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, 1997

                                       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                        (Zip Code)
          executive offices)

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

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

         Shares  outstanding  as of November 12, 1997: 1,748,240  shares  Common
Stock, $.01 par value.
<PAGE>
                       WVS FINANCIAL CORP. AND SUBSIDIARY

                                      INDEX

PART I.           Financial Information                                       

Item 1.                    Financial Statements

                           Consolidated Statements of Financial
                           Condition as of September 30, 1997
                           and June 30, 1997 (Unaudited)                 

                           Consolidated Statements of Income
                           for the Three Months Ended
                           September 30, 1997 and 1996 (Unaudited)       

                           Consolidated Statements of Cash Flows
                           for the Three Months Ended September 30,
                           1997 and 1996 (Unaudited)                     

                           Consolidated Statements of Changes in
                           Stockholders' Equity for the Three Months
                           Ended September 30, 1997 (Unaudited)          

                           Notes to Unaudited Consolidated
                           Financial Statements                          

Item 2.                    Management's Discussion and Analysis of
                           Financial Condition and Results of
                           Operations for the Three Months Ended
                           September 30, 1997                            

Item 3.                    Quantitative and Qualitative Disclosures About
                           Market Risk for the Three Months Ended
                           September 30, 1997                            

PART II.          Other Information                                      

Item 1.                    Legal Proceedings                             
Item 2.                    Changes in Securities                         
Item 3.                    Defaults upon Senior Securities               
Item 4.                    Submission of Matters to a Vote of
                           Security Holders                              
Item 5.                    Other Information                             
Item 6.                    Exhibits and Reports on Form 8-K              
Signatures                                                               


<PAGE>
<TABLE>
<CAPTION>
                          WVS FINANCIAL CORP. AND SUBSIDIARY
                    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                      (UNAUDITED)
                                    (in thousands)

                                                             September 30,   June 30, 
                                                                 1997          1997
          Assets
<S>                                                           <C>           <C>
Cash and due from banks ................................      $    619      $     667
Interest-earning demand deposits .......................         1,027          1,904
Investment securities available-for-sale
   (amortized cost of $6,527 and $3,689) ...............         6,515          3,553
Investment securities held-to-maturity
   (market value of $68,977 and $83,889) ...............        68,701         83,995
Mortgage-backed securities available-for-sale
   (amortized cost of $17,383 and $18,417) .............        17,443         18,280
Mortgage-backed securities held-to-maturity
   (market value of $19,325 and $19,381) ...............        19,013         19,210
Federal Home Loan Bank stock, at cost ..................         3,672          3,927
Net loans receivable ...................................       160,470        158,134
Accrued interest receivable ............................         2,688          2,809
Real estate owned ......................................          --             --
Premises and equipment .................................         1,266          1,298
Deferred taxes and other assets ........................           821            916
                                                             ---------      ---------
          TOTAL ASSETS .................................     $ 282,235      $ 294,693
                                                             =========      =========

        Liabilities and Stockholders' Equity
Liabilities:
Savings Deposits:
   Non-interest-bearing accounts .......................     $   6,504      $   7,283
   NOW accounts ........................................        13,581         15,177
   Savings accounts ....................................        36,272         36,591
   Money market accounts ...............................        11,245         12,103
   Certificates of deposit .............................        97,854         99,725
                                                             ---------      ---------
   Total savings deposits ..............................       165,456        170,879
Federal Home Loan Bank advances ........................        68,832         77,857
Other borrowings .......................................         9,782          6,784
Advance payments by borrowers for taxes and insurance ..         1,106          3,531
Accrued interest payable ...............................         2,132          1,768
Other liabilities ......................................         1,050            985
                                                             ---------      ---------
          TOTAL LIABILITIES ............................       248,358        261,804
                                                             ---------      ---------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                          WVS FINANCIAL CORP. AND SUBSIDIARY
                    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                      (UNAUDITED)
                                    (in thousands)

                                                             September 30,   June 30, 
                                                                 1997          1997
           
<S>                                                           <C>           <C>
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;  1,747,920 and 1,747,280 shares issued and              
  and outstanding.......................................            17             17
Additional paid-in capital .............................        17,315         17,236
Retained earnings, substantially restricted ............        17,506         16,900
Unallocated shares - Recognition and Retention Plans ...          (580)          (631)
Unallocated shares - Employee Stock Ownership Plan .....          (413)          (453)
                                                             ---------      ---------
                                                                33,845         33,069
Unrealized gain (loss) on available-for-sale securities             32           (180)
                                                             ---------      ---------
    TOTAL STOCKHOLDERS' EQUITY ..........................       33,877         32,899
                                                             ---------      ---------
           TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ...    $ 282,235      $ 294,693
                                                             =========      =========


</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
                       WVS FINANCIAL CORP. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (UNAUDITED)
                                 (in thousands)
                                                                   Three Months Ended
                                                                     September 30,
                                                                  1997           1996
                                                               ----------     ----------
<S>                                                            <C>            <C>
INTEREST AND DIVIDEND INCOME:
     Loans ...............................................     $    3,266     $    3,083
     Investment securities ...............................          1,568          1,210
     Mortgage-backed securities ..........................            641            711
     Interest-earning deposits with other institutions ...             14             28
     Federal Home Loan Bank stock ........................             61             33
                                                               ----------     ----------
          Total interest and dividend income .............          5,550          5,065
                                                               ----------     ----------

INTEREST EXPENSE:

     Deposits ............................................          1,784          1,773
     Borrowings ..........................................          1,178            747
     Advance payments by borrowers for taxes and insurance              7              8
                                                               ----------     ----------
          Total interest expense .........................          2,969          2,528
                                                               ----------     ----------

NET INTEREST INCOME ......................................          2,581          2,537
PROVISION FOR LOAN LOSSES ................................           --               30
                                                               ----------     ----------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES ......          2,581          2,507
                                                               ----------     ----------
NON-INTEREST INCOME:

     Service charges on deposits .........................             52             48     
     Investment securities gains .........................           --               26
     Other ...............................................             38             36
                                                               ----------     ----------
          Total non-interest income ......................             90            110
                                                               ----------     ----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                      WVS FINANCIAL CORP. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (UNAUDITED)
                                 (in thousands)
                                                                   Three Months Ended
                                                                      September 30,
                                                                  1997           1996
                                                               ----------     ----------
<S>                                                            <C>            <C>
NON-INTEREST EXPENSE:

     Salaries and employee benefits ......................            757            636
     Occupancy and equipment .............................            102            100
     Deposit insurance premium ...........................             27          1,239
     Data processing .....................................             43             42
     Correspondent bank service charges ..................             31             28
     Other ...............................................            166            158
                                                               ----------     ----------
          Total non-interest expense .....................          1,126          2,203
                                                               ----------     ----------

INCOME BEFORE INCOME TAXES ...............................          1,545            414
INCOME TAXES .............................................            610            164
                                                               ----------     ----------

NET INCOME ...............................................     $      935     $      250
                                                               ==========     ==========

EARNINGS PER SHARE:
     Primary .............................................     $     0.53     $     0.14
     Fully Diluted .......................................     $     0.53     $     0.14

AVERAGE SHARES OUTSTANDING:
     Primary .............................................      1,773,670      1,741,995
     Fully Diluted .......................................      1,776,386      1,743,938

</TABLE>
            See   accompanying   notes  to  consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
                               WVS FINANCIAL CORP. AND SUBSIDIARY
                             CONSOLIDATED STATEMENTS OF CASH FLOWS
                                          (UNAUDITED)
                                         (in thousands)

                                                                           Three Months Ended
                                                                              September 30,
                                                                            1997          1996
<S>                                                                     <C>           <C>
OPERATING ACTIVITIES

Net income ........................................................     $    935      $    250
Adjustments to reconcile net income to cash provided by operating
activities:
   Provision for loan and real estate owned losses ................         --              30
   Gain on sale of Real Estate Owned ..............................         --              (8)
   Gain on sale of mortgage-backed securities .....................         --             (26)
   Depreciation and amortization, net .............................           33            33
   Amortization of discounts, premiums and deferred loan fees .....           11            17
   Amortization of ESOP, RRP and deferred and unearned compensation          161            93
   Decrease in accrued interest receivable ........................          121           234
   Increase in accrued interest payable ...........................          364           108
   Increase (decrease) in accrued and deferred taxes ..............           94          (479)
   Other, net .....................................................          (42)          991
                                                                        --------      --------
      Net cash provided by operating activities ...................        1,677         1,243
                                                                        --------      --------

INVESTING ACTIVITIES

Available-for-sale:
   Purchases of investments and mortgage-backed securities ........       (2,838)         (490)
   Proceeds from repayments of investments and mortgage-backed
     securities ...................................................        1,037           432
   Proceeds from sale of investments and mortgage-backed securities         --           1,665
Held-to-maturity:
   Purchases of investments and mortgage-backed securities ........      (15,571)      (18,183)
   Proceeds from repayments of investments and mortgage-backed
   securities .....................................................       31,088        10,033
Increase in net loans receivable ..................................       (2,377)         (459)
Sale of real estate owned .........................................         --              47
Decrease (increase) in FHLB stock .................................          255          (468)
Purchases of premises and equipment ...............................           (1)          (18)
                                                                        --------      --------
      Net cash provided by (used for) investing activities ........       11,593        (7,441)
                                                                        --------      --------
</TABLE>
                    See accompanying notes to consolidated financial statements.

<PAGE>
<TABLE>
<CAPTION>
                               WVS FINANCIAL CORP. AND SUBSIDIARY
                             CONSOLIDATED STATEMENTS OF CASH FLOWS
                                          (UNAUDITED)
                                         (in thousands)
                                                                             Three Months Ended
                                                                                September 30,
                                                                            1997          1996
                                                                          --------      --------
<S>                                                                       <C>           <C>
FINANCING ACTIVITIES

Net decrease in transaction and passbook accounts ...................       (3,552)       (2,511)
Net decrease in certificates of deposit .............................       (1,871)         (598)
Net increase (decrease) in FHLB borrowings ..........................       (9,025)        9,357
Net increase in other borrowings ....................................        2,998         1,142
Net decrease in advance payments by borrowers for taxes and insurance       (2,425)       (2,510)
Net proceeds from issuance of common stock ..........................            9             2
Cash dividends paid .................................................         (329)         (162)
                                                                          --------      --------
      Net cash (used) provided by financing activities ..............      (14,195)        4,720
                                                                          --------      --------

      Decrease in cash and cash equivalents .........................         (925)       (1,478)

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD ................        2,571         2,727
                                                                          --------      --------

CASH AND CASH EQUIVALENTS AT END OF THE PERIOD ......................     $  1,646      $  1,249
                                                                          ========      ========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

   Cash paid during the period for:
      Interest on deposits, escrows and borrowings ..................     $  2,605      $  2,420
      Income taxes ..................................................          625           655

   Noncash item:
      Foreclosed mortgage loans transferred to real estate owned ....         --              64
</TABLE>
          See accompanying notes to consolidated financial statements.

