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, 2003

                                       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 12, 2004:  2,547,322 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, 2003 and June 30, 2003
              (Unaudited)                                                     3

              Consolidated Statement of Income
              for the Three and Six Months Ended
              December 31, 2003 and 2002 (Unaudited)                          4

              Consolidated Statement of Cash Flows
              for the Six Months Ended December 31,
              2003 and 2002 (Unaudited)                                       5

              Consolidated Statement of Changes in
              Stockholders' Equity for the Six Months
              Ended December 31, 2003 (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, 2003                                        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.       Changes in Securities and Use of Proceeds                      24
Item 3.       Defaults upon Senior Securities                                24
Item 4.       Submission of Matters to a Vote of Security Holders            24
Item 5.       Other Information                                              24
Item 6.       Exhibits and Reports on Form 8-K                               25
              Signatures                                                     26


                                       2
<PAGE>

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

<TABLE>
<CAPTION>
                                                                    December 31,       June 30,
                                                                        2003             2003
                                                                    ------------     ------------
<S>                                                                 <C>              <C>
          Assets
          ------
Cash and due from banks                                             $        915     $        921
Interest-earning demand deposits                                           2,861            1,894
                                                                    ------------     ------------
Total cash and cash equivalents                                            3,776            2,815
Investment securities available-for-sale (amortized cost of
   $8,305 and $25,310)                                                     8,717           25,641
Investment securities held-to-maturity (market value of
   $253,527 and $126,036)                                                249,799          121,841
Mortgage-backed securities available-for-sale (amortized cost of
   $3,777 and $4,219)                                                      3,928            4,387
Mortgage-backed securities held-to-maturity (market value of
   $66,428 and $107,914)                                                  66,401          107,492
Federal Home Loan Bank stock, at cost                                      7,554            7,797
Net loans receivable (allowance for loan losses of $1,285 and
$2,530)                                                                   71,894           91,669
Accrued interest receivable                                                2,559            2,800
Premises and equipment                                                     1,148            1,231
Other assets                                                               1,529            1,515
                                                                    ------------     ------------
          TOTAL ASSETS                                              $    417,305     $    367,188
                                                                    ============     ============

          Liabilities and Stockholders' Equity
          ------------------------------------
Liabilities:
Savings Deposits:
   Non-interest-bearing accounts                                    $     12,148     $     11,302
   NOW accounts                                                           21,936           19,215
   Savings accounts                                                       43,550           44,152
   Money market accounts                                                  13,457           14,691
   Certificates of deposit                                                74,865           79,956
   Advance payments by borrowers for taxes and insurance                     811            1,610
                                                                    ------------     ------------
    Total savings deposits                                               166,767          170,926
Federal Home Loan Bank advances                                          149,236          153,390
Other borrowings                                                          67,848            9,453
Accrued interest payable                                                   1,379            1,449
Other liabilities                                                          1,631            1,352
                                                                    ------------     ------------
     TOTAL LIABILITIES                                                   386,861          336,570

Stockholders' equity:
Preferred stock:
   5,000,000 shares, no par value per share, authorized; none
   outstanding                                                                --               --
Common stock:
   10,000,000 shares, $.01 par value per share, authorized;
   3,738,928 and 3,736,750 shares issued                                      37               37
Additional paid-in capital                                                20,331           20,212
Treasury stock: 1,193,023 and 1,153,591 shares at cost,
    Respectively                                                         (17,449)         (16,767)
Retained earnings, substantially restricted                               27,159           26,857
Accumulated other comprehensive income                                       372              329
Unreleased shares - Recognition and Retention Plans                           (6)             (50)
                                                                    ------------     ------------
     TOTAL STOCKHOLDERS' EQUITY                                           30,444           30,618
                                                                    ------------     ------------
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                $    417,305     $    367,188
                                                                    ============     ============
</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,
                                                ---------------------------    ---------------------------
                                                    2003            2002           2003            2002
                                                -----------     -----------    -----------     -----------
<S>                                             <C>             <C>            <C>             <C>
INTEREST AND DIVIDEND INCOME:
     Loans                                      $     1,331     $     2,580    $     2,858     $     5,389
     Investment securities                            2,061           1,728          3,642           3,470
     Mortgage-backed securities                         543             644          1,199           1,452
     Interest-earning deposits with other
         institutions                                     1               3              6               7
     Federal Home Loan Bank stock                        20              68             61             137
                                                -----------     -----------    -----------     -----------
          Total interest and dividend income          3,956           5,023          7,766          10,455
                                                -----------     -----------    -----------     -----------

INTEREST EXPENSE:
     Deposits                                           598             870          1,265           1,835
     Borrowings                                       2,162           2,148          4,264           4,371
                                                -----------     -----------    -----------     -----------
          Total interest expense                      2,760           3,018          5,529           6,206
                                                -----------     -----------    -----------     -----------

NET INTEREST INCOME                                   1,196           2,005          2,237           4,249
PROVISION FOR LOAN LOSSES                              (624)             --           (757)             18
                                                -----------     -----------    -----------     -----------
NET INTEREST INCOME AFTER PROVISION
   FOR LOAN LOSSES                                    1,820           2,005          2,994           4,231
                                                -----------     -----------    -----------     -----------

NON-INTEREST INCOME:
     Service charges on deposits                        104              96            198             196
     Gain on sale of investments, net                    --               1             --              64
     Other                                               57              75            158             154
                                                -----------     -----------    -----------     -----------
          Total non-interest income                     161             172            356             414
                                                -----------     -----------    -----------     -----------

