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

                                    FORM 10-Q

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

         For the quarterly period ended September 30, 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 of                     (I.R.S. Employer
   incorporation or organization)                   Identification Number)

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

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

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

         Indicate by check mark whether the  registrant  is a large  accelerated
filer,  an accelerated  filer,  or a  non-accelerated  filer.  See definition of
"accelerated  filer and large accelerated  filer" in Rule 12 b-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 November 13, 2006:  2,309,815  shares Common
Stock, $.01 par value.

<PAGE>

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

                                      INDEX
                                      -----

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

Item 1.        Financial Statements

               Consolidated Balance Sheet as of
               September 30, 2006 and June 30, 2006
               (Unaudited)                                                  3

               Consolidated Statement of Income
               for the Three Months Ended
               September 30, 2006 and 2005 (Unaudited)                      4

               Consolidated Statement of Changes in
               Stockholders' Equity for the Three Months
               Ended September 30, 2006 (Unaudited)                         5

               Consolidated Statement of Cash Flows
               for the Three Months Ended September 30,
               2006 and 2005 (Unaudited)                                    6

               Notes to Unaudited Consolidated
               Financial Statements                                         8

Item 2.        Management's Discussion and Analysis of
               Financial Condition and Results of
               Operations for the Three Months
               Ended September 30, 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         24
Item 5.        Other Information                                           24
Item 6.        Exhibits                                                    24
               Signatures                                                  25

                                       2
<PAGE>
<TABLE>
<CAPTION>

                                  WVS FINANCIAL CORP. AND SUBSIDIARY
                                      CONSOLIDATED BALANCE SHEET
                                             (UNAUDITED)
                                            (In thousands)
                                                                 September 30, 2006    June 30, 2006
                                                                 ------------------   ---------------
<S>                                                                          <C>                <C>
          Assets
          ------
Cash and due from banks                                            $           994    $         1,099
Interest-earning demand deposits                                             2,033                 97
                                                                   ---------------    ---------------
Total cash and cash equivalents                                              3,027              1,196
Investment securities available-for-sale (amortized cost of
   $504 and $8,497)                                                            488              8,469
Investment securities held-to-maturity (market value of
   $202,777 and $185,680)                                                  202,309            187,952
Mortgage-backed securities available-for-sale (amortized cost of
   $2,219 and $2,229)                                                        2,306              2,292
Mortgage-backed securities held-to-maturity (market value of
   $145,793 and $152,706)                                                  145,857            153,461
Net loans receivable (allowance for loan losses of $956 and
   $957)                                                                    57,224             55,702
Accrued interest receivable                                                  3,410              2,921
Federal Home Loan Bank stock, at cost                                        6,670              7,861
Premises and equipment                                                         839                864
Other assets                                                                 1,053              1,024
                                                                   ---------------    ---------------
          TOTAL ASSETS                                             $       423,183    $       421,742
                                                                   ===============    ===============

          Liabilities and Stockholders' Equity
          ------------------------------------
Liabilities:
Savings Deposits:
   Non-interest-bearing accounts                                   $        22,108    $        11,315
   NOW accounts                                                             17,687             18,083
   Savings accounts                                                         34,878             36,851
   Money market accounts                                                    16,474             16,562
   Certificates of deposit                                                  71,192             67,890
   Advance payments by borrowers for taxes and insurance                       321              1,012
                                                                   ---------------    ---------------
    Total savings deposits                                                 162,660            151,713
Federal Home Loan Bank advances: long-term                                 133,579            138,579
Federal Home Loan Bank advances: short-term                                     --             23,150
Other borrowings                                                            91,500             76,048
Accrued interest payable                                                     1,600              1,451
Other liabilities                                                            4,116              1,383
                                                                   ---------------    ---------------
     TOTAL LIABILITIES                                                     393,455            392,324
                                                                   ---------------    ---------------

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;
   3,769,838 and 3,769,838 shares issued                                        38                 38
Additional paid-in capital                                                  20,817             20,817
Treasury stock: 1,449,491 and 1,434,606 shares at cost,
    Respectively                                                           (21,924)           (21,679)
Retained earnings, substantially restricted                                 30,753             30,221
Accumulated other comprehensive income                                          46                 23
Unreleased shares - Recognition and Retention Plans                             (2)                (2)
                                                                   ---------------    ---------------
     TOTAL STOCKHOLDERS' EQUITY                                             29,728             29,418
                                                                   ---------------    ---------------
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY               $       423,183    $       421,742
                                                                   ===============    ===============

                See accompanying notes to unaudited consolidated financial statements.
</TABLE>
                                                  3
<PAGE>
<TABLE>
<CAPTION>

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

                                                             Three Months Ended
                                                                September 30,
                                                         --------------------------
                                                             2006           2005
                                                         -----------    -----------
<S>                                                            <C>            <C>
INTEREST AND DIVIDEND INCOME:
     Loans                                               $     1,052    $     1,052
     Investment securities                                     2,566          1,856
     Mortgage-backed securities                                2,399          1,882
     Interest-earning deposits with other institutions             4              3
     Federal Home Loan Bank stock                                 97             47
                                                         -----------    -----------
          Total interest and dividend income                   6,118          4,840
                                                         -----------    -----------

INTEREST EXPENSE:
     Deposits                                                    968            711
     Federal Home Loan Bank advances                           1,908          2,007
     Other borrowings                                          1,162            667
                                                         -----------    -----------
          Total interest expense                               4,038          3,385
                                                         -----------    -----------

NET INTEREST INCOME                                            2,080          1,455
RECOVERY FOR LOAN LOSSES                                          (9)           (66)
                                                         -----------    -----------
NET INTEREST INCOME AFTER RECOVERY FOR LOAN LOSSES             2,089          1,521
                                                         -----------    -----------


