,  lower average  balances of net loans
receivable, the rendered effects of higher cost long -term fixed rate borrowings
and lower overall yields on earning assets, which were partially offset by lower
rates  paid  on  deposits  and  increased  average  balances  of  the  Company's
investment  securities  portfolio.  The  Company  experienced  higher  levels of
repayments on its loan, investment and mortgage-backed securities portfolios due
to refinancing activities for the three and nine months ended March 31, 2004.

     Interest Income. Interest on net loans receivable decreased $1.0 million or
45.9% and $3.6  million or 46.7% for the three and nine  months  ended March 31,
2004, respectively,  when compared to the same periods in 2003. The decrease for
the three  months ended March 31, 2004 was  attributable  to a decrease of $46.5
million  in the  average  balance  of net  loans  receivable  outstanding  and a
decrease of 84 basis  points in the weighted  average  yield earned on net loans
receivable for the three months ended March 31, 2004,  when compared to the same
period in 2003.  The  decrease  for the nine  months  ended  March 31,  2004 was
attributable  to a decrease of $57.3 million in the average balance of net loans
receivable outstanding and a decrease of 59 basis points on the weighted average
yield earned for the nine months ended March 31, 2004, when compared to the same
period in 2003.  The decreases in the average loan balance  outstanding  for the
three and nine months  ended March 31,  2004,  were  primarily  attributable  to
increased  levels of mortgage  prepayments and  refinancings due to lower market
rates on mortgages.  As part of its  asset/liability  management  strategy,  the
Company has limited its origination of longer-term  fixed rate loans to mitigate
its exposure to a rise in market  interest  rates.  The Company will continue to
originate  longer-term  fixed  rate loans for sale on a  correspondent  basis to
increase non-interest income and to contribute to net income.


                                       12
<PAGE>

     Interest on  mortgage-backed  securities ("MBS") decreased $123 thousand or
18.6% and $376  thousand or 17.8% for the three and nine months  ended March 31,
2004, respectively,  when compared to the same periods in 2003. The decrease for
the three  months  ended March 31, 2004 was  primarily  attributable  to a $12.1
million  decrease in the average balance of MBS outstanding and a 16 basis point
decrease in the weighted  average yield earned on MBS, when compared to the same
period in 2003.  The  decrease  for the nine  months  ended  March 31,  2004 was
attributable  to a decrease of 89 basis  points in the  weighted  average  yield
earned on MBS for the  period  which  was  partially  offset  by a $6.4  million
increase in the average balance of MBS outstanding. The decrease in the weighted
average yield earned on MBS was consistent with market  conditions for the three
and nine months  ended March 31, 2004.  The decrease in the average  balances of
MBS during the three months ended March 31, 2004 was primarily  attributable  to
increased levels of refinancings  due to lower market rates on mortgages,  while
the  increase in the average  balance of MBS during the nine months  ended March
31, 2004 was  primarily  attributable  to the  reinvestment  of a portion of the
Company's loan payment proceeds into floating rate MBS.

     Interest  and  dividend  income on  interest-bearing  deposits  with  other
institutions,   investment   securities   and  FHLB  stock  ("other   investment
securities")  increased by $576 thousand or 33.0% and $671 thousand or 12.5% for
the three and nine months ended March 31, 2004,  respectively,  when compared to
the same periods in 2003. The increase for the three months ended March 31, 2004
was principally  attributable to a $80.5 million increase in the average balance
of other investment securities  outstanding for the three months ended March 31,
2004, when compared to the same period in 2003,  which was partially offset by a
57 basis point decrease in the weighted average yield earned on other investment
securities  when compared to the same period in 2003.  The increase for the nine
months  ended  March 31,  2004 was  primarily  attributable  to a $56.6  million
increase in the average balance of other investment  securities  outstanding for
the nine months ended March 31, 2004,  which was partially offset by a 129 basis
point  decrease  in the  weighted  average  yield  earned  on  other  investment
securities  when  compared  to the same  period  in 2003.  The  decrease  in the
weighted  average yield earned was  consistent  with market  conditions  and the
increased  proportion of other investment  securities comprised of floating rate
obligations  for the three and nine months ended March 31, 2004. The increase in
the average balance of other investment securities  outstanding during the three
and nine months  ended  March 31,  2004,  was  principally  attributable  to the
reinvestment  of a portion of the Company's loan payment  proceeds into callable
floating rate U.S. government sponsored agency bonds.

