----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

**x      QUARTERLY REPORT      PURSUANT TO SECTION 13 OR 15(d) of**

**THE      SECURITIES EXCHANGE ACT OF 1934**

**For      the quarterly period ended:  September 30,      2007**

**OR**

**o      TRANSITION REPORT      PURSUANT TO SECTION 13 OR 15(d) of**

**THE      SECURITIES EXCHANGE ACT OF 1934**

**Commission      File Number: 000-50592**

**K-FED      BANCORP**

| **Federal**                                                   |   | **20-0411486**                                      |
|---------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation) |   | (I.R.S.                Employer Identification No.) |
|                                                          |   |                                                |
| **1359                N. Grand Avenue, Covina, CA**           |   | **91724**                                           |
| (Address                of principal executive offices)       |   | (Zip                Code)                           |

**(800)      524-2274**

**x**

**o**

**o**

**x**

**o**

**o**

**x**

----

**Form      10-Q**

**K-FED      BANCORP**

**Table      of Contents**

|                                                                                                         |                                                                                                                                                                                          | Page    |
|--------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
| **Part                I.**                                                                                   | **Financial                Information**                                                                                                                                                      |    |
|                                                                                                         |                                                                                                                                                                                          |    |
| Item                1:                                                                                       | Financial                Statements (Unaudited)                                                                                                                                               |    |
|                                                                                                         |                                                                                                                                                                                          |    |
|                    | Consolidated                Statements of Financial Condition                at September 30, 2007 and June 30, 2007                                                                     | 1  |
|                                                                                                         | Consolidated                Statements of Income and                Comprehensive Income for the Three Months Ended September 30, 2007                and                2006                 | 2  |
|                                                                                                         | Consolidated                Statement of Stockholders’ Equity                and Other Comprehensive Income for the Three Months Ended September                30,                2007 | 3  |
|                                                                                                         | Consolidated                Statements of Cash Flows for the Three                Months Ended September 30, 2007 and 2006                                                                    | 4  |
|                                                                                                         | Notes                to Consolidated Financial                Statements                                                                                                                      | 5  |
|                                                                                                         |                                                                                                                                                                                          |    |
| Item                2:                                                                                       | Management’s                Discussion and Analysis of Financial Condition                and Results of Operations                                                                     | 8       |
|                                                                                                         |                                                                                                                                                                                          |    |
| Item                3:                                                                                       | Quantitative                and Qualitative Disclosures                About Market Risk                                                                                                      | 14      |
|                                                                                                         |                                                                                                                                                                                          |    |
| Item                4:                                                                                       | Controls                and Procedures                                                                                                                                                        | 15      |
|                                                                                                         |                                                                                                                                                                                          |    |
| **Part                II.**                                                                                  | **Other                Information**                                                                                                                                                          |    |
|                                                                                                         |                                                                                                                                                                                          |    |
| Item                1:                                                                                       | Legal                Proceedings                                                                                                                                                              | 16      |
| Item                1A:                                                                                      | Risk                Factors                                                                                                                                                                   | 16      |
| Item                2:                                                                                       | Unregistered                Sales of Equity Securities and Use of                Proceeds                                                                                                     | 16      |
| Item                3:                                                                                       | Defaults                upon Senior Securities                                                                                                                                                | 16      |
| Item                4:                                                                                       | Submission                of Matters to a Vote of Security                Holders                                                                                                             | 16      |
| Item                5:                                                                                       | Other                Information                                                                                                                                                              | 16      |
| Item                6:                                                                                       | Exhibits                                                                                                                                                                                      | 16      |
|                                                                                                         |                                                                                                                                                                                          |    |
|                                                                                                         | **SIGNATURES**                                                                                                                                                                                | 17      |
|                                                                                                         |                                                                                                                                                                                          |    |
|                                                                                                         |                                                                                                                                                                                          |    |

