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

                                    FORM 10-Q

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

      For the quarterly period ended December 31, 2004

                                       or

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

      For the transition period from ______ to ______

                         Commission File Number: 0-22444

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

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

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

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

      Indicate by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirement for the past 90 days.

YES |X| NO |_|

      Indicate by check mark whether the registrant is an accelerated  filer (as
defined in Rule 12 b-2 of the Exchange Act).

YES |_| NO |X|

      Shares outstanding as of February 10, 2005: 2,437,360 shares Common Stock,
$.01 par value.


<PAGE>

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

                                      INDEX
                                      -----

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

Item 1.      Financial Statements

             Consolidated Balance Sheet as of
             December 31, 2004 and June 30, 2004
             (Unaudited)                                                   3

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

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

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

             Notes to Unaudited Consolidated
             Financial Statements                                          8

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

Item 3.      Quantitative and Qualitative Disclosures
             about Market Risk                                            17

Item 4.      Controls and Procedures                                      23

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

Item 1.      Legal Proceedings                                            24
Item 2.      Unregistered Sales of Equity Securities and
             Use of Proceeds                                              24
Item 3.      Defaults Upon Senior Securities                              24
Item 4.      Submission of Matters to a Vote of Security Holders          25
Item 5.      Other Information                                            25
Item 6.      Exhibits                                                     25
             Signatures                                                   26


                                       2
<PAGE>

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

<TABLE>
<CAPTION>
                                                                   December 31, 2004  June 30, 2004
                                                                   -----------------  -------------
<S>                                                                    <C>              <C>
          Assets
          ------
Cash and due from banks                                                $     849        $     769
Interest-earning demand deposits                                           2,373            2,285
                                                                       ---------        ---------
Total cash and cash equivalents                                            3,222            3,054
Trading assets                                                                --              993
Investment securities available-for-sale (amortized cost of
   $5,356 and $4,112)                                                      5,352            4,416
Investment securities held-to-maturity (market value of
   $221,925 and $271,104)                                                220,591          269,173
Mortgage-backed securities available-for-sale (amortized cost of
   $2,960 and $3,234)                                                      3,079            3,357
Mortgage-backed securities held-to-maturity (market value of
   $116,293 and $72,100)                                                 115,766           72,233
Net loans receivable (allowance for loan losses of $1,231 and
   $1,370)                                                                61,548           67,968
Federal Home Loan Bank stock, at cost                                      9,257            7,532
Accrued interest receivable                                                1,894            2,456
Premises and equipment                                                     1,024            1,077
Other assets                                                               1,217            1,365
                                                                       ---------        ---------
          TOTAL ASSETS                                                 $ 422,950        $ 433,624
                                                                       =========        =========

          Liabilities and Stockholders' Equity
          ------------------------------------
Liabilities:
Savings Deposits:
   Non-interest-bearing accounts                                       $  12,143        $  10,996
   NOW accounts                                                           23,273           22,897
   Savings accounts                                                       43,484           45,837
   Money market accounts                                                  12,980           14,226
   Certificates of deposit                                                64,218           65,362
   Advance payments by borrowers for taxes and insurance                     783            1,245
                                                                       ---------        ---------
    Total savings deposits                                               156,881          160,563
Federal Home Loan Bank advances                                          185,136          149,736
Other borrowings                                                          48,980           91,639
Accrued interest payable                                                   1,300            1,197
Other liabilities                                                          1,386            1,290
                                                                       ---------        ---------
     TOTAL LIABILITIES                                                 $ 393,683        $ 404,425

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;
   3,762,968 and 3,762,968 shares issued                                      38               38
Additional paid-in capital                                                20,727           20,727
Treasury stock: 1,317,908 and 1,296,544 shares at cost,
    Respectively                                                         (19,742)         (19,377)
Retained earnings, substantially restricted                               28,173           27,535
Accumulated other comprehensive income                                        76              281
Unreleased shares - Recognition and Retention Plans                           (5)              (5)
                                                                       ---------        ---------
     TOTAL STOCKHOLDERS' EQUITY                                        $  29,267        $  29,199
                                                                       ---------        ---------
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                   $ 422,950        $ 433,624
                                                                       =========        =========
</TABLE>

     See accompanying notes to unaudited consolidated financial statements.


                                       3
<PAGE>

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

<TABLE>
<CAPTION>
                                                  Three Months Ended          Six Months Ended
                                                     December 31,               December 31,
                                               ------------------------    -----------------------
                                                  2004          2003          2004         2003
                                               ----------    ----------    ----------   ----------
<S>                                            <C>           <C>           <C>          <C>
INTEREST AND DIVIDEND INCOME:
     Loans                                     $    1,057    $    1,331    $    2,152   $    2,858
     Investment securities                          2,227         2,061         4,951        3,642
     Mortgage-backed securities                     1,070           543         1,653        1,199
     Interest-earning deposits with other
         institutions                                   2             1             5            6
     Federal Home Loan Bank stock                      49            20            74           61
                                               ----------    ----------    ----------   ----------
          Total interest and dividend income        4,405         3,956         8,835        7,766
                                               ----------    ----------    ----------   ----------

INTEREST EXPENSE:
     Deposits                                         527           598         1,041        1,265
     Federal Home Loan Bank advances                2,055         2,039         4,099        4,084
     Other borrowings                                 395           123           588          180
                                               ----------    ----------    ----------   ----------
          Total interest expense                    2,977         2,760         5,728        5,529
                                               ----------    ----------    ----------   ----------

NET INTEREST INCOME                                 1,428         1,196         3,107        2,237
PROVISION (RECOVERY) FOR LOAN LOSSES                   (7)         (624)           72         (757)
                                               ----------    ----------    ----------   ----------
NET INTEREST INCOME AFTER PROVISION
   (RECOVERY) FOR LOAN LOSSES                       1,435         1,820         3,035        2,994
                                               ----------    ----------    ----------   ----------

NON-INTEREST INCOME:
     Service charges on deposits                       90           104           185          198
     Investment securities gains                       99            --           335           --
     Other                                             77            57           154          158
                                               ----------    ----------    ----------   ----------
          Total non-interest income                   266           161           674          356
                                               ----------    ----------    ----------   ----------