     Interest  Expense.  Interest expense on deposits and escrows decreased $210
thousand or 27.7% and $781 thousand or 30.1% for the three and nine months ended
March 31, 2004,  respectively,  when  compared to the same periods in 2003.  The
decrease in interest  expense on deposits and escrows for the three months ended
March 31, 2004,  was  attributable  to a 50 basis point decrease in the weighted
average yield paid on interest-bearing  deposits and escrows, and a $5.0 million
decrease  in the  weighted  average  balance of  interest-bearing  deposits  and
escrows,  when  compared to the same period in 2003.  The  decrease for the nine
months  ended  March 31,  2004 was  primarily  attributable  to a 61 basis point
decrease in the weighted  average  yield paid on  interest-bearing  deposits and
escrows,  when compared to the same period in 2003, and a $5.4 million  decrease
in the average balance of interest-bearing deposits and escrows when compared to
the same period in 2003. The average yield paid on interest-bearing deposits was
consistent with market  conditions for the three and nine months ended March 31,
2004.

     Interest on FHLB  advances and other  borrowings  increased $85 thousand or
4.1% and  decreased  $22  thousand or 0.3% for the three and nine  months  ended
March 31, 2004,  respectively,  when  compared to the same periods in 2003.  The
increase for the three months ended March 31, 2004, was  attributable to a $27.5
million  increase in the average  balance of FHLB advances and other  borrowings
for the period which was  partially  offset by a 46 basis point  decrease in the
weighted  average rate paid on such  borrowings when compared to the same period
in 2003.  The decrease for the nine months ended March 31, 2004 was  principally
attributable  to a 30 basis point  decease in the weighted  average rate paid on
FHLB  advances and other  borrowings  when  compared to the same period in 2003,
which was partially offset by a $11.3 million increase in the average balance of
such borrowings  when compared to the same period in 2003. The weighted  average
rate paid on FHLB advances and other  borrowings  declined less than the decline
in market


                                       13
<PAGE>

interest  rates due to the longer average  maturity of the Company's  fixed-rate
FHLB advances  outstanding  and a higher  proportion of long-term  borrowings to
total borrowings.

     Provision  for Loan  Losses.  A  provision  for loan  losses is  charged to
earnings to  maintain  the total  allowance  at a level  considered  adequate by
management   to  absorb   probable   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 increased its provision for loan losses by $75 thousand for the
three months ended March 31, 2004,  and  decreased its provision for loan losses
by $700 thousand for the nine months ended March 31, 2004,  when compared to the
same periods in 2003. At March 31, 2004, the Company's  total allowance for loan
losses  amounted to $1.2 million or 1.7% of the Company's  total loan portfolio,
as  compared  to $2.5  million or 2.7% at June 30,  2003.  The  decrease  in the
provision for loan losses is primarily the result of reduced levels of net loans
receivable,  the sale of a participating  interest in a restructured  commercial
real estate loan during the quarter ended  December 31, 2003 and  collections on
past due loans.

     Non-Interest Income.  Non-interest income increased by $11 thousand or 7.2%
and  decreased by $47 thousand or 8.3% for the three and nine months ended March
31, 2004, respectively,  when compared to the same periods in 2003. The increase
for the three months  ended March 31, 2004 was  primarily  attributable  to a $9
thousand  increase in deposit  account fee income and a $2 thousand  increase in
other  operating  income.  The decrease for the nine months ended March 31, 2004
was  primarily  attributable  to the absence of $64  thousand  in pre-tax  gains
recognized in the  comparable  quarter of fiscal 2003 on the sale of investments
from the Company's  investment  portfolio,  which was partially  offset by a $11
thousand  increase in deposit account fee income,  and a $3 thousand increase in
other real estate owned gross income.