NON-INTEREST EXPENSE:
     Salaries and employee benefits                     505             609          1,016           1,211
     Occupancy and equipment                            106              95            211             183
     Deposit insurance premium                            6               8             13              15
     Data processing                                     57              50            113              98
     Correspondent bank service charges                  37              37             76              77
     Other                                              227             246            401             580
                                                -----------     -----------    -----------     -----------
          Total non-interest expense                    938           1,045          1,830           2,164
                                                -----------     -----------    -----------     -----------

INCOME BEFORE INCOME TAXES                            1,043           1,132          1,520           2,481
INCOME TAXES                                            273             351            398             701
                                                -----------     -----------    -----------     -----------
NET INCOME                                      $       770     $       781    $     1,122     $     1,780
                                                ===========     ===========    ===========     ===========

EARNINGS PER SHARE:
     Basic                                      $      0.30     $      0.30    $      0.44     $      0.67
     Diluted                                    $      0.30     $      0.30    $      0.44     $      0.67

AVERAGE SHARES OUTSTANDING:
     Basic                                        2,560,420       2,631,112      2,567,831       2,646,522
     Diluted                                      2,569,578       2,636,633      2,577,330       2,651,926
</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,
                                                                             -----------------------
                                                                                2003          2002
                                                                             ---------     ---------
<S>                                                                          <C>           <C>
OPERATING ACTIVITIES

Net income                                                                   $   1,122     $   1,780
Adjustments to reconcile net income to cash provided by operating
 activities:
   Provision for loan losses                                                      (757)           18
   Gain on sale of investments                                                      --           (64)
   Depreciation and amortization, net                                               94            62
   Amortization of discounts, premiums and deferred loan fees                      814         1,761
   Amortization of ESOP, RRP and deferred and unearned
      compensation                                                                   5            18
   Decrease (increase) in accrued interest receivable                              241          (284)
   (Decrease) increase in accrued interest payable                                 (70)            5
   Increase (decrease) in accrued and deferred taxes                               180           (29)
   Other, net                                                                      101           130
                                                                             ---------     ---------
         Net cash provided by operating activities                               1,730         3,397
                                                                             ---------     ---------

INVESTING ACTIVITIES

Available-for-sale:
   Purchases of investments and mortgage-backed securities                     (20,828)       (2,381)
   Proceeds from repayments of investments and mortgage-backed securities       38,291         8,093
   Proceeds from sale of investment securities                                      --           639
Held-to-maturity:
   Purchases of investments and mortgage-backed securities                    (250,708)     (109,876)
   Proceeds from repayments of investments and mortgage-backed securities      163,133        73,241
Decrease in net loans receivable                                                19,912        25,884
Sale of real estate owned                                                          500           220
Purchase of Federal Home Loan Bank stock                                          (967)         (407)
Redemption of Federal Home Loan Bank stock                                       1,210            --
Purchases of premises and equipment                                                (11)         (288)
                                                                             ---------     ---------
         Net cash used for investing activities                                (49,468)       (4,875)
                                                                             ---------     ---------
</TABLE>


                                       5
<PAGE>

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

<TABLE>
<CAPTION>
                                                                           Six Months Ended
                                                                             December 31,
                                                                         ---------------------
                                                                           2003         2002
                                                                         --------     --------
<S>                                                                      <C>          <C>
FINANCING ACTIVITIES

Net increase (decrease) in transaction and passbook accounts                1,731       (2,305)
Net decrease in certificates of deposit                                    (5,091)      (6,494)
Net (decrease) increase in FHLB short-term advances                        (3,875)      14,350
Net increase in other borrowings                                           58,395        4,453
Repayments of FHLB long-term advances                                        (279)      (5,000)
Net decrease in advance payments by borrowers for taxes and insurance        (799)      (1,645)
Net proceeds from issuance of common stock                                    119            2
Funds used for purchase of treasury stock                                    (682)      (1,218)
Cash dividends paid                                                          (820)        (846)
                                                                         --------     --------
         Net cash provided by financing activities                         48,699        1,297
                                                                         --------     --------

        Increase (decrease) in cash and cash equivalents                      961         (181)

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

CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                           $  3,776     $  2,996
                                                                         ========     ========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

   Cash paid during the period for:
      Interest on deposits, escrows and borrowings                       $  5,599     $  6,201
      Income taxes                                                       $    240     $    780

   Non-cash items:
      Pennsylvania Education Tax Credit                                  $     --     $    100
      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       Compre-    Unreleased   Unreleased
                               Common     Paid-In       Treasury   Substantially    hensive   Shares Held   Shares Held
                               Stock      Capital        Stock      Restricted      Income      by ESOP       by RRP        Total
                               -----      -------        -----      ----------      ------      -------       ------        -----
<S>                            <C>        <C>          <C>            <C>          <C>          <C>          <C>           <C>
Balance at June 30, 2003       $   37     $ 20,212     $ (16,767)     $ 26,857     $    329     $     --     $    (50)     $ 30,618

Comprehensive income:

   Net Income                                                            1,122                                                1,122
   Other comprehensive
     income:

      Change in unrealized
        holding gains on
        securities, net of
        income tax effect
        of $22                                                                           43                                      43
                                                                                                                           --------

Comprehensive income                                                                                                          1,165

Purchase of shares for
   treasury stock                                           (682)                                                              (682)

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

Cancellation of Unallocated
   RRP Shares                                                                                                      39            39

Exercise of stock options                      119                                                                              119

Cash dividends declared
   ($0.32 per share)                                                      (820)                                                (820)
                               ------     --------     ---------      --------     --------     --------     --------      --------

Balance at Dec. 31, 2003       $   37     $ 20,331     $ (17,449)     $ 27,159     $    372     $     --     $     (6)     $ 30,444
                               ======     ========     =========      ========     ========     ========     ========      ========
</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
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,  2003,  are not  necessarily
indicative of the results which may be expected for the entire fiscal year.