NON-INTEREST EXPENSE:
     Salaries and employee benefits                   496           505           999        1,016
     Occupancy and equipment                          114           106           219          211
     Data processing                                   66            57           130          113
     Correspondent bank service charges                33            37            68           76
     Other                                            194           233           365          414
                                               ----------    ----------    ----------   ----------
          Total non-interest expense                  903           938         1,781        1,830
                                               ----------    ----------    ----------   ----------

INCOME BEFORE INCOME TAXES                            798         1,043         1,928        1,520
INCOME TAXES                                          209           273           505          398
                                               ----------    ----------    ----------   ----------
NET INCOME                                     $      589    $      770    $    1,423   $    1,122
                                               ==========    ==========    ==========   ==========

EARNINGS PER SHARE:
     Basic                                     $     0.24    $     0.30    $     0.58   $     0.44
     Diluted                                   $     0.24    $     0.30    $     0.58   $     0.44

AVERAGE SHARES OUTSTANDING:
     Basic                                      2,445,349     2,560,420     2,449,269    2,567,831
     Diluted                                    2,451,242     2,569,578     2,455,084    2,577,330
</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>
                                                                               Six Months Ended
                                                                                 December 31,
                                                                            ----------------------
                                                                               2004         2003
                                                                            ---------    ---------
<S>                                                                         <C>          <C>
OPERATING ACTIVITIES

Net income                                                                  $   1,423    $   1,122
Adjustments to reconcile net income to cash provided by operating
 activities:
   Provision for (recovery of)  loan losses                                        72         (757)
   Investment securities gains                                                   (329)          --
   Depreciation and amortization, net                                              90           94
   Amortization of discounts, premiums and deferred loan fees                    (266)         814
   Sale of trading securities                                                   1,000           --
   Decrease in accrued interest receivable                                        562          241
   Increase (decrease) in accrued interest payable                                103          (70)
   Increase in accrued and deferred taxes                                         136          180
   Other, net                                                                     208          106
                                                                            ---------    ---------
         Net cash provided by operating activities                              2,999        1,730
                                                                            ---------    ---------

INVESTING ACTIVITIES

Available-for-sale:
   Purchases of investments and mortgage-backed securities                    (16,394)     (20,828)
   Proceeds from repayments of investments and mortgage-backed securities      14,346       38,291
   Proceeds from sale of investments securities                                 1,409           --
Held-to-maturity:
   Purchases of investments and mortgage-backed securities                   (240,274)    (250,708)
   Proceeds from repayments of investments and mortgage-backed securities     245,616      163,133
Decrease in net loans receivable                                                6,320       19,912
Purchase of Federal Home Loan Bank stock                                       (4,057)        (967)
Redemption of Federal Home Loan Bank stock                                      2,332        1,210
Acquisition of premises and equipment                                             (38)         (11)
Other, net                                                                         --          500
                                                                            ---------    ---------
         Net cash provided by (used for) investing activities                   9,260      (49,468)
                                                                            ---------    ---------
</TABLE>


                                       5
<PAGE>

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

<TABLE>
<CAPTION>
                                                                          Six Months Ended
                                                                             December 31,
                                                                        --------------------
                                                                          2004        2003
                                                                        --------    --------
<S>                                                                     <C>         <C>
FINANCING ACTIVITIES

Net (decrease) increase in transaction and passbook accounts              (2,076)      1,731
Net decrease in certificates of deposit                                   (1,144)     (5,091)
Net increase (decrease) in FHLB short-term advances                       35,400      (3,875)
Net (decrease) increase in other borrowings                              (42,659)     58,395
Repayments of FHLB long-term advances                                         --        (279)
Net decrease in advance payments by borrowers for taxes and insurance       (462)       (799)
Net proceeds from issuance of common stock                                    --         119
Funds used for purchase of treasury stock                                   (365)       (682)
Cash dividends paid                                                         (785)       (820)
                                                                        --------    --------
         Net cash (used for) provided by financing activities            (12,091)     48,699
                                                                        --------    --------

        Increase  in cash and cash equivalents                               168         961

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD                       3,054       2,815
                                                                        --------    --------

CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                          $  3,222    $  3,776
                                                                        ========    ========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

   Cash paid during the period for:
      Interest on deposits, escrows and borrowings                      $  5,625    $  5,599
      Income taxes                                                      $    263    $    240

   Non-cash items:
      Cancellation of unallocated RRP shares                            $     --    $     39
      Mortgage Loan Transferred to Other Assets                         $     --    $    500
</TABLE>

     See accompanying notes to unaudited consolidated financial statements.


                                       6
<PAGE>

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

<TABLE>
<CAPTION>
                                                                                                    Accumulated
                                                                         Retained                     Other
                                             Additional                  Earnings      Unallocated    Compre-
                                  Common      Paid-In      Treasury    Substantially   Shares Held    hensive
                                  Stock       Capital       Stock       Restricted       by RRP       Income        Total
                                  -----       -------       -----       ----------       ------       ------        -----
<S>                              <C>          <C>          <C>           <C>          <C>            <C>          <C>
Balance at June 30, 2004         $     38     $ 20,727     $(19,377)     $ 27,535     $     (5)      $    281     $ 29,199

Comprehensive income:

   Net Income                                                               1,423                                    1,423
   Other comprehensive
     income:
      Change in unrealized
        holding gains on
        securities, net of
        income tax effect
        of $106                                                                                          (205)        (205)
                                                                                                                  --------

Comprehensive income                                                                                                 1,218

Purchase of  treasury stock                                    (365)                                                  (365)

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

Exercise of stock options              --           --                                                                  --

Cash dividends declared
   ($0.32 per share)                                           (785)                                                  (785)
                                 --------     --------     --------      --------     --------       --------     --------

Balance at Dec. 31, 2004         $     38     $ 20,727     $(19,742)     $ 28,173     $     (5)      $     76     $ 29,267
                                 ========     ========     ========      ========     ========       ========     ========
</TABLE>

     See accompanying notes to unaudited consolidated financial statements.