NON-INTEREST INCOME:
     Service charges on deposits                                  88             95
     Investment securities gains                                  --             30
     Other                                                        64             82
                                                         -----------    -----------
          Total non-interest income                              152            207
                                                         -----------    -----------

NON-INTEREST EXPENSE:
     Salaries and employee benefits                              489            469
     Occupancy and equipment                                      91            101
     Data processing                                              63             67
     Correspondent bank service charges                           39             36
     Other                                                       220            216
                                                         -----------    -----------
          Total non-interest expense                             902            889
                                                         -----------    -----------

INCOME BEFORE INCOME TAXES                                     1,339            839
INCOME TAXES                                                     435            231
                                                         -----------    -----------
NET INCOME                                               $       904    $       608
                                                         ===========    ===========

EARNINGS PER SHARE:
     Basic                                               $      0.39    $      0.25
     Diluted                                             $      0.39    $      0.25

AVERAGE SHARES OUTSTANDING:
     Basic                                                 2,327,183      2,387,653
     Diluted                                               2,329,120      2,391,294

</TABLE>

       See accompanying notes to unaudited consolidated financial statements.

                                         4
<PAGE>
<TABLE>
<CAPTION>

                                                WVS FINANCIAL CORP. AND SUBSIDIARY
                                     CONSOLIDATED STATEMENT 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, 2006         $        38   $    20,817   $   (21,679)   $    30,221   $        23   $        (2)   $    29,418

Comprehensive income:

   Net Income                                                                       904                                        904
   Other comprehensive
     income:
      Change in unrealized
          holding gains on
          securities, net of
          income tax effect of
          $12                                                                                      23                           23
                                                                                                                       -----------

Comprehensive income                                                                                                           927

Purchase of shares for
   treasury stock                                                   (245)                                                     (245)


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

Exercise of stock options                 --            --                                                                      --

Cash dividends declared
   ($0.16 per share)                                                               (372)                                      (372)
                                 -----------   -----------   -----------    -----------   -----------   -----------    -----------

Balance at Sept 30, 2006         $        38   $    20,817   $   (21,924)   $    30,753   $        46   $        (2)   $    29,728
                                 ===========   ===========   ===========    ===========   ===========   ===========    ===========

                              See accompanying notes to unaudited consolidated financial statements.
</TABLE>


                                                                5
<PAGE>
<TABLE>
<CAPTION>

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

                                                                             Three Months Ended
                                                                                September 30,
                                                                            --------------------
                                                                              2006        2005
                                                                            --------    --------
<S>                                                                              <C>         <C>
OPERATING ACTIVITIES

Net income                                                                  $    904    $    608
Adjustments to reconcile net income to cash provided by operating
 activities:
   Recovery for loan losses                                                       (9)        (66)
   Depreciation                                                                   32          46
   Investment securities gains                                                    --         (30)
   Amortization of discounts, premiums and deferred loan fees                    (51)        (61)
   Increase in accrued and deferred taxes                                         27         161
   Increase in accrued interest receivable                                      (489)       (281)
   Increase in accrued interest payable                                          149         116
   Other, net                                                                    673          91
                                                                            --------    --------
         Net cash provided by operating activities                             1,236         584
                                                                            --------    --------

INVESTING ACTIVITIES

Available-for-sale:
   Purchases of investments and mortgage-backed securities                        --        (687)
   Proceeds from repayments of investments and mortgage-backed securities      8,009       1,080
   Proceeds from sale of investment and mortgage-backed securities                --       1,016
Held-to-maturity:
   Purchases of investments                                                  (18,331)    (24,997)
   Purchases of mortgage-backed securities                                    (4,998)    (61,159)
   Proceeds from repayments of investments                                     6,009      39,966
   Proceeds from repayments of mortgage-backed securities                     12,617      39,887
(Increase) decrease in net loans receivable                                   (1,527)      1,110
Purchase of Federal Home Loan Bank stock                                        (753)     (2,049)
Redemption of Federal Home Loan Bank stock                                     1,944       2,354
Acquisition of premises and equipment                                             (7)        (14)
                                                                            --------    --------
         Net cash provided by (used for) investing activities                  2,963      (3,493)
                                                                            --------    --------
</TABLE>

                                               6
<PAGE>
<TABLE>
<CAPTION>

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

                                                                         Three Months Ended
                                                                           September 30,
                                                                        --------------------
                                                                          2006        2005
                                                                        --------    --------
<S>                                                                        <C>           <C>
FINANCING ACTIVITIES

Net increase in transaction and passbook accounts                          8,336       1,433
Net increase in certificates of deposit                                    3,302         731
Net (decrease) increase in FHLB short-term advances                      (23,150)      1,875
Net increase (decrease) in other borrowings                               15,452        (475)
Repayments of Federal Home Loan Bank long-term advances                   (5,000)         --
Net decrease in advance payments by borrowers for taxes and insurance       (691)       (700)
Cash dividends paid                                                         (372)       (383)
Funds used for purchase of treasury stock                                   (245)       (614)
                                                                        --------    --------
         Net cash (used for) provided by financing activities             (2,368)      1,867
                                                                        --------    --------

         Increase (decrease) in cash and cash equivalents                  1,831      (1,042)

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD                       1,196       3,566
                                                                        --------    --------

CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                          $  3,027    $  2,524
                                                                        ========    ========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

   Cash paid during the period for:
      Interest on deposits, escrows and borrowings                      $  3,889    $  3,269
      Income taxes                                                      $    420    $     40

           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 months ended  September  30, 2006,  are not
necessarily  indicative  of the  results  which may be  expected  for the entire
fiscal year.