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

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


                                       8
<PAGE>

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

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

<TABLE>
<CAPTION>
                                              Three Months Ended              Six Months Ended
                                                 December 31,                    December 31,
                                         ---------------------------     ---------------------------
                                             2003            2002            2003            2002
                                         -----------     -----------     -----------     -----------
<S>                                      <C>             <C>             <C>             <C>
Weighted average common shares
   outstanding                             3,734,816       3,730,258       3,735,731       3,730,084

Average treasury stock shares             (1,174,396)     (1,099,146)     (1,167,900)     (1,083,562)

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

Weighted average common shares
   and common stock equivalents
   used to calculate basic earnings
   per share                               2,560,420       2,631,112       2,567,831       2,646,522

Additional common stock
   equivalents (stock options) used
   to calculate diluted earnings per
   share                                       9,158           5,521           9,499           5,404
                                         -----------     -----------     -----------     -----------

Weighted average common shares
   and common stock equivalents
   used to calculate diluted earnings
   per share                               2,569,578       2,636,633       2,577,330       2,651,926
                                         ===========     ===========     ===========     ===========

Net income                               $   770,260     $   781,465     $ 1,122,125     $ 1,781,310
                                         ===========     ===========     ===========     ===========

Earnings per share:
     Basic                               $      0.30     $      0.30     $      0.44     $      0.67
     Diluted                             $      0.30     $      0.30     $      0.44     $      0.67
                                         ===========     ===========     ===========     ===========
</TABLE>

      All options at December 31, 2003 and December 31, 2002 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,
                           ------------------------------------    ------------------------------------
                                 2003                2002                2003                2002
                           ----------------    ----------------    ----------------    ----------------
                                                      (Dollars in Thousands)
<S>                        <C>       <C>       <C>       <C>       <C>       <C>       <C>       <C>
Net income                           $  770              $  781              $1,122              $1,780
Other comprehensive
  income:
    Unrealized gains on
    available for sale
    securities             $   82              $   44              $   65              $  214

  Less:
    Reclassification
    adjustment for gain
    included in net
    income                     --                   1                  --                  64
                           ------    ------    ------    ------    ------    ------    ------    ------
Other comprehensive
  income before tax                      82                  43                  65                 150
Income tax expense
  related to other
  comprehensive income                   28                  15                  22                  51
                                     ------              ------              ------              ------
Other comprehensive
  income, net of tax                     54                  28                  43                  99
                                     ------              ------              ------              ------
Comprehensive income                 $  824              $  809              $1,165              $1,879
                                     ======              ======              ======              ======
</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, 2003

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, 2003.

     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  $417.3  million at December 31,  2003,  as
compared to $367.2 million at June 30, 2003. The $50.1 million or 13.6% increase
in total assets was primarily comprised of a $110.8 million or 71.3% increase in
investment  securities and FHLB stock,  and a $967 thousand or 51.1% increase in
interest-bearing demand deposits, which were partially offset by a $41.5 million
or 37.1%  decrease  in  mortgage-backed  securities,  a $19.8  million  or 21.6%
decrease  in net loans  receivable,  and a $241  thousand  or 8.6%  decrease  in
accrued interest receivable.


                                       11
<PAGE>

     The Company's total liabilities  increased $50.3 million or 14.9% to $386.9
million as of December 31, 2003,  from $336.6  million as of June 30, 2003.  The
$50.3 million increase in total  liabilities was primarily  comprised of a $58.4
million or 617.7% increase in other short-term  borrowings,  and a $280 thousand
or 20.7% increase in other  liabilities,  which were partially  offset by a $4.2
million or 2.7% decrease in FHLB  advances,  and a $4.2 million or 2.4% decrease
in total savings deposits. Certificates of deposit decreased $5.1 million, money
market accounts decreased $1.2 million,  advance payments by borrowers for taxes
and insurance  decreased  $799  thousand and passbook  accounts  decreased  $602
thousand while demand deposits increased $3.6 million.

     Total stockholders' equity decreased $174 thousand or 0.6% to $30.4 million
as of December 31, 2003, from  approximately  $30.6 million as of June 30, 2003.
Capital  expenditures  for the  Company's  stock  repurchase  program  and  cash
dividends  totaled $682  thousand and $820  thousand,  respectively,  which were
partially funded by net income of $1.1 million for the six months ended December
31, 2003.

RESULTS OF OPERATIONS

     General. WVS reported net income of $770 thousand or $0.30 diluted earnings
per share and $1.1 million or $0.44 diluted earnings per share for the three and
six months ended December 31, 2003,  respectively.  Net income  decreased by $11
thousand or 1.4% and diluted earnings per share remained  constant for the three
months ended  December 31, 2003,  when compared to the same period in 2002.  The
decrease in net income was primarily attributable to a $809 thousand decrease in
net interest income and a $11 thousand  decrease in non-interest  income,  which
were partially offset by a $624 thousand  decrease in provision for loan losses,
a $107 thousand decrease in non-interest expense, and a $78 thousand decrease in
income tax  expense.  For the six months ended  December  31,  2003,  net income
decreased by $658  thousand or 37.0% and diluted  earnings  per share  decreased
$0.23 or 34.3%  when  compared  to the same  period in 2002.  The  decrease  was
principally  the result of a $2.0 million  decrease in net interest income and a
$58 thousand decrease in non-interest  income,  which were partially offset by a
$775 thousand decrease in provision for loan losses, a $334 thousand decrease in
non-interest expense, and a $303 thousand decrease in income tax expense.