                                       7
<PAGE>

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

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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

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

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

      In March 2004, the Financial  Accounting  Standards Board ("FASB") reached
consensus  on the  guidance  provided by  Emerging  Issues Task Force Issue 03-1
("EITF  03-1"),   The  Meaning  of   Other-Than-Temporary   Impairment  and  its
Application  to Certain  Investments.  The  guidance is  applicable  to debt and
equity  securities  that are within  the scope of FASB  Statement  of  Financial
Accounting Standard ("SFAS") No. 115, Accounting for Certain Investments In Debt
and Equity Securities and certain other investments. EITF 03-1 specifies that an
impairment would be considered  other-than-temporary unless (a) the investor has
the ability and intent to hold an  investment  for a  reasonable  period of time
sufficient  for the recovery of the fair value up to (or beyond) the cost of the
investment and (b) evidence indicating the cost of the investment is recoverable
within a reasonable period of time outweighs evidence to the contrary. EITF 03-1
cost method  investment and disclosure  provisions  were effective for reporting
periods ending after June 15, 2004. The measurement  and recognition  provisions
relating to debt and equity  securities  have been delayed until the FASB issues
additional  guidance.  The Company adopted cost method investment and disclosure
provisions  of EITF 03-1 on June 30, 2004.  The adoption did not have a material
impact on the  consolidated  financial  statements,  results  of  operations  or
liquidity of the Company.

      In December 2004, the Financial Accounting Standards Board ("FASB") issued
Statement  of Financial  Accounting  Standards  ("FAS") No. 123 (Revised  2004),
Share-Based  Payment.  The Statement requires that compensation cost relating to
share-based 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.  123  (Revised  2004)  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 will adopt FAS No. 123  (Revised  2004) on July 1,
2005 and is currently  evaluating  the impact the adoption of the standard  will
have on the Company's results of operations.

      In October 2003, the American  Institute of Certified  Public  Accountants
issued SOP 03-3,  "Accounting for Loans or Certain Debt Securities Acquired in a
Transfer." SOP 03-3 applies to a loan that is acquired where it is probable,  at
acquisition,  that a  transferee  will be unable to  collect  all  contractually
required payments receivable.  SOP 03-3 requires the recognition,  as accretable
yield,  the excess of all cash flows expected at acquisition over the investor's
Initial  investment in the loan as interest  income on a level-yield  basis over
the life of the loan.  The  amount by which the  loan's  contractually  required
payments  exceed the amount of its expected cash flows at acquisition may not be
recognized as an adjustment  to yield,  a loss accrual or a valuation  allowance
for credit  risk.  SOP 03-3 is  effective  for loans  acquired  in fiscal  years
beginning after December 31, 2004. Early adoption is permitted.  The adoption of
SOP 03-3 is not expected to have a material impact on the consolidated financial
statements.


                                       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             Six Months Ended
                                               December 31,                  December 31,
                                        --------------------------    --------------------------
                                            2004           2003           2004           2003
                                        -----------    -----------    -----------    -----------
<S>                                      <C>            <C>            <C>            <C>
Weighted average common shares
   outstanding                            3,762,968      3,734,816      3,762,968      3,735,731

Average treasury stock shares            (1,317,619)    (1,174,396)    (1,313,699)    (1,167,900)
                                        -----------    -----------    -----------    -----------
Weighted average common shares
   and common stock equivalents
   used to calculate basic earnings
   per share                              2,445,349      2,560,420      2,449,269      2,567,831

Additional common stock
   equivalents (stock options) used
   to calculate diluted earnings per
   share                                      5,893          9,158          5,815          9,499
                                        -----------    -----------    -----------    -----------

Weighted average common shares
   and common stock equivalents
   used to calculate diluted earnings
   per share                              2,451,242      2,569,578      2,455,084      2,577,330
                                        ===========    ===========    ===========    ===========
</TABLE>

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

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

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


                                       9
<PAGE>

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

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

<TABLE>
<CAPTION>
                                         Three Months Ended                            Six Months Ended
                                            December 31,                                 December 31,
                              -----------------------------------------    -----------------------------------------
                                     2004                   2003                  2004                   2003
                              ------------------     ------------------    ------------------     ------------------
                                                                   (Dollars in Thousands)
<S>                           <C>        <C>         <C>        <C>        <C>        <C>         <C>        <C>
Net income                               $   589                $   770               $ 1,423                $ 1,122
Other comprehensive
 income:
   Unrealized gains on
    available for sale
    securities                $    14                $    82               $    24                $    65

   Less:
    Reclassification
     adjustment for gain
     included in net
     income                       (99)                    --                  (329)                    --
                              -------    -------     -------    -------    -------    -------     -------    -------
Other comprehensive
 (loss) income before tax                    (85)                    82                  (311)                    65
Income tax
 (benefit)
 expense related to other
 comprehensive income                        (29)                    28                  (106)                    22
                                         -------                -------               -------                -------
Other comprehensive
 (loss) income, net of tax                   (56)                    54                  (205)                    43
                                         -------                -------               -------                -------
Comprehensive income                     $   533                $   824               $ 1,218                $ 1,165
                                         =======                =======               =======                =======
</TABLE>


                                       10
<PAGE>

ITEM 2.

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

FORWARD LOOKING STATEMENTS

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

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

GENERAL

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

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

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

FINANCIAL CONDITION

      The  Company's  assets  totaled  $422.9  million at December 31, 2004,  as
compared to $433.6  million at June 30, 2004. The $10.7 million or 2.5% decrease
in total assets was primarily  comprised of a $46.9 million or 16.6% decrease in
investment  securities  and FHLB stock,  a $6.4 million or 9.4%  decrease in net
loans  receivable,  and a $562  thousand or 22.9%  decrease in accrued  interest
receivable,  which were partially offset by a $43.3 million or 57.2% increase in
mortgage-backed securities and a $168 thousand or 5.5% increase in cash and cash
equivalents.  The decreases in investment  securities and loans outstanding were
attributable  to higher rates of repayments  caused by declines in  intermediate
and long-term market interest rates. The increase in mortgage-backed  securities
is   attributable  to  purchases  of  floating  rate   collateralized


                                       11
<PAGE>

mortgage  obligations  in response to increases in  short-term  market  interest
rates. See "Asset and Liability Management".

