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, 2006

                                       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                        (I.R.S. Employer
of incorporation or organization)                   Identification Number)

        9001 Perry Highway
     Pittsburgh, Pennsylvania                               15237
-----------------------------------          -----------------------------------
      (Address of principal                               (Zip Code)
        executive offices)

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

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

         Indicate by check mark whether the  registrant  is a large  accelerated
filer,  an accelerated  filer,  or a  non-accelerated  filer.  See definition of
"accelerated  filer and large  accelerated  filer" in Rule 12b-2 of the Exchange
Act. (Check one):

Large accelerated filer [_]    Accelerated filer [_]   Non-accelerated filer [X]

         Indicate by check mark whether the  registrant  is a shell  company (as
defined in Rule 12 b-2 of the Exchange Act). YES [_] NO [X]

         Shares  outstanding as of May 11, 2006:  2,335,332 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, 2006 and June 30, 2005
             (Unaudited)                                                 3

             Consolidated Statement of Income
             for the Three and Nine Months Ended
             March 31, 2006 and 2005 (Unaudited)                         4

             Consolidated Statement of Cash Flows
             for the Nine Months Ended March 31,
             2006 and 2005 (Unaudited)                                   5

             Consolidated Statement of Changes in
             Stockholders' Equity for the Nine Months
             Ended March 31, 2006 (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, 2006                                       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                                          23
Item 1A.     Risk Factors                                               23
Item 2.      Unregistered Sales of Equity Securities and
             Use of Proceeds                                            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                                                   24
             Signatures                                                 25


<PAGE>

                       WVS FINANCIAL CORP. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET
                                   (UNAUDITED)
                                 (In thousands)
<TABLE>
<CAPTION>
                                                                  March 31, 2006    June 30, 2005
                                                                  --------------    -------------
<S>                                                                          <C>            <C>
          Assets
          ------
Cash and due from banks                                            $         699    $         900
Interest-earning demand deposits                                             483            2,666
                                                                   -------------    -------------
Total cash and cash equivalents                                            1,182            3,566
Investment securities available-for-sale (amortized cost of
   $ 502 and $9,155)                                                         482            9,155
Investment securities held-to-maturity (market value of
   $ 211,763 and $174,323)                                               212,926          173,911
Mortgage-backed securities available-for-sale (amortized cost of
   $ 2,240 and $2,893)                                                     2,329            3,120
Mortgage-backed securities held-to-maturity (market value of
   $ 164,618 and $159,566)                                               164,930          159,031
Net loans receivable (allowance for loan losses of $ 969 and
   $ 1,121)                                                               55,793           60,151
Accrued interest receivable                                                3,180            2,057
Federal Home Loan Bank stock, at cost                                      7,309            7,769
Premises and equipment                                                       856              939
Other assets                                                               1,246            1,345
                                                                   -------------    -------------
          TOTAL ASSETS                                             $     450,233    $     421,044
                                                                   =============    =============

          Liabilities and Stockholders' Equity
Liabilities:
Savings Deposits:
   Non-interest-bearing accounts                                   $      10,499    $      11,926
   NOW accounts                                                           19,257           25,396
   Savings accounts                                                       38,905           44,323
   Money market accounts                                                  15,753           13,625
   Certificates of deposit                                                66,689           68,319
   Advance payments by borrowers for taxes and insurance                     820            1,117
                                                                   -------------    -------------
    Total savings deposits                                               151,923          164,706
Federal Home Loan Bank advances                                          152,636          155,036
Other borrowings                                                         113,343           69,680
Accrued interest payable                                                   1,466            1,260
Other liabilities                                                          1,729            1,161
                                                                   -------------    -------------
     TOTAL LIABILITIES                                             $     421,097    $     391,843

Stockholders' equity:
Preferred stock:
   5,000,000 shares, no par value per share, authorized; none
   outstanding                                                     $          --    $          --
Common stock:
   10,000,000 shares, $.01 par value per share, authorized;
   3,769,938 and 3,762,618 shares issued                                      38               38
Additional paid-in capital                                                20,817           20,726
Treasury stock: 1,425,167 and 1,368,508 shares at cost,
    Respectively                                                         (21,516)         (20,594)
Retained earnings, substantially restricted                               29,755           28,885
Accumulated other comprehensive income                                        44              149
Unreleased shares - Recognition and Retention Plans                           (2)              (3)
                                                                   -------------    -------------
     TOTAL STOCKHOLDERS' EQUITY                                    $      29,136    $      29,201
                                                                   -------------    -------------
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY               $     450,233    $     421,044
                                                                   =============    =============
</TABLE>

     See accompanying notes to unaudited consolidated financial statements.

                                       3
<PAGE>

                       WVS FINANCIAL CORP. AND SUBSIDIARY
                        CONSOLIDATED STATEMENT OF INCOME
                                   (UNAUDITED)
                      (In thousands, except per share data)
<TABLE>
<CAPTION>
                                                   Three Months Ended            Nine Months Ended
                                                        March 31,                    March 31,
                                               --------------------------    --------------------------
                                                  2006            2005           2006           2005
                                               -----------    -----------    -----------    -----------
<S>                                            <C>            <C>            <C>            <C>
INTEREST AND DIVIDEND INCOME:
     Loans                                     $       965    $     1,029    $     3,016    $     3,181
     Investment securities                           2,520          2,347          6,343          7,299
     Mortgage-backed securities                      2,404          1,085          6,555          2,738
     Interest-earning deposits with other                4              2             11              6
         institutions
     Federal Home Loan Bank stock                       61             46            162            120
                                               -----------    -----------    -----------    -----------
          Total interest and dividend income         5,954          4,509         16,087         13,344
                                               -----------    -----------    -----------    -----------

INTEREST EXPENSE:
     Deposits                                          779            559          2,246          1,601
     Federal Home Loan Bank advances                 1,968          2,010          6,002          6,109
     Other borrowings                                1,344            449          3,012          1,037
                                               -----------    -----------    -----------    -----------
          Total interest expense                     4,091          3,018         11,260          8,747
                                               -----------    -----------    -----------    -----------