     Non-Interest  Expense.  Non-interest expense decreased $76 thousand or 7.8%
and $409  thousand or 13.0% for the three and nine months  ended March 31, 2004,
respectively,  when  compared to the same periods in 2003.  The decrease for the
three  months  ended  March  31,  2004 was  principally  attributable  to a $119
thousand  decrease in payroll related costs which was partially  offset by a $21
thousand  increase in legal expenses and costs  associated  with the work-out of
non-performing assets, a $13 thousand increase in NOW account expenses, and a $6
thousand increase in other real estate owned expense,  when compared to the same
period in 2003.  The  decrease  for the nine  months  ended  March 31,  2004 was
principally  attributable  to a $313  thousand  decrease  in payroll and benefit
related costs, a $111 thousand decrease in charitable contributions eligible for
Pennsylvania  Education Tax Credits,  a $18 thousand  decrease in legal expenses
and costs  associated  with the  work-out  of  non-performing  assets  and a $15
thousand  decrease in provisions  for loan loss on other real estate owned which
were partially offset by a $31 thousand  increase in equipment  expense incurred
to upgrade the Savings Bank's technology platform and a $16 thousand increase in
data processing expense, when compared to the same period in 2003.

LIQUIDITY AND CAPITAL RESOURCES

     Net cash provided by operating  activities  totaled $2.2 million during the
nine months ended March 31, 2004. Net cash provided by operating  activities was
primarily  comprised of $1.6 million of net income, $1.1 million in amortization
of  discounts,  premiums and deferred  loan fees,  a $340  thousand  increase in
accrued and deferred  taxes,  and a $123 thousand  decrease in accrued  interest
receivables,  which were  partially  offset by a $771  thousand  decrease in the
provision  for loan  losses and a $177  thousand  decrease  in accrued  interest
payable.

     Funds used for investing  activities  totaled $33.2 million during the nine
months ended March 31, 2004.  Primary uses of funds during the nine months ended
March  31,  2004,   included   $325.7   million  for  purchases  of  investment,
mortgage-backed  securities,  and  Federal  Home Loan  Bank  stock,  which  were
partially   offset  by   $270.7   million   from   repayments   of   investment,
mortgage-backed  securities  and Federal Home Loan Bank stock,  a $21.3  million
decrease in net loans receivable,  and $500 thousand from the sale of other real
estate owned.


                                       14
<PAGE>

     Funds provided by financing  activities  totaled $31.2 million for the nine
months  ended March 31,  2004.  The  primary  sources  included a $53.3  million
increase in other short-term  borrowings,  $500 thousand proceeds from long-term
FHLB advances, and $490 thousand in stock option proceeds,  which were partially
offset by a $13.7 million  decrease in certificates  of deposit,  a $3.9 million
decrease in short-term FHLB advances,  $2.0 million in purchased treasury stock,
a $1.3 million  decrease in transaction and passbook  accounts,  $1.2 million in
cash dividends paid on the Company's  common stock, a $662 thousand  decrease in
escrow  accounts,  and a $279  thousand  repayment of FHLB  long-term  advances.
Management  believes  that it currently is  maintaining  adequate  liquidity and
continues  to  better  match  funding   sources  with  lending  and   investment
opportunities.

     During the quarter ended March 31, 2004, the Company incurred approximately
$201.9 million in other  short-term  borrowings with a weighted  average rate of
1.10%,  and incurred $500 thousand in FHLB long-term  borrowings with a weighted
average rate of 2.91%. During the three months ended March 31, 2004, the Company
repaid $207.0 million of other short-term borrowings with weighted average rates
of 1.10%.

