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

                                    FORM 10-Q

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

     For the quarterly period ended March 31, 1999

                                       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 May 7, 1999:  3,219,209 shares Common Stock, $.01
par value.
<PAGE>
                       WVS FINANCIAL CORP. AND SUBSIDIARY

                                      INDEX

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

Item 1.         Financial Statements

                Consolidated Statements of Financial
                Condition as of March 31, 1999
                and June 30, 1998 (Unaudited)                       3

                Consolidated Statements of Income
                for the Three and Nine Months Ended
                March 31, 1999 and 1998 (Unaudited)                 4

                Consolidated Statements of Cash Flows
                for the Nine Months Ended March 31,
                1999 and 1998 (Unaudited)                           5

                Consolidated Statements of Changes in
                Stockholders' Equity for the Nine Months
                Ended March 31, 1999 (Unaudited)                    7

                Notes to Unaudited Consolidated
                Financial Statements                                8

Item 2.         Management's Discussion and Analysis of
                Financial Condition and Results of
                Operations for the Three and Nine Months
                Ended March 31, 1999                               10

Item 3.         Quantitative and Qualitative Disclosures
                about Market Risk                                  18

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

Item 1.         Legal Proceedings                                  22
Item 2.         Changes in Securities                              22
Item 3.         Defaults upon Senior Securities                    22
Item 4.         Submission of Matters to a Vote of
                Security Holders                                   22
Item 5.         Other Information                                  22
Item 6.         Exhibits and Reports on Form 8-K                   22
                Signatures                                         23
                                       2
<PAGE>
                       WVS FINANCIAL CORP. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                   (UNAUDITED)
                                 (in thousands)
<TABLE>
<CAPTION>
                                                             March 31, 1999   June 30, 1998
                                                              -----------      -----------
<S>                                                             <C>            <C>        
          Assets
Cash and due from banks                                         $     808      $       699
Interest-earning demand deposits                                      713            1,807
Investment securities available-for-sale
   (amortized cost of $1,381 and $17,481)                           1,399           17,519
Investment securities held-to-maturity
   (market value of $74,540 and $63,996)                           75,278           63,749
Mortgage-backed securities available-for-sale
   (amortized cost of $10,263 and $18,842)                         10,396           19,041
Mortgage-backed securities held-to-maturity
   (market value of $64,889 and $27,777)                           64,662           27,273
Federal Home Loan Bank stock, at cost                               6,195            4,675
Net loans receivable                                              159,703          157,737
Accrued interest receivable                                         2,081            2,414
Real estate owned                                                      --               --
Premises and equipment                                              1,171            1,179
Deferred taxes and other assets                                       959              961
                                                              -----------      -----------
          TOTAL ASSETS                                          $ 323,365      $   297,054
                                                              ===========      ===========
(continued)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                             March 31, 1999   June 30, 1998
                                                              -----------      -----------
<S>                                                             <C>            <C>        
          Liabilities and Stockholders' Equity
Liabilities:
Savings Deposits:
   Non-interest-bearing accounts                                $   8,284      $     7,528
   NOW accounts                                                    16,259           15,347
   Savings accounts                                                38,056           37,966
   Money market accounts                                           11,775           13,259
   Certificates of deposit                                         94,484           93,570
                                                              -----------      -----------
     Total savings deposits                                       168,858          167,670
Federal Home Loan Bank advances                                   108,500           88,857
Other borrowings                                                   10,779              889
Advance payments by borrowers for taxes and insurance               2,382            3,312
Accrued interest payable                                            2,090            1,874
Other liabilities                                                   1,882            1,474
                                                              -----------      -----------
   TOTAL LIABILITIES                                              294,491          264,076
                                                              -----------      -----------
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;
   3,664,780 and 3,617,120 shares issued, respectively, and
   3,265,516 and 3,617,120 shares outstanding, respectively            37               36
Additional paid-in capital                                         19,004           18,386
Treasury stock: 399,264 shares at cost                              (6,104)              --
Retained earnings, substantially restricted                        16,441           15,143
Unallocated shares - Recognition and Retention Plans                 (352)            (432)
Unallocated shares - Employee Stock Ownership Plan                   (252)            (312)
                                                              -----------      -----------
                                                                   28,774           32,821
Unrealized gain on available-for-sale securities                      100              157
                                                              -----------      -----------
   TOTAL STOCKHOLDERS' EQUITY                                      28,874           32,978
                                                              -----------      -----------
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY            $ 323,365      $   297,054
                                                              ===========      ===========
</TABLE>
          See accompanying notes to consolidated financial statements.
 
                                      3
<PAGE>
                       WVS FINANCIAL CORP. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (UNAUDITED)
                      (in thousands, except per share data)

<TABLE>
<CAPTION>
                                                    Three Months Ended             Nine Months Ended
                                                         March 31,                     March 31,
                                                 -------------------------     --------------------------
                                                    1999           1998           1999           1998
                                                 ----------     ----------     ----------     -----------
<S>                                              <C>            <C>            <C>            <C>        
INTEREST AND DIVIDEND INCOME:
     Loans                                       $    3,158     $    3,301     $    9,536     $     9,867
     Investment securities                            1,193          1,484          4,013           4,534
     Mortgage-backed securities                       1,236            650          3,093           1,914
     Interest-earning deposits with
      other institutions                                 32             15             64              50
     Federal Home Loan Bank stock                        99             65            277             184
                                                 ----------     ----------     ----------     -----------
          Total interest and dividend income          5,718          5,515         16,983          16,549
                                                 ----------     ----------     ----------     -----------
INTEREST EXPENSE:
     Deposits                                         1,576          1,686          4,928           5,222
     Borrowings                                       1,550          1,194          4,436           3,551
     Advance payments by borrowers for
      taxes and insurance                                11             12             25              27
                                                 ----------     ----------     ----------     -----------
           Total interest expense                     3,137          2,892          9,389           8,800
                                                 ----------     ----------     ----------     -----------