      The Company's total liabilities  decreased $10.7 million or 2.6% to $393.7
million as of December 31, 2004,  from $404.4  million as of June 30, 2004.  The
$10.7 million decrease in total  liabilities was primarily  comprised of a $42.7
million or 46.6% decrease in other  short-term  borrowings and a $3.7 million or
2.3% decrease in total savings deposits,  which were partially offset by a $35.4
million or 23.6%  increase in FHLB  advances  scheduled to mature within 7 days.
Savings accounts  decreased $2.4 million,  money market accounts  decreased $1.2
million, certificates of deposit decreased $1.2 million and advanced payments by
borrowers for taxes and insurance decreased $462 thousand, while demand deposits
increased $1.5 million.

      Total stockholders' equity increased $68 thousand or 0.2% to $29.3 million
as of December 31, 2004, from  approximately  $29.2 million as of June 30, 2004.
Company net income of $1.4 million was  partially  offset by cash  dividends and
capital expenditures for the Company's stock repurchase program of $785 thousand
and $365 thousand,  respectively,  and accumulated  other  comprehensive  income
decreased $205 thousand for the six months ended December 31, 2004.

RESULTS OF OPERATIONS

      General.  WVS  reported  net  income  of $589  thousand  or $0.24  diluted
earnings per share and $1.4 million or $0.58 diluted  earnings per share for the
three and six months ended December 31, 2004, respectively. Net income decreased
by $181  thousand or 23.5% and diluted  earnings  per share  decreased  $0.06 or
20.0% for the three months ended  December 31, 2004,  when  compared to the same
period in 2003. The decrease in net income was primarily  attributable to a $617
thousand  decrease in credit  provisions  for loan losses,  which was  partially
offset by a $232  thousand  increase in net  interest  income,  a $105  thousand
increase in non-interest  income, a $64 thousand  decrease in income tax expense
and a $35 thousand  decrease in non-interest  expense.  For the six months ended
December 31, 2004,  net income  increased by $301  thousand or 26.8% and diluted
earnings per share  increased $0.14 or 31.8% when compared to the same period in
2003. The increase for the six month period was principally the result of a $870
thousand   increase  in  net  interest  income,  a  $318  thousand  increase  in
non-interest income and a $49 thousand decrease in non-interest  expense,  which
were partially offset by a $829 thousand change in the provision for loan losses
and a $107 thousand increase in income tax expense.

      Net Interest  Income.  The Company's net interest income increased by $232
thousand or 19.4% for the three months ended December 31, 2004, when compared to
the same period in 2003. The increase in net interest income for the three month
period was  principally  attributable  to higher yields earned on Company assets
due to higher  levels of discount  accretion  on called U.S.  Government  Agency
bonds,  lower  levels  of  premium  amortization  on  matured  corporate  bonds,
increases in  short-term  market  interest  rates,  higher  average  balances of
mortgage-backed  securities and lower average  balances of time deposits,  which
were partially offset by increased average balances of the Company's  borrowings
outstanding  and lower average  balances of net loans  receivable and investment
securities. The Company continued to experience high levels of repayments on its
mortgage-backed securities portfolio due to refinancing activities for the three
months ended December 31, 2004. The Company's net interest income increased $870
thousand or 38.9% for the six months ended  December  31, 2004.  The increase in
net income for the six months ended December 31, 2004 was primarily attributable
to higher  yields  earned on  Company  assets due to higher  levels of  discount
accretion  on called  U.S.  Government  Agency  bonds,  lower  levels of premium
amortization on matured corporate bonds, increases in short-term market interest
rates,  higher average  balances of investment and  mortgage-backed  securities,
lower rates paid on deposits and Company  borrowings and lower average  balances
of time  deposits,  which were partially  offset by higher  average  balances of
Company  borrowings   outstanding  and  lower  average  balances  of  net  loans
receivable.

      Interest  Income.  Total  interest  and  dividend  income  increased  $449
thousand or 11.3% and $1.1  million or 13.8% for the three and six months  ended
December 31, 2004, respectively, when compared to the same periods in 2003.


                                       12
<PAGE>

      Interest on  mortgage-backed  securities  increased $527 thousand or 97.1%
for the three months ended  December 31, 2004,  when compared to the same period
in 2003. The increase for the three months ended December 31, 2004 was primarily
attributable   to  a  $44.8   million   increase  in  the  average   balance  of
mortgage-backed  securities  outstanding  for the  period  and a 68 basis  point
increase in the average yield earned on mortgage-backed securities for the three
months  ended  December  31,  2004  when  compared  to the same  period in 2003.
Interest on mortgage-backed  securities increased $454 thousand or 37.9% for the
six months ended  December 31, 2004,  when  compared to the same period in 2003.
The  increases  for the  six  months  ended  December  31,  2004  was  primarily
attributable  to a 76 basis  point  increase  in the  average  yield  earned  on
mortgage-backed securities and a $6.5 million increase in the average balance of
mortgage-backed  securities  outstanding  for the six months ended  December 31,
2004 when  compared to the same  period in 2003.  The  increase in the  weighted
average yield earned on  mortgage-backed  securities was consistent  with market
conditions for the three and six months ended December 31, 2004. The increase in
the average  balances  of  mortgage-backed  securities  during the three and six
months  ended  December  31, 2004 was  primarily  attributable  to  purchases of
floating rate mortgage-backed securities.