NET INTEREST INCOME                                  1,863          1,491          4,827          4,597
PROVISION (RECOVERY) FOR LOAN LOSSES                   (38)            (5)          (149)            66
                                               -----------    -----------    -----------    -----------
NET INTEREST INCOME AFTER PROVISION
   (RECOVERY) FOR LOAN LOSSES                        1,901          1,496          4,976          4,531
                                               -----------    -----------    -----------    -----------

NON-INTEREST INCOME:
     Service charges on deposits                        96             88            283            273
     Investment securities gains                        --             --             30            335
     Other                                              75             71            232            224
                                               -----------    -----------    -----------    -----------
          Total non-interest income                    171            159            545            832
                                               -----------    -----------    -----------    -----------

NON-INTEREST EXPENSE:
     Salaries and employee benefits                    500            505          1,458          1,504
     Occupancy and equipment                            91            109            292            328
     Data processing                                    73             68            208            198
     Correspondent bank service charges                 38             32            105            100
     Other                                             170            177            566            541
                                               -----------    -----------    -----------    -----------
          Total non-interest expense                   872            891          2,629          2,671
                                               -----------    -----------    -----------    -----------

INCOME BEFORE INCOME TAXES                           1,200            764          2,892          2,692
INCOME TAXES                                           412            200            886            705
                                               -----------    -----------    -----------    -----------
NET INCOME                                     $       788    $       564    $     2,006    $     1,987
                                               ===========    ===========    ===========    ===========

EARNINGS PER SHARE:
     Basic                                     $      0.34    $      0.23    $      0.85    $      0.81
     Diluted                                   $      0.34    $      0.23    $      0.85    $      0.81

AVERAGE SHARES OUTSTANDING:
     Basic                                       2,346,959      2,430,679      2,363,817      2,443,163
     Diluted                                     2,348,619      2,435,935      2,366,651      2,448,792
</TABLE>

     See accompanying notes to unaudited consolidated financial statements.

                                       4
<PAGE>

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

                                                                               Nine Months Ended
                                                                                   March 31,
                                                                            ----------------------
                                                                               2006         2005
                                                                            ---------    ---------
<S>                                                                              <C>            <C>
OPERATING ACTIVITIES

Net income                                                                  $   2,006    $   1,987
Adjustments to reconcile net income to cash provided by operating
 activities:
   (Recovery of) provision for  loan losses                                      (149)          66
   Depreciation and amortization, net                                             119          144
   Investment securities gains                                                    (30)        (335)
   Amortization of discounts, premiums and deferred loan fees                    (161)        (349)
   Sale of trading securities                                                      --        1,000
   Increase in accrued and deferred taxes                                         509          289
   (Increase) decrease in accrued interest receivable                          (1,123)         203
   Increase  in accrued interest payable                                          206           73
   Other, net                                                                     162          253
                                                                            ---------    ---------
         Net cash provided by operating activities                              1,539        3,331
                                                                            ---------    ---------

INVESTING ACTIVITIES

Available-for-sale:
   Purchases of investments and mortgage-backed securities                       (700)     (17,418)
   Proceeds from repayments of investments and mortgage-backed securities       9,384       18,622
   Proceeds from sale of investment securities                                  1,016        1,409
Held-to-maturity:
   Purchases of investments                                                  (111,348)    (186,955)
   Purchases of mortgage-backed securities                                    (86,461)    (111,040)
   Proceeds from repayments of investments                                     72,416      231,032
   Proceeds from repayments of mortgage-backed securities                      80,289       65,095
Decrease in net loans receivable                                                4,484        7,232
Purchase of Federal Home Loan Bank stock                                       (4,677)      (5,997)
Redemption of Federal Home Loan Bank stock                                      5,137        5,362
Acquisition of premises and equipment                                             (36)         (43)
Other, net                                                                         60           --
                                                                            ---------    ---------
         Net cash (used for) provided by investing activities                 (30,436)       7,299
                                                                            ---------    ---------
</TABLE>


                                       5
<PAGE>

                       WVS FINANCIAL CORP. AND SUBSIDIARY
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (UNAUDITED)
                                 (In thousands)
<TABLE>
<CAPTION>
                                                                            Nine Months
                                                                          Ended March 31,
                                                                        --------------------
                                                                          2006        2005
                                                                        --------    --------
<S>                                                                       <C>           <C>
FINANCING ACTIVITIES

Net (decrease) increase in transaction and passbook accounts             (10,856)        513
Net decrease in certificates of deposit                                   (1,630)       (194)
Net increase  in FHLB short-term advances                                  1,600      20,600
Net  increase (decrease) in other borrowings                              43,663     (21,234)
Repayments of FHLB long-term advances                                     (4,000)     (7,000)
Net decrease in advance payments by borrowers for taxes and insurance       (297)       (374)
Net proceeds from exercise of stock options                                   91          --
Funds used for purchase of treasury stock                                   (922)     (1,033)
Cash dividends paid                                                       (1,136)     (1,175)
                                                                        --------    --------
         Net cash provided by (used for) financing activities             26,513      (9,897)
                                                                        --------    --------

        (Decrease) increase  in cash and cash equivalents                 (2,384)        733

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

CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                          $  1,182    $  3,787
                                                                        ========    ========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

   Cash paid during the period for:
      Interest on deposits, escrows and borrowings                      $ 11,054    $  8,674
      Income taxes                                                      $    332    $    335

   Non-cash items:
      Mortgage Loan Transferred to Other Assets                         $     10    $     --
</TABLE>

     See accompanying notes to unaudited consolidated financial statements.

                                       6
<PAGE>
<TABLE>
<CAPTION>
                                           WVS FINANCIAL CORP. AND SUBSIDIARY
                                CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                                                       (UNAUDITED)
                                                      (In thousands)
                                                                                       Accumulated
                                                                           Retained       Other
                                             Additional                    Earnings       Compre-     Unallocated
                                  Common       Paid-In       Treasury    Substantially    hensive     Shares Held
                                  Stock        Capital        Stock       Restricted      Income         by RRP         Total
                                  -----        -------        -----       ----------      ------         ------         -----
<S>                            <C>           <C>           <C>            <C>           <C>           <C>            <C>
Balance at June 30, 2005       $        38   $    20,726   $   (20,594)   $    28,885   $       149   $        (3)   $    29,201


Comprehensive income:

   Net Income                                                                   2,006                                      2,006
   Other comprehensive
     income:
      Change in unrealized
          holding gains on
          securities, net of
          income tax effect
          of $54                                                                               (105)                        (105)
                                                                                                                     -----------

Comprehensive income                                                                                                       1,901

Purchases of
   treasury stock                                                 (922)                                                     (922)


Accrued compensation
   expense for Recognition
   and Retention Plans (RRP)                                                                                    1              1

Exercise of stock options                             91                                                                      91

Cash dividends declared
   ($0.48 per share)                                                           (1,136)                                    (1,136)
                               -----------   -----------   -----------    -----------   -----------   -----------    -----------

Balance at March 31, 2006      $        38   $    20,817   $   (21,516)   $    29,755   $        44   $        (2)   $    29,136
                               ===========   ===========   ===========    ===========   ===========   ===========    ===========

                          See accompanying notes to unaudited consolidated financial statements.