NET INTEREST INCOME                                   2,581          2,623          7,594           7,749
PROVISION FOR LOAN LOSSES                              --             --             --              (120)
                                                 ----------     ----------     ----------     -----------
NET INTEREST INCOME AFTER PROVISION
 FOR LOAN LOSSES                                      2,581          2,623          7,594           7,869
                                                 ----------     ----------     ----------     -----------
NON-INTEREST INCOME:
     Service charges on deposits                         64             57            200             166
     Investment securities gains                         --             --             36              --
     Other                                               45             41            137             127
                                                 ----------     ----------     ----------     -----------
          Total non-interest income                     109             98            373             293
                                                 ----------     ----------     ----------     -----------
(continued)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                    Three Months Ended             Nine Months Ended
                                                         March 31,                     March 31,
                                                 -------------------------     --------------------------
                                                    1999           1998           1999           1998
                                                 ----------     ----------     ----------     -----------
<S>                                              <C>            <C>            <C>            <C>        
NON-INTEREST EXPENSE:
     Salaries and employee benefits                     683            894          2,091           2,564
     Occupancy and equipment                             89             97            272             303
     Deposit insurance premium                           26             26             76              81
     Data processing                                     43             43            131             128
     Correspondent bank service charges                  33             30             94              89
     Other                                              165            186            548             552
                                                 ----------     ----------     ----------     -----------
          Total non-interest expense                  1,039          1,276          3,212           3,717
                                                 ----------     ----------     ----------     -----------

INCOME BEFORE INCOME TAXES                            1,651          1,445          4,755           4,445
INCOME TAXES                                            644            571          1,814           1,640
                                                 ----------     ----------     ----------     -----------
NET INCOME                                       $    1,007     $      874     $    2,941     $     2,805
                                                 ==========     ==========     ==========     ===========
EARNINGS PER SHARE:
     Basic                                       $     0.30     $     0.25     $     0.84     $      0.81
     Diluted                                     $     0.30     $     0.24     $     0.84     $      0.79

AVERAGE SHARES OUTSTANDING:
     Basic                                        3,364,721      3,513,627      3,488,234       3,443,582
     Diluted                                      3,394,679      3,593,152      3,519,054       3,554,334
</TABLE>
          See accompanying notes to consolidated financial statements.

                                       4
<PAGE>
                       WVS FINANCIAL CORP. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                                 (in thousands)

<TABLE>
<CAPTION>
                                                                                            Nine Months Ended 
                                                                                                 March 31,
                                                                                          -----------------------
                                                                                            1999           1998
                                                                                          --------       --------
<S>                                                                                       <C>            <C>     
OPERATING ACTIVITIES

Net income                                                                                $  2,941       $  2,805
Adjustments to reconcile net income to cash provided by operating
      activities:
   Provision for loan losses                                                                   ---           (120)
   Gain on sale of investments and mortgage-backed securities                                  (36)           ---
   Depreciation and amortization, net                                                           88             97
   Amortization of discounts, premiums and deferred loan fees                                   33            (47)
   Amortization of ESOP, RRP and deferred and unearned
      compensation                                                                             263            776
   Decrease (increase) in accrued interest receivable                                          333           (133)
   Increase in accrued interest payable                                                        216            392
   Decrease in accrued and deferred taxes                                                      408            411
   Other, net                                                                                 (264)            53
                                                                                          --------       --------
      Net cash provided by operating activities                                              3,982          4,234
                                                                                          --------       --------
INVESTING ACTIVITIES

Available-for-sale:
   Purchases of investment and mortgage-backed securities                                  (26,908)       (18,434)
   Proceeds from repayments of investment and mortgage-backed
      securities                                                                            50,272         15,457   
   Proceeds from sale of investment and mortgage-backed securities                             905          2,192
Held-to-maturity:
   Purchases of investment and mortgage-backed securities                                 (147,763)       (83,413)
   Proceeds from repayments of investment and mortgage-backed
      securities                                                                            99,507         83,961
Increase in net loans receivable                                                            (2,216)        (3,890)
Increase in FHLB stock                                                                      (1,520)          (489)
Net purchases of premises and equipment                                                        (79)            (6)
                                                                                          --------       --------
      Net cash used for investing activities                                               (27,802)        (4,622)
                                                                                          --------       --------
</TABLE>
                                       5
<PAGE>

                       WVS FINANCIAL CORP. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                                 (in thousands)

<TABLE>
<CAPTION>
                                                                                            Nine Months Ended 
                                                                                                 March 31,
                                                                                          -----------------------
                                                                                            1999           1998
<S>                                                                                       <C>            <C>     
FINANCING ACTIVITIES

Net increase (decrease) in transaction and passbook accounts                                   274           (814)
Net increase (decrease) in certificates of deposit                                             914         (5,006)
Net increase in FHLB borrowings                                                             19,643          9,088
Net increase in other borrowings                                                             9,889            236
Net decrease in advance payments by borrowers for taxes and
      insurance                                                                               (929)        (1,009)
Net proceeds from issuance of common stock                                                     238            631
Purchases of treasury stock                                                                 (6,104)            --
Cash dividends paid                                                                         (1,090)        (4,816)
                                                                                          --------       --------
      Net cash provided by (used for) financing activities                                  22,835         (1,690)
                                                                                          --------       --------
      Decrease in cash and cash equivalents                                                   (985)        (2,078)

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD                                         2,506          2,571
                                                                                          --------       --------
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                                            $  1,521       $    493
                                                                                          ========       ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
   Cash paid during the period for:
      Interest on deposits, escrows and borrowings                                        $  9,173       $  8,408
      Income taxes                                                                           1,153          1,236
</TABLE>
          See accompanying notes to consolidated financial statements.