----

**Part      I — FINANCIAL INFORMATION**

**Item      1. Financial Statements**

**K-FED      BANCORP AND SUBSIDIARY**

**Consolidated      Statements of Financial Condition**

**(Unaudited)**

** (Dollars        in thousands, except share data)**

|                                                                                                                                                                                                                                        |   | **September                30****2007** |          | **June                30****2007** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|---------------|------------------------------------|--------|
| **ASSETS**                                                                                                                                                                                                                                  |   |                                    |          |                               |   |
| Cash                and due from banks                                                                                                                                                                                                      |   | $                                       | 6,422         |                               | $      | 10,982 |   |
| Federal                funds sold                                                                                                                                                                                                           |   |                                    | 18,725        |                               |   | 15,750 |   |
| Total                cash and cash equivalents                                                                                                                                                                                              |   |                                    | 25,147        |                               |   | 26,732 |   |
| Interest                earning deposits in other financial institutions                                                                                                                                                                    |   |                                    | 2,970         |                               |   | 2,970 |   |
| Securities                available-for-sale                                                                                                                                                                                                |   |                                    | 13,301        |                               |   | 13,579 |   |
| Securities                held-to-maturity, fair value of $19,932 and                     $20,514 at September 30, 2007 and June 30, 2007,                respectively                                             |   |                                    | 20,270        |                               |   | 21,096 |   |
| Federal                Home Loan Bank stock, at cost                                                                                                                                                                                        |   |                                    | 10,137        |                               |   | 9,870 |   |
| Loans                receivable                                                                                                                                                                                                             |   |                                    | 710,678       |                               |   | 701,962 |   |
| Deferred net              loan origination fees                                                                                                                                           |   |                                    | (111     | )                             |   | (134  | )  |
| Net                premium on purchased loans                                                                                                                                                                                               |   |                                    | 65            |                               |   | 120 |   |
| Allowance                for loan losses                                                                                                                                                                                                    |   |                                    | (2,942        | )                                  |   | (2,805 | ) |
| Loans                receivable, net                                                                                                                                                                                                        |   |                                    | 707,690       |                               |   | 699,143 |   |
| Accrued                interest receivable                                                                                                                                                                                                  |   |                                    | 3,349         |                               |   | 3,259 |   |
| Premises                and equipment, net                                                                                                                                                                                                  |   |                                    | 3,370         |                               |   | 3,484 |   |
| Core                deposit intangible                                                                                                                                                                                                      |   |                                    | 295           |                               |   | 323 |   |
| Goodwill                                                                                                                                                                                                                                    |   |                                    | 3,950         |                               |   | 3,950 |   |
| Bank-owned                life insurance                                                                                                                                                                                                    |   |                                    | 11,068        |                               |   | 10,954 |   |
| Other                assets                                                                                                                                                                                                                 |   |                                    | 4,232         |                               |   | 4,265 |   |
| Total                assets                                                                                                                                                                                                                 |   | $                                       | 805,779       |                               | $      | 799,625 |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                                                                                                                               |   |                                    |          |                               |   |   |   |
| **Liabilities**                                                                                                                                                                                                                             |   |                                    |          |                               |   |   |   |
| Deposits                                                                                                                                                                                                                                    |   |                                    |          |                               |   |   |   |
| Noninterest                bearing                                                                                                                                                                                                          |   | $                                       | 45,199        |                               | $      | 43,169 |   |
| Interest                bearing                                                                                                                                                                                                             |   |                                    | 463,484       |                               |   | 450,959 |   |
| Total                deposits                                                                                                                                                                                                               |   |                                    | 508,683       |                               |   | 494,128 |   |
| Federal                Home Loan Bank advances, short-term                                                                                                                                                                                  |   |                                    | 20,000        |                               |   | 20,000 |   |
| Federal                Home Loan Bank advances, long-term                                                                                                                                                                                   |   |                                    | 180,022       |                               |   | 190,016 |   |
| Accrued                expenses and other liabilities                                                                                                                                                                                       |   |                                    | 3,817         |                               |   | 3,164 |   |
|                       Total liabilities                                                                                                                                         |   |                                    | 712,522  |                               |   | 707,308  |   |
| **Commitments                and contingent liabilities**                                                                                                                                                                                   |   |                                    | —       |                               |   | — |   |
| **Stockholders’                equity**                                                                                                                                                                                               |   |                                    |          |                               |   |   |   |
| Nonredeemable                serial preferred stock, $.01 par value;                    2,000,000 shares authorized; issued and outstanding — none                                                                |   |                                    | —       |                               |   | — |   |
| Common                stock, $0.01 par value; 18,000,000 authorized;                   September 30, 2007 — 14,720,440 shares issued.                   June 30, 2007 — 14,724,760 shares issued. |   |                                    | 147           |                               |   | 147 |   |
|  Additional              paid-in capital                                                                                                                                                                                               |   |                                    | 57,847   |                               |   | 57,626  |   |
| Retained                earnings                                                                                                                                                                                                            |   |                                    | 49,606        |                               |   | 49,084 |   |
| Accumulated                other comprehensive loss, net of tax                                                                                                                                                                             |   |                                    | (43           | )                                  |   | (126 | ) |
| Unearned                employee stock ownership plan shares                                                                                                                                                                                |   |                                    | (2,957        | )                                  |   | (3,071 | ) |
| Treasury                stock, at cost (September 2007 — 775,815 shares;                   June 30, 2007 — 775,815 shares)                                                                                       |   |                                    | (11,343       | )                                  |   | (11,343 | ) |
| Total                stockholders’ equity                                                                                                                                                                                             |   |                                    | 93,257        |                               |   | 92,317 |   |
| Total                liabilities and stockholders’ equity                                                                                                                                                                             |   | $                                       | 805,779       |                               | $      | 799,625 |   |
| **The                accompanying notes are an integral part of these unaudited consolidated                financial statements**                                                                                                          |