</TABLE>
                                                             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 nine months ended March 31, 2006,  are
not  necessarily  indicative of the results which may be expected for the entire
fiscal year.

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

         In February 2006,  the Financial  Accounting  Standards  Board ("FASB")
issued Statement of Financial Accounting ("FAS") No. 155, Accounting for Certain
Hybrid Instruments,  as an amendment of FASB Statements No. 133 and 140. FAS No.
155 allows financial  instruments that have embedded derivatives to be accounted
for as a whole  (eliminating the need to bifurcate the derivative from its host)
if the holder elects to account for the whole  instrument on a fair value basis.
This  statement is effective  for all financial  instruments  acquired or issued
after the beginning of an entity's first fiscal year that begins after September
15,  2006.  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 2006, the FASB issued FAS No. 156, Accounting for Servicing of
Financial  Assets.  This  Statement,  which is an amendment to FAS No. 140, will
simplify the  accounting  for servicing  assets and  liabilities,  such as those
common  with  mortgage  securitization  activities.  Specifically,  FAS No.  156
addresses the  recognition and  measurement of separately  recognized  servicing
assets and  liabilities  and provides an approach to simplify  efforts to obtain
hedge-like (offset) accounting. FAS No. 156 also clarifies when an obligation to
service financial assets should be separately recognized as a servicing asset or
a servicing liability,  requires that a separately recognized servicing asset or
servicing  liability be initially  measured at fair value, if  practicable,  and
permits an entity with a  separately  recognized  servicing  asset or  servicing
liability  to choose  either  of the  amortization  or fair  value  methods  for
subsequent  measurement.  The  provisions of FAS No. 156 are effective as of the
beginning  of the first fiscal year that begins after  September  15, 2006.  The
adoption  of this  standard  is not  expected  to have a material  effect on the
Company's results of operations or financial position.

                                       8
<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          Nine Months Ended
                                                March 31,                   March 31,
                                        ------------------------    ------------------------

                                           2006          2005          2006          2005
                                        ----------    ----------    ----------    ----------
<S>                                      <C>           <C>           <C>           <C>
Weighted average common shares
   outstanding                           3,767,010     3,762,891     3,764,061     3,762,943

Average treasury stock shares           (1,420,051)   (1,332,212)   (1,400,244)   (1,319,780)
                                        ----------    ----------    ----------    ----------
Weighted average common shares
   and common stock equivalents
   used to calculate basic earnings
   per share                             2,346,959     2,430,679     2,363,817     2,443,163

Additional common stock
   equivalents (stock options) used
   to calculate diluted earnings per
   share                                     1,660         5,256         2,834         5,629
                                        ----------    ----------    ----------    ----------

Weighted average common shares
   and common stock equivalents
   used to calculate diluted earnings
   per share                             2,348,619     2,435,935     2,366,651     2,448,792
                                        ==========    ==========    ==========    ==========
</TABLE>

         All options at March 31,  2006 and March 31, 2005 were  included in the
computation of diluted earnings per share.

                                       9
<PAGE>

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.

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,
                                --------------------------------------   --------------------------------------
                                       2006                 2005               2006                  2005
                                -----------------    -----------------   -----------------    -----------------
<S>                             <C>        <C>        <C>        <C>      <C>        <C>      <C>         <C>
                                                              (Dollars in Thousands)

Net income                                $   788              $   564             $ 2,006              $ 1,987
Other comprehensive
income (loss):
     Unrealized gains
     (losses) on
     available for sale
      securities                $   (40)             $    76             $  (129)             $   100

        Less:
         Reclassification
          adjustment for gain
          included in  net
          income                     --                   --                 (30)                (335)
                                -------   -------    -------   -------   -------   -------    -------   -------
Other comprehensive
   (loss)  income before tax                  (40)                  76                (159)                (235)
Income tax
   (benefit)
   expense  related to other
   comprehensive income
   (loss)                                      (7)                  26                 (54)                 (80)
                                          -------              -------             -------              -------
Other comprehensive
  (loss)  income, net of tax                  (33)                  50                (105)                (155)
                                          -------              -------             -------              -------
Comprehensive income                      $   755              $   614             $ 1,901              $ 1,832
                                          =======              =======             =======              =======
</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, 2006

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,  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 March 31, 2006.

         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  $450.2  million at March 31, 2006,  as
compared to $421.0  million at June 30, 2005. The $29.2 million or 6.9% increase
in total assets was primarily  comprised of a $29.9 million or 15.7% increase in
investment  securities  including FHLB stock, a $5.1 million or 3.2% increase in
mortgage-backed  securities,  and a $1.1  million or 54.6%  increase  in accrued
interest  receivable,  which  were  partially  offset by a $4.4  million or 7.2%
decrease in net loans  receivable  and a $2.4 million or 66.9%  decrease in cash
and cash equivalents. The increases in investment securities and mortgage-backed
securities were attributable to purchases of callable fixed rate U.S. Government
Agency bonds and floating rate collateralized mortgage obligations. The increase
in accrued interest receivable was primarily attributable to these higher levels
of  investment  and  mortgage-backed  securities.  The  decrease  in  net  loans

                                       11
<PAGE>

receivable  was  attributable  to the  seasonal  nadir  of  builder  speculative
construction  loans and  repayments  caused by continued  low  intermediate  and
long-term market interest rates. See "Asset and Liability Management".