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

         In  September   2006,   the  FASB  issued  FAS  No.  157,   Fair  Value
Measurements,  which provides  enhanced guidance for using fair value to measure
assets and liabilities. The standard applies whenever other standards require or
permit assets or liabilities to be measured at fair value. The Standard does not
expand the use of fair value in any new circumstances.  FAS No. 157 is effective
for financial  statements  issued for fiscal years  beginning after November 15,
2007 and interim periods within those fiscal years. Early adoption is permitted.
The adoption of this  standard is not expected to have a material  effect on the
Company's results of operations or financial position.

         In September 2006, the FASB issued FAS No. 158,  Employers'  Accounting
for Defined  Benefit  Pension and Other Post  Retirement  Plans, an amendment of
FASB Statements No. 87, 88, 106 and 132(R).  FAS No. 158 requires that a company
recognize  the  overfunded  or  underfunded  status of its defined  benefit post
retirement  plans (other than  multiemployer  plans) as an asset or liability in
its statement of financial  position and that it recognize changes in the funded
status  in the year in which  the  changes  occur  through  other  comprehensive
income. FAS No. 158 also requires the measurement of defined benefit plan assets
and obligations as of the fiscal year end, in addition to footnote  disclosures.
FAS No. 158 is effective  for fiscal years ending after  December 15, 2006.  The
Company is currently  evaluating  the impact the  adoption of the standard  will
have on the Company's financial position.

         In September  2006,  the SEC issued Staff  Accounting  Bulletin No. 108
("SAB  108"),   Considering  the  Effects  of  Prior  Year   Misstatements  When
Quantifying  Misstatements  in  Current  Year  Financial  Statements,  providing
guidance on quantifying financial statement misstatement and implementation when
first applying this guidance.  Under SAB No. 108,  companies  should  evaluate a
misstatement  based on its impact on the current year income statement,  as well
as the cumulative effect of correcting such  misstatements that existed in prior
years existing in the current year's ending balance sheet.  SAB 108 is effective
for fiscal  years  ending  after  November  15,  2006.  The Company is currently
evaluating  the impact the adoption of the standard  will have on the  Company's
results of operations.

         In September 2006, the FASB reached  consensus on the guidance provided
by Emerging Issues Task Force Issue 06-4 ("EITF 06-4"),  Accounting for Deferred
Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life
Insurance Arrangements.  The guidance is applicable to endorsement  split-dollar
life  insurance  arrangements,  whereby  the  employer  owns  and  controls  the
insurance policy, that are associated with a postretirement  benefit.  EITF 06-4
requires that for a split-dollar life insurance  arrangement within the scope of
the Issue,  an employer  should  recognize a  liability  for future  benefits in
accordance  with FAS No. 106 (if, in substance,  a  postretirement  benefit plan
exists) or Accounting Principles Board Opinion No. 12 (if the arrangement is, in
substance,   an  individual

                                       8
<PAGE>

deferred  compensation  contract)  based on the  substantive  agreement with the
employee.  EITF 06-4 is effective for fiscal years  beginning after December 15,
2007.  The  Company is  currently  evaluating  the impact  the  adoption  of the
standard  will  have  on  the  Company's  results  of  operations  or  financial
condition.

         In September 2006, the FASB reached  consensus on the guidance provided
by Emerging Issues Task Force Issue 06-5("EITF 06-5"),  Accounting for Purchases
of Life  Insurance--Determining  the Amount That Could Be Realized in Accordance
with  FASB  Technical  Bulletin  No.  85-4,  Accounting  for  Purchases  of Life
Insurance.  EITF 06-5 states that a policyholder  should consider any additional
amounts included in the contractual terms of the insurance policy other than the
cash surrender  value in determining the amount that could be realized under the
insurance  contract.  EITF 06-5 also states that a policyholder should determine
the amount that could be realized under the life insurance contract assuming the
surrender of an  individual-life  by  individual-life  policy (or certificate by
certificate  in a  group  policy).  EITF  06-5 is  effective  for  fiscal  years
beginning  after  December 15, 2006.  The Company is  currently  evaluating  the
impact  the  adoption  of the  standard  will have on the  Company's  results of
operations or financial condition.

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

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

<TABLE>
<CAPTION>
                                                                 Three Months Ended
                                                                   September 30,
                                                              ------------------------
                                                                 2006           2005
                                                              ----------    ----------
<S>                                                            <C>           <C>
Weighted average common shares issued                          3,769,838     3,762,618
Average treasury stock shares                                 (1,442,655)   (1,374,965)
                                                              ----------    ----------

Weighted average common shares and common stock equivalents
  used to calculate basic earnings per share                   2,327,183     2,387,653
Additional common stock equivalents (stock options) used to
  calculate diluted earnings per share                             1,937         3,641
                                                              ----------    ----------

Weighted average common shares and common stock equivalents
  used to calculate diluted earnings per share                 2,329,120     2,391,294
                                                              ==========    ==========
</TABLE>

         All options at September  30, 2006 and September 30, 2005 were included
in the computation of diluted earnings per share.

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

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

         In April 2005,  the Securities  and Exchange  Commission  adopted a new
rule that amends the compliance  dates for FAS No. 123R. The Statement  requires
that compensation cost relating to share-based

                                       9
<PAGE>

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

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

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

                                     Three Month Ended September 30,
                                    ---------------------------------
                                         2006              2005
                                    ---------------   ---------------

      Net income                             $  904            $  608
      Other comprehensive
      (loss) income:
           Unrealized gains
           (losses) on available
            for sale securities     $   35            $  (58)

             Less:
             Reclassification
             adjustment for
             gain included in
             net income                 --               (30)
                                    ------   ------   ------   ------
      Other comprehensive gain
       (loss), before tax                        35               (88)
      Income tax expense
       (benefit) related to other
        comprehensive gain (loss)                12               (30)
                                             ------            ------
      Other comprehensive gain
      (loss), net of tax                         23               (58)
                                             ------            ------
      Comprehensive income                   $  927            $  550
                                             ======            ======


                                       10
<PAGE>

ITEM 2.