<PAGE>
<TABLE>
<CAPTION>
                                        WVS FINANCIAL CORP. AND SUBSIDIARY
                            CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                                                    (UNAUDITED)
                                                  (in thousands)


                                                                                          
                                                                                          Net
                                                                                       Unrealized     Retained
                                             Additional   Unallocated    Unallocated      Gain        Earnings-
                                   Common     Paid-in      Shares Held    Shares Held  (Loss) on   Substantially
                                   Stock      Capital       by ESOP         by RRP     Securities    Restricted       Total
                                   -----      -------       -------         ------     ----------    ----------       -----
<S>                                <C>        <C>       <C>             <C>           <C>              <C>         <C>
Balance at June 30, 1997           $    17    $17,236   $      (453)    $      (631)  $     (180)      $16,900     $32,889
                                                                                       
Release of earned Employee
Stock Ownership Plan (ESOP)
shares                                             70            40                                                    110

Accrued compensation expense
for Recognition and
Retention Plans (RRP)                                                            51                                     51

Exercise of Stock Options                           9                                                                    9

Change in unrealized loss,
net of income taxes of $110                                                                  212                       212

Cash dividends declared
($0.20 per share)                                                                                         (329)       (329)

Net income                                                                                                 935         935

Balance at September 30, 1997
                                  -------    -------   -----------     -----------    -----------      -------     -------
                                  $    17    $17,315   $      (413)    $      (580)   $        32      $17,506     $33,877
                                  =======    =======   ===========     ===========    ===========      =======     =======
                               
</TABLE>
           See accompanying notes to consolidated financial statements.
<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  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,  1997 are not
         necessarily  indicative  of the results  which may be expected  for the
         entire fiscal year.

2.       EARNINGS PER SHARE

         Primary earnings per share amounts are calculated based on the weighted
         average number of shares actually  outstanding,  less average  unearned
         ESOP  shares,  plus the shares that would be  outstanding  assuming the
         exercise of dilutive  stock options  which are  considered to be common
         stock  equivalents.  The number of shares that would be issued from the
         exercise of the stock  options has been reduced by the number of shares
         that could have been  purchased from the proceeds at the average market
         price of the Company's  common stock.  The number of shares used in the
         computation  of primary  earnings per share  totaled  1,773,670 for the
         three months ended September 30, 1997.

         Fully  diluted  earnings per share amounts are  calculated  based on an
         increased  number of shares  that  would be  outstanding  assuming  the
         exercise of dilutive  stock  options.  The number of additional  shares
         that would be issued from the  exercise  of the stock  options has been
         reduced by the number of shares that could have been purchased from the
         proceeds  at the end of period  market  price of the  Company's  common
         stock.  The number of shares used in the  computation  of fully diluted
         earnings  per  share  totaled  1,776,386  for the  three  months  ended
         September 30, 1997.


3.       LITIGATION


         On March 27, 1995,  the United  States  District  Court for the Western
         District of  Pennsylvania  entered an Opinion and Orders  dismissing in
         its entirety a lawsuit  brought by Plaintiff  William S. Karn, who is a
         depositor of the Savings Bank and a shareholder  of the Company,  which
         alleged,  among other things,  antitrust and securities laws violations
         in connection  with the Savings Bank's mutual - to - stock  conversion.
         The court also  dismissed  this same  Plaintiff's  federal  claims in a
         second and  substantially  similar lawsuit while remanding to the Court
         of Common Pleas of Allegheny  County any  cognizable  state law claims.
         This Plaintiff has filed Motion to Amend Judgment with the Court on the
         Opinion and Orders and a  Memorandum  Response in  Opposition  has been
         filed. On August 28, 1995, the Court denied the  Plaintiff's  motion to
         Amend Judgment.
<PAGE>
         The Company is involved with various other 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.


4.       RECENT ACCOUNTING PRONOUNCEMENTS

         In February  1997,  the  Financial  Accounting  Standards  Board issued
         Statement of Financial  Accounting  Standards  No. 128,  "Earnings  Per
         Share",  effective for financial  statements  issued for periods ending
         after  December 15, 1997. The new standard  specifies the  computation,
         presentation  and  disclosure  requirements  for earnings per share for
         entities  with  publicly  held  common  stock.  The  Company  does  not
         anticipate  adoption  to  have  material  impact  on  presentation  and
         disclosure for earnings per share.

         In July 1997 the Financial  Accounting Standards Board issued Statement
         of Financial  Accounting  Standards No. 130,  "Reporting  Comprehensive
         Income".  Statement  No. 130 is effective  for fiscal  years  beginning
         after  December 15, 1997.  This  statement  establishes  standards  for
         reporting and presentation of  comprehensive  income and its components
         (revenues, expenses, gains and losses) in a full set of general purpose
         financial  statements.  It requires  that all items are  required to be
         recognized  under  accounting  standards as components of comprehensive
         income be reported in a financial  statement that is presented with the
         same  prominence  as other  financial  statements.  Statement  No.  130
         requires  that  companies  (i)  classify  items of other  comprehensive
         income by their  nature in a financial  statement  and (ii) display the
         accumulated  balance  of other  comprehensive  income  separately  from
         retained earnings and additional  paid-in capital in the equity section
         of the statement of financial condition.  Reclassification of financial
         statements for earlier periods provided for  comprehensive  purposes is
         required.
<PAGE>
                       WVS FINANCIAL CORP. AND SUBSIDIARY

        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
      RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997


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.  Originally  organized under  Pennsylvania  law in 1908 as West View
Building Loan  Association,  West View changed its name to West View Savings and
Loan   Association   in  1954.  In  June  1992,   West  View  converted  from  a
Pennsylvania-chartered    mutual    savings   and   loan    association   to   a
Pennsylvania-chartered  mutual  savings bank.  The Savings Bank converted to the
stock form of ownership in November 1993.  The Savings Bank had no  subsidiaries
at September 30,1997.

         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.  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.

         The  Company's   strategy   focuses  on  traditional   thrift  lending,
maintaining asset quality and increasing core earnings.