         The  Company's  total  liabilities  increased  $29.3 million or 7.5% to
$421.1  million as of March 31, 2006,  from $391.8  million as of June 30, 2005.
The $29.3 million  increase in total  liabilities  was primarily  comprised of a
$43.7  million  or 62.7%  increase  in other  short-term  borrowings  which  was
partially  offset by a $12.8 million or 7.8% decrease in total savings  deposits
and a $2.4 million or 1.5% decrease in FHLB advances.  Total deposits  decreased
$12.8 million to $151.9  million as a result of the following:  demand  deposits
decreased $7.6 million, savings accounts decreased $5.4 million, certificates of
deposit  decreased $1.6 million and advanced payments by borrowers for taxes and
insurance  decreased $297 thousand,  while money market accounts  increased $2.1
million.

         Total  stockholders'  equity  decreased  $65  thousand or 0.2% to $29.1
million as of March 31, 2006,  from  approximately  $29.2 million as of June 30,
2005.  Company  net  income of $2.0  million  was offset by cash  dividends  and
capital  expenditures for the Company's stock repurchase program of $1.1 million
and $922 thousand,  respectively,  and accumulated  other  comprehensive  income
decreased $105 thousand for the nine months ended March 31, 2006.

RESULTS OF OPERATIONS

         General.  WVS  reported  net income of $788  thousand or $0.34  diluted
earnings per share and $2.0 million or $0.85 diluted  earnings per share for the
three and nine months ended March 31, 2006,  respectively.  Net income increased
by $224  thousand or 39.7% and diluted  earnings  per share  increased  $0.11 or
47.8% for the three  months  ended  March 31,  2006,  when  compared to the same
period in 2005. The increase in net income was primarily  attributable to a $372
thousand  increase in net interest  income,  a $33  thousand  increase in credit
provision for loan losses, a $19 thousand decrease in non-interest expense and a
$12 thousand increase in non-interest  income,  which were partially offset by a
$212  thousand  increase in income tax expense.  For the nine months ended March
31, 2006, net income  increased by $19 thousand or 1.0% and diluted earnings per
share  increased  $0.04 or 4.9% when  compared to the same  period in 2005.  The
increase for the nine month period was principally the result of a $230 thousand
increase in net interest  income,  a $215  thousand  change in the provision for
loan losses and a $42  thousand  decrease in  non-interest  expense,  which were
partially offset by a $287 thousand  decrease in the  non-interest  income and a
$181 thousand increase in income tax expense.

         Net Interest  Income.  The Company's net interest  income  increased by
$372 thousand or 24.9% for the three months ended March 31, 2006,  when compared
to the same period in 2005. The increase in net interest  income was principally
attributable  to higher  overall  yields  earned on  Company  assets  and higher
overall  levels of floating rate assets which more than offset higher rates paid
on deposits and  borrowings  in fiscal 2006 when  compared to the same period in
fiscal 2005. The Company's net interest  income  increased $230 thousand or 5.0%
for the nine months  ended March 31, 2006.  The increase in net interest  income
was principally attributable to higher overall levels of Company assets, a shift
in Company  assets  from lower  yielding  fixed rate  investment  securities  to
floating rate  mortgage-backed  securities and higher short-term market interest
rates which offset  increases in rates paid on deposits and borrowings in fiscal
2006 when compared to the same period in fiscal 2005.

         Interest  Income.  Total  interest and dividend  income  increased $1.4
million or 32.0% and $2.7  million or 20.6% for the three and nine months  ended
March 31, 2006, respectively, when compared to the same periods in 2005.

         Interest on mortgage-backed securities increased $1.3 million or 121.6%
for the three months ended March 31, 2006,  when  compared to the same period in
2005.  The  increase  for the three  months  ended March 31, 2006 was  primarily
attributable   to  a  $65.6   million   increase  in  the  average   balance  of
mortgage-backed  securities  outstanding  for the period  and a 152 basis  point
increase in the average yield earned on mortgage-backed securities for the three
months ended March 31, 2006 when  compared to the same period in 2005.  Interest
on  mortgage-backed  securities  increased  $3.8  million or 139.4% for the nine

                                       12
<PAGE>

months  ended March 31,  2006,  when  compared  to the same period in 2005.  The
increases for the nine months ended March 31, 2006 was primarily attributable to
a $73.8 million  increase in the average balance of  mortgage-backed  securities
outstanding  for the period and a 137 basis point  increase in the average yield
earned on mortgage-backed securities outstanding for the nine months ended March
31, 2006 when compared to the same period in 2005.  The increase in the weighted
average yield earned on  mortgage-backed  securities was consistent  with market
conditions  for the three and nine months ended March 31, 2006.  The increase in
the average  balances of  mortgage-backed  securities  during the three and nine
months ended March 31, 2006 was primarily  attributable to purchases of floating
rate mortgage-backed securities.

         Interest and dividend  income on  interest-bearing  deposits with other
institutions,  investment  securities  including  FHLB stock ("other  investment
securities") increased by $190 thousand or 7.9% for the three months ended March
31, 2006 when compared to the same period in 2005. The increase was  principally
attributable  to a 75 basis point increase in the weighted  average yield earned
on other  investment  securities  which was partially  offset by a $29.0 million
decrease in the average balance  outstanding of other investment  securities for
the three months ended March 31, 2006 when  compared to the same period in 2005.
Interest and  dividend  income on other  investment  securities  decreased  $909
thousand or 12.2% for the nine months ended March 31, 2006, when compared to the
same period in 2005.  The  decrease for the nine months ended March 31, 2006 was
primarily  attributable  to a $47.7  million  decrease  in the  average  balance
outstanding of other  investment  securities for the nine months ended March 31,
2006 which was  partially  offset by a 25 basis point  increase in the  weighted
average yield earned on other  investment  securities  outstanding  for the nine
months  ended March 31,  2006,  when  compared  to the same period in 2005.  The
increase in the  weighted  average  yields  earned for the three and nine months
ended March 31, 2006 were a result of  purchases of higher  yielding  fixed rate
callable   Agency  bonds  funded  by  issuer   redemptions   of  lower  yielding
fixed-to-floating rate callable Agency bonds.