                                       6
<PAGE>
                       WVS FINANCIAL CORP. AND SUBSIDIARY
           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                                   (UNAUDITED)
                                 (in thousands)
<TABLE>
<CAPTION>
                                                                                                 Accum. 
                                                                                                 Other       Retained               
                                             Additional              Unallocated   Unallocated   Compre-      Earnings-             
                                    Common    Paid-In     Treasury   Shares Held   Shares Held   hensive    Substantially           
                                    Stock     Capital      Stock       by ESOP       by RRP      Income     Restricted      Total   
                                  --------    --------   ---------    --------     ---------    --------      --------     -------- 
<S>                               <C>         <C>        <C>          <C>          <C>          <C>           <C>          <C>      
Balance at June 30, 1998          $     36    $ 18,386   $    ---     $   (312)    $   (432)    $    157      $ 15,143     $ 32,978 
                                                                                                                                    
Comprehensive income:                                                                                                               
                                                                                                                                    
   Net Income                                                                                                    2,941        2,941 
   Other comprehensive                                                                                                              
     income:                                                                                                                        
      Change in unrealized                                                                                                          
          holding gains on                                                                                                          
          securities, net of                                                                                                        
          income tax of $29                                                                                        (57)         (57)
                                                                                                                           -------- 
                                  
Comprehensive income                                                                                                          2,884 
                                                                                                                                    
Purchase of shares for                                                                                                              
   treasury stock                                          (6,104)                                                           (6,104)
                                                                                                                                    
Release of earned                                                                                                                   
   Employee Stock                                                                                                                   
   Ownership Plan (ESOP)                                                                                                            
   shares                                          124                      60                                                  184 
                                                                                                                                    
Accrued compensation                                                                                                                
   expense for Recognition                                                                                                          
   and Retention Plans                                                                                                              
   (RRP)                                                                                 80                                      80 
                                                                                                                                    
Exercise of stock options                1         237                                                                          238 
                                                                                                                                    
Tax benefit from exercise                                                                                                           
of stock options                                   257                                                                          257 
                                                                                                                                    
Cash dividends declared                                                                                                             
   ($0.47 per share)                                                                                                                
                                                                                                                (1,643)      (1,643)
                                  --------    --------   ---------    --------     --------     --------      --------     -------- 
Balance at March 31,                                                                                                                
1999                              $     37    $ 19,004   $  (6,104)   $   (252)    $   (352)    $    100      $ 16,441     $ 28,874 
                                  ========    ========   =========    ========     ========     ========      ========     ======== 
Components of                                                                                                                       
comprehensive income:                                                                                                               
   Change in net unrealized                                                                                                         
    gain on investment                                                                                                              
    securities held for sale                                                                         (33)                           
   Realized gains included                                                                                  
    in net income, net of tax                                                                        (24)                           
                                                                                                --------                            
 Total                                                                                               (57)                           
                                                                                                ========                            
                                                                                                
</TABLE> 
          See accompanying notes to 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 nine months ended March 31, 1999, are not
         necessarily  indicative  of the results  which may be expected  for the
         entire fiscal year.


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

         In June 1998, the Financial Accounting Standards Board issued Statement
         of Financial  Accounting  Standards No. 133, "Accounting for Derivative
         Instruments and Hedging Activities".  The statement provides accounting
         and reporting standards for derivative  instruments,  including certain
         derivative  instruments  embedded in other contracts,  by requiring the
         recognition of those items as assets or liabilities in the statement of
         financial position, recorded at fair value. Statement No. 133 precludes
         a  held-to-maturity  security  from being  designated as a hedged item,
         however,  at the date of  initial  application  of this  statement,  an
         entity is permitted to transfer any held-to-maturity  security into the
         available-for-sale  or trading categories.  The unrealized holding gain
         or loss on such  transferred  securities  shall be reported  consistent
         with the  requirements  of Statement No. 115,  "Accounting  for Certain
         Investments in Debt and Equity Securities". Such transfers do not raise
         an issue  regarding an entity's intent to hold other debt securities to
         maturity in the future.  This statement  applies  prospectively for all
         fiscal  quarters of all years  beginning  after June 15, 1999.  Earlier
         adoption is  permitted  for any fiscal  quarter  that begins  after the
         issue date of this statement.