     Net Interest  Income.  The Company's net interest income  decreased by $809
thousand or 40.3% and $2.0  million or 47.4% for the three and six months  ended
December 31, 2003, respectively,  when compared to the same periods in 2002. The
decrease in net  interest  income for both the three and six month  periods were
principally  attributable  to  lower  rates  earned  on  Company  assets  due to
historically  low market  interest  rates,  lower average  balances of net loans
receivable,  and higher average  balances of longer-term  fixed rate  borrowings
outstanding,  which were  partially  offset by lower rates paid on deposits  and
increased  average  balances of the  Company's  mortgage-backed  and  investment
securities  portfolios.  The Company  experienced higher levels of repayments on
its loan  portfolio due to  refinancing  activities for the three and six months
ended December 31, 2003.

     Interest Income. Interest on net loans receivable decreased $1.2 million or
48.4% and $2.5 million or 47.0% for the three and six months ended  December 31,
2003, respectively,  when compared to the same periods in 2002. The decrease for
the three months ended December 31, 2003 was attributable to a decrease of $70.0
million  in the  average  balance  of net  loans  receivable  outstanding  and a
decrease of 58 basis  points in the weighted  average  yield earned on net loans
receivable  for the three months ended  December 31, 2003,  when compared to the
same period in 2002.  The decreased  for the six months ended  December 31, 2003
was  attributable  to a decrease of $62.7 million in the average  balance of net
loans receivable  outstanding and a decrease  of 47 basis points on the weighted
average yield earned for the six months ended  December 31, 2003,  when compared
to the  same  period  in  2002.  The  decreases  in  the  average  loan  balance
outstanding for the three and six months ended December 31, 2003, were primarily
attributable to increased levels of mortgage prepayments and refinancings due to
lower  market  rates on  mortgages.  As part of its  asset/liability  management
strategy,  the Company has limited its  origination  of  longer-term  fixed rate
loans to mitigate its exposure to a rise in market interest  rates.  The Company
will  continue  to  originate  longer-term  fixed  rate  loans  for  sale  on  a
correspondent  basis to increase  non-interest  income and to  contribute to net
income.


                                       12
<PAGE>

     Interest on  mortgage-backed  securities ("MBS") decreased $101 thousand or
15.7% and $253 thousand or 17.4% for the three and six months ended December 31,
2003, respectively,  when compared to the same periods in 2002. The decrease for
the three months  ended  December 31, 2003 was  primarily  attributable  to a 95
basis point decrease in the weighted average yield earned on MBS for the period,
which was partially  offset by a $8.0 million increase in the average balance of
MBS  outstanding  for the three months ended December 31, 2003, when compared to
the same period in 2002. The decrease for the six months ended December 31, 2003
was attributable to a decrease of 131 basis points in the weighted average yield
earned on MBS for the  period  which  was  partially  offset by a $16.6  million
increase  in the average  balance of MBS  outstanding  for the six months  ended
December 31, 2003. The decrease in the weighted  average yield earned on MBS was
consistent  with market  conditions  for the three and six months ended December
31,  2003,  and  reflects  the higher  proportion  of  floating  rate MBS in the
portfolio.  The increase in the average balances of MBS during the three and six
months ended December 31, 2003 was primarily attributable to the reinvestment of
a portion of the Company's loan payment proceeds into floating rate MBS.

     Interest  and  dividend  income on  interest-bearing  deposits  with  other
institutions,   investment   securities   and  FHLB  stock  ("other   investment
securities")  increased  by $283  thousand or 15.7% and $95 thousand or 2.6% for
the three and six months ended December 31, 2003, respectively, when compared to
the same periods in 2002.  The increase for the three months ended  December 31,
2003 was  principally  attributable  to a $68.8 million  increase in the average
balance of other  investment  securities  outstanding for the three months ended
December 31, 2003, when compared to the same period in 2002, which was partially
offset by a 90 basis point  decrease in the  weighted  average  yield  earned on
other  investment  securities  when  compared  to the same  period in 2002.  The
increase for the six months ended  December 31, 2003 was primarily  attributable
to a  $43.9  million  increase  in  the  average  balance  of  other  investment
securities  outstanding  for the six months ended  December 31, 2003,  which was
partially  offset by a 135 basis point  decrease in the weighted  average  yield
earned on other investment  securities when compared to the same period in 2002.
The decrease in the weighted  average  yield earned was  consistent  with market
conditions and the increased proportion of other investment securities comprised
of floating  rate  obligations  for the three and six months ended  December 31,
2003.  The  increase  in the  average  balance  of other  investment  securities
outstanding  during  the three and six  months  ended  December  31,  2003,  was
principally  attributable to the reinvestment of a portion of the Company's loan
payment proceeds into callable  floating rate U.S.  government  sponsored agency
bonds.