FINANCIAL CONDITION

         The Company's  assets  totaled  $282.2 million at September 30, 1997 as
compared to $294.7  million at June 30, 1997.  The $12.5 million or 4.2% decline
in total assets was primarily  comprised of a $13.6 million or 10.6% decrease in
investment  and  mortgage-backed  securities,  including  Federal Home Loan Bank
("FHLB") stock,  which was partially  offset by a $121 thousand or 4.3% decrease
in accrued interest receivable.  The Company's total liabilities decreased $13.4
million or 5.1% to $248.4  million as of September 30, 1997 from $261.8  million
as of June 30,  1997.  The  $13.4  million  decrease  in total  liabilities  was
primarily comprised of a $6.0 million or 7.1% decrease in Federal Home Loan Bank
advances and other  borrowings  and a $5.4 million or 3.2% decrease in deposits.
Total stockholders' equity increased $1.0 million or 3.0% to $33.9 million as of
September 30, 1997 from $32.9 million as of June 30, 1997, primarily due to $935
thousand of Company net income for the quarter ended September 30, 1997.
<PAGE>
          ASSET AND  LIABILITY  MANAGEMENT.  The  Company  continued  a strategy
designed to reduce the interest rate  sensitivity of its financial assets to its
financial  liabilities.  The primary  elements  of this  strategy  include:  (i)
expanding  the  Company's  investment  growth  program in order to  enhance  net
interest  income;  (ii)  maintaining  the Company's  level of short-term  liquid
investments by funding loan  commitments and purchasing  longer-term  investment
securities;  (iii) emphasizing the retention of lower-cost  savings accounts and
other core deposits; (iv) pricing the Company's certificates of deposit and loan
products  nearer to the market  average  rate as  opposed to the upper  range of
market offered rates.

          The Company has continued its investment  growth  program,  originally
initiated in the third  quarter of fiscal 1994,  in order to realize  additional
net interest income.  Under this strategy, a longer-term callable or noncallable
investment  security,  or  mortgage-backed  security,  is  purchased  and funded
through the use of short-term non-deposit liabilities, such as FHLB advances and
short-term  borrowings.  With  this  strategy,  the  Company  increases  its net
interest  income,  but also  faces the risk,  during  periods  of rising  market
interest  rates,  that it may experience a decline in net interest income if the
rate  paid  on its  various  borrowings  rises  above  the  rate  earned  on the
investment security purchased. In order to mitigate this exposure, the Board has
placed certain restrictions on the investment growth program, including: (i) the
average outstanding daily balance of total borrowings,  computed quarterly,  may
not exceed  approximately  $85.0  million;  (ii) suitable  investments  shall be
confined to those meeting the credit quality criteria  outlined in the Company's
investment  policy;  and (iii) each security  purchased  shall initially yield a
minimum  of  seventy-five  basis  points  above  the  incremental  rate  paid on
short-term borrowings, at the time of purchase. In most cases, the initial yield
spread  earned on  investment  security  purchases  exceeded  approximately  two
hundred basis points.

         The Company has  continued to purchase  bonds with  optional  principal
redemption  features  ("callable  bonds")  in order to  capture  additional  net
interest income. Callable bonds generally provide investors with higher rates of
return than  noncallable  bonds  because the issuer has the option to redeem the
bonds before maturity.  While this strategy affords WVS the current  opportunity
to improve its net interest income, during a period of declining interest rates,
such as was experienced during the quarter ended September 30, 1997, the Company
would be exposed to the risk that the  investment  will be redeemed prior to its
final stated maturity.  In order to mitigate this risk, the Company has funded a
significant   portion  of  its  purchases  of  callable  bonds  with  short-term
borrowings.  Approximately  $29.3  million  of  callable  agency  bonds  with an
estimated  weighted  average rate of 7.7% were called  during the quarter  ended
September  30, 1997.  During the quarter ended  September 30, 1997,  the Company
purchased  approximately  $14.6  million of callable  bonds with an  approximate
weighted average yield to call and maturity of 7.9% and 7.6%, respectively.  The
callable  agency bond  purchases,  totaling  $14.6  million,  are  summarized by
initial term to call as follows:  $3.6 million within three months, $1.0 million
with greater than three months and within six months,  $8.0 million with greater
than six months and within  twelve  months and $2.0 million  within  twenty-four
months.

         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 offer  land  acquisition  and  development  and
shorter-term   construction  loans,  primarily  on  residential  properties,  to
partially increase its loan asset sensitivity.
<PAGE>
         During the  quarter  ended  September  30,  1997,  the  Company  repaid
approximately  $9.0  million of FHLB  advances  with a weighted  average rate of
5.56% and  increased  other  borrowings  by  approximately  $3.0  million with a
weighted  average  rate of 5.67%.  Due to a decline  in  market  interest  rates
experienced  during the quarter  ended  September 30, 1997,  and the  associated
increase in the amount of investment securities redeemed,  the Company shortened
the maturity structure of its incremental borrowings to reduce its cost of funds
and to better match the  maturities of its  borrowings  with the possible  early
repayment of a portion of its investment portfolio.

         As of  September  30,  1997,  the  implementation  of these  asset  and
liability management initiatives resulted in the following:  (i) an aggregate of
$49.8  million  or 31.0% of the  Company's  net loan  portfolio  had  adjustable
interest rates or maturities of less than 12 months; (ii) $18.8 million or 51.6%
of the Company's portfolio of mortgage-backed  securities  (including CMOs) were
secured by floating rate securities; (iii) $3.8 million or 5.1% of the Company's
investment  securities  portfolio had scheduled  maturities of one year or less;
and (iv) $67.2 million or 89.4% of the Company's investment securities portfolio
was comprised of callable bonds.

         The effect of interest rate changes on a financial institution's assets
and liabilities may be analyzed by examining the extent to which such assets and
liabilities  are "interest rate  sensitive"  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  when the  amount of rate
sensitive  assets  exceeds the amount of rate  sensitive  liabilities.  A gap is
considered  negative when the amount of interest sensitive  liabilities  exceeds
the amount of interest  sensitive  assets.  During a period of falling  interest
rates, a positive gap would tend to adversely affect net interest income,  while
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, while a negative gap would tend to adversely
affect net interest income.