                                       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                     Nine Months Ended
                                                         March 31,                             March 31,
                                             ----------------------------------    -----------------------------------
                                                  1999              1998                1999               1998
                                             ----------------  ----------------    ----------------   ----------------
<S>                                                <C>              <C>                 <C>                <C>      
Weighted average common
shares outstanding                                 3,664,343        3,585,354           3,661,535          3,525,358

Average treasury
stock shares                                        (246,649)             ---            (116,259)               ---

Average unearned ESOP
shares                                              (52,973)          (71,727)            (57,042)           (81,776)
                                             ----------------  ----------------    ----------------   ----------------
Weighted  average common 
shares and common stock  
equivalents  used to calculate
basic earnings per share                          3,364,721         3,513,627           3,488,234          3,443,582
                                                  
Additional common
stock equivalents (stock options) 
used to calculate diluted earnings
per share                                            29,958            79,525              30,820            110,752
                                             ----------------  ----------------    ----------------   ----------------
Weighted average common
shares and common stock
equivalents used to calculate
diluted earnings per share                        3,394,679         3,593,152           3,519,054          3,554,334
                                             ================  ================    ================   ================

Net income                                      $ 1,007,343       $   874,001         $ 2,940,786        $ 2,804,766
                                             ================  ================    ================   ================
Earnings per share:
     Basic                                            $0.30             $0.25               $0.84              $0.81
     Diluted                                          $0.30             $0.24               $0.84              $0.79
                                             ================  ================    ================   ================
</TABLE>
                                       9
<PAGE>
ITEM 2.

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 1999

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 March 31, 1999.

         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 consists 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.

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

FINANCIAL CONDITION

         The  Company's  assets  totaled  $323.4  million at March 31, 1999,  as
compared to $297.1  million at June 30, 1998. The $26.3 million or 8.9% increase
in total assets was primarily  comprised of a $25.7 million or 19.4% increase in
investment  and  mortgage-backed  securities,  including  Federal Home Loan Bank
("FHLB")  stock,  and a $2.0 million or 1.2%  increase in net loans  receivable,
which  were   partially   offset  by  a  $1.1  million  or  62.2%   decrease  in
interest-earning  demand deposits. The Company's investment securities decreased
by 3.6% from $85.9  million to $82.9 million  while  mortgage-backed  securities
increased by 62.2% from $46.3  million to $75.1  million from June 30, 1998,  to
March  31,  1999.   These  changes  were  primarily  due  to  higher  yields  on
mortgage-backed securities over other investment securities. The Company's loans
receivable increased by 1.3% from $157.7 million to $159.7 million from June 30,
1998, to March 31, 1999. The increase was principally  attributable to increased
levels of loan  originations,  partially  offset by  refinancings as a result of
lower market interest rates on loans.

         The Company's  total  liabilities  increased  $30.4 million or 11.5% to
$294.5  million as of March 31, 1999,  from $264.1  million as of June 30, 1998.
The $30.4 million  increase in total  liabilities  was primarily  comprised of a
$29.5  million or 32.9%  increase in FHLB advances and other  borrowings,  and a
$1.2 million or 0.7% increase in total deposits.  The $29.5 million  increase in
FHLB  advances and other  borrowings  was  primarily the result of the Company's
investment growth program. The $1.2 million increase in deposits was principally
the result of expanded marketing efforts with new and existing customers.

                                       10
<PAGE>
         Total  stockholders'  equity  decreased  $4.1 million or 12.4% to $28.9
million as of March 31, 1999, from $33.0 million as of June 30, 1998,  primarily
due to $6.1  million in  purchases  of treasury  stock and $1.6  million in cash
dividends declared on the Company's common stock, which were partially funded by
the $2.9 million of Company net income and $0.7  million of proceeds  from stock
option exercises and ESOP and RRP plan share releases.

          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:

     1)   expanding the Company's  investment growth program in order to enhance
          net interest income;
     2)   maintaining  the Company's level of short-term  liquid  investments by
          funding  loan  commitments  and  purchasing   longer-term   investment
          securities;
     3)   emphasizing  the  retention of lower-cost  savings  accounts and other
          core deposits; and
     4)   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:

     1)   the average  outstanding daily balance of total  borrowings,  computed
          quarterly, may not exceed $125.0 million;

     2)   suitable  investments  shall be restricted to those meeting the credit
          quality criteria outlined in the Company's investment policy;
     
     3)   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; and

     4)   the  Company's  total  borrowed  funds  position may not exceed $150.0
          million.

          In most cases, the initial yield spread earned on investment  security
purchases  exceeded  approximately  one  hundred to one  hundred and forty basis
points.
<PAGE>
          During the three months ended March 31,  1999,  the Company  decreased
its mortgage-backed  securities portfolio by $5.5 million or 6.89%. The decrease
for  the  quarter  ended  March  31,  1999,   was   attributable   to  principal
amortization. During the nine months ended March 31, 1999, the Company increased
its   mortgage-backed   securities   holdings   by  $28.7   million   or  62.2%.
Mortgage-backed  securities purchases for the nine months totaled  approximately
$45.2 million with an estimated  weighted  average  purchase yield of 6.51%.  At
March 31, 1999,  the Company held $75.1  million of  mortgage-backed  securities
with an approximate  yield of 6.69%. The  mortgage-backed  securities  purchases
were made in order to mitigate the  principal  calls on the  Company's  callable
bond portfolio and to earn a higher yield with an expected  average life profile
comparable to longer-term callable agency bonds.

         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 nine months ended March 31, 1999, the Company
would be exposed to the risk that the  investment  will be redeemed prior to its
final stated
                                       11
<PAGE>
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  $8.1 million of callable agency bonds with an estimated  weighted
average rate of 6.1% were called during the quarter ended March 31, 1999. During
the quarter  ended March 31, 1999,  the Company  purchased  approximately  $25.3
million of callable bonds with an approximate weighted average yield to call and
maturity of 7.3% and 6.8%,  respectively.  The callable  agency bond  purchases,
totaling $25.3 million, are summarized by initial term to call as follows:  $1.4
million  within three  months,  $20.9 million with greater than three months and
within six months,  $1.0  million  with  greater  than twelve  months and within
twenty-four  months,  and $2.0 million with greater than twenty-four  months and
within thirty-six months.