     Interest  Expense.  Interest expense on deposits and escrows decreased $272
thousand or 31.3% and $570  thousand or 31.1% for the three and six months ended
December 31, 2003, respectively,  when compared to the same periods in 2002. The
decrease in interest  expense on deposits and escrows for the three months ended
December 31, 2003, was attributable to a 64 basis point decrease in the weighted
average yield paid on interest-bearing deposits and escrows for the three months
ended  December 31, 2003,  and a $4.6 million  decrease in the weighted  average
balance of  interest-bearing  deposits  and escrows for the three  months  ended
December 31, 2003,  when  compared to the same period in 2002.  The decrease for
the six months ended December 31, 2003 was primarily  attributable to a 66 basis
point decrease in the weighted average yield paid on  interest-bearing  deposits
and escrows for the six months ended  December 31,  2003,  when  compared to the
same period in 2002,  and a $5.7  million  decrease  in the  average  balance of
interest-bearing deposits and escrows for the six months ended December 31, 2003
when  compared  to  the  same  period  in  2002.   The  average  yield  paid  on
interest-bearing  deposits was consistent  with market  conditions for the three
and six months ended December 31, 2003.

     Interest on FHLB  advances and other  borrowings  increased $14 thousand or
0.7% and  decreased  $107  thousand  or 2.4% for the three and six months  ended
December 31, 2003, respectively,  when compared to the same periods in 2002. The
increase for the three months ended  December 31, 2003,  was  attributable  to a
$20.7  million  increase  in the  average  balance  of FHLB  advances  and other
borrowings  for the  period  which  was  partially  offset  by a 50 basis  point
decrease in the weighted  average rate paid on such  borrowings when compared to
the same period in 2002. The decrease for the six months ended December 31, 2003
was principally attributable to a 21 basis point decease in the weighted average
rate paid on FHLB advances and other  borrowings  for the six month period ended
December 31, 2003 when compared to the same period in 2002,  which was partially
offset by a $3.3 million increase in the average balance of such


                                       13
<PAGE>

borrowings  when compared to the same period in 2002. The weighted  average rate
paid on FHLB  advances and other  borrowings  declined  less than the decline in
market  interest  rates due to the  longer  average  maturity  of the  Company's
fixed-rate  FHLB  advances  outstanding  and a higher  proportion  of  long-term
borrowings to total borrowings.

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

     The Company reduced its provision for loan losses by $624 thousand and $775
thousand  for the three and six months ended  December  31, 2003,  respectively,
when compared to the same periods in 2002.  At December 31, 2003,  the Company's
total  allowance  for  loan  losses  amounted  to  $1.3  million  or 1.8% of the
Company's total loan portfolio,  as compared to $2.5 million or 2.7% at June 30,
2003.  The decrease in the  provision for loan losses is primarily the result of
reduced levels of net loans receivable,  the sale of a participating interest in
a restructured commercial real estate loan during the quarter ended December 31,
2003 and collections on past due loans.

     Non-Interest Income.  Non-interest income decreased by $11 thousand or 6.4%
and $58 thousand or 14.0% for the three and six months ended  December 31, 2003,
respectively,  when  compared to the same periods in 2002.  The decrease for the
three  months  ended  December  31,  2003 was  primarily  attributable  to a $12
thousand  decrease in miscellaneous  operating income and a $9 thousand decrease
in ATM fee income,  which were  partially  offset by a $8 thousand  increase in
service charge income earned on deposits.  The decrease for the six months ended
December 31, 2003 was primarily  attributable  to the absence of $64 thousand in
pre-tax gains recognized in the comparable quarter of fiscal 2002 on the sale of
investments from the Company's  investment portfolio and a $15 thousand decrease
in ATM fee income,  which were  partially  offset by a $14 thousand  increase in
correspondent mortgage application fee income, a $2 thousand increase in service
charge  income earned on deposits,  a $3 thousand  increase in other real estate
owned gross income, and $2 thousand increase in credit card fee income.

     Non-Interest Expense. Non-interest expense decreased $107 thousand or 10.2%
and $334 thousand or 15.4% for the three and six months ended December 31, 2003,
respectively,  when  compared to the same periods in 2002.  The decrease for the
three months  ended  December 31, 2003 was  principally  attributable  to a $104
thousand  decrease in payroll related costs and a $15 thousand decrease in legal
expenses and costs associated with the work-out of  non-performing  assets which
were partially offset by a $11 thousand increase in equipment  expenses incurred
to upgrade the Savings Bank's technology  platform and a $7 thousand increase in
data processing expenses, when compared to the same period in 2002. The decrease
for the six months ended  December 31, 2003 was  principally  attributable  to a
$195 thousand  decrease in payroll  related costs,  a $111 thousand  decrease in
charitable  contributions eligible for Pennsylvania Education Tax Credits, a $48
thousand  decrease in legal expenses and costs  associated  with the work-out of
non-performing assets and a $15 thousand decrease in provisions for loan loss on
other real estate owned which were partially  offset by a $28 thousand  increase
in equipment expense incurred to upgrade the Savings Bank's technology  platform
and a $15 thousand  increase in data  processing  expense,  when compared to the
same period in 2002.

LIQUIDITY AND CAPITAL RESOURCES

     Net cash provided by operating  activities  totaled $1.7 million during the
six months ended  December 31, 2003.  Net cash provided by operating  activities
was  primarily  comprised  of $1.1  million  of net  income,  $814  thousand  in
amortization  of  discounts,  premiums and deferred  loan fees, a $241  thousand
decrease in accrued interest receivables,  $180 thousand decrease in accrued and
deferred taxes,  which were partially offset by a $757 thousand  decrease in the
provision for loan losses.