----

**K-FED      BANCORP AND SUBSIDIARY**

**Consolidated      Statements of Income and Comprehensive Income**

** (Unaudited)**

**(Dollars        in thousands, except per share data)**

|                                                                                                                               |   | **Three                Months Ended****September                30** |
|------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|
|                                                                                                                               |   | **2007**                                                             |   | **2006** |
| **Interest                Income**                                                                                                 |   |                                                                 |   |   |
| Interest                and fees on loans                                                                                          |   | $                                                                    | 10,273 |   | $ | 8,904 |
| Interest                on securities, taxable                                                                                     |   |                                                                 | 373 |   |   | 347 |
| Federal                Home Loan Bank dividends                                                                                    |   |                                                                 | 119 |   |   | 113 |
| Other                interest                                                                                                      |   |                                                                 | 222 |   |   | 361 |
| Total                interest income                                                                                               |   |                                                                 | 10,987 |   |   | 9,725 |
| **Interest                Expense**                                                                                                |   |                                                                 |   |   |   |   |
| Interest                on deposits                                                                                                |   |                                                                 | 4,133 |   |   | 3,171 |
| Interest                on Federal Home Loan Bank advances                                                                         |   |                                                                 | 2,327 |   |   | 1,982 |
| Total                interest expense                                                                                              |   |                                                                 | 6,460 |   |   | 5,153 |
| **Net                interest income**                                                                                             |   |                                                                 | 4,527 |   |   | 4,572 |
| Provision                for loan losses                                                                                           |   |                                                                 | 168 |   |   | 122 |
| **Net                interest income after provision****                    for loan losses**                  |   |                                                                 | 4,359 |   |   | 4,450 |
| **Noninterest                income**                                                                                              |   |                                                                 |   |   |   |   |
| Service                charges and fees                                                                                            |   |                                                                 | 586 |   |   | 511 |
| ATM                fees and charges                                                                                                |   |                                                                 | 366 |   |   | 371 |
| Referral                commissions                                                                                                |   |                                                                 | 63 |   |   | 61 |
| Gain                (loss) on equity investment                                                                                    |   |                                                                 | (105 | ) |   | 20 |
| Bank-owned                life insurance                                                                                           |   |                                                                 | 114 |   |   | 106 |
| Other                noninterest income                                                                                            |   |                                                                 | 17 |   |   | 7 |
| Total                noninterest income                                                                                            |   |                                                                 | 1,041 |   |   | 1,076 |
| **Noninterest                expense**                                                                                             |   |                                                                 |   |   |   |   |
| Salaries                and benefits                                                                                               |   |                                                                 | 2,007 |   |   | 1,801 |
| Occupancy                and equipment                                                                                             |   |                                                                 | 562 |   |   | 520 |
| ATM                expense                                                                                                         |   |                                                                 | 317 |   |   | 306 |
| Advertising                and promotional                                                                                         |   |                                                                 | 48 |   |   | 67 |
| Professional                services                                                                                               |   |                                                                 | 246 |   |   | 201 |
| Postage                                                                                                                            |   |                                                                 | 69 |   |   | 69 |
| Telephone                                                                                                                          |   |                                                                 | 126 |   |   | 91 |
| Other                operating expense                                                                                             |   |                                                                 | 478 |   |   | 372 |
| Total                noninterest expense                                                                                           |   |                                                                 | 3,853 |   |   | 3,427 |
| **Income                before income tax expense**                                                                                |   |                                                                 | 1,547 |   |   | 2,099 |
| Income                tax expense                                                                                                  |   |                                                                 | 554 |   |   | 784 |
| **Net                income**                                                                                                      |   | $                                                                    | 993 |   | $ | 1,315 |
| **Comprehensive                Income**                                                                                            |   | $                                                                    | 1,076 |   | $ | 1,398 |
| **Earnings                per common share:**                                                                                      |   |                                                                 |   |   |   |   |
| Basic                                                                                                                              |   | $                                                                    | 0.07 |   | $ | 0.10 |
| Diluted                                                                                                                            |   | $                                                                    | 0.07 |   | $ | 0.10 |
| **The                accompanying notes are an integral part of these unaudited consolidated                financial statements** |