     The  Company's  primary  sources  of  funds  are  deposits,   amortization,
repayments  and  maturities of existing  loans,  mortgage-backed  securities and
investment  securities,  funds from operations,  and funds obtained through FHLB
advances  and other  borrowings.  At March 31,  2004,  the total  approved  loan
commitments  outstanding amounted to $80 thousand. At the same date, commitments
under unused lines of credit amounted to $6.1 million, the unadvanced portion of
construction  loans  approximated $12.0 million and commitments to fund security
purchases totaled $16.4 million.  Certificates of deposit scheduled to mature in
one year or less at March 31, 2004, totaled $41.3 million.  Management  believes
that a significant portion of maturing deposits will remain with the Company.

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

     On February  24,  2004 the  Company's  Board of  Directors  authorized  its
Seventh Stock Buyback Program totaling  125,000 shares, or approximately 5%, of
the Company's outstanding common stock.

     On April  27,  2004,  the  Company's  Board of  Directors  declared  a cash
dividend of $0.16 per share payable May 20, 2004, to  shareholders  of record at
the close of business on May 10, 2004.  Dividends  are subject to  determination
and declaration by the Board of Directors, which take into account the Company's
financial  condition,  statutory and regulatory  restrictions,  general economic
conditions and other  factors.  There can be no assurance that dividends will in
fact be paid on the  Common  Stock in  future  periods  or that,  if paid,  such
dividends will not be reduced or eliminated.

     As of March 31, 2004, WVS Financial Corp.  exceeded all regulatory  capital
requirements and maintained Tier I and total  risk-based  capital equal to $29.1
million  or  17.8%  and  $30.6   million  or  18.7%,   respectively,   of  total
risk-weighted  assets,  and Tier I leverage capital of $29.1 million or 7.35% 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.


                                       15
<PAGE>

     The Company's nonperforming assets at March 31, 2004, totaled approximately
$722  thousand or 0.18% of total  assets as compared to $3.5 million or 0.95% of
total assets at June 30, 2003.  Nonperforming assets at March 31, 2004 consisted
of: one commercial real estate loan totaling $277 thousand, one construction and
land development  loan totaling $58 thousand,  two commercial loans totaling $66
thousand,  four  single-family  real estate loans  totaling $268  thousand,  one
consumer  loan  totaling $3 thousand  and one parcel of  commercial  real estate
owned with a carrying value of $50 thousand.

     The $2.8 million  decrease in  nonperforming  assets during the nine months
ended  March  31,  2004  was  primarily   attributable   to:  the  $1.4  million
reclassification  of a  commercial  real  estate  loan  from  non-performing  to
restructured,  a $591  thousand net reduction  from the purchase and  subsequent
resale of related participating  interests, a $509 thousand reduction related to
the sale of a personal  care home and a $489  thousand  charge off  related to a
bankruptcy  discussed  below,  which was  partially  offset  by a $124  thousand
increase in non-performing single-family real estate loans.

     The Company has one non-accruing  commercial real estate loan relationship,
with an outstanding  balance of approximately $767 thousand,  to a personal care
home  that was  originally  part of the  restructured  retirement  village  loan
discussed  below.  Due to the low occupancy of the personal  care home,  and the
related  cash drain on the  retirement  village,  the Savings  Bank "carved out"
approximately $1 million of loan debt from the retirement village, assigned that
$1 million in debt to the personal care home,  and allowed one of the obligors -
a geriatric  physician - to separately own and operate the personal care home as
a separate facility. The borrower was in compliance with a written loan work-out
agreement until February 2002.  Sporadic payments have been received since March
2002. The borrower alleges  insufficient  operating cash, along with the loss of
other income,  to service the debt. The Savings Bank also holds two other loans,
totaling $81 thousand, secured by pledges of various real estate and chattel, to
this same borrower which were  non-accrual as of September 30, 2002.  During the
quarter ended  December 31, 2002,  the obligor filed for  bankruptcy  protection
under Chapter 11 of the Federal Bankruptcy Code. The Savings Bank obtained title
to the personal  care home and related real  property  during the quarter  ended
September 30, 2003 and sold such property  during the quarter ended December 31,
2003, with proceeds of approximately  $509 thousand applied to the loan balance.
During the quarter ended December 31, 2003 the Company charged off approximately
$488  thousand  in  connection  with  this  relationship  based  upon  estimated
liquidation values of the remaining underlying  collateral.  The Company and its
legal  counsel are also  investigating  other  claims and  remedies  against the
obligors and other properties pledged as collateral for these loans.  During the
quarter  ended March 31,  2004,  the Savings  Bank  obtained  title to an office
building  with a market value of  approximately  $52  thousand.  The property is
currently under a sales agreement,  with  anticipated  proceeds of approximately
$50 thousand, and is expected to close during the quarter ended June 30, 2004.