         The  Company's  one  year  cumulative  interest  rate  sensitivity  gap
amounted to a negative  13.1% of total assets at September  30, 1997 as compared
to a  negative  13.3% at June  30,  1997,  in each  instance,  based on  certain
assumptions  by management  with respect to the repricing of certain  assets and
liabilities.  At  September  30, 1997,  the  Company's  interest-earning  assets
maturing or repricing  within one year totaled $96.7 million while the Company's
interest-bearing  liabilities  maturing  or  repricing  within one year  totaled
$133.8  million,   providing  a  deficiency  of  interest-earning   assets  over
interest-bearing  liabilities  of $37.1  million.  At September  30,  1997,  the
percentage of the Company's  assets to liabilities  maturing or repricing within
one year was 72.3%.
<PAGE>
RESULTS OF OPERATIONS

         General.  WVS reported net income of $935 thousand,  or $0.53 per share
(primary and fully  diluted),  for the three months ended  September 30, 1997 as
compared to $250  thousand  or $0.14 per share for the same period in 1996.  Net
income  increased  $685 thousand or 274.0% for the three months ended  September
30, 1997 when  compared to the same period in 1996.  The increase was  primarily
attributable to $1.1 million decrease in non-interest  expense associated with a
$1.1 million one-time charge to recapitalize the Savings  Association  Insurance
Fund ("SAIF") as required by federal law, during the quarter ended September 30,
1996, a $44 thousand increase in net interest income and a $30 thousand decrease
in the provision for loan losses,  which was offset by a $446 thousand  increase
in income tax  expense  and a $20  thousand  decrease  in  non-interest  income.
Excluding the one-time SAIF charge,  first quarter net income would have totaled
approximately  $941  thousand  or $0.54 per  share on both a  primary  and fully
diluted basis.  The SAIF  recapitalization  charge is expected to  significantly
reduce future FDIC insurance costs.

         Net Interest Income. The Company's net interest income increased by $44
thousand or 1.7% during the three months ended September 30, 1997, when compared
to the same period in 1996.  The increase  resulted from a $485 thousand or 9.6%
increase in total interest income which was partially  offset by a $441 thousand
or 17.4% increase in total interest expense for the three months ended September
30, 1997, when compared to the same period in the prior year.

         Interest  Income.  Interest on net loans  receivable  increased by $183
thousand or 5.9% for the three months  ended  September  30, 1997 when  compared
with the same period in 1996.  The increase was  attributable  to an increase of
$10.8 million in the average balance of loans receivable  outstanding which more
than offset a decrease in the weighted  average yield earned on loans receivable
of 9 basis points for the three months ended September 30, 1997 when compared to
the same period in 1996.  The increase in the average  loan balance  outstanding
was attributable to higher levels of real estate and consumer loan  originations
during the peak summer lending season.

         Interest on  mortgage-backed  securities  decreased  by $70 thousand or
9.8% for the three months ended  September  30, 1997 when compared with the same
period in 1996. The decrease was  attributable  to a decrease of $4.0 million in
the average balance of mortgage-backed  securities  outstanding during the three
months ended  September 30, 1997 when  compared to the same period in 1996.  The
decrease in the average balance of  mortgage-backed  securities  outstanding was
due to the sale of  approximately  $1.7  million of  mortgage-backed  securities
during  the  three  months  ended  September  30,  1996, and  periodic principal
repayments.

         Interest and dividend  income on  interest-bearing  deposits with other
institutions,   investment   securities   and  FHLB  stock  ("other   investment
securities")  increased  $372  thousand  or 29.3%  for the  three  months  ended
September  30, 1997 when  compared to the same period in 1996.  The increase was
attributable  to an  increase of $15.6  million in the average  balance of other
investment securities  outstanding and an increase in the weighted average yield
earned on other  investment  securities  of 43 basis points for the three months
ended  September 30, 1997 when compared to the same period in 1996. The increase
in  the  average  balance  of  other   investment   securities  was  principally
attributable  to  purchases  of  investment   securities   under  the  Company's
investment growth program.
<PAGE>
         Interest Expense. Interest expense on deposits and escrows increased by
$11 thousand or 0.6% for the three months ended September 30, 1997 when compared
with the same period in 1996. The increase was  principally  attributable  to an
increase  in the  weighted  average  yield  paid of 5  basis  points  which  was
partially  offset by a  decrease  of $1.1  million  in the  average  balance  of
deposits and escrows  outstanding  for the three months ended September 30, 1997
when  compared  to the same period in 1996.  The average  yield paid on deposits
increased due to higher rates paid on time deposits.

         Interest  expense on FHLB  advances and other  borrowings  increased by
$431  thousand  or 57.7% for the three  months  ended  September  30,  1997 when
compared to the same period in 1996. The increase was primarily  attributable to
a $24.7  million or 44.0%  increase  in the average  balance of such  borrowings
outstanding.  The increased  amount of borrowings  outstanding  was used to fund
the Company's investment growth program.

         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,  past loan loss  experience,  current  economic  conditions,  volume,
growth and composition of the loan portfolio, and other relevant factors.

         The  Company's  provision  for possible  losses on loans  decreased $30
thousand or 100.0% for the three months ended  September  30, 1997 when compared
to the same period in 1996.  The  Company's  total  allowance for loan losses at
September 30, 1997 amounted to $2.0 million or 1.1% of the Company's  total loan
portfolio, as compared to $2.0 million or 1.2% at June 30, 1997.

         Non-Interest  Income.  Total non-interest income decreased $20 thousand
or 18.2% during the three months ended  September  30, 1997 when compared to the
same period in 1996,  primarily  due to a $26  thousand  decrease in the gain on
sale of  investment  securities,  which was  partially  offset by a $4  thousand
increase in service charges on deposits.

         Non-Interest Expense. Total non-interest expense decreased $1.1 million
or 48.9% during the three months ended  September  30, 1997 when compared to the
same period in 1996.

         Federal deposit  insurance  premiums  decreased $1.2 million during the
quarter ended  September 30, 1997 when compared to the same period in 1996.  The
decrease was  attributable  to the absence of a $1.1 million  one-time charge to
recapitalize  the SAIF, as required by federal law,  incurred during the quarter
ended September 30, 1996.