                                       14
<PAGE>

     Funds used for investing  activities  totaled $49.4 million  during the six
months  ended  December  31,  2003.  Primary uses of funds during the six months
ended December 31, 2003, included $271.5 million for purchases of investment and
mortgage-backed  securities,  which was partially  offset by $201.7 million from
repayments of investment and  mortgage-backed  securities and including  Federal
Home Loan Bank stock, and a $19.9 million decrease in net loans receivable.

     Funds  provided by financing  activities  totaled $48.7 million for the six
months ended  December 31, 2003.  The primary  sources  included a $58.4 million
increase  in  other  short-term  borrowings  and  a  $1.7  million  increase  in
transaction and passbook accounts, which were partially offset by a $5.1 million
decrease in certificates of deposit,  a $3.9 million decrease in short-term FHLB
advances,  $820 thousand in cash dividends paid on the Company's common stock, a
$799  thousand  decrease  in escrow  accounts  and $682  thousand  in  purchased
treasury stock.  Management  believes that it currently is maintaining  adequate
liquidity  and  continues  to better  match  funding  sources  with  lending and
investment opportunities.

     During  the  quarter  ended  December  31,  2003,   the  Company   incurred
approximately  $259.5  million in other  short-term  borrowings  with a weighted
average  rate of 1.10%.  During the three months  ended  December 31, 2003,  the
Company repaid $220.2 million of other  short-term  borrowings and $600 thousand
of various  short-term FHLB borrowings with weighted  average rates of 1.10% and
1.26%, respectively.

     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, 2003,  the total  approved loan
commitments  outstanding amounted to $2.4 million. At the same date, commitments
under unused lines of credit amounted to $6.4 million, the unadvanced portion of
construction  loans  approximated $11.5 million and commitments to fund security
purchases totaled $300 thousand.  Certificates of deposit scheduled to mature in
one  year or less at  December  31,  2003,  totaled  $50.3  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 26,  2004,  the  Company's  Board of  Directors  declared a cash
dividend of $0.16 per share payable February 19, 2004, to shareholders of record
at the  close of  business  on  February  9,  2004.  Dividends  are  subject  to
determination and declaration by the Board of Directors, which take into account
the  Company's  financial  condition,  statutory  and  regulatory  restrictions,
general  economic  conditions and other factors.  There can be no assurance that
dividends will in fact be paid on the Common Stock in future periods or that, if
paid, such dividends will not be reduced or eliminated.

     As of December 31,  2003,  WVS  Financial  Corp.  exceeded  all  regulatory
capital requirements and maintained Tier I and total risk-based capital equal to
$30.1  million  or 17.7% and $31.5  million  or  18.5%,  respectively,  of total
risk-weighted  assets,  and Tier I leverage capital of $30.1 million or 7.65% of
average quarterly assets.

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


                                       15
<PAGE>

     The  Company's   nonperforming   assets  at  December  31,  2003,   totaled
approximately $716 thousand or 0.17% of total assets as compared to $3.5 million
or 0.95% of total assets at June 30, 2003.  Nonperforming assets at December 31,
2003 consisted of: two commercial  real estate loans totaling $2.3 million,  one
construction  and land  development  loan totaling $58 thousand,  two commercial
loans totaling $64 thousand,  two single-family  real estate loans totaling $144
thousand, one home equity line of credit totaling $13 thousand, and one consumer
loan totaling $3 thousand.

     The $2.8 million  decrease in  nonperforming  assets  during the six months
ended  December  31,  2003 was  primarily  attributable  to:  the  $1.4  million
reclassification  of  a  commercial  real  estate  loan  from  nonperforming  to
restructured,  a $591  thousand net reduction  from the purchase and  subsequent
resale of related participating  interests, a $509 thousand reduction related to
the sale of a personal  care home and a $488  thousand  charge off  related to a
bankruptcy discussed below.

     The Company has one non-accruing  commercial real estate loan relationship,
with an outstanding  balance of approximately $818 thousand,  to a personal care
home  that was  originally  part of the  restructured  retirement  village  loan
discussed  below.  Due to the low occupancy of the personal  care home,  and the
related  cash drain on the  retirement  village,  the Savings  Bank "carved out"
approximately $1 million of loan debt from the retirement village, assigned that
$1 million in debt to the personal care home,  and allowed one of the obligors -
a geriatric  physician - to separately own and operate the personal care home as
a separate facility. The borrower was in compliance with a written loan work-out
agreement until February 2002.  Sporadic payments have been received since March
2002. The borrower alleges  insufficient  operating cash, along with the loss of
other income,  to service the debt. The Savings Bank also holds two other loans,
totaling $81 thousand, secured by pledges of various real estate and chattel, to
this same borrower which were  non-accrual as of September 30, 2002.  During the
quarter ended  December 31, 2002,  the obligor filed for  bankruptcy  protection
under Chapter 11 of the Federal Bankruptcy Code. The Savings Bank obtained title
to the personal  care home and related real  property  during the quarter  ended
September 30, 2003 and sold such property  during the quarter ended December 31,
2003, with proceeds of approximately  $509 thousand applied to the loan balance.
During the quarter ended December 31, 2003 the Company charged off approximately
$488  thousand  in  connection  with  this  relationship  based  upon  estimated
liquidation values of the remaining underlying  collateral.  The Company and its
legal  counsel are also  investigating  other  claims and  remedies  against the
obligors and other properties pledged as collateral for these loans.

