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| UNITED STATES                                             |
|-----------------------------------------------------------|
| SECURITIES AND EXCHANGE COMMISSION                        |
| WASHINGTON, D.C. 20549                                    |
|                                                      |
| FORM 10-Q                                                 |
|                                                      |
|                                                      | (Mark One) |
| x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) of     |
| THE SECURITIES EXCHANGE ACT OF 1934                       |
|                                                      |
| For the quarterly period ended:  March 31, 2010 |
|                                                      |
| OR                                                        |
|                                                      |
| o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) of    |
| THE SECURITIES EXCHANGE ACT OF 1934                       |
|                                                      |
| For the transition period from _____ to _____             |
|                                                      |
| Commission File Number: 000-50592                         |
|                                                      |
| K-FED BANCORP                                             |
| (Exact name of registrant as specified in its charter)    |

| 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 |                                 |
| (Registrant’s telephone number, including area code) |

| Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yes x No o                                                                                                                                                                                                                                                                                                                                              |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).Yes o No o                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):Large accelerated filer o                                           Accelerated filer o Non-accelerated filer o Smaller Reporting Company x |

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| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes o No x          |
|-------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                |
| Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: |
|                                                                                                                                |
| Common Stock, $.01 par value – 13,291,325 shares outstanding as of April 30, 2010.                                            |

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| 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 March 31, 2010 and June 30, 2009                                     | 1      |
|     | Consolidated Statements of Income and Comprehensive Income for the Three and Nine Months Ended March 31, 2010 and 2009 | 2      |
|     | Consolidated Statement of Stockholders’ Equity for the Nine Months Ended March 31, 2010                          | 3      |
|     | Consolidated Statements of Cash Flows for the Nine Months Ended March 31, 2010 and 2009                                | 4      |
|     | Notes to Consolidated Financial Statements                                                                             | 5      |
|     |                                                                                                                   |   |
| Item 2:  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                            | 15     |
|     |                                                                                                                   |   |
| Item 3:  | Quantitative and Qualitative Disclosures about Market Risk                                                             | 28     |
|     |                                                                                                                   |   |
| Item 4:  | Controls and Procedures                                                                                                | 29     |
|     |                                                                                                                   |   |
| Part II. | OTHER INFORMATION                                                                                                      |   |
|     |                                                                                                                   |   |
| Item 1:  | Legal Proceedings                                                                                                      | 29     |
| Item 1A: | Risk Factors                                                                                                           | 29     |
| Item 2:  | Unregistered Sales of Equity Securities and Use of Proceeds                                                            | 30     |
| Item 3:  | Defaults upon Senior Securities                                                                                        | 30     |
| Item 4:  | Reserved and Removed                                                                                                   | 30     |
| Item 5:  | Other Information                                                                                                      | 30     |
| Item 6:  | Exhibits                                                                                                               | 31     |
|     |                                                                                                                   |   |
|     | SIGNATURES                                                                                                             | 32     |
|     |                                                                                                                   |   |
|     |                                                                                                                   |   |