         Compensation  and employee  benefits  increased  $121 thousand or 19.0%
during the quarter ended  September 30, 1997 when compared to the same period in
1996.  The increase was  primarily  attributable  to a $72 thousand  increase in
Employee Stock Ownership Plan ("ESOP")  amortization and a $37 thousand increase
relating to employee compensation adjustments.

         Other  non-interest  expense  (e.g.  director's  compensation  expense,
advertising,  provision for loss on real estate owned,  legal expense,  transfer
agent  expense,  etc.)  increased  $14 thousand or 4.3% during the quarter ended
September 30, 1997 when compared to the same period in 1996.
<PAGE>
         Income Tax Expense.  Income tax expense  increased by $446  thousand or
272.0% during the three months ended  September  30, 1997,  when compared to the
same  period  in  1996.   The  increase  in  income  tax  expense  is  primarily
attributable to a $1.1 million or 273.2% increase in income before taxes.

LIQUIDITY AND CAPITAL RESOURCES

         Net cash provided by operating  activities  totaled $1.7 million during
the three  months  ended  September  30,  1997.  Net cash  provided by operating
activities  was  primarily  comprised of $935  thousand of net income and a $364
thousand increase in accrued interest payable.

         Funds provided by investing activities totaled $11.6 million during the
three months ended September 30, 1997. Primary sources of funds during the three
months  ended  September  30,  1997  include  $32.1  million  of  proceeds  from
repayments  of investment  and  mortgage-backed  securities  which was partially
offset by $18.4 million used for purchases of investment  securities  and a $2.4
million increase in net loans receivable.

         Funds used by financing  activities totaled $14.2 million for the three
months ended September 30, 1997.  Primary  financial uses include a $9.0 million
decrease in Federal Home Loan Bank advances, a $5.4 million decrease in deposits
and a $2.4  million  decrease  in advance  payments by  borrowers  for taxes and
insurance,  which was  partially  offset  by a $3.0  million  increase  in other
borrowings.  Financial  institutions  generally,  including  the  Company,  have
experienced a certain degree of depositor  disintermediation to other investment
alternatives.   Management   believes  that  the  degree  of   disintermediation
experienced by the Company has not had a material  impact on overall  liquidity.
As of September 30, 1997, $67.6 million or 40.9% of the Company's total deposits
consisted  of core  deposits.  Management  has  determined  that it currently is
maintaining  adequate  liquidity and is seeking to better match funding  sources
with lending and investment opportunities.

         The  Company's  primary  sources of funds are  deposits,  amortization,
prepayments  and maturities of existing  loans,  mortgage-backed  securities and
investment  securities,  funds  from  operations,  and  funds  obtained  through
short-term   borrowings.   At  September  30,  1997,  the  total  approved  loan
commitments  outstanding  amounted to $3.9 million. At the same date commitments
under unused lines of credit amounted to $6.3 million and the unadvanced portion
of  construction  loans  approximated  $11.8  million.  Certificates  of deposit
scheduled  to mature in one year or less at  September  30, 1997  totaled  $59.7
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 has established a $15.0 million line of credit with the
FHLB,  which is  scheduled to mature on March 25, 1998 and is subject to various
conditions,  including the pledging and delivery of acceptable  collateral.  The
primary  purpose  of the  line of  credit  is to serve  as a  back-up  liquidity
facility for the Company, however, the Company may from time to time utilize the
line of credit to purchase investment securities and fund other commitments.  In
addition,  the Company has access to the Federal  Reserve Bank discount  window.
Management  believes that the Company currently has adequate liquidity available
to respond to liquidity demands.
<PAGE>
         On October 28, 1997 the  Company's  Board of Directors  declared a cash
dividend of $0.30 per share payable  November 20, 1997 to shareholders of record
at the close of  business  on  November  10,  1997.  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
future dividends will in fact be paid on the Common Stock or that, if paid, such
dividends will not be reduced or eliminated in future periods.

         As of September 30, 1997, WVS Financial  Corp.  exceeded all regulatory
capital requirements and maintained Tier I and total risk-based capital equal to
$33.8  million  or 24.9% and $35.6  million  or  26.1%,  respectively,  of total
risk-weighted  assets,  and Tier I leverage capital of $33.8 million or 11.7% 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,  1997  totaled
approximately  $545  thousand  or 0.19%  of total  assets  as  compared  to $274
thousand or 0.09% of total assets as of June 30, 1997.  Nonperforming  assets at
September 30, 1997  consisted of $480 thousand in commercial  real estate loans,
$1  thousand  in  single-family  loans,  and $64  thousand  in  consumer  loans.
Approximately $2 thousand of additional interest income would have been recorded
during the three months ended  September 30, 1997,  if the Company's  nonaccrual
and  restructured  loans had been current in accordance with their original loan
terms and outstanding throughout the quarter year ended September 30, 1997.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 


         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 U.S.  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.
<PAGE>
         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.

         The Federal Reserve Board,  together with the Office of the Comptroller
of the Currency and the Federal Deposit Insurance  Corporation,  adopted a Joint
Agency Policy  Statement on  Interest-Rate  Risk,  effective  June 26, 1996. The
policy statement  provides  guidance to examiners and bankers on sound practices
for  managing  interest  rate  risk,  which  will  form the  basis  for  ongoing
evaluation  of the  adequacy of  interest-rate  risk  management  at  supervised
institutions.  The policy statement also outlines  fundamental elements of sound
management  that have been  identified  in prior  Federal  Reserve  guidance and
discusses  the   importance  of  these  elements  in  the  context  of  managing
interest-rate  risk.  Specifically,  the guidance emphasizes the need for active
board  of  director  and  senior   management   oversight  and  a  comprehensive
risk-management  process that  effectively  identifies,  measures,  and controls
interest-rate  risk.  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 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.