----

**K-FED      BANCORP AND SUBSIDIARY**

**Consolidated      Statements of Stockholders’Equity**

**And      Other Comprehensive Income**

**(Unaudited)**

**(Dollars        in thousands, except share data)**

|                                                                                                                               |   |                        |   | **Common                Stock** |         |       |   |                                 |   |                     |    |                                                                  |   | **Treasury                Stock** |   |       |      |
|------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|---------------------------------|--------------|------------|--------|--------------------------------------|--------|--------------------------|---------|-----------------------------------------------------------------------|--------|-----------------------------------|--------|------------|-----------|
|                                                                                                                               |   | **Comprehensive****Income** |   | **Shares**                      |         | **Amount** |   | **Additional****Paid-in****Capital** |   | **Retained****Earnings** |    | **Accumulated****Other****Comprehensive****Loss,                net** |   | **Unearned****ESOP****Shares**    |   | **Shares** |      | **Amount** |   | **Total** |   |
| Balance                June 30, 2007                                                                                               |   |                        |   |                            | 14,724,760   |       | $      | 147                                  |   | $                        | 57,626  |                                                                  | $      | 49,084                            |   | $          | (126      | ) | $ | (3,071 | ) | (775,815 | ) | $ | (11,343 | ) | $ | 92,317 |   |
| **Comprehensive                income**                                                                                            |   |                        |   |                            |         |       |   |                                 |   |                     |    |                                                                  |   |                              |   |       |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income for the three months ended September 30, 2007                                                            |   | $                           | 993    |                            | —      |       |   | —                              |   |                     | — |                                                                  |   | 993                               |   |       | —   |   |   | — |   | — |   |   | — |   |   | 993 |   |
| Other                comprehensive income – unrealized gain on securities, net of                tax                         |   |                        | 83     |                            | —      |       |   | —                              |   |                     | — |                                                                  |   | —                           |   |       | 83        |   |   | — |   | — |   |   | — |   |   | 83 |   |
| **Total                comprehensive income**                                                                                      |   | $                           | 1,076  |                            |         |       |   |                                 |   |                     |    |                                                                  |   |                              |   |       |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends                paid ($0.10 per share) *                                                                                  |   |                        |   |                            | —      |       |   | —                              |   |                     | — |                                                                  |   |  (471                        | )      |       | —   |   |   | — |   | — |   |   | — |   |   |  (471 | ) |
| Stock                options earned                                                                                                |   |                        |   |                            | —      |       |   | —                              |   |                     | 79      |                                                                  |   | —                           |   |       | —   |   |   | — |   | — |   |   | — |   |   | 79 |   |
| Allocation                of stock awards                                                                                          |   |                        |   |                            | —      |       |   | —                              |   |                     | 98      |                                                                  |   | —                           |   |       | —   |   |   | — |   | — |   |   | — |   |   | 98 |   |
| Forfeiture                of stock awards                                                                                          |   |                        |   |                            |  (4,320 | )          |   | —                              |   |                     | — |                                                                  |   | —                           |   |       | —   |   |   | — |   | — |   |   | — |   |   | — |   |
| Allocation                of ESOP common stock                                                                                     |   |                        |   |                            | —      |       |   | —                              |   |                     | 44      |                                                                  |   | —                           |   |       | —   |   |   | 114 |   | — |   |   | — |   |   | 158 |   |
| Balance                September 30, 2007                                                                                          |   |                        |   |                            | 14,720,440   |       | $      | 147                                  |   | $                        | 57,847  |                                                                  | $      | 49,606                            |   | $          |  (43 | ) | $ |  (2,957 | ) |  (755,815 | ) | $ |  (11,343 | ) | $ | 93,257 |   |
|                                                                                                                               |   |                        |   |                            |         |       |   |                                 |   |                     |    |                                                                  |   |                              |   |       |      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                               |
| *                K-Fed Mutual Holding Company waived its receipt of dividends on the                8,861,750 shares it owns.      |
|                                                                                                                               |
|                                                                                                                               |
|                                                                                                                               |
|                                                                                                                               |
|                                                                                                                               |
|                                                                                                                               |
|                                                                                                                               |
|                                                                                                                               |
| **The                accompanying notes are an integral part of these unaudited consolidated                financial statements** |