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Table of Contents

K-FED BANCORP AND SUBSIDIARY

|                                                                                                                                               |   | March 31,2010 |    |   | June 30,2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|--------------|--------|
| ASSETS                                                                                                                                             |   |          |    |   |         |   |
| Cash and due from banks                                                                                                                            |   | $             | 8,697   |   |         | $      | 32,685 |   |
| Federal funds sold                                                                                                                                 |   |          | 57,440  |   |         |   | 41,020 |   |
| Total cash and cash equivalents                                                                                                                    |   |          | 66,137  |   |         |   | 73,705 |   |
| Interest earning time deposits in other financial institutions                                                                                     |   |          | 24,146  |   |         |   | 25,508 |   |
| Securities available-for-sale, at fair value                                                                                                       |   |          | 2,748   |   |         |   | 4,236 |   |
| Securities held-to-maturity, fair value of $4,215 and $5,625 at March 31, 2010 and June 30, 2009, respectively                                     |   |          | 4,101   |   |         |   | 5,528 |   |
| Federal Home Loan Bank stock, at cost                                                                                                              |   |          | 12,649  |   |         |   | 12,649 |   |
| Loans receivable, net of allowance for loan losses of $12,820 and $4,586 at March 31, 2010 and June 30, 2009, respectively                         |   |          | 752,607 |   |         |   | 746,875 |   |
| Accrued interest receivable                                                                                                                        |   |          | 3,154   |   |         |   | 3,402 |   |
| Premises and equipment, net                                                                                                                        |   |          | 2,167   |   |         |   | 2,562 |   |
| Core deposit intangible                                                                                                                            |   |          | 99      |   |         |   | 147 |   |
| Goodwill                                                                                                                                           |   |          | 3,950   |   |         |   | 3,950 |   |
| Bank-owned life insurance                                                                                                                          |   |          | 12,250  |   |         |   | 11,884 |   |
| Real estate owned                                                                                                                                  |   |          | 976     |   |         |   | 496 |   |
| Other assets                                                                                                                                       |   |          | 8,150   |   |         |   | 4,155 |   |
| Total assets                                                                                                                                       |   | $             | 893,134 |   |         | $      | 895,097 |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                         |   |          |    |   |         |   |   |   |
| Liabilities                                                                                                                                        |   |          |    |   |         |   |   |   |
| Deposits                                                                                                                                           |   |          |    |   |         |   |   |   |
| Noninterest bearing                                                                                                                                |   | $             | 65,032  |   |         | $      | 50,161 |   |
| Interest bearing                                                                                                                                   |   |          | 583,706 |   |         |   | 516,032 |   |
| Total deposits                                                                                                                                     |   |          | 648,738 |   |         |   | 566,193 |   |
| Federal Home Loan Bank advances, short-term                                                                                                        |   |          | 62,000  |   |         |   | 70,000 |   |
| Federal Home Loan Bank advances, long-term                                                                                                         |   |          | 85,000  |   |         |   | 137,004 |   |
| State of California time deposit                                                                                                                   |   |          | — |   |         |   | 25,000 |   |
| Accrued expenses and other liabilities                                                                                                             |   |          | 4,375   |   |         |   | 4,342 |   |
| Total liabilities                                                                                                                                  |   |          | 800,113 |   |         |   | 802,539 |   |
| 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;March 31, 2010 — 14,728,440 shares issuedJune 30, 2009 — 14,728,440 shares issued |   |          | 147     |   |         |   | 147 |   |
| Additional paid-in capital                                                                                                                         |   |          | 59,473  |   |         |   | 59,134 |   |
| Retained earnings                                                                                                                                  |   |          | 53,433  |   |         |   | 53,512 |   |
| Accumulated other comprehensive income, net of tax                                                                                                 |   |          | 54      |   |         |   | 77 |   |
| Unearned employee stock ownership plan (ESOP) shares                                                                                               |   |          | (1,820  | )      |         |   | (2,161 | ) |
| Treasury stock, at cost (March 31, 2010 — 1,437,115 shares;June 30, 2009 — 1,423,852 shares)                                           |   |          | (18,266 | )      |         |   | (18,151 | ) |
| Total stockholders’ equity                                                                                                                   |   |          | 93,021  |   |         |   | 92,558 |   |
| Total liabilities and stockholders’ equity                                                                                                   |   | $             | 893,134 |   |         | $      | 895,097 |   |
| The accompanying notes are an integral part of these unaudited consolidated financial statements                                                   |   |

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K-FED BANCORP AND SUBSIDIARY