         During the nine months  ended  March 31,  1999,  the  Company  borrowed
approximately $103.3 million in various borrowings from the FHLB with a weighted
average  rate of 5.07% and incurred  $77.7  million in other  borrowings  with a
weighted average rate of 5.11%. During the nine months ended March 31, 1999, the
Company  repaid  $83.7  million  of FHLB  advances  and $67.8  million  of other
borrowings.  Due to a decline in market  interest  rates  during the nine months
ended March 31,  1999,  the Company  lengthened  the  maturity  structure of its
incremental borrowings to lock in lower cost, longer-term liability funding.

         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. Due to
relatively low fifteen and thirty year mortgage loan yields, the Company intends
to emphasize  higher  yielding  commercial  real  estate,  home equity and small
business loans to existing customers and seasoned prospective customers.
<PAGE>
         As of March 31, 1999, the  implementation  of these asset and liability
management initiatives resulted in the following:

     1)   an  aggregate  of $48.7  million  or 30.1% of the  Company's  net loan
          portfolio had adjustable  interest rates or maturities of less than 12
          months;
     2)   $16.7 million or 22.2% of the Company's  portfolio of  mortgage-backed
          securities  (including  collateralized  mortgage obligations - "CMOs")
          were secured by floating rate securities; and
     3)   $74.1  million  or  96.9%  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 "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 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 is
estimated at a positive 0.7% of total assets at March 31, 1999, as compared to a
negative 13.3% at June 30, 1998, in each instance,  based on certain assumptions
by management  with respect to the repricing of certain assets and  liabilities.
At March 31, 1999, the Company's  interest-earning  assets maturing or repricing
within one year totaled  $120.9  million  while the  Company's  interest-bearing
liabilities  maturing  or  repricing  within one year  totaled  $118.5  million,
providing an excess of interest-earning assets over interest-bearing liabilities
of $2.4 million.  At March 31, 1999, the  percentage of the Company's  assets to
liabilities maturing or repricing within one year was 102.0%.

                                       12
<PAGE>
RESULTS OF OPERATIONS

           General. WVS reported net income of $1.0 million and $2.9 million for
the three and nine months  ended March 31,  1999.  Net income  increased by $133
thousand or 15.3% for the three months ended March 31,  1999,  when  compared to
the same  period  in 1998.  The  increase  was  primarily  the  result of a $237
thousand  decrease  in  non-interest  expense  and an $11  thousand  increase in
non-interest  income,  which were partially offset by a $73 thousand increase in
income tax  expense and a $42  thousand  decrease in net  interest  income.  Net
income  increased  by $136  thousand or 4.9% for the nine months ended March 31,
1999,  when compared to the same period in 1998.  The $136 thousand  increase in
net  income  was  principally  the  result  of  a  $505  thousand   decrease  in
non-interest  expense and an $80 thousand increase in non-interest income, which
were  partially  offset by a $174  thousand  increase  in income  taxes,  a $155
thousand  decrease in net  interest  income and the  absence of a $120  thousand
recovery in the provision for loan losses due to the payoff of a commercial loan
participation in fiscal 1998. The decrease in non-interest  expense for the nine
months ended March 31, 1999,  was  principally  attributable  to a $473 thousand
reduction in discretionary ESOP contributions and lower RRP expenses,  and a $31
thousand decrease in occupancy and equipment expense.  The $80 thousand increase
in non-interest income was chiefly  attributable to increases in service charges
on deposits and investment  securities  gains.  Total interest income  increased
$434 thousand  primarily due to higher  volumes of  mortgage-backed  securities.
Total interest expense increased by $589 thousand primarily due to higher levels
of FHLB advances and other borrowings.

           Net Interest  Income.  The Company's net interest income decreased by
$42 thousand or 1.6% for the three months ended March 31, 1999, when compared to
the same period in 1998.  The  decrease  resulted  from a $245  thousand or 8.5%
increase in interest  expense which was  partially  offset by a $203 thousand or
3.7% increase in interest income.  For the nine months ended March 31, 1999, net
interest  income  decreased by $155 thousand or 2.0%,  when compared to the same
period in 1998.  The decrease  resulted from a $589 thousand or 6.7% increase in
interest  expense which was partially offset by a $434 thousand or 2.6% increase
in interest income.
<PAGE>
           Interest Income. Interest on mortgage-backed  securities increased by
$586 thousand or 90.2% for the three months ended March 31, 1999,  when compared
to the same  period in 1998.  The  increase  was  attributable  to a $41 million
increase in the average balance of mortgage-backed securities outstanding, which
was partially  offset by a 51 basis point decrease in the weighted average yield
earned on mortgage-backed  securities for the three months ended March 31, 1999,
when compared to the same period in 1998. Interest on mortgage-backed securities
increased  $1.2 million or 61.6% for the nine months  ended March 31, 1999.  The
increase was primarily  attributable to a $27.2 million  increase in the average
balance of mortgage-backed securities outstanding, which was partially offset by
a  45  basis  point   decrease  in  the   weighted   average   yield  earned  on
mortgage-backed  securities  for the nine  months  ended  March 31,  1999,  when
compared to the same period in 1998. The Company  increased its  mortgage-backed
securities  portfolio  to  capitalize  on  attractive  sector  yield  levels  in
comparison to other investment securities.  The decrease in the weighted average
yield  earned,  during both periods,  was  principally  attributable  to reduced
market  interest rates and higher levels of premium  amortization  due to faster
rates of principal repayment.