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

     The  Company  has  one  restructured  commercial  real  estate  loan  to  a
retirement  village located in the North Hills.  The Savings Bank's  outstanding
principal  balance  totaled $2.0  million at June 30,  2003.  During the quarter
ended   September   30,  2003  the  Savings  Bank   redeemed  $388  thousand  of
participating  interests.  During the quarter  ended  December 31, 2003 the Bank
sold a forty percent participating  interest to another financial institution at
par  for  proceeds  totaling  $979  thousand.  The  Savings  Bank's  outstanding
principal  balance  totaled $1.4  million at December 31, 2003.  The Company had
recorded  interest  received  on this  credit  on a cost  recovery  basis  until
September 30, 2003 and is now recording interest income on a cash basis.

     During the six months ended December 31, 2003,  approximately  $69 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, 2003. 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, 2003, the level of market interest
rates  remained  at  relatively   low  levels  due  to  the  Federal   Reserve's
accommodative monetary policy and the weakness in the national economy.

     Due to the rapid  and  sustained  decline  in market  interest  rates,  the
Company's loan, investment and mortgage-backed securities portfolios experienced
much higher than anticipated levels of prepayments.  Principal repayments on the
Company's loan, investment and mortgage-backed securities portfolios for the six
months ended December 31, 2003, totaled $35.4 million,  $123.1 million and $78.3
million, respectively.

     In response to higher  levels of liquidity  the Company  began to rebalance
its loan, investment and mortgage-backed  securities portfolios.  Due to the low
level of market interest rates, the Company continued to reduce its originations
of long-term fixed rate mortgages while continuing to offer consumer home equity
and construction loans. The Company's  commercial loan exposure was also reduced
in  recognition  of the  weaknesses  in the  national and local  economies.  The
Company purchased callable floating rate government


                                       17
<PAGE>

agency  bonds and  floating  rate CMOs in order to  provide  current  income and
protection  against  an  eventual  rise in market  interest  rates.  Each of the
aforementioned strategies also helped to improve the interest-rate and liquidity
risks  associated with the Savings Bank's  customers'  liquidity  preference for
shorter term deposit products.

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

     During the quarter ended December 31, 2003,  principal investment purchases
were comprised of:  government  agency step-up bonds which will reprice within 2
years - $66.5  million with a weighted  average  yield of  approximately  4.81%;
callable  floating  rate  government  agency bonds which will reprice  quarterly
within one year - $20.0 million with a weighted  average yield of  approximately
3.02%; and floating rate collateralized mortgage obligations - $4.4 million with
an original  weighted  average yield of  approximately  2.65%.  Major investment
proceeds  received  during the quarter ended December 31, 2003 were:  investment
grade  corporate  bonds  -  $19.6  million  with a  weighted  average  yield  of
approximately  3.78%;  government  agency bonds - $18.0  million with a weighted
average yield of approximately  2.74%;  investment grade commercial paper - $2.0
million  with a weighted  average  yield of  approximately  1.55%;  and tax-free
municipal bonds - $300 thousand with a weighted  average yield of  approximately
1.88%.

     As of December 31, 2003,  the  implementation  of these asset and liability
management initiatives resulted in the following:

     1)   the  Company's  liquidity  profile  remains  high with the  investment
          portfolio's  stated  final  maturities  as follows:  less than 1 year:
          $40.2 million or 12.2%;  1-3 years:  $0.0 million or 0.0%;  3-5 years:
          $47 thousand or 0.02%; over 5 years: $288.6 million or 87.8%;

     2)   $90.8  million  or  34.1%  of  the  Company's   investment   portfolio
          (including FHLB stock) was comprised of floating rate bonds which will
          reprice quarterly within one year;

     3)   $87.9  million  or  33.0%  of  the  Company's   investment   portfolio
          (including FHLB stock) was comprised of U.S. Government Agency Step-up
          bonds which will  reprice  from  initial  rates of 3.00% - 4.50% up to
          7.00% within two years;

     4)   $40.2  million  or  15.1%  of  the  Company's   investment   portfolio
          (including  FHLB stock) was  comprised of investment  grade  corporate
          bonds with remaining maturities of less than one year;

     5)   $60.4 million or 86.1% of the Company's  portfolio of  mortgage-backed
          securities  (including  collateralized  mortgage obligations - "CMOs")
          were comprised of floating rate instruments;

     6)   the maturity  distribution of the Company's  borrowings is as follows:
          less than 1 year: $67.8 million or 31.3%; 1-3 years: $4.2 or 1.9%; 3-5
          years:  $3.0 million or 1.4%;  over 5 years:  $142.1 million or 65.4%;
          and

     7)   an  aggregate  of $33.6  million  or 46.7% of the  Company's  net loan
          portfolio had adjustable  interest rates or maturities of less than 12
          months.