         Interest on net loans receivable decreased $64 thousand or 6.2% for the
three months ended March 31, 2006, when compared to the same period in 2005. The
decrease  for the three  months  ended  March  31,  2006 was  attributable  to a
decrease  of  $5.9  million  in the  average  balance  of net  loans  receivable
outstanding  which was partially offset by an increase of 23 basis points in the
weighted average yield earned on net loans receivable for the three months ended
March 31, 2006, when compared to the same period in 2005.  Interest on net loans
receivable  decreased  $165 thousand or 5.2% for the nine months ended March 31,
2006, when compared to the same period in 2005. The decrease for the nine months
ended March 31, 2006 was  attributable to a $5.7 million decrease in the average
balance of net loans  receivable  outstanding  which was partially  offset by an
increase of 27 basis  points in the weighted  average  yield earned on net loans
receivable for the nine months ended March 31, 2006. The decrease in the average
loan balance  outstanding for the three and nine months ended March 31, 2006 was
primarily   attributable  to  increased  levels  of  mortgage   prepayments  and
refinancings   due  to  low  market   rates  on   mortgages.   As  part  of  its
asset/liability  management  strategy,  the Company  has  limited its  portfolio
origination of  longer-term  fixed rate loans to mitigate its exposure to a rise
in market  interest  rates.  The Company will continue to originate  longer-term
fixed  rate loans for sale on a  correspondent  basis to  increase  non-interest
income and to contribute to net income.

         Interest  Expense.  Total  interest  expense  increased $1.1 million or
35.6% and $2.5  million or 28.7% for the three and nine  months  ended March 31,
2006, respectively, when compared to the same period in 2005.

         Interest on FHLB advances and other borrowings  increased $853 thousand
or 34.7% for the three  months  ended March 31,  2006 when  compared to the same
period in 2005.  The  increase  for the three  months  ended  March 31, 2006 was
attributable  to a 65 basis point increase in the weighted  average rate paid on
FHLB advances and other  borrowings for the period and a $38.9 million  increase
in the average  balance of such  borrowings  when compared to the same period in
2005. The increase in the weighted  average rate paid was consistent with market
conditions for the three months ended March 31, 2006.  Interest on FHLB advances
and other  borrowings  increased $1.9 million or 26.1% for the nine months ended
March 31, 2006,  when compared to the same period in 2005.  The increase for the
nine months ended March 31, 2006 was  attributable  to a 63 basis point increase
in the weighted  average rate paid on FHLB advances and other borrowings for the
period and a $21.3 million  increase in the average  balance of such  borrowings
when

                                       13
<PAGE>

compared  to the same period in 2005.  The  weighted  average  rate paid on FHLB
advances and other  borrowings  increased due to increases in short-term  market
interest rates.

         Interest  expense on deposits and escrows  increased  $220  thousand or
39.4% for the three months ended March 31, 2006 when compared to the same period
in 2005. The increase in interest  expense on deposits and escrows for the three
months ended March 31, 2006 was  attributable  to a 110 basis point  increase in
the weighted average yield paid on money market and time deposits for the period
ended March 31, 2006, when compared to the same period in 2005. Interest expense
on deposits  and escrows  increased  $645  thousand or 40.3% for the nine months
ended March 31, 2006 when  compared to the same period in 2005.  The increase in
interest  expense on deposits  and  escrows for the nine months  ended March 31,
2006 was primarily  attributable  to a 101 basis point  increase in the weighted
average  yield paid on time deposits and money markets for the period and a $2.0
million  increase in the average  balance of time  deposits  for the nine months
ended March 31,  2006,  when  compared  to the same  period in 2005,  which were
partially  offset by a $4.0 million  decrease in the average  balance of savings
deposits for the period when  compared to the same period in 2005.  The weighted
average yield paid on  interest-bearing  deposits  reflects  increases in market
interest rates.

         Provision  (Recovery)  for Loan Losses.  A provision for loan losses is
charged, and a recovery for loan losses is 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 a credit provision for loan losses of $38 thousand
for the three  months  ended  March 31, 2006  compared  to a $5 thousand  credit
provision for the same period in 2005. The $38 thousand credit  provision during
the  quarter  ended  March 31, 2006 was  primarily  attributable  to paydowns of
non-accrual  loans.  For the nine  months  ended  March 31,  2006,  the  Company
recorded a $149 thousand credit  provision for loan losses compared to recording
a  provision  of $66  thousand  for the same period in 2005.  The $149  thousand
credit  provision  for loan losses for the nine months  ending March 31, 2006 is
primarily the result of the Company  reallocating  $35 thousand of its allowance
for loan loss attributable to off balance sheet liabilities  (builder letters of
credit  and  undisbursed  lines of credit) to a  separate  reserve  account  for
financial  reporting  purposes during the first quarter of fiscal 2006 and a $92
thousand  reduction due to continued paydowns of non-accrual loans. At March 31,
2006, the Company's total allowance for loan losses amounted to $969 thousand or
1.4% of the Company's total loan portfolio,  as compared to $1.1 million or 1.5%
at June 30, 2005.

         Non-Interest Income. Non-interest income increased $12 thousand or 7.5%
and  decreased  $287 thousand or 34.5% for the three and nine months ended March
31, 2006, respectively,  when compared to the same periods in 2005. The decrease
for the nine month period was primarily attributable to pre-tax securities gains
of $335 thousand recognized in fiscal 2005.

         Non-Interest  Expense.  Non-interest  expense decreased $19 thousand or
2.1% and $42  thousand  or 1.6% for the three and nine  months  ended  March 31,
2006, respectively,  when compared to the same periods in 2005. The decrease for
the three  months  ended  March 31,  2006 was  primarily  attributable  to a $18
thousand decrease in fixed asset depreciation, a $7 thousand decrease in postage
expense  and a $5  thousand  decrease  in  employee  related  costs,  which were
partially offset by a $6 thousand increase in correspondent bank service charges
and $5 thousand increase in data processing  expense.  The decrease for the nine
months ended March 31, 2006 was primarily  attributable to $46 thousand decrease
in  employee  related  costs  and  a  $36  thousand   decrease  in  fixed  asset
depreciation  which were partially  offset by a reallocation of a portion of the
Company's  allowance for loan loss attributable to off-balance sheet liabilities
as discussed above, a $10 thousand increase in data processing  expense and a $5
thousand increase in correspondent bank service charges.