     As of December 31, 2003, the Company had one  non-accruing  commercial real
estate loan,  secured by a small store front and three apartment units,  with an
outstanding  balance of $122  thousand.  The obligors  had filed for  bankruptcy
under Chapter 7 of the Federal  Bankruptcy  Code. In January 2003 the Bankruptcy
Court  entered an Order  authorizing  the listing for sale of the real  property
securing the loan,  ordered interest only payments to begin in February 2003 and
granted Relief from the Automatic  Stay to Foreclosure  effective June 2003. The
Company had collected  nominal rent on a sporadic basis. The property was bought
back at a Sheriff's  Sale in December  2003 and the Company  sold such  property
during the  quarter  ended March 31, 2004 with  proceeds  of  approximately  $90
thousand.

     The  Company  has  one  restructured  commercial  real  estate  loan  to  a
retirement  village located in the North Hills.  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  for  proceeds  totaling  $979  thousand.  The  Savings  Bank's  outstanding
principal  balance  totaled  $1.4  million at March 31,  2004.  The  Company had
recorded  interest  received  on this  credit  on a cost  recovery  basis  until
September 30, 2003 and is now recording interest income on a cash basis.

     During the nine months ended March 31, 2004,  approximately $73 thousand of
interest income would have been recorded on loans accounted for on a non-accrual
basis and troubled debt  restructurings if such loans had been current according
to the original loan agreements for the entire period. These amounts


                                       16
<PAGE>

were not  included in the  Company's  interest  income for the nine months ended
March 31, 2004.  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.

     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 nine months ended March 31, 2004,  the level of market  interest
rates  remained  at  relatively   low  levels  due  to  the  Federal   Reserve's
accommodative monetary policy and the weakness in the national economy.

     Due to the rapid  and  sustained  decline  in market  interest  rates,  the
Company's loan, investment and mortgage-backed securities portfolios experienced
much higher than anticipated levels of prepayments.  Principal repayments on the
Company's loan,  investment and  mortgage-backed  securities  portfolios for the
nine months ended March 31, 2004,  totaled  $38.5  million,  $178.2  million and
$90.8 million, respectively.

     In response to higher  levels of liquidity  the Company  began to rebalance
its loan, investment and mortgage-backed  securities portfolios.  Due to the low
level of market interest rates, the Company continued


                                       17
<PAGE>

     to  reduce  its  originations  of  long-term  fixed  rate  mortgages  while
continuing to offer consumer home equity and  construction  loans. The Company's
commercial  loan exposure was also reduced in  recognition  of the weaknesses in
the national and local economies.  The Company purchased  callable floating rate
government  agency  bonds and  floating  rate CMOs in order to  provide  current
income and protection against an eventual rise in market interest rates. Each of
the  aforementioned  strategies  also  helped to improve the  interest-rate  and
liquidity  risks  associated  with  the  Savings  Bank's  customers'   liquidity
preference for shorter term deposit products.