           Interest and dividend income on interest-bearing  deposits with other
institutions,   investment   securities   and  FHLB  stock  ("other   investment
securities")  decreased  by $240  thousand or 15.3% for the three  months  ended
March 31,  1999,  when  compared to the same period in 1998.  The  decrease  was
attributable  to a  $5.0  million  decrease  in the  average  balance  of  other
investment securities outstanding and an 83 basis point decrease in the weighted
average yield earned on other investment securities, which were partially offset
by a $371 thousand increase in the average balance of interest-bearing  deposits
and a 271  basis  point  increase  in  the  weighted  average  yield  earned  on
interest-bearing  deposits  for the three  months  ended  March 31,  1999,  when
compared to the same period in 1998.  Interest  on other  investment  securities
decreased  $414 thousand or 8.7% for the nine months ended March 31, 1999,  when
compared to the same period in 1998.  The  decrease in interest  income on other
investment  securities  was  attributable  to an 87 basis point  decrease in the
weighted  average  yield  earned  on  other  investment  securities,  which  was
partially  offset by a $2.5  million  increase in the  average  balance of other
investment securities outstanding for the nine months ended 

                                       13
<PAGE>
March 31, 1999,  when  compared to the same period in 1998.  The increase in the
average balance of other investment  securities was principally  attributable to
purchases as a part of the investment growth program.

           Interest on net loans  receivable  decreased by $143 thousand or 4.3%
for the three months ended March 31, 1999,  when  compared to the same period in
1998. The decrease was attributable to a decrease of $9.1 million in the average
balance of net loans  receivable  outstanding,  which was partially offset by an
increase in the  weighted  average  yield earned on net loans  receivable  of 11
basis points for the three months  ended March 31,  1999,  when  compared to the
same period in 1998. Interest on net loans receivable decreased by $331 thousand
or 3.4% for the nine months  ended  March 31,  1999,  when  compared to the same
period in 1998. The decrease was  attributable to a $7.0 million decrease in the
average  balance of outstanding  loans which was partially  offset by an 8 basis
point increase in the weighted average yield earned on outstanding loans for the
nine months  ended March 31,  1999.  The  decreases  in the average loan balance
outstanding  for both periods  were  primarily  attributable  to lower levels of
mortgage loan originations and higher levels of loan prepayments due to a marked
decline in long-term interest rates.
<PAGE>
           Interest Expense.  Interest expense on deposits and escrows decreased
by $111  thousand or 6.5% and  decreased by $296  thousand or 5.6% for the three
and nine months ended March 31, 1999,  respectively,  when  compared to the same
periods in 1998.  The  decrease in interest  expense on deposits and escrows was
principally  attributable  to a $1.1  million and $1.5  million  decrease in the
average balance of interest-bearing  deposits and escrows for the three and nine
months ended March 31, 1999, respectively,  when compared to the same periods in
1998.

           Interest expense on other  borrowings  increased by $356 thousand and
$885 thousand for the three and nine months ended March 31, 1999,  respectively,
when  compared to the same periods in 1998.  The increase  associated  with both
periods is primarily  attributable  to funding the Company's  investment  growth
program.

           Provision for Loan Losses.  A provision for loan losses is charged to
earnings  to  bring  the  total  allowance  to 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 did not record a provision  for possible  losses on loans
for the three and nine  months  ended March 31,  1999.  At March 31,  1999,  the
Company's  total  allowance for loan losses  amounted to $1.8 million or 1.1% of
the Company's total loan portfolio.

           Non-Interest  Income.  Total  non-interest  income  increased  by $11
thousand  and $80  thousand  for the three and nine months ended March 31, 1999,
respectively,  when  compared  to the same  periods  in 1998.  The  increase  in
non-interest  income for the nine months  ended March 31,  1999,  was  primarily
attributable  to  increased  service  charges on automated  teller  machines and
transaction  accounts,  and $36 thousand in net gains on the sale of  investment
securities.

           Non-Interest  Expense.  Total  non-interest  expense  decreased  $237
thousand or 18.6% and  decreased  $505  thousand or 13.6% for the three and nine
months ended March 31, 1999, respectively,  when compared to the same periods in
1998.
                                       14
<PAGE>
           Compensation and employee benefits expense decreased $211 thousand or
23.6% and $473  thousand or 18.5% for the three and nine months  ended March 31,
1999, respectively,  when compared to the same periods in 1998. The decrease for
the quarter ended March 31, 1999, was primarily  attributable to a $159 thousand
reduction in discretionary ESOP contributions and lower RRP expenses,  and a $32
thousand decrease in employee  compensation  expense.  The decrease for the nine
months ended March 31, 1999,  was  principally  attributable  to a $417 thousand
reduction in discretionary ESOP contributions and lower RRP expenses,  and a $54
thousand decrease in employee compensation expense.

         Income Tax  Expense.  Income tax expense  increased  by $73 thousand or
12.8% and $174  thousand or 10.6% for the three and nine months  ended March 31,
1999,  respectively,  when  compared to the same periods in 1998.  The change in
income tax expense for both  periods was  attributable  to  increased  levels of
taxable income.
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES

        Net cash provided by operating  activities  totaled $4.0 million during
the nine months ended March 31, 1999. Net cash provided by operating  activities
was primarily  comprised of $2.9 million of net income, a $408 thousand decrease
in accrued and deferred  taxes,  a $333  thousand  decrease in accrued  interest
receivable  and a $263 thousand  increase in ESOP, RRP and deferred and unearned
compensation amortization.