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2006

FORWARD LOOKING STATEMENTS

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

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

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

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

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

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

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

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

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

            o  acquisitions  may result in one-time  changes to income,  may not
               produce revenue  enhancements or cost savings at levels or within
               time frames  originally  anticipated and may result in unforeseen
               integration difficulties; and

                                       11
<PAGE>

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

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

GENERAL

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

         West View Savings Bank is a Pennsylvania-chartered,  SAIF-insured stock
savings bank conducting  business from six offices in the North Hills suburbs of
Pittsburgh.  The  Savings  Bank  converted  to the stock  form of  ownership  in
November 1993. The Savings Bank had no subsidiaries at September 30, 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 $423.2 million at September 30, 2006, as
compared to $421.7  million at June 30, 2006.  The $1.5 million or 0.3% increase
in total assets was  primarily  comprised of a $6.4 million or 3.2%  increase in
investment  securities,  a $1.8  million  or  153.1%  increase  in cash and cash
equivalents,  a $1.5 million or 2.7% increase in net loans receivable and a $489
thousand or 16.7% increase in accrued interest receivable,  which were partially
offset by a $7.6 million or 4.9% decrease in  mortgage-backed  securities  and a
$1.2  million or 15.2%  decrease  in FHLB  stock.  The  increase  in  investment
securities is attributable to purchases of fixed-rate  callable U.S.  government
agency bonds, while the decrease in mortgage-backed  securities was attributable
to  repayments  on the  Company's  portfolio  of  floating  rate  collateralized
mortgage obligations. See "Asset and Liability Management".

         The  Company's  total  liabilities  increased  $1.2  million or 0.3% to
$393.5  million as of  September  30, 2006,  from $392.3  million as of June 30,
2006. The $1.2 million increase in total liabilities was primarily  comprised of
a $15.5  million  or 20.3%  increase  in other  short-term  borrowings,  a $10.9
million or 7.2% increase in total savings deposits, and a $2.7 million or 197.6%
increase in other liabilities, which were partially offset by a $23.2 million or
100.0%  decrease in short-term FHLB advances and a $5.0 million or 3.6% decrease
in  long-term  FHLB  advances.   Demand   deposits   increased   $10.4  million,
certificates of deposit increased $3.3 million while savings accounts  decreased
$2.0  million  and  advanced  payments  by  borrowers  for taxes  and  insurance
decreased  $691  thousand.  The  increase  in demand  deposits  was  principally
attributable to seasonal increases in local real estate tax collector  accounts.
Management believes that the changes in savings accounts and advance payments by
borrowers  for taxes and  insurance  were  primarily  attributable  to  seasonal
payments of local and school real estate taxes.

                                       12
<PAGE>

         Total  stockholders'  equity  increased  $310 thousand or 1.1% to $29.7
million as of September 30, 2006,  from  approximately  $29.4 million as of June
30, 2006.  Capital  expenditures for the Company's stock repurchase  program and
cash dividends totaled $245 thousand and $372 thousand, respectively, which were
more than offset by net income of $904  thousand and a $23 thousand  increase in
accumulated other comprehensive  income for the three months ended September 30,
2006.

RESULTS OF OPERATIONS

         General.  WVS  reported  net income of $904  thousand or $0.39  diluted
earnings  per share for the three months ended  September  30, 2006.  Net income
increased by $296  thousand or 48.7% and diluted  earnings  per share  increased
$0.14 or 56.0% for the three months ended  September 30, 2006,  when compared to
the same period in 2005.  The increase in net income was primarily  attributable
to a $625 thousand  increase in net interest income,  which was partially offset
by a $204 thousand  increase in income tax expense,  a $57 thousand  decrease in
credit  provisions  for loan  losses,  a $55 thousand  decrease in  non-interest
income, and an $13 thousand increase in non-interest expense.

         Net Interest  Income.  The Company's net interest  income  increased by
$625  thousand or 43.0% for the three months  ended  September  30,  2006,  when
compared to the same period in 2005. The increase in net interest income for the
three month period was primarily  attributable  to higher rates  received on the
Company's  interest-earning  assets, which more than offset higher rates paid on
other  short-term  borrowings  and time  deposits.  The  increases in both rates
earned on interest-earning assets and rates paid on interest-bearing liabilities
reflects the higher levels of short and intermediate  term market interest rates
fueled by the Federal  Reserve Board's  increases in its targeted  Federal Funds
Rate.

         Interest Income. Interest on net loans receivable was unchanged for the
three months ended September 30, 2006, when compared to the same period in 2005.
An increase of 47 basis points in the weighted average yield earned on net loans
receivable  was offset by a decrease of $3.9  million in the average  balance of
net loans receivable  outstanding for the three months ended September 30, 2006,
when  compared to the same  period in 2005.  The  decrease  in the average  loan
balance   outstanding  for  the  three  months  ended  September  30,  2006  was
attributable in part to the Company's  asset/liability  management strategy. The
Company has limited its portfolio origination of longer-term fixed rate loans to
mitigate  its  exposure to a rise in market  interest  rates.  The Company  will
continue to originate  longer-term  fixed rate loans for sale on a correspondent
basis to increase non-interest income and to contribute to net income.