|                                                                                             |   | Three Months EndedMarch 31, |   |   | Nine Months EndedMarch 31, |   |
|--------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|----------------------------|--------|
|                                                                                             |   | 2010                        |   |   | 2009                       |   |   | 2010 |   |   | 2009 |   |
| Interest income                                                                                  |   |                        |   |   |                       |   |   |   |   |   |   |   |
| Interest and fees on loans                                                                       |   | $                           | 11,049 |   |                       | $      | 11,059 |   |   | $ | 33,101 |   |   | $ | 32,678 |   |
| Interest on securities, taxable                                                                  |   |                        | 83     |   |                       |   | 146 |   |   |   | 278 |   |   |   | 485 |   |
| Federal Home Loan Bank dividends                                                                 |   |                        | 8      |   |                       |   | — |   |   |   | 35 |   |   |   | 314 |   |
| Other interest                                                                                   |   |                        | 111    |   |                       |   | 79 |   |   |   | 374 |   |   |   | 425 |   |
| Total interest income                                                                            |   |                        | 11,251 |   |                       |   | 11,284 |   |   |   | 33,788 |   |   |   | 33,902 |   |
| Interest expense                                                                                 |   |                        |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Interest on deposits                                                                             |   |                        | 2,676  |   |                       |   | 3,145 |   |   |   | 8,229 |   |   |   | 10,098 |   |
| Interest on borrowings                                                                           |   |                        | 1,665  |   |                       |   | 2,333 |   |   |   | 5,697 |   |   |   | 7,556 |   |
| Total interest expense                                                                           |   |                        | 4,341  |   |                       |   | 5,478 |   |   |   | 13,926 |   |   |   | 17,654 |   |
| Net interest income                                                                              |   |                        | 6,910  |   |                       |   | 5,806 |   |   |   | 19,862 |   |   |   | 16,248 |   |
| Provision for loan losses                                                                        |   |                        | 2,272  |   |                       |   | 660 |   |   |   | 8,787 |   |   |   | 2,007 |   |
| Net interest income after provision for loan losses                                              |   |                        | 4,638  |   |                       |   | 5,146 |   |   |   | 11,075 |   |   |   | 14,241 |   |
| Noninterest income                                                                               |   |                        |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Service charges and fees                                                                         |   |                        | 528    |   |                       |   | 514 |   |   |   | 1,722 |   |   |   | 1,755 |   |
| ATM fees and charges                                                                             |   |                        | 457    |   |                       |   | 380 |   |   |   | 1,377 |   |   |   | 1,256 |   |
| Referral commissions                                                                             |   |                        | 74     |   |                       |   | 76 |   |   |   | 232 |   |   |   | 230 |   |
| Loss on equity investment                                                                        |   |                        | (75    | )      |                       |   | (75 | ) |   |   | (225 | ) |   |   | (207 | ) |
| Bank-owned life insurance                                                                        |   |                        | 123    |   |                       |   | 120 |   |   |   | 366 |   |   |   | 357 |   |
| Other noninterest income                                                                         |   |                        | 8      |   |                       |   | 23 |   |   |   | 36 |   |   |   | 35 |   |
| Total noninterest income                                                                         |   |                        | 1,115  |   |                       |   | 1,038 |   |   |   | 3,508 |   |   |   | 3,426 |   |
| Noninterest expense                                                                              |   |                        |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and benefits                                                                            |   |                        | 1,993  |   |                       |   | 2,095 |   |   |   | 6,254 |   |   |   | 6,077 |   |
| Occupancy and equipment                                                                          |   |                        | 588    |   |                       |   | 588 |   |   |   | 1,770 |   |   |   | 1,777 |   |
| ATM expense                                                                                      |   |                        | 456    |   |                       |   | 450 |   |   |   | 1,294 |   |   |   | 1,172 |   |
| Advertising and promotional                                                                      |   |                        | 68     |   |                       |   | 106 |   |   |   | 279 |   |   |   | 300 |   |
| Professional services                                                                            |   |                        | 283    |   |                       |   | 176 |   |   |   | 682 |   |   |   | 635 |   |
| Federal deposit insurance premiums                                                               |   |                        | 279    |   |                       |   | 195 |   |   |   | 771 |   |   |   | 373 |   |
| Postage                                                                                          |   |                        | 71     |   |                       |   | 67 |   |   |   | 207 |   |   |   | 211 |   |
| Telephone                                                                                        |   |                        | 173    |   |                       |   | 160 |   |   |   | 523 |   |   |   | 412 |   |
| Other operating expense                                                                          |   |                        | 339    |   |                       |   | 381 |   |   |   | 1,063 |   |   |   | 1,163 |   |
| Total noninterest expense                                                                        |   |                        | 4,250  |   |                       |   | 4,218 |   |   |   | 12,843 |   |   |   | 12,120 |   |
| Income before income tax expense                                                                 |   |                        | 1,503  |   |                       |   | 1,966 |   |   |   | 1,740 |   |   |   | 5,547 |   |
| Income tax expense                                                                               |   |                        | 394    |   |                       |   | 772 |   |   |   | 427 |   |   |   | 2,013 |   |
| Net income                                                                                       |   | $                           | 1,109  |   |                       | $      | 1,194 |   |   | $ | 1,313 |   |   | $ | 3,534 |   |
| Comprehensive income                                                                             |   | $                           | 1,103  |   |                       | $      | 1,226 |   |   | $ | 1,290 |   |   | $ | 3,587 |   |
| Earnings per common share:                                                                       |   |                        |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                            |   | $                           | 0.08   |   |                       | $      | 0.09 |   |   | $ | 0.10 |   |   | $ | 0.27 |   |
| Diluted                                                                                          |   | $                           | 0.08   |   |                       | $      | 0.09 |   |   | $ | 0.10 |   |   | $ | 0.27 |   |
| The accompanying notes are an integral part of these unaudited consolidated financial statements |   |