         Funds used for investing  activities  totaled $27.8 million  during the
nine months  ended March 31,  1999.  The primary  uses of funds  during the nine
months ended March 31, 1999,  consisted of $174.7  million used for the purchase
of investment  and  mortgage-backed  securities,  a $2.2 million net increase in
loans receivable and a $1.5 million decrease in FHLB stock, which were partially
offset by the  receipt  of $150.7  million of  proceeds  from the  repayment  of
principal on investments and mortgage-backed securities.

         Funds  provided by financing  activities  totaled $22.8 million for the
nine months ended March 31, 1999.  Primary  financial  sources  included a $29.5
million  increase  in FHLB  advances  and other  borrowings  and a $1.2  million
increase in deposits,  which were partially  offset by $6.1 million in purchases
of treasury stock,  $1.1 million of cash dividends paid on the Company's  common
stock and a $929  thousand  decrease in advance  payments by borrowers for taxes
and insurance.  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 March 31, 1999,  $74.4  million or 44.0% 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 FHLB
advances  and other  borrowings.  At March 31,  1999,  the total  approved  loan
commitments  outstanding amounted to $5.3 million. At the same date, commitments
under  unused  lines of credit  amounted  to $10.0  million  and the  unadvanced
portion of  construction  loans  approximated  $14.7  million.  Certificates  of
deposit scheduled to mature in one year or less at March 31, 1999, totaled $68.3
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 has established a $25.0 million line of credit with the
FHLB,  which is  scheduled  to mature on  February  9, 2000,  and is  subject to
various
                                       15
<PAGE>
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.

         During the nine months  ended  March 31,  1999,  the Company  purchased
399,264  shares of common stock for  approximately  $6.1 million under two stock
buyback programs.

         On April 27, 1999,  the  Company's  Board of Directors  declared a cash
dividend of $0.16 per share,  payable May 20, 1999, to shareholders of record at
the  close  of  business  on  May  10,  1999.   Dividends  will  be  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  or that,  if  paid,  such
dividends will not be reduced or eliminated in future periods.

         As of March 31, 1999,  WVS  Financial  Corp.  exceeded  all  regulatory
capital requirements and maintained Tier I and total risk-based capital equal to
$28.8  million  or 17.7% and $30.6  million  or  18.8%,  respectively,  of total
risk-weighted  assets,  and Tier I leverage  capital of $28.8 million or 9.0% of
average total 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, comprised exclusively of nonaccrual
loans, at March 31, 1999,  totaled  approximately $649 thousand or 0.2% of total
assets as compared to $603 thousand or 0.2% of total assets as of June 30, 1998.
Nonperforming assets at March 31, 1999, consisted of $481 thousand in commercial
real estate  loans,  $92 thousand in  single-family  loans,  and $76 thousand in
consumer loans.  Approximately $18 thousand of additional  interest income would
have been recorded during the nine months ended March 31, 1999, if the Company's
nonaccrual  and  restructured  loans had been current in  accordance  with their
original loan terms and  outstanding  throughout the nine months ended March 31,
1999.
<PAGE>
YEAR 2000 COMPLIANCE

         The  Company  outsources  substantially  all  of  its  data  processing
requirements and it is to a large extent  dependent upon vendor  cooperation for
systems used in its day-to-day  business.  The Company,  in conjunction with its
vendors, is testing its computer systems and requiring  representations from its
vendors  that the  products  provided  are or will be year 2000  compliant.  The
Company has developed a plan of action to help ensure that its  operational  and
financial systems will not be adversely affected by year 2000  software/hardware
failures due to processing errors arising from calculations  using the year 2000
date.  Substantially  all  hardware  and  software  products  were  compliant at
December 31,  1998.  In the  unlikely  event that the systems  tested do not, in
fact,  operate properly when the year 2000 does arrive,  all customer  accounts,
deposits and loans, as well as accounting  systems,  will be maintained manually
to ensure business  continuation while systems are being corrected.  The Company
has not and does not expect to incur material  expenditures  to address the year
2000 issue. Based upon current  estimates,  the Company does not expect to incur
more than $75 thousand  (pre-tax) in year 2000  remediation  expenses.  Any year
2000  compliance  failures,   which  are  currently  unknown,  could  result  in
additional expenses or business disruption to the Company.

                                       16
<PAGE>
FORWARD LOOKING STATEMENTS

         When used in this Form 10-Q,  or, 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.

                                       17
<PAGE>
ITEM 3.

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.

         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.
<PAGE>
         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

                                       18
<PAGE>
the  measurement  of the Company's  asset/liability  gap, which was discussed in
detail under "Asset and Liability Management" commencing on page 11.

         An institution could also manage interest rate risk by selling existing
assets,  repaying  certain  liabilities  or matching  repricing  periods for new
assets  and  liabilities  (for  example,  by  shortening  terms of new  loans or
investments).  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.  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.
Prepayments of assets carrying higher rates reduce the Company's interest income
and overall asset yields.