----

**K-FED      BANCORP AND SUBSIDIARY**

**Consolidated      Statements of Cash Flows**

**(Unaudited)**

**(Dollars        in thousands)**

|                                                                                                                               |   | **Three                Months Ended****September** |         |
|------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|--------------|
|                                                                                                                               |   | **2007**                                           |         | **2006** |   |
| **Operating                Activities**                                                                                            |   |                                               |         |   |   |
| Net                income                                                                                                          |   | $                                                  | 993          |   | $ | 1,315 |   |
| Adjustments                to reconcile net income to cash provided by operating                activities:                        |   |                                               |         |   |   |   |   |
| Amortization                of net premiums on securities                                                                          |   |                                               | 6            |   |   | 12 |   |
| Amortization                of net premiums on loan purchases                                                                      |   |                                               | 55           |   |   | 35 |   |
| Accretion                of net loan origination fees                                                                              |   |                                               | —      |   |   | (21 | ) |
| Provision                for loan losses                                                                                           |   |                                               | 168          |   |   | 122 |   |
| Federal                Home Loan Bank stock dividend                                                                               |   |                                               | (119         | ) |   | (113 | ) |
| Depreciation                and amortization                                                                                       |   |                                               | 205          |   |   | 172 |   |
| Amortization                of core deposit intangible                                                                             |   |                                               | 28           |   |   | 32 |   |
| (Gain)                loss on equity investment                                                                                    |   |                                               | 105          |   |   | (20 | ) |
| Increase                in cash surrender value of bank-owned life insurance                                                       |   |                                               | (114         | ) |   | (106 | ) |
| Accretion                of net premiums on purchased certificates of deposits                                                     |   |                                               | (37          | ) |   | (15 | ) |
| Amortization                of debt exchange costs                                                                                 |   |                                               | 6            |   |   | 27 |   |
| Allocation                of ESOP common stock                                                                                     |   |                                               | 158          |   |   | 165 |   |
| Allocation                of stock awards                                                                                          |   |                                               | 98           |   |   | 33 |   |
| Stock                options earned                                                                                                |   |                                               | 79           |   |   | 89 |   |
| Net                increase in accrued interest receivable                                                                         |   |                                               | (90          | ) |   | (241 | ) |
| Net                (increase) decrease in other assets                                                                             |   |                                               | (130         | ) |   | 35 |   |
| Net                increase in accrued expenses and other liabilities                                                              |   |                                               | 653          |   |   | 1,133 |   |
| Net                cash provided by operating activities                                                                           |   |                                               | 2,064        |   |   | 2,654 |   |
|                                                                                                                               |   |                                               |         |   |   |   |   |
| **Investing                Activities**                                                                                            |   |                                               |         |   |   |   |   |
| Proceeds                from principal repayments of available-for-sale securities                                                 |   |                                               | 413          |   |   | 385 |   |
|                  Procees from principal repayments of held-to-maturity securities                                   |   |                                               | 826     |   |   | 1,047  |   |
| Purchases                of loans                                                                                                  |   |                                               | —      |   |   | (10,356 | ) |
| (Increase)                decrease in loans, excluding loan purchases                                                              |   |                                               | (8,770       | ) |   | 11,342 |   |
| Purchase                of FHLB stock                                                                                              |   |                                               | (148         | ) |   | (71 | ) |
| Purchases                of premises and equipment                                                                                 |   |                                               | (91          | ) |   | (314 | ) |
| Net                cash (used in) provided by investing activities                                                                 |   |                                               | (7,770       | ) |   | 2,033 |   |
|                                                                                                                               |   |                                               |         |   |   |   |   |
| **Financing                Activities**                                                                                            |   |                                               |         |   |   |   |   |
|                   Proceeds from FHLB advances                                                                  |   |                                               |  18,501 |   |   | 20,000  |   |
| Repayment                of FHLB advances                                                                                          |   |                                               | (28,501      | ) |   | (10,000 | ) |
| Dividends                paid on common stock                                                                                      |   |                                               | (471         | ) |   | (436 | ) |
| Purchase                of treasury stock                                                                                          |   |                                               | —      |   |   | (917 | ) |
| Net                increase in deposits                                                                                            |   |                                               | 14,592       |   |   | 5,346 |   |
| Exercise                of stock options                                                                                           |   |                                               | —      |   |   | 64 |   |
| Net                cash provided by financing activities                                                                           |   |                                               | 4,121        |   |   | 14,057 |   |
|                                                                                                                               |   |                                               |         |   |   |   |   |
| Net                (decrease) increase in cash and cash equivalents                                                                |   |                                               | (1,585       | ) |   | 18,744 |   |
| Cash                and cash equivalents, at beginning of year                                                                     |   |                                               | 26,732       |   |   | 25,579 |   |
| Cash              and cash equivalents, at end of period                                                                           |   |  $                                            | 25,147  |   |  $ | 44,323  |   |
|                                                                                                                               |   |                                               |         |   |   |   |   |
| **The                accompanying notes are an integral part of these unaudited consolidated                financial statements** |

----

**K-FED      BANCORP AND SUBSIDIARY**

**Notes      to Consolidated Financial Statements**

**(Unaudited)**

**Note      1 – Nature of Business and Significant Accounting      Policies**

**Nature      of Business**

**Basis      of Presentation:**

**Principles      of Consolidation:  **

**Use      of Estimates:  **

**Newly      Issued Accounting Standards:**

----

**Note      2 – Earnings Per Share**

----

|                                                                      |   | **Three                months ended****September                30,** |                                  |   |
|---------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|---------------------------------------|--------|
|                                                                      |   | **2007**                                                              |                                  |   |   | **2006** |   |   |
|                                                                      |   |                                                                  | (Dollars                in thousands) |   |   |
| Net                income as reported                                     |   | $                                                                     | 993                                   |   |   |   | $ | 1,315 |   |   |
| Weighted                average common shares outstanding                 |   |                                                                  | 13,558,404                            |   |   |   |   | 13,719,818 |   |   |
| Basic                earnings per share                                   |   | $                                                                     | 0.07                                  |   |   |   | $ | 0.10 |   |   |
| **Earnings                per share assuming dilution**                   |   |                                                                  |                                  |   |   |   |   |   |   |   |
| Net                income available to common shareholders                |   | $                                                                     | 993                                   |   |   |   | $ | 1,315 |   |   |
| Weighted                average common shares outstanding                 |   |                                                                  | 13,558,404                            |   |   |   |   | 13,719,818 |   |   |
| Dilutive                effect of stock options                           |   |                                                                  | —                               |   |   |   |   | 19,787 |   |   |
| Dilutive                effect of stock awards                            |   |                                                                  | —                               |   |   |   |   | 8,522 |   |   |
| Average                common shares and dilutive potential common shares |   |                                                                  | 13,558,404                            |   |   |   |   | 13,748,127 |   |   |
| Diluted                earnings per share                                 |   | $                                                                     | 0.07                                  |   |   |   | $ | 0.10 |   |   |

**Note      3 – Stock Conversion**

----

| **Item                2.** | **MANAGEMENT’S                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND                RESULTS OF OPERATIONS** |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------------|