         Interest on mortgage-backed securities increased $517 thousand or 27.5%
for the three months ended  September 30, 2006, when compared to the same period
in 2005.  The  increase  for the  three  months  ended  September  30,  2006 was
primarily attributable to a 173 basis point increase in the average yield earned
on mortgage-backed  securities  outstanding for the period,  which was partially
offset by a $12.6  million  decrease in the average  balance of  mortgage-backed
securities  outstanding  for the period for the three months ended September 30,
2006 when  compared to the same  period in 2005.  The  increase in the  weighted
average yield earned on  mortgage-backed  securities was consistent  with higher
market  interest  rates for the three  months  ended  September  30,  2006.  The
decrease in the average balances of mortgage-backed  securities during the three
months ended  September 30, 2006 was primarily  attributable  to paydowns on the
floating rate mortgage-backed securities in the Company's portfolio.

         Interest on investment  securities  increased by $710 thousand or 38.3%
for the three months ended  September  30, 2006 when compared to the same period
in 2005.  The increase  was  attributable  to a 117 basis point  increase in the
weighted average yield earned on the Company's investment securities and a $14.3
million increase in associated  average balances.  The increase in yields earned
were  consistent  with  increases in market  interest  rates.  The  increases in
average  balances were  associated  with the Company's  reinvestment of proceeds
into fixed rate callable U.S. Government Agency securities.

         Dividends  received on FHLB stock  increased by $50 thousand or 106.4%.
The increase was  primarily  attributable  to a 302 basis point  increase in the
dividend rate received.

                                       13
<PAGE>

         Interest  Expense.  Interest expense on deposits and escrows  increased
$257  thousand  or 36.1% for the three  months  ended  September  30,  2006 when
compared  to the same  period in 2005.  The  increase  in  interest  expense  on
deposits for the three months ended September 30, 2006 was  attributable to a 82
basis  point  increase in the  weighted  average  rate paid on  interest-bearing
deposits and a $3.6 million increase in the average balance of money markets and
certificates  of deposit for the three months  ended  September  30, 2006,  when
compared to the same period in 2005. The average yield paid on  interest-bearing
deposits  reflects  higher  market  interest  rates  for time and  money  market
deposits for the three months ended September 30, 2006.

         Interest paid on FHLB  advances  decreased $99 thousand or 4.9% for the
three months ended  September 30, 2006 when compared to the same period in 2005.
The  decrease  for the three  months  ended  September  30,  2006 was  primarily
attributable  to a  $8.2  million  decrease  in the  average  balances  of  FHLB
long-term advances.

         Interest paid on other borrowings  increased $495 thousand or 74.2% for
the three months ended  September  30, 2006 when  compared to the same period in
2005.  The  increase  for  the  three  months  ended   September  30,  2006  was
attributable  to a 188 basis point  increase  in rates paid and a $10.5  million
increase  in  associated  average  balances.  The  increase  in  rates  paid was
consistent with increases in short-term  market interest rates.  The increase in
average  balances  is  attributable  to  shortening  a portion of the  Company's
liability structure as part of its asset/liability management strategy.

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

         The Company  recorded a recovery for loan losses of $9 thousand for the
three months ended  September  30, 2006  compared to a recovery for loan loss of
$66 thousand for the same period in 2005. The $66 thousand  recovery  during the
quarter ended September 30, 2005 was primarily  attributable to the $35 thousand
allowance  reallocation  and a $23 thousand  reduction  due to the payoff of one
non-accrual  loan.  During the quarter  ended  September  30, 2005,  the Company
reallocated a portion of its allowance for loan and lease losses attributable to
off-balance sheet liabilities  (builder letters of credit) to a separate reserve
account for  financial  reporting  purposes.  The  provision for loan losses was
reduced by, and a non-interest  expense was charged,  $35 thousand in connection
with this reallocation of allowances. At September 30, 2006, the Company's total
allowance  for loan losses  amounted to $956  thousand or 1.6% of the  Company's
total loan portfolio, as compared to $957 thousand or 1.7% at June 30, 2006.

         Non-Interest  Income.  Non-interest income decreased by $55 thousand or
26.6% for the three months ended  September  30, 2006 when  compared to the same
period in 2005.  The decrease was  primarily  attributable  to a decrease of $30
thousand in pre-tax  gains on the sale of investment  securities,  a $7 thousand
decrease in fees earned on mortgage applications taken on a correspondent basis,
a $7 thousand decrease in service charges on deposits and a $5 thousand decrease
in ATM and debit card fee income.

         Non-Interest  Expense.  Non-interest  expense increased $13 thousand or
1.5% for the three months  ended  September  30, 2006 when  compared to the same
period in 2005.  The increase  was  principally  attributable  to a $20 thousand
increase in payroll and benefit related costs,  which were partially offset by a
$10 thousand decrease in occupancy and equipment costs when compared to the same
period in 2005.

         Income Tax Expense. Income tax expense increased $204 thousand or 88.3%
for the three months ended  September  30, 2006 when compared to the same period
in 2005.  The  increase was  primarily  attributable  to an  increased  level of
taxable  income for the three months ended  September  30, 2006 when compared to
the same period in 2005 and a higher effective tax rate. The Company's effective
tax rate increased  primarily due to issued redemptions of tax-exempt  municipal
securities prior to maturity,

                                       14
<PAGE>

corresponding lower levels of tax-exempt income as well as a lower percentage of
tax-exempt  income to total interest  income for the period ended  September 30,
2006 when compared to the same period in 2005.

LIQUIDITY AND CAPITAL RESOURCES

         Net cash provided by operating  activities  totaled $1.2 million during
the three  months  ended  September  30,  2006.  Net cash  provided by operating
activities  was  primarily  comprised  of $904  thousand of net  income,  a $149
thousand  increase in accrued  interest  payable and $32 thousand in fixed asset
depreciation.