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K-FED BANCORP AND SUBSIDIARY

|                                                                                             |   |                |   | Common Stock |   |       |   |                       |    |              |   |                                        |   | Treasury Stock       |    |   |   |
|--------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------------|--------|------------|--------|----------------------------|---------|-------------------|--------|---------------------------------------------|--------|----------------------|---------|--------|--------|
|                                                                                             |   | ComprehensiveIncome |   | Shares       |   | Amount     |   | Additional Paid-in Capital |    | Retained Earnings |   | Accumulated Other Comprehensive Income, net |   | Unearned ESOP Shares |    | Shares |   | Amount |   | Total |   |
| Balance June 30, 2009                                                                            |   |                |   |         |   | 14,728,440 |   | $                          | 147     |              | $      | 59,134                                      |   | $                    | 53,512  |   | $      | 77 |   | $ | (2,161 | ) |   | (1,423,852 | ) | $ | (18,151 | ) | $ | 92,558 |   |
| Comprehensive income                                                                             |   |                |   |         |   |       |   |                       |    |              |   |                                        |   |                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income for the nine months ended March 31, 2010                                              |   | $                   | 1,313  |         |   | —    |   |                       | — |              |   | —                                     |   |                 | 1,313   |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 1,313 |   |
| Other comprehensive income – unrealized loss on securities, net of tax                     |   |                | (23    | )            |   | —    |   |                       | — |              |   | —                                     |   |                 | — |   |   | (23 | ) |   | — |   |   | — |   |   | — |   |   | (23 | ) |
| Total comprehensive income                                                                       |   | $                   | 1,290  |         |   |       |   |                       |    |              |   |                                        |   |                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends declared ($0.33 per share) *                                                           |   |                |   |         |   | —    |   |                       | — |              |   | —                                     |   |                 | (1,392  | )      |   | — |   |   | — |   |   | — |   |   | — |   |   | (1,392 | ) |
| Purchase of treasury stock                                                                       |   |                |   |         |   | —    |   |                       | — |              |   | —                                     |   |                 | — |   |   | — |   |   | — |   |   | (13,263 | ) |   | (115 | ) |   | (115 | ) |
| Stock options earned                                                                             |   |                |   |         |   | —    |   |                       | — |              |   | 203                                         |   |                 | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 203 |   |
| Allocation of stock awards                                                                       |   |                |   |         |   | —    |   |                       | — |              |   | 176                                         |   |                 | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 176 |   |
| Allocation of ESOP common stock                                                                  |   |                |   |         |   | —    |   |                       | — |              |   | (40                                         | )      |                 | — |   |   | — |   |   | 341 |   |   | — |   |   | — |   |   | 301 |   |
| Balance March 31, 2010                                                                           |   |                |   |         |   | 14,728,440 |   | $                          | 147     |              | $      | 59,473                                      |   | $                    | 53,433  |   | $      | 54 |   | $ | (1,820 | ) |   | (1,437,115 | ) | $ | (18,266 | ) | $ | 93,021 |   |
|                                                                                             |   |                |   |         |   |       |   |                       |    |              |   |                                        |   |                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                             |
| * 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 |

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K-FED BANCORP AND SUBSIDIARY