**Forward-Looking      Information**

**Comparison      of Financial Condition at September 30, 2007 and June 30,      2007.**

**Assets:**

**Deposits:**

**Borrowings:**

**Stockholders’      Equity:**

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**Average      Balances, Net Interest Income, Yields Earned and Rates      Paid**

|                                                                            |   | **For                the three months ended September 30,** |
|---------------------------------------------------------------------------------|--------|-------------------------------------------------------------|
|                                                                            |   |                                                        |   | **2007                (4)** |   |   |   |   |   |   |   | **2006                (4)** |   |   |   |
|                                                                            |   |                                                        |   |   |   | **Average** |   |   |   |   |   |   |   | **Average** |   |
|                                                                            |   | **Average**                                                 |   |   |   | **Yield/** |   |   |   | **Average** |   |   |   | **Yield/** |   |
|                                                                            |   | **Balance**                                                 |   | **Interest** |   | **Cost** |   |   |   | **Balance** |   | **Interest** |   | **Cost** |   |
|                                                                            |   | **(Dollars                in thousands)**                   |
| **INTEREST-EARNING                ASSETS**                                      |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                receivable(1)                                              |   | $                                                           | 702,819 |   | $ | 10,273 |   | 5.85 | % |   |   | $ | 631,919 |   | $ | 8,904 |   | 5.64 | % |
| Securities(2)                                                                   |   |                                                        | 34,099 |   |   | 373 |   | 4.38 | % |   |   |   | 35,366 |   |   | 347 |   | 3.92 | % |
| Fed                Funds                                                        |   |                                                        | 11,826 |   |   | 148 |   | 5.01 | % |   |   |   | 19,076 |   |   | 245 |   | 5.14 | % |
| Federal                Home Loan Bank stock                                     |   |                                                        | 10,003 |   |   | 119 |   | 4.76 | % |   |   |   | 8,848 |   |   | 113 |   | 5.11 | % |
| Interest-bearing                deposits in other financial institutions        |   |                                                        | 2,970 |   |   | 25 |   | 3.37 | % |   |   |   | 9,010 |   |   | 82 |   | 3.64 | % |
| Other                interest-earning assets                                    |   |                                                        | 3,663 |   |   | 49 |   | 5.35 | % |   |   |   | 2,188 |   |   | 34 |   | 6.22 | % |
| Total                interest-earning assets                                    |   |                                                        | 765,380 |   |   | 10,987 |   | 5.74 | % |   |   |   | 706,407 |   |   | 9,725 |   | 5.51 | % |
| Noninterest                earning assets                                       |   |                                                        | 37,408 |   |   |   |   |   |   |   |   |   | 33,768 |   |   |   |   |   |   |
| Total                assets                                                     |   | $                                                           | 802,788 |   |   |   |   |   |   |   |   | $ | 740,175 |   |   |   |   |   |   |
|                                                                            |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INTEREST-BEARING  LIABILITIES**                                     |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money                Market                                                     |   | $                                                           | 74,728 |   | $ | 529 |   | 2.83 | % |   |   | $ | 111,367 |   | $ | 799 |   | 2.87 | % |
| Savings                deposits                                                 |   |                                                        | 132,759 |   |   | 601 |   | 1.81 | % |   |   |   | 89,329 |   |   | 90 |   | 0.40 | % |
| Certificates                of deposit                                          |   |                                                        | 255,695 |   |   | 3,003 |   | 4.70 | % |   |   |   | 218,013 |   |   | 2,282 |   | 4.19 | % |
| FHLB                advances                                                    |   |                                                        | 205,019 |   |   | 2,327 |   | 4.54 | % |   |   |   | 182,463 |   |   | 1,982 |   | 4.34 | % |
| Total                interest-bearing liabilities                               |   |                                                        | 668,201 |   |   | 6,460 |   | 3.87 | % |   |   |   | 601,172 |   |   | 5,153 |   | 3.43 | % |
| Noninterest                bearing liabilities                                  |   |                                                        | 41,811 |   |   |   |   |   |   |   |   |   | 46,118 |   |   |   |   |   |   |
| Total                liabilities                                                |   |                                                        | 710,012 |   |   |   |   |   |   |   |   |   | 647,290 |   |   |   |   |   |   |
| Equity                                                                          |   |                                                        | 92,776 |   |   |   |   |   |   |   |   |   | 92,885 |   |   |   |   |   |   |
| Total                liabilities and equity                                     |   | $                                                           | 802,788 |   |   |   |   |   |   |   |   | $ | 740,175 |   |   |   |   |   |   |
| Net                interest/spread                                              |   |                                                        |   |   | $ | 4,527 |   | 1.87 | % |   |   |   |   |   | $ | 4,572 |   | 2.08 | % |
|                                                                            |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Margin(3)                                                                       |   |                                                        |   |   |   |   |   | 2.37 | % |   |   |   |   |   |   |   |   | 2.59 | % |
|                                                                            |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio                of interest-earning assets to interest bearing liabilities |   |                                                        | 114.54 | % |   |   |   |   |   |   |   |   | 117.50 | % |   |   |   |   |   |
|                                                                            |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)                Calculated net of deferred fees and loss reserves            |
| (2)                Calculated based on amortized cost                           |
| (3)                Net interest income divided by interest-earning assets       |
| (4)                Yields earned and rates paid have been annualized            |
|                                                                            |