                                       14
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

         Net cash provided by operating  activities  totaled $1.5 million during
the nine months ended March 31, 2006. Net cash provided by operating  activities
was primarily  comprised of $2.0 million of net income, a $509 thousand increase
in accrued and deferred taxes and a $206 thousand  increase in accrued  interest
payables,  which were  partially  offset by a $1.1  million  decrease in accrued
interest receivables.

         Funds used for investing  activities  totaled $30.4 million  during the
nine months ended March 31,  2006.  Primary uses of funds during the nine months
ended March 31, 2006, were purchases of $111.0 million of investment securities,
$86.5 million of floating rate  mortgage-backed  securities  and $4.7 million of
FHLB  stock,  which were  partially  offset by  repayments  of $81.8  million of
investment  securities,  $80.3 million of  mortgage-backed  securities  and $5.1
million of FHLB stock, a $4.5 million  decrease in net loans receivable and $1.0
million  from  the  sale  of  fixed-rate  mortgage-backed  securities  from  the
Company's portfolio.

         Funds  provided by financing  activities  totaled $26.5 million for the
nine months ended March 31, 2006. The primary  sources of funds included a $43.7
million increase in other  short-term  borrowings and a $1.6 million increase in
short-term FHLB advances which were partially offset by a $12.8 million decrease
in deposits and escrows,  a $4.0 million  decrease in long-term  FHLB  advances,
$1.1  million in cash  dividends  paid on the  Company's  common  stock and $922
thousand in purchased treasury stock.  Management  believes that it currently is
maintaining  adequate  liquidity  and  continues to match  funding  sources with
lending and investment opportunities.

         During the quarter ended March 31, 2006,  the Company  incurred  $756.5
million in other short-term  borrowings with weighted average rates of 4.58% and
incurred  approximately $13.9 million in various short-term  borrowings from the
FHLB with weighted  average rates of 4.70%.  During the three months ended March
31, 2006 the Company repaid $737.2 million of other  short-term  borrowings with
weighted  average  rates of 4.52%,  $24.8  million  of various  short-term  FHLB
borrowings with weighted  average rates of 4.33% and $4.0 million of a long-term
FHLB borrowing with a rate of 5.43%.

         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,  2006,  total  approved  loan
commitments outstanding amounted to $614 thousand. At the same date, commitments
under unused lines of credit amounted to $8.1 million and the unadvanced portion
of  construction  loans  approximated  $10.6  million.  Certificates  of deposit
scheduled to mature in one year or less at March 31, 2006 totaled $44.1 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 April 25, 2006,  the  Company's  Board of Directors  declared a cash
dividend of $0.16 per share payable May 18, 2006, to  shareholders  of record at
the close of business on May 8, 2006. 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, 2006,  WVS  Financial  Corp.  exceeded  all  regulatory
capital requirements and maintained Tier I and total risk-based capital equal to
$29.1  million  or 21.6% and $30.1  million  or  22.3%,  respectively,  of total
risk-weighted  assets,  and Tier I leverage capital of $29.1 million or 6.55% of
average quarterly assets.

                                       15
<PAGE>

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

         The   Company's   nonperforming   assets  at  March  31,  2006  totaled
approximately $653 thousand or 0.15% of total assets as compared to $1.1 million
or 0.25% of total  assets at June 30,  2005.  Nonperforming  assets at March 31,
2006  consisted of: one land loan totaling $357  thousand,  three  single-family
real estate  loans  totaling  $216  thousand,  one  unsecured  bankruptcy  claim
totaling  $49  thousand,  one  home  equity  loan  totaling  $17  thousand,  one
non-residential  real estate loan  totaling  $4 thousand  and one  single-family
property subject to redemption totaling $10 thousand.

         The $447  thousand  decrease in  nonperforming  assets  during the nine
months ended March 31, 2006 was primarily  attributable to the payoff in full of
one  non-performing  speculative  construction loan totaling  approximately $456
thousand,   the  sale  of  a  single-family   home  with  a  carrying  value  of
approximately  $70  thousand,  principal  paydowns  totaling  approximately  $39
thousand  on  two  claims  related  to  a  bankruptcy   discussed   below,   the
reclassification  of an $11  thousand  home  equity  line of  credit  loan  from
non-performing  to performing  status and a $7 thousand  partial  charge off and
transfer to other  assets of a home equity loan which were  partially  offset by
the  addition  to  non-accrual  status  of one line of  credit  secured  by real
property  totaling  approximately $17 thousand,  two  single-family  real estate
loans totaling  approximately $159 thousand and one non-residential  real estate
loan totaling approximately $4 thousand.

         At March 31, 2006, the Company had one  non-performing  loan secured by
undeveloped  land  totaling $357  thousand and one  unsecured  bankruptcy  claim
totaling  $49  thousand to two  borrowers.  During the fourth  quarter of fiscal
2004, the  Bankruptcy  Court approved a secured claim totaling $440 thousand and
an unsecured claim totaling $76 thousand be paid in accordance with a Bankruptcy
Plan of Reorganization.  All Court ordered plan payments have been received in a
timely manner.  In accordance  with generally  accepted  accounting  principles,
payments received are being applied on a cost recovery basis.

         During the nine months ended March 31, 2006, approximately $29 thousand
of  interest  income  would  have  been  recorded  on loans  accounted  for on a
non-accrual  basis  and  troubled  debt  restructurings  if such  loans had been
current  according to the original loan agreements for the entire period.  These
amounts were not included in the Company's  interest  income for the nine months
ended March 31, 2006.  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.


                                       16
<PAGE>

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
ASSET AND LIABILITY MANAGEMENT

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

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

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

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

         During the nine months  ended March 31,  2006,  the Federal Open Market
Committee  increased its targeted federal funds rate by one-hundred  fifty basis
points from 3.25% at June 30, 2005 to 4.75% at March 31, 2006. The benchmark two
and ten year  treasury  yields  were 4.82% and 4.86%  respectively  at March 31,
2006,  as  compared  to 3.66% and 3.94%  respectively  at June 30,  2005.  These
changes in short,  intermediate  and  long-term  market  interest  rates and the
flattening of the Treasury yield curve have precipitated  continued  prepayments
in the Company's loan, investment and mortgage-backed  securities portfolios and
a marked compression of industry-wide net interest margins.