|                                                                                             |   | Nine Months EndedMarch 31, |    |
|--------------------------------------------------------------------------------------------------|--------|----------------------------|---------|
|                                                                                             |   | 2010                       |    |   | 2009 |   |
| OPERATING ACTIVITIES                                                                             |   |                       |    |   |   |   |
| Net income                                                                                       |   | $                          | 1,313   |   |   | $ | 3,534 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:                |   |                       |    |   |   |   |   |   |
| Amortization of net premiums on securities                                                       |   |                       | 2       |   |   |   | 7 |   |
| (Accretion) Amortization of net discounts on loan purchases                                      |   |                       | (17     | ) |   |   | 39 |   |
| Amortization (Accretion) of net loan origination costs                                           |   |                       | 52      |   |   |   | (43 | ) |
| Provision for loan losses                                                                        |   |                       | 8,787   |   |   |   | 2,007 |   |
| Federal Home Loan Bank stock (FHLB) dividend                                                     |   |                       | — |   |   |   | (314 | ) |
| Depreciation and amortization                                                                    |   |                       | 588     |   |   |   | 646 |   |
| Amortization of core deposit intangible                                                          |   |                       | 48      |   |   |   | 60 |   |
| Loss on equity investment                                                                        |   |                       | 225     |   |   |   | 207 |   |
| Increase in cash surrender value of bank-owned life insurance                                    |   |                       | (366    | ) |   |   | (357 | ) |
| Accretion of debt exchange costs                                                                 |   |                       | (4      | ) |   |   | (11 | ) |
| Allocation of ESOP common stock                                                                  |   |                       | 301     |   |   |   | 285 |   |
| Allocation of stock awards                                                                       |   |                       | 176     |   |   |   | 306 |   |
| Stock options earned                                                                             |   |                       | 203     |   |   |   | 265 |   |
| Net change in accrued interest receivable                                                        |   |                       | 248     |   |   |   | 16 |   |
| Net change in other assets                                                                       |   |                       | (4,340  | ) |   |   | 497 |   |
| Net change in accrued expenses and other liabilities                                             |   |                       | 33      |   |   |   | (268 | ) |
| Net cash provided by operating activities                                                        |   |                       | 7,249   |   |   |   | 6,876 |   |
|                                                                                             |   |                       |    |   |   |   |   |   |
| INVESTING ACTIVITIES                                                                             |   |                       |    |   |   |   |   |   |
| Proceeds from maturities and principal repayments of available-for-sale securities               |   |                       | 1,453   |   |   |   | 3,698 |   |
| Proceeds from maturities and principal repayments of held-to-maturity securities                 |   |                       | 1,426   |   |   |   | 562 |   |
| Net change in interest earning time deposits with other financial institutions                   |   |                       | 1,362   |   |   |   | (9,042 | ) |
| Net change in loans                                                                              |   |                       | (15,929 | ) |   |   | (13,153 | ) |
| Proceeds from sale of real estate owned                                                          |   |                       | 1,026   |   |   |   | 1,565 |   |
| Redemption of FHLB stock                                                                         |   |                       | — |   |   |   | 205 |   |
| Purchases of premises and equipment                                                              |   |                       | (193    | ) |   |   | (279 | ) |
| Net cash used in investing activities                                                            |   |                       | (10,855 | ) |   |   | (16,444 | ) |
|                                                                                             |   |                       |    |   |   |   |   |   |
| FINANCING ACTIVITIES                                                                             |   |                       |    |   |   |   |   |   |
| Repayment of FHLB advances                                                                       |   |                       | (60,000 | ) |   |   | (28,000 | ) |
| Dividends paid on common stock                                                                   |   |                       | (1,392  | ) |   |   | (1,414 | ) |
| Purchase of treasury stock                                                                       |   |                       | (115    | ) |   |   | (1,762 | ) |
| Net change in deposits                                                                           |   |                       | 82,545  |   |   |   | 59,192 |   |
| Repayment of State of California time deposit                                                    |   |                       | (25,000 | ) |   |   | — |   |
| Net cash (used in) provided by financing activities                                              |   |                       | (3,962  | ) |   |   | 28,016 |   |
|                                                                                             |   |                       |    |   |   |   |   |   |
| Net decrease in cash and cash equivalents                                                        |   |                       | (7,568  | ) |   |   | 18,448 |   |
| Beginning cash and cash equivalents                                                              |   |                       | 73,705  |   |   |   | 51,240 |   |
| Ending cash and cash equivalents                                                                 |   | $                          | 66,137  |   |   | $ | 69,688 |   |
|                                                                                             |   |                       |    |   |   |   |   |   |
| The accompanying notes are an integral part of these unaudited consolidated financial statements |   |