      Interest  and  dividend  income on  interest-bearing  deposits  with other
institutions,   investment   securities   and  FHLB  stock  ("other   investment
securities")  increased  by $196  thousand  or 9.4% for the three  months  ended
December  31, 2004 when  compared to the same period in 2003 and includes a $348
thousand change in recognized  discounts/premiums on investment securities.  The
increase  was  principally  attributable  to a 52 basis  point  increase  in the
weighted average yield earned on other investment securities which was partially
offset by a $8.8 million  decrease in the average  balance  outstanding of other
investment securities for the three months ended December 31, 2004 when compared
to the same period in 2003.  Interest  and dividend  income on other  investment
securities increased $1.3 million or 35.6% for the six months ended December 31,
2004,  when  compared  to the same period in 2003 and  includes a $924  thousand
change in recognized  discounts/premiums on investment securities.  The increase
for the six months ended December 31, 2004 was primarily attributable to a $32.1
million  increase  in  the  average  balance  of  other  investment   securities
outstanding  and a 60 basis point increase in the weighted  average yield earned
on other  investment  securities  outstanding from the six months ended December
31, 2004, when compared to the same period in 2003. The increase in the weighted
average yield earned was consistent with market conditions for the three and six
months ended December 31, 2004.

      Interest on net loans receivable  decreased $274 thousand or 20.6% for the
three months ended December 31, 2004,  when compared to the same period in 2003.
The decrease for the three months ended December 31, 2004 was  attributable to a
decrease  of $13.1  million  in the  average  balance  of net  loans  receivable
outstanding  and a decrease of 31 basis  points in the  weighted  average  yield
earned on net loans  receivable  for the three months  ended  December 31, 2004,
when  compared  to the same  period in 2003.  Interest  on net loans  receivable
decreased  $706  thousand or 24.7% for the six months  ended  December 31, 2004,
when compared to the same period in 2003.  The decrease for the six months ended
December 31, 2004 was  attributable  to a $26.4 million  decrease in the average
balance of net loans receivable outstanding and a decrease of 41 basis points in
the weighted  average  yield earned on net loans  receivable  for the six months
ended  December 31, 2004.  The decrease in the average loan balance  outstanding
for the three and six months ended December 31, 2004 was primarily  attributable
to increased levels of mortgage prepayments and refinancings due to lower market
rates on mortgages.  As part of its  asset/liability  management  strategy,  the
Company has limited its 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 $217 thousand or 7.9%
and $199 thousand or 3.6% for the three and six months ended  December 31, 2004,
respectively, when compared to the same period in 2003.

      Interest on FHLB advances and other borrowings  increased $288 thousand or
13.3% for the three  months ended  December  31, 2004 when  compared to the same
period in 2003.  The increase  for the three months ended  December 31, 2004 was
attributable to a $35.2 million increase in the average balance of FHLB advances
and other  borrowings  for the period which was  partially  offset by a 19 basis
point decrease in


                                       13
<PAGE>

the weighted  average  rate paid on such  borrowings  when  compared to the same
period in 2003.  Interest on FHLB advances and other  borrowings  increased $423
thousand or 9.9% for the six months ended  December 31, 2004,  when  compared to
the same period in 2003. The increase for the six months ended December 31, 2004
was  attributable  to a $33.9  million  increase in the average  balance of FHLB
advances and other  borrowings for the period which was partially offset by a 34
basis point decrease in the weighted  average rate paid on such  borrowings when
compared  to the same period in 2003.  The  weighted  average  rate paid on FHLB
advances  and  other  borrowings  declined  in  contrast  to  increases  in  the
proportion of short-term advances and borrowings to total Company borrowings.

      Interest  expense on deposits and escrows  decreased $71 thousand or 11.9%
for the three months ended December 31, 2004 when compared to the same period in
2003.  The  decrease in interest  expense on deposits  and escrows for the three
months ended December 31, 2004 was  attributable  to a $9.7 million  decrease in
the average  balance of  interest-bearing  deposits  and escrows for the period,
which was partially  offset by a 5 basis point decrease in the weighted  average
yield paid on time deposits and escrows for the three months ended  December 31,
2004, when compared to the same period in 2003. Interest expense on deposits and
escrows  decreased  $224 thousand or 17.7% for the six months ended December 31,
2004 when compared to the same period in 2003. The decrease in interest  expense
on deposits and escrows for the six months ended December 31, 2004 was primarily
attributable   to  a  $9.5   million   decrease  in  the   average   balance  of
interest-bearing  deposits  and  escrows  for the  period  and a 20 basis  point
decrease in the  weighted  average  yield paid on  interest-bearing  deposit and
escrows for the six months ended  December 31, 2004,  when  compared to the same
period in 2003.

      Provision  for Loan  Losses.  A  provision  for loan  losses is charged to
earnings to  maintain  the total  allowance  at a level  considered  adequate by
management  to  absorb   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 $7 thousand for
the three months  ended  December 31, 2004  compared to a $624  thousand  credit
provision  for the same period in 2003.  For the six months  ended  December 31,
2004, the Company recorded a $72 thousand  provision for loan losses compared to
recording a credit  provision of $757  thousand for the same period in 2003.  At
December 31, 2004,  the Company's  total  allowance for loan losses  amounted to
$1.2 million or 2.0% of the Company's total loan portfolio,  as compared to $1.4
million or 2.0% at June 30, 2004.  The decrease in the allowance for loan losses
is primarily the result of the Company charging off approximately  $186 thousand
of a commercial loan participation  interest  collateralized by a first mortgage
loan on a  full-service  hotel  located  within the Company's  market area.  The
Company took this charge-off due to the sale of the loan by the lead lender over
the Company's  objection.  The Company is pursuing further recovery options with
the lead lender which may involve litigation.

      Non-Interest Income.  Non-interest income increased $105 thousand or 65.2%
and $318 thousand or 89.3% for the three and six months ended December 31, 2004,
respectively,  when  compared to the same periods in 2003.  The  increases  were
primarily  attributable  to pre-tax  securities  gains of $99  thousand and $329
thousand for the three and six months ended December 31, 2004, respectively.