         Principal   repayments   on  the   Company's   loan,   investment   and
mortgage-backed  securities portfolios for the nine months ended March 31, 2006,
totaled  $19.5  million,  $81.8  million  and $80.3  million,  respectively.  In
response  to  higher  levels  of  liquidity  the  Company  rebalanced  its loan,
investment and mortgage-backed securities portfolios.

         Due to the  term  structure  of  market  interest  rates,  the  Company
continued to reduce its portfolio originations of long-term fixed rate mortgages
while continuing to offer such loans on a correspondent  basis. 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

                                       17
<PAGE>

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  began to  purchase  fixed rate  callable U. S.  Government
Agency  bonds in order to earn a spread  against the  Company's  long-term  FHLB
advances  while  limiting  interest rate risk within the  portfolio.  Within the
mortgage-backed securities portfolio, the Company continued to purchase floating
rate  securities  in order to provide  current  income and in response to rising
short-term  market interest rates.  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  deposit
products.

         During the quarter ended March 31, 2006, principal investment purchases
were  comprised of:  callable  fixed rate  government  agency bonds with initial
lock-out periods as follows:0 - 12 months - $7.0 million with a weighted average
yield to call of  approximately  9.37%,  13 - 24 months - $13.6  million  with a
weighted  average yield to call of  approximately  6.05%, 25 - 36 months - $12.3
million with a weighted average yield to call of approximately 6.08% and over 36
months - $3.0 million  with a weighted  average  yield to call of  approximately
6.0%;  and floating  rate  collateralized  mortgage  obligations  which  reprice
monthly - $1.9 million with an original  weighted average yield of approximately
5.62%.  Major  investment  proceeds  received during the quarter ended March 31,
2006 were:  mortgage-backed  securities  - $14.3  million;  callable  government
agency bonds - $15.0  million  with a weighted  average  yield of  approximately
3.70%,  and tax-free  municipal  bonds - $425 thousand  with a weighted  average
yield of approximately 5.35%.

         During  the nine  months  ended  March 31,  2006  principal  investment
purchases were comprised of: floating rate collateralized  mortgage  obligations
which reprice monthly - $86.5 million with an original weighted average yield of
4.53%; callable fixed rate government agency bonds with initial lock-out periods
as follows:  0 - 12 months - $35.7 million with a weighted average yield to call
of  approximately  6.76%, 13 - 24 months - $28.6 million with a weighted average
yield to call of  approximately  6.04%,  25 - 36 months - $19.0  million  with a
weighted average yield to call of approximately  6.11% and over 36 months - $3.0
million  with a  weighted  average  yield  to call of  approximately  6.0%;  and
callable  fixed to floating  rate  government  agency  bonds which will  reprice
within  twenty-four  to  thirty-three  months - $25.0  million  with a  weighted
average yield of approximately  5.07%. Major investment proceeds received during
the nine months  ended March 31, 2005 were:  mortgage-backed  securities - $80.3
million;  callable  floating rate government agency bonds - $60.0 million with a
weighted average yield of approximately 3.40%;  tax-free municipal bonds - $12.4
million with a weighted  average  yield of  approximately  5.89%;  and corporate
demand notes - $7.3 million with a weighted average semiannual yield of 4.34%.

         As of March 31, 2006, the  implementation  of these asset and liability
management initiatives resulted in the following:

1)       $164.9 million or 98.6% 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)       $83.0  million  or  38.9% of the  Company's  investment  portfolio  was
         comprised of fixed to floating rate U.S.  Government Agency bonds which
         will reprice as follows: 3 months or less - $10.0 million; 3 - 6 months
         - $5.0 million; 6 - 12 months - $43.0 million;  and over 1 year - $25.0
         million.  Management  currently believes that these bonds are likely to
         be repaid during the intervals shown.
3)       $86.4  million  or  40.5% 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 - $11.8 million; 6 - 12 months -
         $23.9 million;  1 - 2 years - $28.6  million;  and over 2 years - $22.1
         million.  These  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.
4)       $30.1  million  or  14.1% of the  Company's  investment  portfolio  was
         comprised of U.S. Government Agency Step-up bonds which will reprice as
         follows:  3 months or less - $15.0 million from 4.00% to 7.00%;  6 - 12
         months - $8.5 million  from 4.00% to 7.00%,  $2.0 million from 4.40% to
         7.00%;  and 1 - 2 years - $4.7 million from 4.70% to 6.00%.  Management
         believes that  substantially all of these bonds are likely to be repaid
         during the intervals shown.

                                       18
<PAGE>

5)       An  aggregate  of $30.1  million  or 52.9%  of the  Company's  net loan
         portfolio had  adjustable  interest rates or maturities of less than 12
         months.
6)       The maturity  distribution of the Company's borrowings is as follows: 1
         month or less - $127.2  million or 47.8%;  1 - 6 months - $157 thousand
         or  .01%;  1 - 3 years - $13.5  million  or  5.1%;  3 - 5 years - $90.6
         million or 34.0%; and over 5 years - $34.5 million or 13.0%.


         The effect of interest rate changes on a financial institution's assets
and liabilities may be analyzed by examining the "interest rate  sensitivity" of
the assets and  liabilities  and by  monitoring an  institution's  interest rate
sensitivity  "gap".  An asset or liability is said to be interest rate sensitive
within a specific  time period if it will mature or reprice  within a given time
period.  A gap is  considered  positive  (negative)  when  the  amount  of  rate
sensitive assets (liabilities)  exceeds the amount of rate sensitive liabilities
(assets).  During a period of falling  interest rates, a negative gap would tend
to result  in an  increase  in net  interest  income.  During a period of rising
interest  rates,  a  positive  gap would  tend to result in an  increase  in net
interest income.