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|                                                |   | Three months endedMarch 31,                   |       |   | Nine months endedMarch 31, |   |
|-----------------------------------------------------|--------|-----------------------------------------------|------------|--------|----------------------------|--------|
|                                                |   | 2010                                          |       |   | 2009                       |   |   | 2010 |   |   | 2009 |   |
| Basic                                               |   | (Dollars in thousands, except per share data) |       |
| Net income                                          |   | $                                             | 1,109      |   |                       | $      | 1,194 |   |   | $ | 1,313 |   |   | $ | 3,534 |   |
| Weighted average common shares outstanding          |   |                                          | 13,098,226 |   |                       |   | 13,114,939 |   |   |   | 13,093,989 |   |   |   | 13,145,925 |   |
| Basic earnings per share                            |   | $                                             | 0.08       |   |                       | $      | 0.09 |   |   | $ | 0.10 |   |   | $ | 0.27 |   |
|                                                |   |                                          |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                             |   |                                          |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                          |   | $                                             | 1,109      |   |                       | $      | 1,194 |   |   | $ | 1,313 |   |   | $ | 3,534 |   |
|                                                |   |                                          |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding          |   |                                          | 13,098,226 |   |                       |   | 13,114,939 |   |   |   | 13,093,989 |   |   |   | 13,145,925 |   |
| Dilutive effect of stock options                    |   |                                          | —    |   |                       |   | — |   |   |   | — |   |   |   | 119,968 |   |
| Average shares and dilutive potential common shares |   |                                          | 13,098,226 |   |                       |   | 13,114,939 |   |   |   | 13,093,989 |   |   |   | 13,265,893 |   |
| Diluted earnings per share                          |   | $                                             | 0.08       |   |                       | $      | 0.09 |   |   | $ | 0.10 |   |   | $ | 0.27 |   |

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|                                              |   |                   |   | Fair Value Measurements at March 31, 2010 Using                |   |
|---------------------------------------------------|--------|------------------------|--------|----------------------------------------------------------------|--------|
| Assets at March 31, 2010:                         |   | Total                  |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   | Significant Other Observable Inputs (Level 2) |   | Significant Unobservable Inputs(Level 3) |   |
|                                              |   | (Dollars in thousands) |   |
| Available-for-sale securities                     |   |                   |   |                                                           |   |   |   |   |   |   |   |   |
| Mortgage-backed securities (residential)          |   | $                      | 390    |                                                           |   | $ | — |   |   | $ | 390 |   |   | $ | — |   |
| Collateralized mortgage obligations (residential) |   | $                      | 2,358  |                                                           |   | $ | — |   |   | $ | 2,358 |   |   | $ | — |   |

|                                              |   |                   |   | Fair Value Measurements at June 30, 2009 Using                |   |
|---------------------------------------------------|--------|------------------------|--------|---------------------------------------------------------------|--------|
| Assets at June 30, 2009:                          |   | Total                  |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   | Significant Other Observable Inputs (Level 2) |   | Significant Unobservable Inputs(Level 3) |   |
|                                              |   | (Dollars in thousands) |   |
| Available-for-sale securities                     |   |                   |   |                                                          |   |   |   |   |   |   |   |   |
| Mortgage-backed securities (residential)          |   | $                      | 524    |                                                          |   | $ | — |   |   | $ | 524 |   |   | $ | — |   |
| Collateralized mortgage obligations (residential) |   | $                      | 3,712  |                                                          |   | $ | — |   |   | $ | 3,712 |   |   | $ | — |   |

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|                      |   |                   |   |   | Fair Value Measurements at March 31, 2010 Using                |   |
|---------------------------|--------|------------------------|--------|--------|----------------------------------------------------------------|--------|
| Assets at March 31, 2010: |   | Total                  |   |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
|                      |   | (Dollars in thousands) |   |
| Impaired loans            |   | $                      | 18,307 |   |                                                           | $      | — |   |   | $ | — |   |   | $ | 18,307 |   |
| Real estate owned         |   | $                      | 976    |   |                                                           | $      | — |   |   | $ | — |   |   | $ | 976 |   |

|                     |   |                   |   |   | Fair Value Measurements at June 30, 2009 Using                 |   |
|--------------------------|--------|------------------------|--------|--------|----------------------------------------------------------------|--------|
| Assets at June 30, 2009: |   | Total                  |   |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
|                     |   | (Dollars in thousands) |   |
| Impaired loans           |   | $                      | 3,855  |   |                                                           | $      | — |   |   | $ | — |   |   | $ | 3,855 |   |
| Real estate owned        |   | $                      | 496    |   |                                                           | $      | — |   |   | $ | — |   |   | $ | 496 |   |