      Non-Interest Expense.  Non-interest expense decreased $35 thousand or 3.7%
and $49 thousand or 2.7% for the three and six months  ended  December 31, 2004,
respectively,  when  compared to the same periods in 2003.  The decrease for the
three  months  ended  December  31,  2004 was  primarily  attributable  to a $30
thousand  decrease in legal expenses and costs  associated  with the work-out of
non-performing  assets, a $9 thousand decrease in payroll related costs and a $4
thousand  decrease in  correspondent  bank service  charges which were partially
offset by a $9 thousand  increase in data processing  expense.  The decrease for
the six  months  ended  December  31,  2004 was  primarily  attributable  to $42
thousand  decrease  in legal  expenses  and costs,  a $17  thousand  decrease in
payroll related costs and a $8 thousand  decrease in correspondent  bank service
charges  which  were  partially  offset  by a  $17  thousand  increase  in  data
processing expense.


                                       14
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

      Net cash provided by operating  activities totaled $3.0 million during the
six months ended  December 31, 2004.  Net cash provided by operating  activities
was  primarily  comprised of $1.4  million of net income,  $1.0 million from the
sale  of  trading  assets  and a  $0.5  million  decrease  in  accrued  interest
receivable.

      Funds provided by investing activities totaled $9.3 million during the six
months ended December 31, 2004.  Primary  sources of funds during the six months
ended December 31, 2004,  included  $262.3 million from repayments of investment
and  mortgage-backed  securities  including Federal Home Loan Bank stock, a $6.3
million  decrease  in net loans  receivable  and $1.4  million  from the sale of
investments from the Company's investment portfolio, which were partially offset
by $260.7 million of purchases of  investments  and  mortgage-backed  securities
including Federal Home Loan Bank stock.

      Funds used for  financing  activities  totaled  $12.1  million for the six
months  ended  December  31, 2004.  The primary  uses  included a $42.7  million
decrease in other short-term borrowings, a $3.7 million decrease in deposits and
escrows,  a $785 thousand in cash dividends  paid on the Company's  common stock
and $365 thousand in purchased  treasury stock, which were partially offset by a
$35.4 million increase in short-term FHLB advances.  Management believes that it
currently is  maintaining  adequate  liquidity  and  continues to match  funding
sources with lending and investment opportunities.

      During the quarter ended  December 31, 2004, the Company  incurred  $745.7
million in other short-term borrowings with a weighted average rate of 2.02% and
incurred  approximately $50.9 million in various short-term  borrowings from the
FHLB with a  weighted  average  rate of 2.26%.  During  the three  months  ended
December  31,  2004,  the  Company  repaid  $747.0  million of other  short-term
borrowings  with  weighted  average  rates of 1.99% and $17.4 million of various
short-term borrowings from the FHLB with weighted average rates of 2.28%.

      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 December 31, 2004,  the total  approved loan
commitments  outstanding amounted to $1.8 million. At the same date, commitments
under unused lines of credit amounted to $6.1 million, the unadvanced portion of
construction  loans  approximated $10.3 million and commitments to fund security
purchases totaled $15.0 million.  Certificates of deposit scheduled to mature in
one year or less at December 31, 2004 totaled $41.3 million. Management believes
that a significant portion of maturing deposits will remain with the Company.

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

      On January 25, 2005,  the  Company's  Board of  Directors  declared a cash
dividend of $0.16 per share payable February 17, 2005, to shareholders of record
at the  close of  business  on  February  7,  2005.  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 December 31,  2004,  WVS  Financial  Corp.  exceeded all  regulatory
capital requirements and maintained Tier I and total risk-based capital equal to
$29.2  million  or 21.3% and $30.4  million  or  22.2%,


                                       15
<PAGE>

respectively,  of total  risk-weighted  assets,  and Tier I leverage  capital of
$29.2 million or 7.02% of average quarterly assets.

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

      The   Company's   nonperforming   assets  at  December  31,  2004  totaled
approximately $1.2 million or 0.28% of total assets as compared to $828 thousand
or 0.19% of total assets at June 30, 2004.  Nonperforming assets at December 31,
2004 consisted of: one speculative construction loan totaling $449 thousand, one
land loan totaling $407 thousand, three single-family real estate loans totaling
$199 thousand, one unsecured consumer loan totaling $65 thousand, one commercial
loan totaling $45 thousand and one home equity loan totaling $17 thousand.

      The $354 thousand  increase in nonperforming  assets during the six months
ended  December  31,  2004  was  primarily   attributable  to  the  addition  to
non-accrual  status  of two  mortgages  secured  by  single-family  real  estate
totaling  approximately  $507  thousand and the addition of one home equity loan
totaling approximately $17 thousand which were partially offset by the payoff in
full  of:  two  mortgages   secured  by   single-family   real  estate  totaling
approximately  $140  thousand;  a $4 thousand  loan secured by  commercial  real
estate; and principal paydowns totaling  approximately $36 thousand on two loans
related to a bankruptcy discussed below.

      At December 31, 2004, the Company had one loan secured by undeveloped land
totaling  $407  thousand  and one  unsecured  loan  totaling $65 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 to be paid in accordance with a Bankruptcy Plan of  Reorganization.
All Court  ordered plans 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 six months ended December 31, 2004,  approximately $30 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 six months
ended December 31, 2004. The Company  continues to work with the borrowers in an
attempt to cure the defaults and is also pursuing various legal avenues in order
to collect on these loans.


                                       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 six months ended  December 31,  2004,  the level of  short-term
market  interest  rates began to  increase.  The Federal  Open Market  Committee
increased its intended  federal funds rate by twenty-five  basis points at their
August 10,  September  21,  November 10 and  December  14, 2004  meetings.  This
followed a twenty-five  basis point increase at their June 30, 2004 meeting.  As
economic conditions  continue to improve,  we anticipate  continued increases in
short-term  market interest  rates.  Intermediate  and longer-term  yields fell,
however,  due to rising oil prices and  weakness in some sectors of the economy.
The benchmark ten year treasury  yield declined  thirty-eight  basis points from
4.62% at June 30, 2004 to 4.24% at December 31, 2004. This decline  precipitated
additional  prepayments in the Company's  loan,  investment and  mortgage-backed
securities portfolios.