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

                                              March 31,         June 30,
                                              --------    --------------------
                                                2006        2005         2004
                                              --------    --------    --------
                                                   (Dollars in Thousands)
Interest-earning assets maturing or
   repricing within one year                  $295,620    $318,015    $288,451
Interest-bearing liabilities maturing or
   repricing within one year                   218,211     181,085     171,655
                                              --------    --------    --------


Interest sensitivity gap                      $ 77,409    $136,930    $116,796
                                              ========    ========    ========
Interest sensitivity gap as a percentage of
   total assets                                   17.2%       32.5%       26.9%
Ratio of assets to liabilities
   maturing or repricing within one year         135.5%      175.6%      168.0%


                                       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,  2006.  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
                     -------      -------      --------      --------      --------      --------        ---------
<S>                  <C>           <C>          <C>           <C>           <C>           <C>              <C>
                                                          (Dollars in Thousands)
Base Case Up 200 bp
-------------------
Cummulative
  Gap ($'s)            37,933        24,616       54,794         49,721        52,118       (43,773)         27,337
% of Total
  Assets                  8.4%          5.5%        12.2%          11.0%         11.6%         (9.7)%           6.1%
Base Case Up 100 bp
-------------------
Cummulative
  Gap ($'s)            45,160        32,053       67,569         62,858        65,488       (30,353)         27,337
% of Total
  Assets                 10.0%          7.1%        15.0%          14.0%         14.5%         (6.7)%           6.1%
Base Case No Change
-------------------
Cummulative
  Gap ($'s)            53,942        41,225       77,409         74,976        93,014        21,104          27,337
% of Total
  Assets                 12.0%          9.2%        17.2%          16.7%         20.7%          4.7%            6.1%
Base Case Down 100 bp
---------------------
Cummulative
  Gap ($'s)            58,769        47,290      108,950        122,719       145,044        54,476          27,337
% of Total
  Assets                 13.1%         10.5%        24.2%          27.3%         32.2%         12.1%            6.1%
Base Case Down 200 bp
---------------------
Cummulative
  Gap ($'s)           129,289       119,540      139,310        144,385       150,817        56,053          27,337
% of Total
  Assets                 28.7%         26.6%        30.9%          32.1%         33.5%         12.4%            6.1%

</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, 2006.

           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      -46.4%     -19.6%     0.00%       4.2%      -9.6%

   Return on average equity            4.03%      8.93%    12.38%     13.09%     10.76%

   Return on average assets            0.27%      0.60%     0.84%      0.89%      0.71%

   Market value of equity (in
      thousands)                    $27,123    $31,958   $32,210    $23,003     $5,375

</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,
2006.

                            Anticipated Transactions
               --------------------------------------------------
                                            (Dollars in Thousands)
               Undisbursed construction and
                   land development loans
                     Fixed rate                        $   5,199
                                                            6.85%

                     Adjustable rate                   $   5,435
                                                            8.20%

               Undisbursed lines of credit
                     Adjustable rate                   $   8,120
                                                            7.65%

               Loan origination commitments
                     Fixed rate                        $     455
                                                            7.75%

                     Adjustable rate                   $     159
                                                            8.00%

               Letters of credit
                     Adjustable rate                   $     815
                                                            8.76%


                                                       ---------
                                                       $  20,183
                                                       =========

                                       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,  2006,  the  Savings  Bank had ten  performance
standby letters of credit outstanding totaling approximately $815 thousand. Four
letters of credit are secured by deposits with the Savings Bank, four letters of
credit are secured by undisbursed  construction  loan funds,  and two letters of
credit are secured by  developed  property.  Eight of the letters of credit will
mature within nine months, one will mature within fifteen months, and one letter
of credit is open-ended.  In the event that the obligor is unable to perform its
obligations as specified in the standby letter of credit agreement,  the Savings
Bank would be  obligated  to disburse  funds up to the amount  specified  in the
standby  letter  of  credit  agreement.  The  Savings  Bank  maintains  adequate
collateral that could be liquidated to fund these contingent obligations.

ITEM 4.

CONTROLS AND PROCEDURES

         Our management evaluated, with the participation of our Chief Executive
Officer  and  Chief  Financial  Officer,  the  effectiveness  of our  disclosure
controls and procedures (as defined in Rules  13a-15(e) and 15d-15(e)  under the
Securities Exchange Act of 1934) as of March 31, 2006. Based on such evaluation,
our Chief Executive  Officer and Chief Financial Officer have concluded that our
disclosure  controls  and  procedures  are  designed to ensure that  information
required to be  disclosed  by us in the reports that we file or submit under the
Securities Exchange Act of 1934 is recorded, processed,  summarized and reported
within the time  periods  specified in the SEC's rules and  regulations  and are
operating in an effective manner.

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


                                       22
<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
         ------------

         Not applicable.

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 March 31, 2006.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
                                  ISSUER PURCHASES OF EQUITY SECURITIES
--------------------------------------------------------------------------------------------------------
                                                              Total Number of        Maximum Number of
                                                             Shares Purchased       Shares that May Yet
                       Total Number                         as Part of Publicly       Be Repurchased
                         of Shares      Average Price        Announced Plans or     Under the Plans or
          Period         Purchased   Paid per Share ($)         Programs (1)            Programs (2)
--------------------------------------------------------------------------------------------------------
<S>                       <C>              <C>                     <C>                   <C>
01/01/06 - 01/31/06        7,779            16.17                   7,779                 100,122
--------------------------------------------------------------------------------------------------------
02/01/06 - 02/28/06        5,638            16.10                   5,638                  94,484
--------------------------------------------------------------------------------------------------------
03/01/06 - 03/31/06        1,200            16.18                   1,200                  93,284
--------------------------------------------------------------------------------------------------------
     Total                14,617            16.15                  14,617                  93,284
--------------------------------------------------------------------------------------------------------
</TABLE>

--------------------

         (1) All shares  indicated  were  purchased  under the Company's  Eighth
             Stock Repurchase Program
         (2) Eighth Stock Repurchase Program
            (a) Announced September 27, 2005.
            (b) 125,000 common shares approved for repurchase.
            (c) No fixed date of expiration.
            (d) This program has  not expired and has 93,284 shares remaining to
                be purchased at March 31, 2006.
            (e) Not applicable.

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

         Not applicable.

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

         Not applicable.

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

         Not applicable.

                                       23
<PAGE>

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 Executive  E-1
        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

                                       24
<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.



May 15, 2006         BY:  /s/ David J. Bursic
                          ------------------------------------------------------
Date                      David J. Bursic
                          President and Chief Executive Officer
                          (Principal Executive Officer)


May 15, 2006         BY:  /s/ Keith A. Simpson
                          ------------------------------------------------------
Date                      Keith A. Simpson
                          Vice-President, Treasurer and Chief Accounting Officer
                          (Principal Accounting Officer)


                                       25