         Several  techniques  might  be  used  by  an  institution  to  minimize
interest-rate risk. One approach used by the Company is to periodically  analyze
its assets and  liabilities and make future  financing and investment  decisions
based on payment streams, interest rates, contractual maturities,  and estimated
sensitivity  to actual or  potential  changes  in market  interest  rates.  Such
activities fall under the broad definition of  asset/liability  management.  The
Company's primary asset/liability management technique is the measurement of the
Company's  asset/liability  gap-that  is, the  difference  between the cash flow
amounts of interest-sensitive assets and liabilities that will be refinanced (or
repriced) during a given period. For example, if the asset amount to be repriced
exceeds the  corresponding  liability amount for a certain day, month,  year, or
longer period,  the institution is in an asset-sensitive  gap position.  In this
situation,  net interest  income would increase if market interest rates rose or
decrease if market interest rates fell. If, alternatively, more liabilities than
assets will  reprice,  the  institution  is in a  liability-sensitive  position.
Accordingly, net interest income would decline when rates rose and increase when
rates fell.  Also, these examples assume that  interest-rate  changes for assets
and liabilities are of the same magnitude,  whereas actual interest-rate changes
generally differ in magnitude for assets and liabilities.
<PAGE>
         An  institution  could  also  manage  interest-rate  risk  by:  selling
existing assets or repaying certain liabilities;  matching repricing periods for
new assets and  liabilities  for example,  by  shortening  terms of new loans or
investments;  hedging existing assets, liabilities, or anticipated transactions.
An institution might also invest in more complex financial  instruments intended
to hedge or otherwise change  interest-rate risk.  Interest-rate  swaps, futures
contracts,  options on futures, and other such derivative financial  instruments
often are used for this  purpose.  Because  these  instruments  are sensitive to
interest-rate  changes,  they  require  management  expertise  to be  effective.
Financial  institutions  are also  subject to  prepayment  risk in falling  rate
environments.  For example,  mortgage  loans and other  financial  assets may be
prepaid by a debtor so that the debtor may refund its  obligations at new, lower
rates.  The Company has not purchased  derivative  financial  instruments in the
past and does not  presently  intend to purchase  such  instruments  in the near
future.  Prepayments  of assets  carrying  higher  rates  reduce  the  Company's
interest  income and overall asset yields.  A large portion of an  institution's
liabilities may be short term or due on demand,  while most of its assets may be
invested in long-term  loans or investments.  Accordingly,  the Company seeks to
have in place  sources of cash to meet  short-term  demands.  These funds can be
obtained by  increasing  deposits,  borrowing,  or selling  assets.  Also,  FHLB
advances and wholesale borrowings have become increasingly  important sources of
liquidity for the Company.

         The following table provides  information about the Company's financial
instruments  that are sensitive to changes in interest rates as of September 30,
1997  based on the  information  and  assumptions  set forth in the  notes.  The
Company believes that the assumptions  utilized,  which are based on statistical
data provided by a federal  regulatory  agency in the Company's market area, are
reasonable.  The Company had no  derivative  financial  instruments,  or trading
portfolio, as of September 30, 1997. The expected maturity date values for loans
receivable,   mortgage-backed   securities,   and  investment   securities  were
calculated  by  adjusting  the  instrument's   contractual   maturity  date  for
expectations  of  prepayments,  as set forth in the notes.  Similarly,  expected
maturity date values for  interest-bearing  core deposits were calculated  based
upon estimates of the period over which the deposits would be outstanding as set
forth in the notes.  With respect to the Company's  adjustable rate instruments,
expected  maturity  date values  were  measured by  adjusting  the  instrument's
contractual  maturity date for expectations of prepayments,  as set forth in the
notes. From a risk management  perspective,  however,  the Company believes that
repricing  dates, as opposed to expected  maturity dates, may be a more relevant
metric in analyzing the value of such instruments.  Similarly, substantially all
of the  Company's  investment  securities  portfolio  is  comprised  of callable
government agency  securities.  Company borrowings were tabulated by contractual
maturity dates and without regard to any conversion or repricing dates.
<PAGE>
<TABLE>
<CAPTION>
                                            EXPECTED MATURITY DATE-QUARTER ENDED SEPTEMBER 30,

                                                                                                  There-                     Fair
                                      1998         1999       2000         2001        2002        after        Total        Value
                                     -------     -------     -------     -------     -------     --------      --------     --------

<S>                                  <C>         <C>         <C>         <C>         <C>         <C>           <C>          <C> 
ON-BALANCE SHEET 
   FINANCIAL INSTRUMENTS
 
Interest-earning assets:
  Loans receivable (1)(2)(3)(4)
    Fixed rate                       $25,879     $17,330     $13,305     $11,338      $8,602      $41,873      $118,327     $119,468
      Average interest rate             8.24%       7.99%       7.91%       7.86%       7.77%        7.57%

    Adjustable rate                    8,559       7,250       6,130       5,173       4,356       12,940        44,408       46,995
      Average interest rate(5)          8.07%       8.07%       8.08%       8.09%       8.10%        7.78%
  Mortgage-backed securities
    Fixed rate                         1,035         937         407       1,621         232       13,395        17,627       18,441
      Average interest rate             6.19%       7.02%       6.36%       7.59%       7.44%        7.03%

    Adjustable rate                      ---         ---         ---         ---         ---       18,769        18,769       18,327
      Average interest rate(6)          0.00%       0.00%       0.00%       0.00%       0.00%        6.86%

  Investments(7)                      11,008         500         ---         500         ---       66,892        78,900       79,164
      Average interest rate             7.27%       6.40%       0.00%       6.41%       0.00%        7.57%

  Interest-bearing deposits            1,027         ---         ---         ---         ---          ---         1,027        1,027
      Average interest rate             6.31%       0.00%       0.00%       0.00%       0.00%        0.00%
                                     -------     -------     -------     -------     -------     --------      --------     --------
        Total                        $47,508     $26,017     $19,842     $18,632     $13,190     $153,869      $279,058     $283,422
                                      