         An institution might also invest in more complex financial  instruments
intended  to hedge,  or  otherwise  change the  interest  rate risk of  existing
assets, liabilities,  or anticipated transactions.  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.  The
Company has not purchased derivative financial  instruments in the past and does
not presently intend to purchase such instruments in the near future.
<PAGE>
         The following table provides  information about the Company's financial
instruments  that are  sensitive  to changes in  interest  rates as of March 31,
1999,  based on the  information  and  assumptions  in the notes.  The Company's
assumptions  are based on  statistical  data  provided  by a federal  regulatory
agency in the  Company's  market area,  and are believed to be  reasonable.  The
Company had no derivative financial instruments or trading portfolio as of March
31,   1999.   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.  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.  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.
Substantially all of the Company's investment  securities portfolio is comprised
of callable  government agency securities.  From a risk management  perspective,
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.
Company  borrowings  were  tabulated by  contractual  maturity dates and without
regard to any conversion or repricing dates.

                                       19
<PAGE>
<TABLE>
<CAPTION>  
                                                               EXPECTED MATURITY DATE-QUARTER ENDED MARCH 31,
                                                                                                      There-                 Fair   
                                            2000       2001      2002        2003        2004         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                             $31,973    $19,999    $14,426     $11,874      $8,737      $32,886    $119,895    $123,312
    Average interest rate                   7.91%      7.71%      7.62%       7.58%       7.50%        7.37%

  Adjustable rate                         11,934      8,596      6,399       4,905       3,851        6,099      41,784      43,795
    Average interest rate(5)                6.11%      6.06%      6.01%       5.97%       5.94%        5.93%
  Mortgage-backed securities
  Fixed rate                                 ---        ---         87       1,158         614       56,321      58,180      58,186
    Average interest rate                   0.00%      0.00%      8.00%       5.97%       6.11%        6.77%

  Adjustable rate                            107        ---        ---         ---         ---       16,638      16,745      17,099
    Average interest rate(6)                6.41%      0.00%      0.00%       0.00%       0.00%        6.15%

  Investments(7)                          17,957        ---        ---         ---         ---       64,897      82,854      82,134
    Average interest rate                   6.39%      0.00%      0.00%       0.00%       0.00%        6.91%

  Interest-bearing deposits                  713        ---        ---         ---         ---          ---         713         713
    Average interest rate                   5.07%      0.00%      0.00%       0.00%       0.00%        0.00%
                                          -------    -------    -------     -------      ------      -------    --------    --------
        Total                            $62,684    $28,595    $20,912     $17,937     $13,202     $176,841    $320,171    $325,239

Interest-bearing liabilities:
  Interest-bearing deposits 
   and escrows(8)(9)(10)                 $92,719    $19,081    $19,081      $8,718      $8,718      $22,923    $171,240    $171,509
    Average interest rate                   4.21%      3.49%      3.49%       3.51%       3.51%        2.11%

  Borrowings                              25,779     35,000     16,500         ---         ---       42,000     119,279     119,283
    Average interest rate                   5.28%      5.69%      5.89%       0.00%       0.00%        5.06%
                                         -------    -------    -------     -------      ------      -------    --------    --------
        Total                           $118,498    $54,081    $35,581     $ 8,718     $ 8,718      $64,923    $290,519    $290,792
</TABLE>
                                       20
<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 40% for adjustable rate loans,  and 15% to 44% 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  called   investment   securities   totaling
     approximately  $1.1  million  through  March 31,  1999,  and $15.6  million
     expected to be called by December 31, 1999.
(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.
<PAGE>
         The table below provides  information  about the Company's  anticipated
transactions comprised of firm loan commitments and other commitments, including
undisbursed  letters  and  lines  of  credit.  The  Company  used no  derivative
financial  instruments to hedge such  anticipated  transactions  as of March 31,
1999.

                            Anticipated Transactions
                            ------------------------
          Undisbursed construction and                                     
              land development loans
                Fixed rate                                         $6,251
                                                                    8.19%
          
                Adjustable rate                                     8,480
                                                                    8.76%
          Undisbursed lines of credit
                Adjustable rate                                    10,000
                                                                    7.83%
          Loan origination commitments
                Fixed rate                                          4,127
                                                                    6.90%
          
                Adjustable rate                                     1,162
                                                                    8.48%
          Letters of credit
                Adjustable rate                                        45
                                                                   10.75%
                                                                   ----- 
                                                                  $30,065

         The  Company  believes  that  there  were no  material  changes  to the
Company's anticipated  transactions during the nine months ended March 31, 1999,
other than  increases due to the timing of the  construction  market and the low
interest rate environment.
                                       21

<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
           ---------------------

           Not applicable.

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

           Not applicable.

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

           Not applicable.

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

           Not applicable.
 
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                  Page
                  ------       -----------                  ----
                  27           Financial Data Schedule      E-1


          (b)  The Company filed a Current  Report on Form 8-K,  dated  February
               24,  1999,  reporting  under Item 5 that the  Company's  Board of
               Directors  authorized the repurchase of up to 167,000 shares,  or
               approximately five percent,  of the Company's  outstanding common
               stock.  Repurchases  are  authorized  to be made  during the next
               twelve  months  as market  conditions  warrant.  All  repurchased
               shares  will be held as treasury  stock and may be  reserved  for
               issuance pursuant to the Company's stock benefit plans.

<PAGE>
                                   SIGNATURES

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

                                WVS FINANCIAL CORP.

May 7, 1999                     BY:/s/ David J. Bursic
-----------                     ----------------------
Date                                 David J. Bursic
                                     President and Chief Executive Officer
                                     (Principal Executive and Financial Officer)