      Principal repayments on the Company's loan, investment and mortgage-backed
securities  portfolios for the six months ended December 31, 2004, totaled $17.0
million, $226.1 million and $35.6 million,  respectively.  In response to higher
levels  of  liquidity  the  Company   rebalanced   its  loan,   investment   and
mortgage-backed  securities portfolios.  Due to the low level of market interest
rates, the Company  continued to reduce its portfolio  originations of long-term
fixed  rate  mortgages  while  continuing  to offer  consumer  home  equity  and
construction  loans. The Company continues to purchase callable U. S. Government
Agency bonds that reprice within twelve to twenty-four months in order to earn a
higher return while limiting interest


                                       17
<PAGE>

rate risk within the portfolio. Within the mortgage-backed securities portfolio,
the Company continued to aggressively purchase floating rate securities in order
to  provide  current  income and  protection  against  eventual  rises in market
interest rates. Each of the aforementioned strategies also helped to improve the
interest-rate  and liquidity risks associated with the Savings Bank's customers'
liquidity preference for shorter term deposit products.

      The Company also makes  available  for  origination  residential  mortgage
loans with interest rates which adjust pursuant to a designated index,  although
customer acceptance has been somewhat limited in the Savings Bank's market area.
The Company will continue to  selectively  offer  commercial  real estate,  land
acquisition and development,  and shorter-term  construction loans, primarily on
residential  properties,  to partially  increase  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.

      During the quarter ended December 31, 2004, principal investment purchases
were comprised of:  callable  floating rate  government  agency bonds which will
reprice within  twenty-four months - $92.9 million with a weighted average yield
of approximately 3.79%; floating rate collateralized  mortgage obligations which
reprice  monthly - $47.0  million  with an original  weighted  average  yield of
approximately  3.21%;  and  government  agency  step-up bonds which will reprice
within one year - $4.7 million with a weighted  average  yield of  approximately
4.76%. Major investment  proceeds received during the quarter ended December 31,
2004 were:  callable  government  agency  bonds - $73.5  million with a weighted
average yield of  approximately  3.68%;  investment grade corporate bonds - $1.0
million with a weighted average yield of approximately  7.40%;  investment grade
commercial  paper - $3.3 million with a weighted  average yield of approximately
1.85%; and tax-free municipal bonds - $4.3 million with a weighted average yield
of approximately 5.48%.

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

      1)    the Company's  liquidity  profile remains strong with $117.8 million
            of U.S.  Government  Agency  securities  that were callable within 3
            months and, $74.9 million being callable within 3 to 6 months. Based
            upon  current  market  conditions,  management  anticipates  that  a
            portion  of the  investments  will be called  within  the above time
            intervals;

      2)    $114.1   million   or   96.0%   of  the   Company's   portfolio   of
            mortgage-backed   securities  (including   collateralized   mortgage
            obligations - "CMOs") were  comprised of floating  rate  instruments
            that reprice on a monthly basis;

      3)    $49.6  million  or  21.1%  of  the  Company's  investment  portfolio
            (including  FHLB  stock) was  comprised  of U.S.  Government  Agency
            Step-up bonds which will reprice from initial rates of 3.35% - 4.70%
            and increase to 6.00% - 7.50% within thirty-six months;

      4)    $137.9  million  or  58.6%  of the  Company's  investment  portfolio
            (including  FHLB stock) was  comprised of floating  rate bonds which
            will reprice quarterly within twenty-four months;

      5)    $4.9  million  or  2.1%  of  the  Company's   investment   portfolio
            (including  FHLB stock) was comprised of investment  grade corporate
            demand notes;

      6)    the maturity distribution of the Company's borrowings is as follows:
            10 days or less:  $84.4 million or 36.0%;  1-3 years:  $4.2 or 1.8%;
            3-5 years:  $13.5 million or 5.8%;  over 5 years:  $132.1 million or
            56.4%; and

      7)    an aggregate  of $31.9  million or 51.9% of the  Company's  net loan
            portfolio had  adjustable  interest rates or maturities of less than
            12 months.

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


                                       18
<PAGE>

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

                                             December 31,        June 30,
                                             ------------ ----------------------
                                                 2004        2004        2003
                                             ------------ ---------    ---------
                                                    (Dollars in Thousands)
Interest-earning assets maturing or
   repricing within one year                   $272,728    $288,451    $262,782
Interest-bearing liabilities maturing or
   repricing within one year                    179,394     171,655     133,418
                                               --------    --------    --------

Interest sensitivity gap                       $ 93,334    $116,796    $129,364
                                               ========    ========    ========
Interest sensitivity gap as a percentage of
   total assets                                    22.1%       26.9%       35.2%
Ratio of assets to liabilities
   maturing or repricing within one year          152.0%      168.0%      197.0%

      During the quarter ended  December 31, 2004,  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  maturities/repricing
dates within  thirty-six  months;  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 December  31,  2004.  The table  estimates  the impact of an upward or
downward change in market interest rates of 100 and 200 basis points.

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

<TABLE>
<CAPTION>
                          Month 3      Month 6      Month 12     Month 24     Month 36     Month 60    Long Term
                          -------      -------      --------     --------     --------     --------    ---------
                                                          (Dollars in Thousands)
<S>                        <C>          <C>          <C>         <C>          <C>          <C>           <C>
Base Case Up 200 bp
-------------------
Cummulative
 Gap ($'s)                 25,038       12,195       70,250      131,632      119,219      115,105       27,507
% of Total
 Assets                       5.9%         2.9%        16.6%        31.1%        28.2%        27.2%         6.5%
Base Case Up 100 bp
-------------------
Cummulative
 Gap ($'s)                 25,495       28,005       88,906      180,862      168,670      164,837       27,507
% of Total
  Assets                      6.0%         6.6%        21.0%        42.7%        39.8%        38.9%         6.5%
Base Case No Change
-------------------
Cummulative
 Gap ($'s)                 27,210       31,112       93,334      186,716      179,781      177,454       27,507
% of Total
  Assets                      6.4%         7.3%        22.0%        44.1%        42.5%        41.9%         6.5%
Base Case Down 100 bp
---------------------
Cummulative
 Gap ($'s)                 35,313       41,432      105,782      200,129      187,354      180,008       27,507
% of Total
  Assets                      8.3%         9.8%        25.0%        47.3%        44.3%        42.5%         6.5%
Base Case Down 200 bp
---------------------
Cummulative
 Gap ($'s)                 93,588      131,232      172,257      203,539      188,284      180,081       27,507
% of Total
  Assets                     22.1%        31.0%        40.7%        48.1%        44.5%        42.5%         6.5%
</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 December 31, 2004.