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|                                                           |   | March 31, 2010 |    |   | June 30, 2009 |   |
|----------------------------------------------------------------|--------|----------------|---------|--------|---------------|--------|
|                                                           |   | CarryingAmount |    |   | FairValue     |   |   | CarryingAmount |   |   | FairValue |   |
|                                                           |   | (In thousands) |    |
| Financial assets:                                              |   |           |    |   |          |   |   |   |   |   |   |   |
| Cash and cash equivalents                                      |   | $              | 66,137  |   |          | $      | 66,137 |   |   | $ | 73,705 |   |   | $ | 73,705 |   |
| Interest earning time deposits in other financial institutions |   |           | 24,146  |   |          |   | 24,146 |   |   |   | 25,508 |   |   |   | 25,508 |   |
| Securities held-to-maturity                                    |   |           | 4,101   |   |          |   | 4,215 |   |   |   | 5,528 |   |   |   | 5,625 |   |
| Federal Home Loan Bank Stock                                   |   |           | 12,649  |   |          | NA     |   |   |   | 12,649 |   |   | NA |   |
| Loans receivable, net                                          |   |           | 734,300 |   |          |   | 765,117 |   |   |   | 743,020 |   |   |   | 767,255 |   |
| Accrued interest receivable                                    |   |           | 3,154   |   |          |   | 3,154 |   |   |   | 3,402 |   |   |   | 3,402 |   |
| Financial liabilities:                                         |   |           |    |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                       |   |           | 648,738 |   |          |   | 658,202 |   |   |   | 566,193 |   |   |   | 575,638 |   |
| Borrowings                                                     |   |           | 147,000 |   |          |   | 153,821 |   |   |   | 207,004 |   |   |   | 215,677 |   |
| State of California time deposit                               |   |           | — |   |          |   | — |   |   |   | 25,000 |   |   |   | 25,320 |   |

|                                               |   | FairValue      |   |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | AmortizedCost |   |
|----------------------------------------------------|--------|----------------|--------|--------|----------------------|--------|--------|-----------------------|--------|--------|---------------|--------|
|                                               |   | (In thousands) |   |
| March 31, 2010                                     |   |           |   |   |                 |   |   |                  |   |   |          |   |
| Mortgage-backed (residential):                     |   |           |   |   |                 |   |   |                  |   |   |          |   |
| Freddie Mac                                        |   | $              | 390    |   |                 | $      | 12     |                  |   | $      | —       |   |   | $ | 378 |   |
| Collateralized mortgage obligations (residential): |   |           |   |   |                 |   |   |                  |   |   |          |   |   |   |   |   |
| Freddie Mac                                        |   |           | 2,358  |   |                 |   | 80     |                  |   |   | —       |   |   |   | 2,278 |   |
| Total                                              |   | $              | 2,748  |   |                 | $      | 92     |                  |   | $      | —       |   |   | $ | 2,656 |   |
|                                               |   |           |   |   |                 |   |   |                  |   |   |          |   |   |   |   |   |
| June 30, 2009                                      |   |           |   |   |                 |   |   |                  |   |   |          |   |   |   |   |   |
| Mortgage-backed (residential):                     |   |           |   |   |                 |   |   |                  |   |   |          |   |   |   |   |   |
| Freddie Mac                                        |   | $              | 524    |   |                 | $      | 13     |                  |   | $      | —       |   |   | $ | 511 |   |
| Collateralized mortgage obligations (residential): |   |           |   |   |                 |   |   |                  |   |   |          |   |   |   |   |   |
| Freddie Mac                                        |   |           | 3,712  |   |                 |   | 117    |                  |   |   | —       |   |   |   | 3,595 |   |
| Total                                              |   | $              | 4,236  |   |                 | $      | 130    |                  |   | $      | —       |   |   | $ | 4,106 |   |
|                                               |   |           |   |   |                 |   |   |                  |   |   |          |   |   |   |   |   |