----

**Comparison      of Results of Operations for the Three Months Ended September 30, 2007 and      September 30, 2006.**

**General.      **

**Interest      Income. **

**Interest      Expense**

**Net      Interest Income**

**Provision      for Loan Losses**

----

**Noninterest      Income. **

----

**Noninterest      Expense. **

**Income      Tax Expense**

**Liquidity      and Commitments**

----

**Capital**

|                                                               |   |     **Actual**        |   |    **Minimum                Capital Requirements** |   | **Minimum                required to be Well Capitalized Under Prompt Corrective Actions                Provisions** |   |
|--------------------------------------------------------------------|--------|-------------------------------------------|--------|-------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------|--------|
|                                                               |   | **Amount**                                |   | **Ratio**                                                         |   | **Amount**                                                                                                           |   | **Ratio** |   | **Amount** |   | **Ratio** |   |
|                                                               |   | **(Dollars                in thousands)** |   |
| Total                risk-based capital (to risk-weighted assets)  |   | $68,959                                   |   | 13.33                                                             | %      | $41,391                                                                                                              |   | 8.00 | % | $51,739 |   | 10.00 | % |
| Tier                1 risk-based capital (to risk-weighted assets) |   | 66,135                                    |   | 12.78                                                             |   | 20,696                                                                                                               |   | 4.00 |   | 31,043 |   | 6.00 |   |
| Tier                1 (core) capital (to adjusted tangible assets) |   | 66,135                                    |   | 8.40                                                              |   | 31,508                                                                                                               |   | 4.00 |   | 39,385 |   | 5.00 |   |

**Impact      of Inflation**

----

**ITEM      3. Quantitative      and Qualitative Disclosures      About Market Risk**

**Our      Risk When Interest Rates Change. **

**How      We Measure Our Risk of Interest Rate Changes. **

----

|                                                                                                                   |                                         | **June                30, 2007** |                                      |
|------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|----------------------------------|-------------------------------------------|
| **Change                in interest rates in basis points (“bp”)****(Rate                shock in rates)** |                                         |                             |                                      |   |   |   |   |
|                                                                                                                   | **Net                portfolio value (NPV)** |                             |                                      |   | **NPV                as % of PV of assets** |   |
|                                                                                                                   | **$                amount**                  |                             |                                      |   | **$                change** |   |   |   | **%                change** |   |   |   | **NPV                ratio** |   |   |   | **Change(bp)** |   |
|                                                                                                                   |                                         |                             | **(Dollars                in thousands)** |   |   |   |   |   |   |   |   |   |   |   |   |   |
| +300                bp                                                                                                 |                                         | $                                | 39,973                                    |   |   |   | $ | (38,212 | ) |   |   | (49 | )% |   |   | 5.49 | % |   |   | (445 | )bp |
| +200                bp                                                                                                 |                                         |                             | 54,079                                    |   |   |   |   | (24,106 | ) |   |   |  (31 | ) |   |   | 7.22 |   |   |   |  (272 | ) |
| +100                bp                                                                                                 |                                         |                             | 67,237                                    |   |   |   |   | (10,948 | ) |   |   |  (14 | ) |   |   | 8.75 |   |   |   |  (119 | ) |
| 0                bp                                                                                                    |                                         |                             | 78,185                                    |   |   |   |   | — |   |   |   | — |   |   |   | 9.94 |   |   |   | — |   |
| -100                bp                                                                                                 |                                         |                             | 85,981                                    |   |   |   |   | 7,796 |   |   |   | 10 |   |   |   | 10.72 |   |   |   | 78 |   |
| -200                bp                                                                                                 |                                         |                             | 88,745                                    |   |   |   |   |  10,560 |   |   |   |  14 |   |   |   | 10.92 |   |   |   |  98 |   |

**ITEM      4. Controls and Procedures**

----

**PART      II. OTHER INFORMATION**

**Item      1. Legal Proceedings**

**Item      1A. Risk Factors**

**Item        2. Unregistered Sales of Equity Securities        and Use of        Proceeds**

**Item      3. Defaults Upon Senior Securities**

**Item      4. Submission of Matters to a Vote of Security      Holders**

**Item      5. Other Information**

**Item      6. Exhibits**

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**SIGNATURES**

----

**EXHIBIT      31.1**

**Certification      of the Chief Executive Officer**

**Pursuant      to Section 302 of the Sarbanes-Oxley Act**

| 1. | I                have reviewed this Quarterly Report on Form 10-Q of K-Fed                Bancorp; |
|----|----------------------------------------------------------------------------------------------------|