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

     During the quarter  ended March 31, 2004,  principal  investment  purchases
were comprised of:  floating rate  collateralized  mortgage  obligations - $34.5
million  with  an  original  weighted  average  yield  of  approximately  2.61%;
government  agency  step-up  bonds  which  will  reprice  within 2 years - $15.0
million with a weighted average yield of approximately 4.00%; tax-free municipal
bonds with a weighted average taxable  equivalent yield of approximately  3.92%;
and a corporate demand note - $1.0 million with an initial rate of approximately
2.62%.  Major  investment  proceeds  received during the quarter ended March 31,
2004 were: government agency bonds - $44.7 million with a weighted average yield
of approximately 3.09%; and investment grade corporate bonds - $9.5 million with
a weighted average yield of approximately 2.99%.

     As of March 31,  2004,  the  implementation  of these  asset and  liability
management initiatives resulted in the following:

1)   the  Company's  liquidity  profile  remains  high with the  investment  and
     mortgage-backed  securities portfolio's stated final maturities as follows:
     less than 1 year: $31.4 million or 10.0%; 1-3 years:  $0.0 million or 0.0%;
     3-5 years: $44 thousand or 0.01%; over 5 years: $282.4 million or 90.0%;

2)   $55.0 million or 24.0% of the  Company's  investment  portfolio  (including
     FHLB  stock)  was  comprised  of  floating  rate bonds  which will  reprice
     quarterly within one year;

3)   $95.0 million or 41.5% of the  Company's  investment  portfolio  (including
     FHLB stock) was  comprised of U.S.  Government  Agency  Step-up bonds which
     will  reprice  from  initial  rates of 3.00% - 4.50% up to 7.00% within two
     years;

4)   $31.1 million or 13.6% of the  Company's  investment  portfolio  (including
     FHLB  stock)  was  comprised  of  investment  grade  corporate  bonds  with
     remaining maturities of less than one year;

5)   $83.6  million  or  90.5% of the  Company's  portfolio  of  mortgage-backed
     securities  (including  collateralized  mortgage obligations - "CMOs") were
     comprised of floating rate instruments;

6)   the maturity  distribution of the Company's borrowings is as follows:  less
     than 1 year:  $62.7 million or 29.5%;  1-3 years:  $4.2 or 2.0%; 3-5 years:
     $13.5 million or 6.3%; over 5 years: $132.1 million or 62.6%; and

7)   an aggregate of $33.7 million or 47.9% of the Company's net loan  portfolio
     had adjustable interest rates or maturities of less than 12 months.

     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.


                                       18
<PAGE>

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

<TABLE>
<CAPTION>
                                                 March 31,              June 30,
                                                 ---------        -------------------
                                                   2004           2003           2002
                                                   ----           ----           ----
                                                         (Dollars in Thousands)
<S>                                              <C>            <C>            <C>
Interest-earning assets maturing or
   repricing within one year                     $254,256       $262,782       $252,467
Interest-bearing liabilities maturing or
   repricing within one year                      140,292        133,418        142,823
                                                 --------       --------       --------

Interest sensitivity gap                         $113,964       $129,364       $109,644
                                                 ========       ========       ========
Interest sensitivity gap as a percentage of
   total assets                                      28.5%          35.2%          27.1%
Ratio of assets to liabilities
   maturing or repricing within one year           181.23%         197.0%         176.8%
</TABLE>

     During the quarter ended March 31, 2004,  the Company  managed its one year
interest sensitivity gap by: (1) purchasing floating rate CMO's which reprice on
a monthly basis; and (2) purchasing U.S.  Government  Agency Step-up bonds which
will reprice from an initial rate of 4% to 7% within two years.


                                       19
<PAGE>

     The following table illustrates the Company's estimated stressed cumulative
repricing gap - the difference between the amount of interest-earning assets and
interest-bearing  liabilities  expected to reprice at a given point in time - at
March 31, 2004. The table  estimates the impact of an upward or downward  change
in market interest rates of 100 and 200 basis points.