         Funds provided by investing  activities totaled $3.0 million during the
three months ended September 30, 2006. Primary sources of funds during the three
months  ended  September  30,  2006,   included  maturities  and  repayments  of
investment,  mortgage-backed  securities  and FHLB Stock totaling $14.0 million,
$12.6 million and $1.9 million,  respectively,  which were  partially  offset by
purchases of  investments,  mortgage-backed  securities  and FHLB Stock totaling
$18.3 million, $5.0 million and $753 thousand,  respectively, and a $1.5 million
increase in net loans receivable.

         Funds used for financing  activities totaled $2.4 million for the three
months ended  September  30, 2006.  The primary  uses  included a $23.2  million
decrease in short-term FHLB advances,  a $5.0 million decrease in long-term FHLB
advances, $372 thousand in cash dividends paid on the Company's common stock and
$245 thousand in treasury  stock  purchases,  which were  partially  offset by a
$15.5  million  increase  in other  short-term  borrowings  and a $10.9  million
increase in deposits.  The $10.9 million increase in total deposits consisted of
a $10.4 million increase in demand deposits as a result of increases in balances
for local tax collectors and a $3.3 million increase in time deposits  primarily
due to accounts  opened by local and county  municipal  governments,  which were
partially  offset by a $2.0  million  decrease in passbook  accounts  and a $691
thousand  decrease in mortgage  escrow  accounts.  The decreases in passbook and
escrow  accounts are due primarily to the payments of property  taxes by and for
customers.  Management  believes  that  it  currently  is  maintaining  adequate
liquidity  and continues to match  funding  sources with lending and  investment
opportunities.

         The  Company's  primary  sources of funds are  deposits,  amortization,
repayments  and  maturities of existing  loans,  mortgage-backed  securities and
investment  securities,  funds from operations,  and funds obtained through FHLB
advances and other  borrowings.  At September 30, 2006,  the total approved loan
commitments  outstanding  amounted to  approximately  $1.1 million.  At the same
date,  commitments under unused lines of credit amounted to $7.2 million and the
unadvanced   portion  of   construction   loans   approximated   $10.5  million.
Certificates of deposit scheduled to mature in one year or less at September 30,
2006 totaled $47.9 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 October 31, 2006, the Company's  Board of Directors  declared a cash
dividend of $0.16 per share payable November 16, 2006, to shareholders of record
at the  close of  business  on  November  6,  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.

                                       15
<PAGE>

         As of September 30, 2006, WVS Financial  Corp.  exceeded all regulatory
capital requirements and maintained Tier I and total risk-based capital equal to
$29.7  million  or 23.1% and $30.7  million  or  23.9%,  respectively,  of total
risk-weighted  assets,  and Tier I leverage capital of $29.7 million or 7.19% of
average quarterly assets.

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

         The  Company's  nonperforming  assets at  September  30,  2006  totaled
approximately  $293  thousand  or 0.07%  of total  assets  as  compared  to $318
thousand  or 0.08% of total  assets at June 30,  2006.  Nonperforming  assets at
September 30, 2006 consisted of: four  single-family  real estate loans totaling
$262 thousand,  one line of credit secured by single-family real estate totaling
$17  thousand,   one  secured   consumer  loan  totaling  $8  thousand  and  one
single-family  real estate owned property with a book value of  approximately $6
thousand.

         The $25  thousand  decrease in  nonperforming  assets  during the three
months   ended   September   30,  2006  was   primarily   attributable   to  the
reclassification  of  a  $29  thousand   single-family  real  estate  loan  from
non-performing  to  performing  and  $3  thousand  charge  off  related  to  the
single-family  real estate owned  property  which were  partially  offset by the
addition  to   non-accrual   status  of  one  secured   consumer  loan  totaling
approximately  $8  thousand.  These  loans are in various  stages of  collection
activity.

         At September 30, 2006, the Company had one previously  restructured and
potential problem commercial real estate loan to a retirement village located in
the North Hills totaling $973 thousand. The Savings Bank's outstanding principal
balance  totaled  $2.0  million  at June 30,  2003.  During  the  quarter  ended
September 30, 2003,  the Savings Bank  redeemed  $388 thousand of  participating
interests.  During the quarter  ended  December 31, 2003,  the Bank sold a forty
percent participating interest to another financial institution at par resulting
in proceeds  totaling $979 thousand.  The Savings Bank's  outstanding  principal
balance  totaled  $984  thousand at June 30,  2006.  The  Company  had  recorded
interest  received on this credit on a cost recovery  basis until  September 30,
2003 and is now recording  interest  income.  At September 30, 2006, this credit
was less than one payment past due.

         At September 30, 2006, the Company had one previously restructured loan
secured  by   undeveloped   land  totaling  $344  thousand  and  one  previously
restructured  unsecured loan totaling $43 thousand to two borrowers.  During the
fourth  quarter of fiscal 2004,  the  Bankruptcy  Court approved a secured claim
totaling $440 thousand and an unsecured  claim  totaling $76 thousand be paid in
accordance  with a Bankruptcy  Plan of  Reorganization.  All Court  ordered plan
payments have been received in a timely  manner.  In accordance  with  generally
accepted  accounting  principles,  the Company had  recorded  interest  payments
received  on a cost  recovery  basis  until June 30,  2006 and is now  recording
interest income.