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


                                       18
<PAGE>

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

<TABLE>
<CAPTION>
                                               December 31,              June 30,
                                               ------------    ---------------------------
                                                   2003            2003            2002
                                               ------------    -----------     -----------
                                                        (Dollars in Thousands)
<S>                                            <C>             <C>             <C>
Interest-earning assets maturing or
   repricing within one year                   $   266,026     $   262,782     $   252,467

Interest-bearing liabilities maturing or
   repricing within one year                       207,733         133,418         142,823
                                               -----------     -----------     -----------

Interest sensitivity gap                       $    58,293     $   129,364     $   109,644
                                               ===========     ===========     ===========

Interest sensitivity gap as a percentage of
   total assets                                       14.0%           35.2%           27.1%

Ratio of assets to liabilities
   maturing or repricing within one year             128.1%          197.0%          176.8%
</TABLE>

     During the quarter  ended  December 31, 2003,  the Company  managed its one
year interest  sensitivity gap by: (1) purchasing U.S. Government Agency Step-up
bonds which will reprice  from  initial  rates of 4% - 4.5 % up to 7% within two
years;  (2)  purchasing  floating rate U.S.  Government  Agency bonds which will
reprice  quarterly  beginning within one year; and (3) 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,  2003.  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 ($'s)               (77,893)     (50,866)      13,663       30,114       (2,522)       1,689        27,386
% of Total
  Assets                    -18.7%       -12.2%         3.3%         7.2%        -0.6%         0.4%          6.6%
Base Case Up 100 bp
-------------------
Cummulative
  Gap ($'s)               (44,961)     (17,166)      48,967      125,942      152,089      158,049        27,386
% of Total
  Assets                    -10.8%        -4.1%        11.7%        30.2%        36.4%        37.8%          6.6%
Base Case No Change
-------------------
Cummulative
  Gap ($'s)               (42,302)     (12,363)      58,293      166,118      164,380      168,260        27,386
% of Total
  Assets                    -10.1%        -3.0%        14.0%        39.8%        39.4%        40.3%          6.6%
Base Case Down 100 bp
---------------------
Cummulative
  Gap ($'s)               (37,531)      (4,234)      71,241      176,234      171,154      170,850        27,386
% of Total
  Assets                     -9.0%        -1.0%        17.1%        42.2%        41.0%        40.9%          6.6%
Base Case Down 200 bp
---------------------
Cummulative
  Gap ($'s)               (35,465)      14,346      120,090      179,036      172,161      170,991        27,386
% of Total
  Assets                     -8.5%         3.4%        28.8%        42.9%        41.2%        40.9%          6.6%
</TABLE>


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


                                       20
<PAGE>

     The following  table  presents the simulated  impact of a 100 and 200 basis
point upward or downward shift in market interest rates on net interest  income,
return on  average  equity,  return on average  assets  and the market  value of
portfolio equity at December 31, 2003.

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

<TABLE>
<CAPTION>
                                           Modeled Change in Market Interest Rates
                                    ------------------------------------------------------
<S>                                 <C>        <C>        <C>         <C>         <C>
Estimated impact on:                   -200       -100          0        +100        +200
   Change in net interest income      -22.7%     -13.8%      0.00%        9.7%       34.4%

   Return on average equity           -3.62%     -4.90%      6.83%       8.16%      11.47%

   Return on average assets           -0.26%     -0.35%      0.49%       0.59%       0.85%

   Market value of equity (in
      thousands)                    $17,041    $14,204    $19,113     $17,841     $10,719
</TABLE>

     The  table  below  provides  information  about the  Company's  anticipated
transactions comprised of firm loan commitments and other commitments, including
undisbursed  letters  and  lines  of  credit.  The  Company  used no  derivative
financial instruments to hedge such anticipated  transactions as of December 31,
2003.

                          Anticipated Transactions
      -----------------------------------------------------------------------
                                                       (Dollars in Thousands)
      Undisbursed construction and
          land development loans
            Fixed rate                                        $ 3,374
                                                                 5.47%

            Adjustable rate                                   $ 8,133
                                                                 4.99%

      Undisbursed lines of credit
            Adjustable rate                                   $ 6,375
                                                                 4.61%

      Loan origination commitments
            Fixed rate                                        $ 2,306
                                                                 6.11%

            Adjustable rate                                   $   113
                                                                 4.57%

      Letters of credit
            Adjustable rate                                   $     5
                                                                 7.00%

      Commitments to purchase tax-free municipal bonds
            Fixed rate                                        $   300
                                                                 1.70%
                                                              -------
                                                              $20,606
                                                              =======


                                       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, 2003, the Savings Bank had one performance standby
letter of credit outstanding totaling approximately $5 thousand. The performance
standby  letter of credit is secured by deposits with the Savings Bank, and will
mature  within nine  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, 2003.  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 2004 that has materially affected, or
is reasonably likely to materially  affect,  our internal control over financial
reporting.


                                       23
<PAGE>

PART II - OTHER INFORMATION

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

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

ITEM 2. Changes in Securities and Use of Proceeds
        -----------------------------------------

      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, 2003.

      (b)   Not applicable.

      (c)  Two matters were voted upon at the annual meeting held on October 28,
           2003: 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, 2004.

            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      Arthur H. Brandt           2,071,309   80,752

                       Lawrence M. Lehman         2,074,109   77,952

                2      Ratification of Auditors   2,138,429    8,767      4,865

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

      (d)   Not applicable.

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

      Not applicable.


                                       24
<PAGE>

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

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

<TABLE>
<CAPTION>
               Number     Description                                                  Page
               ------     ----------------------------------------------------------   ----

<S>                       <C>                                                          <C>
                31.1      Rule 13a-14(a) / 15d-14(a) Certification of the Chief
                          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        Independent Accountants' Report                              E-5
</TABLE>

      (b) The Company filed a Current Report on Form 8-K dated October 22, 2003,
          reporting under Item 12 earnings for the three months ending September
          30, 2003. The Company included as an exhibit to the Form 8-K the press
          release dated October 22, 2003.


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


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


                                       26