Interest-bearing liabilities:
  Interest-bearing deposits
     and escrows(8)(9)(10)           $86,523     $22,480     $23,673     $ 7,936     $ 7,936     $ 22,211     $166,562      $166,721
      Average interest rate             4.57%       4.46%       4.41%       3.65%       3.65%        2.22%

  Borrowings                          19,114       8,000       8,000         ---      53,500          ---       78,614        78,283
      Average interest rate             5.80%       5.89%       5.89%       0.00%       5.74%        0.00%
                                     -------     -------     -------     -------     -------     --------      --------     --------
        Total                       $105,637     $30,480     $31,673     $ 7,936     $61,436     $ 22,211     $245,176      $245,004
</TABLE>
<PAGE>
(1) Net of undisbursed loan proceeds and does not include net deferred loan fees
or the allowance for loan losses.
(2)  For  single-family  residential  loans,  assumes  annual  amortization  and
prepayment rate at 15% for adjustable rate loans,  and 11% to 37% for fixed rate
loans. For multi-family  residential loans and other loans, assumes amortization
and prepayment rate of 12%.
(3) For second mortgage loans,  assumes annual  amortization and prepayment rate
of 18%.
(4) Consumer loans assumes amortization and prepayment rate of 13%.
(5)  Substantially  all of the  Company's  adjustable  rate loans  reprice on an
annual basis based upon changes in the one-year constant maturity treasury index
with various market based annual and lifetime interest rate caps and floors. 
(6)  Substantially  all  of  the  Company's   adjustable  rate   mortgage-backed
securities  reprice on a monthly basis based upon changes in the one month LIBOR
index with various lifetime caps and floors.
(7) Totals  include the  Company's  investment  in Federal Home Loan Bank stock.
Amounts  adjusted to reflect  investment  securities  called through October 31,
1997 totaling approximately $7,165.
(8) For regular savings accounts,  assumes an annual decay rate of 17% for three
years or less,  16% for more than three through five years and 14% for more than
five years.
(9) For NOW accounts,  assumes an annual decay rate of 37% for one year or less,
32% for more than one through three years and 17% for more than three years.
(10) For money market deposit accounts,  assumes an annual decay rate of 79% for
one year or less and 31% for more than one year.


         The Company's  investment  securities  decreased  from $91.2 million at
June 30, 1997 to $79.2 million at September 30, 1997. The $12.0 million or 13.2%
decrease was  primarily  attributable  to $29.1  million of callable  government
agency bonds called  during the quarter  ended  September  30, 1997.  Investment
security  purchases  during the quarter  ended  September 30, 1997 totaled $14.6
million. The Savings Bank's interest-bearing deposits and escrows decreased from
$174.4  million at June 30, 1997 to $166.7  million at September  30, 1997.  The
$7.7 million or 4.4% decrease was primarily attributable to customer withdrawals
for local  real  estate  taxes,  and to a lesser  extent,  competition  for time
deposits in the local market.  Borrowings  decreased  from $84.0 million at June
30,  1997 to $78.3  million at  September  30,  1997.  The $5.7  million or 6.8%
decrease  was  primarily   attributable  to  the  Company's  repayment  of  such
borrowings  in  response  to the large  volume  of  callable  government  agency
redemptions  discussed  above.  The  Company  intends to  continue to pursue its
investment growth program, as market conditions permit,  according to parameters
discussed under "Asset and Liability Management".

         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,
1997.
<PAGE>
                    Anticipated Transactions
                    ------------------------

                    Undisbursed construction and
                        land development loans
                          Fixed rate ...........     $ 4,244
                                                        8.89%

                          Adjustable rate ......       7,542
                                                        9.43%
                    Undisbursed lines of credit
                          Adjustable rate ......       6,205
                                                        8.65%
                    Loan origination commitments
                          Fixed rate ...........       1,157
                                                        8.75%

                          Adjustable rate ......       2,730
                                                        8.64%
                    Letters of credit
                          Adjustable rate ......          82
                                                       11.50%
                                                     -------
                                                     $21,960

         The  Company  believes  that  there  were no  material  changes  to the
Company's anticipated transactions during the quarter ended September 30, 1997.
<PAGE>

PART II - OTHER INFORMATION


ITEM 1.       Legal Proceedings

              See  discussion   contained  in  Note  3  of  Notes  to  Unaudited
              Consolidated Financial Statements.

ITEM 2.       Changes in Securities

              Not applicable.

ITEM 3.       Defaults Upon Senior Securities

              Not applicable.

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

              (a)     An annual meeting of stockholders  was held on October 28,
                      1997.

              (b)     Not applicable.

              (c)     Two  matters  were voted  upon at the  annual  stockholder
                      meeting  held on October  28,  1997:  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, 1998.

                      Each of the two proposals received  stockholder  approval.
                      The voting  record with respect to each item voted upon is
                      enumerated below:


    Item            Nominee
   Number       (If Applicable)           FOR           AGAINST        ABSTAIN 
   ------       ---------------           ---           -------        -------
                
      1        James S. McKain, Jr.    1,536,908          3,094             0
 
               James H. Ritchie        1,540,441          2,694             0
 

 
      2        Election of Auditors    1,533,931          2,537         6,667
 



              There   were no broker  non-votes  cast with respect to any matter
              voted upon.

              (d)     Not applicable.

<PAGE>

ITEM 5.       Other Information

              Not applicable.

ITEM 6.       Exhibits and Reports on Form 8-K

              (a)     The following  exhibit is filed as part of this form 10-Q,
                      and this list includes the Exhibit Index.

                        Number            Description            
                         11             Statement re              
                                        computation of
                                        per share earnings

                         27             Financial Data           
                                        Schedule

              (b)     Not applicable.

<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.



Date: November 12, 1997                    BY:  /s/ Robert C. Sinewe
                                                --------------------
                                                Robert C. Sinewe
                                                President and Chief
                                                Executive Officer



Date: November 12, 1997                    BY:  /s/ David J. Bursic
                                                -------------------
                                                David J. Bursic
                                                Senior Vice President, Treasurer
                                                and Chief Financial Officer