           Analysis of Sensitivity to Changes in Market Interest Rates
           -----------------------------------------------------------

                                     Modeled Change in Market Interest Rates
                               -------------------------------------------------
Estimated impact on:             -200      -100         0       +100       +200
--------------------
Change in net interest income   -58.9%    -33.1%      0.00%     24.6%      62.0%

Return on average equity        -1.36%      3.13%     8.57%    12.42%     18.00%

Return on average assets        -0.08%      0.21%     0.58%     0.86%      1.28%

Market value of equity (in
  thousands)                   $12,051   $19,094   $24,554   $27,047    $25,836

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

                            Anticipated Transactions
         ----------------------------------------------------------------
                                                   (Dollars in Thousands)
         Undisbursed construction and
             land development loans
               Fixed rate                                        $ 2,814
                                                                    5.86%

               Adjustable rate                                   $ 7,458
                                                                    5.96%

         Undisbursed lines of credit
               Adjustable rate                                   $ 6,145
                                                                    5.28%

         Loan origination commitments
               Fixed rate                                        $ 1,176
                                                                    6.22%

               Adjustable rate                                   $   667
                                                                    5.21%

         Letters of credit
               Adjustable rate                                   $ 1,383
                                                                    6.26%

         Commitments to purchase mortgage-backed securities
               Adjustable rate                                   $14,995
                                                                    4.56%
                                                                 -------
                                                                 $34,638
                                                                 =======


                                       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 December 31, 2004, the Savings Bank had six performance standby
letters of credit outstanding totaling approximately $1.4 million. One letter of
credit is secured by deposits with the Savings Bank, three letters of credit are
secured by  undisbursed  construction  loan funds and two  letters of credit are
secured by  developed  property.  All six letters of credit  will mature  within
eighteen  months.  In the  event  that the  obligor  is unable  to  perform  its
obligations as specified in the standby letter of credit agreement,  the Savings
Bank would be  obligated  to disburse  funds up to the amount  specified  in the
standby  letter  of  credit  agreement.  The  Savings  Bank  maintains  adequate
collateral that could be liquidated to fund this contingent obligation.


                                       22
<PAGE>

ITEM 4.

CONTROLS AND PROCEDURES

      Our management  evaluated,  with the  participation of our Chief Executive
Officer  and  Chief  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  December  31,  2004.  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 second  fiscal  quarter of fiscal 2005 that has  materially
affected,  or is reasonably  likely to materially  affect,  our internal control
over financial reporting.


                                       23
<PAGE>

PART II - OTHER INFORMATION

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

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

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

      (a)   Not applicable.

      (b)   Not applicable.

      (c)   The following table sets forth information with respect to purchases
            of common  stock of the Company  made by or on behalf of the Company
            during the three months ended December 31, 2004.

<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 Paid    Announced Plans or   Under the Plans or
                 Period        Purchased       per Share ($)          Programs(1)          Programs(2)
       --------------------------------------------------------------------------------------------------
<S>                                <C>                   <C>                   <C>                  <C>
       10/01/04 - 10/31/04         1,564                 17.00                 1,564                75,543
       --------------------------------------------------------------------------------------------------
       11/01/04 - 11/30/04             0                  0.00                     0                75,543
       --------------------------------------------------------------------------------------------------
       12/01/04 - 12/31/04             0                  0.00                     0                75,543
       --------------------------------------------------------------------------------------------------
            Total                  1,564                 17.00                 1,564                75,543
       --------------------------------------------------------------------------------------------------
</TABLE>

----------

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

(2)   Seventh Stock Repurchase Program

      (a)   Announced February 24, 2004.

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

      (c)   No fixed date of expiration.

      (d)   This Program has not expired and has 75,543  shares  remaining to be
            purchased at December 31, 2004.

      (e)   Not applicable.

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

      Not applicable.


                                       24
<PAGE>

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

      (a)   The  Company's  2004  Annual  Meeting  of  Stockholders  was held on
            October 26, 2004.

      (b)   Not applicable.

      (c)   Two matters  were voted upon at the annual  meeting  held on October
            26, 2004:  Item 1:  Proposal to elect two  directors for a four-year
            term or until their  successors are elected and  qualified;  Item 2:
            Proposal to ratify the appointment by the Board of Directors of S.R.
            Snodgrass, A.C. as the Company's independent auditors for the fiscal
            year ending June 30, 2005.

            Each of the two proposals received stockholder approval.  There were
            2,446,624 shares  outstanding on the record date eligible to vote at
            the meeting and 2,093,284  shares were present in person or by proxy
            at the  meeting.  The voting  record with respect to each item voted
            upon is enumerated below:

            Item            Nominee
            Number      (if Applicable)           For        Against     Abstain
            ------      ---------------           ---        -------     -------

              1      Donald E. Hook             1,964,551    128,733

                     David J. Bursic            1,965,768    127,516

              2      Ratification of Auditors   2,050,142     11,567      31,575

            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.

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

         31.1    Rule 13a-14(a) / 15d-14(a) Certification of the Chief
                 Executive Officer                                           E-1

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

         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


                                          25
<PAGE>

                                       SIGNATURES

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

                                          WVS FINANCIAL CORP.

      February 11, 2005              BY:  /s/ David J. Bursic
      Date                                --------------------------------------
                                          David J. Bursic
                                          President and Chief Executive Officer
                                          (Principal Executive Officer)

      February 11, 2005              BY:  /s/ Keith A. Simpson
      Date                                --------------------------------------
                                          Keith A. Simpson
                                          Vice-President, Treasurer and
                                          Chief Accounting Officer
                                          (Principal Accounting Officer)


                                       26