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

<TABLE>
<CAPTION>

                      Month 3       Month 6      Month 12       Month 24      Month 36      Month 60        Long Term
                      -------       -------      --------       --------      --------      --------        ---------
                                                          (Dollars in Thousands)
<C>                    <C>           <C>          <C>            <C>           <C>           <C>             <C>
Base Case Up 200 bp
-------------------
Cummulative
  Gap ($'s)            27,921        93,136       90,239         76,215        59,033        54,842          26,449
% of Total
  Assets                  7.0%         23.2%        22.5%          19.0%         14.7%         13.7%            6.6%
Base Case Up 100 bp
-------------------
Cummulative
  Gap ($'s)            33,718        99,485      106,764        183,264       171,420       156,062          26,449
% of Total
  Assets                  8.4%         24.8%        26.6%          45.7%         42.8%         38.9%            6.6%
Base Case No Change
-------------------
Cummulative
  Gap ($'s)            35,786       103,981      113,964        192,928       182,049       165,154          26,449
% of Total
  Assets                  8.9%         25.9%        28.4%          48.1%         45.4%         41.2%            6.6%
Base Case Down 100 bp
---------------------
Cummulative
  Gap ($'s)            38,612       108,774      151,020        201,414       188,596       167,727          26,449
% of Total
  Assets                  9.6%         27.1%        37.7%          50.3%         47.1%         41.8%            6.6%
Base Case Down 200 bp
---------------------
Cummulative
  Gap ($'s)            85,869       177,421      212,474        205,613       190,937       168,125          26,449
% of Total
  Assets                 21.4%         44.3%        53.0%          51.3%         47.6%         41.9%            6.6%
</TABLE>

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


                                       20
<PAGE>

     The following  table  presents the simulated  impact of a 100 and 200 basis
point upward or downward shift in market interest rates on net interest  income,
return on  average  equity,  return on average  assets  and the market  value of
portfolio equity at March 31, 2004.

           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             -26.3%          -17.2%         0.00%         16.1%          58.7%

   Return on average equity                  3.61%           5.14%          7.93%         10.46%         16.83%

   Return on average assets                  0.24%           0.34%          0.53%         0.71%          1.19%

   Market value of equity (in
      thousands)                             $8,521          $9,844         $17,553       $19,257        $16,068

</TABLE>

     The  table  below  provides  information  about the  Company's  anticipated
transactions comprised of firm loan commitments and other commitments, including
undisbursed  letters  and  lines  of  credit.  The  Company  used no  derivative
financial  instruments to hedge such  anticipated  transactions  as of March 31,
2004.

                            Anticipated Transactions
         -----------------------------------------------------------------------
                                                        (Dollars in Thousands)
         Undisbursed construction and
             land development loans
               Fixed rate                                               $ 3,741
                                                                           5.71%

               Adjustable rate                                          $ 8,302
                                                                           5.02%

         Undisbursed lines of credit
               Adjustable rate                                          $ 6,092
                                                                           4.71%

         Loan origination commitments
               Fixed rate                                               $    30
                                                                           6.00%

               Adjustable rate                                          $    50
                                                                           2.99%

         Letters of credit
               Adjustable rate                                          $     5
                                                                           7.00%

         Commitments to purchase CMO's
               Adjustable rate                                          $16,365
                                                                           2.59%
                                                                        -------
                                                                        $34,585
                                                                        =======


                                       21
<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 March 31, 2004,  the Savings Bank had one  performance  standby
letter of credit outstanding totaling approximately $5 thousand. The performance
standby  letter of credit is secured by deposits with the Savings Bank, and will
mature within six months. In the event that the obligor is unable to perform its
obligations as specified in the standby letter of credit agreement,  the Savings
Bank would be  obligated  to disburse  funds up to the amount  specified  in the
standby  letter  of  credit  agreement.  The  Savings  Bank  maintains  adequate
collateral that could be liquidated to fund this contingent obligation.


                                       22
<PAGE>

ITEM 4.