| 2. | Based                on my knowledge, this report does not contain any untrue statement                of a                material fact or omit to state a material fact necessary to make                the                statements made, in light of the circumstances under which such statements                were made, not misleading with respect to the period covered by this                report; |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Based                on my knowledge, the financial statements, and other financial information                included in this report, fairly present in all material respects                the                financial condition, results of operations and cash flows of the                registrant as of, and for, the periods presented in this                report; |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The                registrant’s other certifying officer(s) and I are responsible for                establishing and maintaining disclosure controls and procedures (as                defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and 15d-15(e))                and                internal control over financial reporting (as defined in Exchange                Act                Rules 13a-15(f) and 15d-15(f)) for the registrant and                have: |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Designed                such disclosure controls and procedures, or caused such disclosure                controls and procedures to be designed under our supervision, to                ensure                that material information relating to the registrant, including its                consolidated subsidiaries, is made known to us by others within those                entities, particularly during the period in which this report is                being                prepared; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Designed                such internal control over financial reporting, or cause such internal                control over financial reporting to be designed under our supervision,                to                provide reasonable assurance regarding the reliability of financial                reporting and the preparation of financial statements for external                purposes in accordance with generally accepted accounting                principles; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Evaluated                the effectiveness of the registrant’s disclosure controls and procedures                and presented in this report our conclusions about the effectiveness                of                the disclosure controls and procedures, as of the end of the period                covered by this report based on such evaluation;                and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Disclosed                in this report any changes in the registrant’s internal control over                financial reporting that occurred during the registrant’s most recent                fiscal quarter (the registrant’s fourth fiscal quarter in the case of an                annual report) that has materially affected, or is reasonably likely                to                materially effect, the registrant’s internal control over financial                reporting; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | The                registrant’s other certifying officer(s) and I have disclosed, based on                our most recent evaluation of internal control over financial reporting,                to the registrant’s auditors and the audit committee of the registrant’s                board of directors (or persons performing the equivalent                functions): |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | All                significant deficiencies and material weaknesses in the design or                operation of internal control over financial reporting which are                reasonably likely to adversely affect the registrant’s ability to record,                process, summarize and report financial information;                and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Any                fraud, whether or not material, that involves management or other                employees who have a significant role in the registrant’s internal control                over financial reporting. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**EXHIBIT      31.2**

**Certification      of the Chief Financial Officer**

**Pursuant      to Section 302 of the Sarbanes-Oxley Act**

| 1. | I                have reviewed this Quarterly Report on Form 10-Q of K-Fed                Bancorp; |
|----|----------------------------------------------------------------------------------------------------|

| 2. | Based                on my knowledge, this report does not contain any untrue statement                of a                material fact or omit to state a material fact necessary to make                the                statements made, in light of the circumstances under which such statements                were made, not misleading with respect to the period covered by this                report; |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Based                on my knowledge, the financial statements, and other financial information                included in this report, fairly present in all material respects                the                financial condition, results of operations and cash flows of the                registrant as of, and for, the periods presented in this                report; |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The                registrant’s other certifying officer(s) and I are responsible for                establishing and maintaining disclosure controls and procedures (as                defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and 15d-15(e))                and                internal control over financial reporting (as defined in Exchange                Act                Rules 13a-15(f) and 15d-15(f)) for the registrant and                have: |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Designed                such disclosure controls and procedures, or caused such disclosure                controls and procedures to be designed under our supervision, to                ensure                that material information relating to the registrant, including its                consolidated subsidiaries, is made known to us by others within those                entities, particularly during the period in which this report is                being                prepared; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Designed                such internal control over financial reporting, or cause such internal                control over financial reporting to be designed under our supervision,                to                provide reasonable assurance regarding the reliability of financial                reporting and the preparation of financial statements for external                purposes in accordance with generally accepted accounting                principles; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Evaluated                the effectiveness of the registrant’s disclosure controls and procedures                and presented in this report our conclusions about the effectiveness                of                the disclosure controls and procedures, as of the end of the period                covered by this report based on such evaluation;                and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Disclosed                in this report any changes in the registrant’s internal control over                financial reporting that occurred during the registrant’s most recent                fiscal quarter (the registrant’s fourth fiscal quarter in the case of an                annual report) that has materially affected, or is reasonably likely                to                materially effect, the registrant’s internal control over financial                reporting; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | The                registrant’s other certifying officer(s) and I have disclosed, based on                our most recent evaluation of internal control over financial reporting,                to the registrant’s auditors and the audit committee of the registrant’s                board of directors (or persons performing the equivalent                functions): |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | All                significant deficiencies and material weaknesses in the design or                operation of internal control over financial reporting which are                reasonably likely to adversely affect the registrant’s ability to record,                process, summarize and report financial information;                and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Any                fraud, whether or not material, that involves management or other                employees who have a significant role in the registrant’s internal control                over financial reporting. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**EXHIBIT      32.1**

**Certification      of the Chief Executive Officer**

**Pursuant      to 18 U.S.C. Section 1350,**

**as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002**

|   | 1. | The                Report fully complies with the requirements of sections 13(a) or                15(d) of                the Securities Exchange Act of 1934, as amended,                and |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The                information contained in the report fairly presents, in all material                respects, the company’s financial condition and results of                operations. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**EXHIBIT      32.2**

**Certification      of the Chief Financial Officer**

**Pursuant      to 18 U.S.C. Section 1350,**

**as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002**

|   | 1. | The                Report fully complies with the requirements of sections 13(a) or                15(d) of                the Securities Exchange Act of 1934, as amended,                and |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The                information contained in the report fairly presents, in all material                respects, the company’s financial condition and results of                operations. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----