         During the three months ended  September  30,  2006,  approximately  $3
thousand of interest income would have been recorded on loans accounted for on a
non-accrual  basis if such loans had been current according to the original loan
agreements  for the  entire  period.  These  amounts  were not  included  in the
Company's  interest income for the quarter ended September 30, 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 quarter ended  September  30, 2006,  the Federal Open Market
Committee held its targeted  federal funds rate at 5.25%.  The benchmark two and
ten year treasury  yields were 4.71% and 4.64%,  respectively,  at September 30,
2006 as  compared  to 5.16% and 5.15%,  respectively,  at June 30,  2006.  These
changes  in  short,  intermediate  and  long-term  market  interest  rates,  the
inversion of the Treasury yield curve and continued high levels of interest rate
volatility  have impacted  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 three months ended September 30,
2006, totaled $14.0 million,  $12.6 million and $6.4 million,  respectively.  In
response to higher  levels of liquidity  the Company  continued to rebalance its
loan, investment and mortgage-backed securities portfolios.

         Due to the  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

                                       17
<PAGE>

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

         The Company purchased 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.  To a lesser  extent,  the
Company  continued  to purchase  floating  rate  securities  in order to provide
current income and in response to higher  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  September  30,  2006,  principal  investment
purchases were comprised of callable fixed rate government agency bonds with ten
year final maturities and initial lock-out periods as follows: 24 months - $18.3
million  with  weighted  average  yields  to call of  approximately  6.04%;  and
floating rate collateralized  mortgage  obligations which reprice monthly - $5.0
million  with an original  weighted  average  yield of 6.19%.  Major  investment
proceeds   received   during  the  quarter   ended   September  30,  2006  were:
mortgage-backed  securities - $12.6 million;  corporate  commercial paper - $8.0
million with a weighted average yield of 5.59%; callable government agency bonds
- $5.0  million  with a  weighted  average  yield of  approximately  3.66%;  and
tax-free  municipal  bonds - $1.0  million  with a  weighted  average  yield  of
approximately 5.35%.

         As of  September  30,  2006,  the  implementation  of these  asset  and
liability management initiatives resulted in the following:

     1)   $145.9 million or 98.5% 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)   $68.0  million  or 32.5% 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 - $28.0  million;  3 - 6
          months - $15.0 million; 6 - 12 months - $10.0 million; and over 1 year
          - $15.0 million.  Management  currently  believes that these bonds are
          likely to be repaid during the intervals shown.
     3)   $104.7  million or 50.0% 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 - $30.1  million;  3 - 6
          months - $5.6 million;  6 - 12 months - $15.0  million;  1 - 2 years -
          $36.9 million;  and over 2 years - $17.1  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)   $15.2  million  or  7.3% of the  Company's  investment  portfolio  was
          comprised of U.S.  Government  Agency Step-up bonds which will reprice
          as follows:  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.
     5)   An  aggregate  of $34.0  million  or 59.4% of the  Company's  net loan
          portfolio had adjustable  interest rates or maturities of less than 12
          months; and
     6)   The maturity distribution of the Company's borrowings is as follows: 1
          month or less - $91.5 million or 40.7%;  1 - 3 years - $8.5 million or
          3.8%; 3 - 5 years - $117.6  million or 52.2%;  and over 5 years - $7.5
          million or 3.3%.

         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.

                                       18
<PAGE>

During a period of rising interest rates, a positive gap would tend to result in
an increase in net interest income.

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

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

<TABLE>
<CAPTION>
                                              September 30,            June 30,
                                              ------------    ----------------------------
                                                  2006           2006             2005
                                              ------------    ------------    ------------
<S>                                           <C>            <C>             <C>
                                                        (Dollars in Thousands)

Interest-earning assets maturing or
   repricing within one year                  $    306,350    $    273,884    $    318,015
Interest-bearing liabilities maturing or
   repricing within one year                       183,632         194,509         181,085
                                              ------------    ------------    ------------


Interest sensitivity gap                      $    122,718    $     79,375    $    136,930
                                              ============    ============    ============

Interest sensitivity gap as a percentage of
   total assets                                      29.00%          18.82%           32.5%
Ratio of assets to liabilities
   maturing or repricing within one year            166.83%         140.81%          175.6%

</TABLE>

         During the quarter ended  September 30, 2006,  the Company  managed its
one year interest sensitivity gap by: (1) limiting the portfolio  origination of
long-term fixed rate  mortgages;  (2) emphasizing  loans with  shorter-terms  or
repricing  frequencies;  (3) purchasing  investments  with call  protection of 2
years or more; and (4) purchasing floating rate CMO's which reprice on a monthly
basis.


                                       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 September  30, 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 ($'s)           (48,394)      (36,580)     (46,982)       (55,560)      (56,479)      (68,672)         27,255
% of Total
  Assets                -11.4%         -8.6%       -11.1%         -13.1%        -13.3%        -16.2%            6.4%
Base Case Up 100 bp
-------------------
Cummulative
  Gap ($'s)               804        12,776        2,583         (5,668)       (6,518)      (67,600)         27,255
% of Total
  Assets                  0.2%          3.0%         0.6%          -1.3%         -1.5%        -16.0%            6.4%
Base Case No Change
-------------------
Cummulative
  Gap ($'s)           104,467       116,950      122,718        138,176       133,279        52,488          27,255
% of Total
  Assets                 24.7%         27.6%        29.0%          32.7%         31.5%         12.4%            6.4%
Base Case Down 100 bp
---------------------
Cummulative
  Gap ($'s)           109,395       128,626      135,384        163,360       172,744        58,200          27,255
% of Total
  Assets                 25.9%         30.4%        32.0%          38.6%         40.8%         13.8%            6.4%
Base Case Down 200 bp
---------------------
Cummulative
  Gap ($'s)           111,518       131,961      139,280        167,893       176,502        58,870          27,255
% of Total
  Assets                 26.4%         31.2%        32.9%          39.7%         41.7%         13.9%            6.4%

</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  (parallel) shift in market interest rates on net
interest  income,  return on average  equity,  return on average  assets and the
market value of portfolio  equity at September 30, 2006.  This analysis was done
assuming that the interest-earning  asset and interest-bearing  liability levels
at September 30, 2006 remained constant.