CONTROLS AND PROCEDURES

Our management evaluated,  with the participation of our Chief Executive Officer
and Chief Accounting  Officer,  the effectiveness of our disclosure controls and
procedures  (as defined in Rules  13a-15(e) and 15d-15(e)  under the  Securities
Exchange Act of 1934) as of March 31, 2004. Based on such evaluation,  our Chief
Executive  Officer  and  Chief  Accounting   Officer  have  concluded  that  our
disclosure  controls  and  procedures  are  designed to ensure that  information
required to be  disclosed  by us in the reports that we file or submit under the
Securities Exchange Act of 1934 is recorded, processed,  summarized and reported
within the time  periods  specified in the SEC's rules and  regulations  and are
operating in an effective manner.

No change in our internal control over financial  reporting (as defined in Rules
13a-15(f) and  15(d)-15(f)  under the Securities  Exchange Act of 1934) occurred
during the third fiscal quarter of fiscal 2004 that has materially affected,  or
is reasonably likely to materially  affect,  our internal control over financial
reporting.


                                       23
<PAGE>

PART II - OTHER INFORMATION

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

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

ITEM 2. Changes in Securities, Use of Proceeds and Issuer Purchases of Equity
        ---------------------------------------------------------------------
        Securities
        ----------

        (a) Not applicable.

        (b) Not applicable.

        (c) Not applicable.

        (d) Not applicable.

        (e) 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 march 31, 2004.

<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>
      01/01/04 - 01/31/04                6,079              17.64                6,079                   69,349
      --------------------------------------------------------------------------------------------------------------
      02/01/04 - 02/29/04               64,264              18.83               64,264                  130,085
      --------------------------------------------------------------------------------------------------------------
      03/01/04 - 03/31/04                2,500              18.85                2,500                  127,585
      --------------------------------------------------------------------------------------------------------------
           Total                        72,843              18.73               72,843                  127,585
      --------------------------------------------------------------------------------------------------------------
</TABLE>

----------

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

      (2)   Sixth Stock Repurchase Program

            (a)   Announced January 2, 2003.

            (b)   130,000 common shares approved for repurchase.

            (c)   No fixed date of expiration.

            (d)   This Program has not expired and has 2,585 shares remaining to
                  be purchased at March 31, 2004.

            (e)   Not applicable.

      (3)   Seventh Stock Repurchase Program

            (a)   Announced February 24, 2004.

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

            (c)   No fixed date of expiration.

            (d)   This Program has not expired and has 125,000 shares remaining
                  to be purchased at March 31, 2004.

            (e)   Not applicable.

ITEM 3. Defaults Upon Senior Securities
        -------------------------------
        Not applicable.

ITEM 4. Submission of Matters to a Vote of Security Holders
        ---------------------------------------------------
        Not applicable.


                                       24
<PAGE>

ITEM 5. Other Information
        -----------------
        Not applicable.

ITEM 6. Exhibits and Reports on Form 8-K
        --------------------------------

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

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

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

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

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

                    99     Independent Accountants' Report                                E-5
</TABLE>

        (b)     The Company filed a Current Report on Form 8-K dated January 30,
                2004,  reporting  under Item 12  earnings  for the three and six
                months  ending  December  31, 2003.  The Company  included as an
                exhibit  to the Form 8-K the press  release  dated  January  30,
                2004.

                The Company  filed a Current  Report on Form 8-K dated  February
                24, 2004,  reporting  under Item 5, that the Company's  Board of
                Directors  authorized the repurchase of up to 125,000 shares, or
                approximately 5% of the Company's  outstanding common stock. The
                Company included as an exhibit to the Form 8-K the press release
                issued February 24, 2004.


                                       25
<PAGE>

                                   SIGNATURES

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

                                     WVS FINANCIAL CORP.


      May 17, 2004               BY: /s/ David J. Bursic
      Date                           -------------------------------------------
                                     David J. Bursic
                                     President and Chief Executive Officer
                                     (Principal Executive Officer)


      May 17, 2004               BY: /s/ Keith A. Simpson
      Date                           -------------------------------------------
                                     Keith A. Simpson
                                     Vice-President, Treasurer and Chief
                                     Accounting Officer
                                     (Principal Accounting Officer)


                                       26