           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            -22.7%          -8.0%        0.00%         -2.9%         -26.6%

   Return on average equity                  8.43%         10.93%       12.22%        11.55%          7.44%

   Return on average assets                  0.58%          0.76%        0.85%         0.81%          0.52%

   Market value of equity (in
      thousands)                          $25,342        $26,439      $29,047        $24,373       $10,843

</TABLE>

         The table below provides  information  about the Company's  anticipated
transactions comprised of firm loan commitments and other commitments, including
undisbursed  letters  and  lines  of  credit.  The  Company  used no  derivative
financial instruments to hedge such anticipated transactions as of September 30,
2006.

                               Anticipated Transactions
                 -----------------------------------------------------
                                                (Dollars in Thousands)
                 Undisbursed construction and
                     land development loans
                       Fixed rate                      $ 3,546
                                                          8.10%

                       Adjustable rate                 $ 6,963
                                                          8.85%

                 Undisbursed lines of credit
                       Adjustable rate                 $ 7,190
                                                          8.31%

                 Loan origination commitments
                       Fixed rate                      $   885
                                                          8.19%

                       Adjustable rate                 $   200
                                                          6.00%

                 Letters of credit
                       Adjustable rate                 $   702
                                                          9.27%

                                                       $19,486
                                                       =======

                                       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 September 30, 2006, the Savings Bank had ten  performance
standby letters of credit outstanding totaling approximately $702 thousand. Four
letters of credit are secured by deposits  with the Savings Bank and six letters
of credit are secured by developed property. Seven of the letters of credit will
mature within twelve months,  two will mature within twenty four 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 this contingent obligation.

ITEM 4.

CONTROLS AND PROCEDURES

         Our management evaluated, with the participation of our Chief Executive
Officer  and  Chief  Financial  Officer,  the  effectiveness  of our  disclosure
controls and procedures (as defined in Rules  13a-15(e) and 15d-15(e)  under the
Securities  Exchange  Act of  1934)  as of  September  30,  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 first quarter of fiscal 2007 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
         ------------

         There are no material  changes to the risk factors  included in Item 1A
of the  Company's  Annual Report on Form 10-K for the fiscal year ended June 30,
2006.

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

         (a) Not applicable.
         (b) Not applicable.
         (c) The   following  table  sets  forth  information  with  respect  to
             purchases of common  stock  of the Company  made by or on behalf of
             the Company during the three months ended September 30, 2006.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                      ISSUER PURCHASES OF EQUITY SECURITIES
-----------------------------------------------------------------------------------------------------------------
                                                              Total Number of Shares   Maximum Number of Shares
                           Total Number                        Purchased as Part of        that May Yet Be
                             of Shares                          Publicly Announced      Repurchased Under the
                             Purchased    Average Price Paid   Plans or Programs (1)    Plans or Programs (2)
          Period                             per Share ($)
-----------------------------------------------------------------------------------------------------------------
<C>                        <C>                   <C>                    <C>                       <C>
07/01/06 - 07/31/06                5,000                 16.50                  5,000                     78,845
-----------------------------------------------------------------------------------------------------------------
08/01/06 - 08/31/06                9,885                 16.46                  9,885                     68,960
-----------------------------------------------------------------------------------------------------------------
09/01/06 - 09/30/06                   --                  0.00                     --                     68,960
-----------------------------------------------------------------------------------------------------------------
     Total                        14,885                 16.47                 14,885                     68,960
-----------------------------------------------------------------------------------------------------------------
</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  68,960  shares
                      remaining to be purchased at September 30, 2006.
                  (e) Not applicable.

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

         Not applicable.

                                       23
<PAGE>

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

         (a) The  Company's  2006  Annual  Meeting of  Stockholders  was held on
             October 31, 2006.
         (b) Not applicable.
         (c) Two matters  were voted upon at the annual  meeting held on October
             31, 2006:  Item 1: Proposal  to  elect one director for a four-year
             term or  until  his  successor  is elected and  qualified;  Item 2:
             Proposal  to ratify the  appointment  by the Board of Directors  of
             S.R. Snodgrass, A.C. as the Company's Independent Registered Public
             Accounting Firm for the fiscal year ending June 30, 2007.

             Each of the two proposals received stockholder approval. There were
             2,320,347 shares outstanding on the record date eligible to vote at
             the meeting and 1,925,125 shares were present in person or by proxy
             at the meeting.  The voting  record with respect to each item voted
             upon is enumerated below:

<TABLE>
<CAPTION>
               Item                 Nominee
               Number           (if Applicable)              For        Against     Abstain
               ------           ---------------              ---        -------     -------
<S>               <C>                                     <C>           <C>             <C>
                  1         David L. Aeberli              1,856,269     68,856

                  2         Ratification of Auditors      1,894,868      6,240       24,017
</TABLE>

         There were no broker non-votes with respect to any matter voted upon.
         (d) Not applicable.

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

         Not applicable.

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

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

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

                                       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.



         November 14, 2006          BY:    /s/ David J. Bursic
                                           -------------------------------------
         Date                              David J. Bursic
                                           President and Chief Executive Officer
                                           (Principal Executive Officer)


         November 14, 2006          BY:    /s/ Keith A. Simpson
                                           -------------------------------------
         Date                              Keith A. Simpson
                                           Vice-President, Treasurer and Chief
                                           Accounting Officer
                                           (Principal Accounting Officer)


                                       25