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|                                |   | CarryingAmount |   | GrossUnrecognizedGains |   | GrossUnrecognizedLosses |   | FairValue |    |
|-------------------------------------|--------|----------------|--------|------------------------|--------|-------------------------|--------|-----------|---------|
|                                |   | (In thousands) |   |
| March 31, 2010                      |   |           |   |                   |   |                    |   |      |    |
| Mortgage-backed                     |   |           |   |                   |   |                    |   |      |    |   |   |   |   |
| Fannie Mae                          |   | $              | 167    |                   | $      | 1                       |   | $         | ─ |   | $ | 168 |   |
| Freddie Mac                         |   |           | 138    |                   |   | 6                       |   |      | ─ |   |   | 144 |   |
| Ginnie Mae                          |   |           | 100    |                   |   | 3                       |   |      | ─ |   |   | 103 |   |
| Collateralized mortgage obligations |   |           |   |                   |   |                    |   |      |    |   |   |   |   |
| Fannie Mae                          |   |           | 1,487  |                   |   | 36                      |   |      | ─ |   |   | 1,523 |   |
| Freddie Mac                         |   |           | 2,209  |                   |   | 89                      |   |      | (21     | ) |   | 2,277 |   |
| Total                               |   | $              | 4,101  |                   | $      | 135                     |   | $         | (21     | ) | $ | 4,215 |   |
|                                |   |           |   |                   |   |                    |   |      |    |   |   |   |   |
| June 30, 2009                       |   |           |   |                   |   |                    |   |      |    |   |   |   |   |
| Mortgage-backed                     |   |           |   |                   |   |                    |   |      |    |   |   |   |   |
| Fannie Mae                          |   | $              | 191    |                   | $      | 1                       |   | $         | ─ |   | $ | 192 |   |
| Freddie Mac                         |   |           | 156    |                   |   | ─                 |   |      | ─ |   |   | 156 |   |
| Ginnie Mae                          |   |           | 111    |                   |   | 4                       |   |      | ─ |   |   | 115 |   |
| Collateralized mortgage obligations |   |           |   |                   |   |                    |   |      |    |   |   |   |   |
| Fannie Mae                          |   |           | 1,819  |                   |   | 14                      |   |      | (1      | ) |   | 1,832 |   |
| Freddie Mac                         |   |           | 3,251  |                   |   | 93                      |   |      | (14     | ) |   | 3,330 |   |
| Total                               |   | $              | 5,528  |                   | $      | 112                     |   | $         | (15     | ) | $ | 5,625 |   |

|                                |   | Less than 12 months |   | 12 months or more |   | Total  |   |
|-------------------------------------|--------|---------------------|--------|-------------------|--------|--------|--------|
|                                |   | Fair                |   | Unrealized        |   | Fair   |   | Unrealized |   | Fair |   | Unrealized |   |
|                                |   | Value               |   | Loss              |   | Value  |   | Loss |   | Value |   | Loss |   |
|                                |   | (In thousands)      |
| March 31, 2010                      |   |                |   |              |   |   |   |   |   |   |   |   |   |
| Description of Securities           |   |                |   |              |   |   |   |   |   |   |   |   |   |
| Collateralized mortgage obligations |   |                | 571    |              |   | (21    | )      |   | ─ |   |   | ─ |   |   | 571 |   |   | (21 | ) |
| Total temporarily impaired          |   | $                   | 571    |              | $      | (21    | )      | $ | ─ |   | $ | ─ |   | $ | 571 |   | $ | (21 | ) |
|                                |   |                |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| June 30, 2009                       |   |                |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Description of Securities           |   |                |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Collateralized mortgage obligations |   |                | 1,353  |              |   | (15    | )      |   | ─ |   |   | ─ |   |   | 1,353 |   |   | (15 | ) |
| Total temporarily impaired          |   | $                   | 1,353  |              | $      | (15    | )      | $ | ─ |   | $ | ─ |   | $ | 1,353 |   | $ | (15 | ) |

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|                                          |   | March 31,2010  |    |   | June 30,2009 |   |
|-----------------------------------------------|--------|----------------|---------|--------|--------------|--------|
|                                          |   | (In thousands) |    |
| Real Estate:                                  |   |           |    |   |         |   |
| One-to-four family residential, fixed rate    |   | $              | 283,305 |   |         | $      | 303,287 |   |
| One-to-four family residential, variable rate |   |           | 60,056  |   |         |   | 73,943 |   |
| Multi-family residential, variable rate       |   |           | 260,243 |   |         |   | 196,575 |   |
| Commercial real estate, variable rate         |   |           | 113,989 |   |         |   | 121,143 |   |
|                                          |   |           | 717,593 |   |         |   | 694,948 |   |
| Consumer:                                     |   |           |    |   |         |   |   |   |
| Automobile                                    |   |           | 32,371  |   |         |   | 41,798 |   |
| Home equity                                   |   |           | 1,105   |   |         |   | 1,299 |   |
| Other consumer loans, primarily unsecured     |   |           | 13,830  |   |         |   | 13,119 |   |
|                                          |   |           | 47,306  |   |         |   | 56,216 |   |
| Total loans                                   |   |           | 764,899 |   |         |   | 751,164 |   |
| Deferred net loan origination costs           |   |           | 590     |   |         |   | 376 |   |
| Net discounts on purchased loans              |   |           | (62     | )      |         |   | (79 | ) |
| Allowance for loan losses                     |   |           | (12,820 | )      |         |   | (4,586 | ) |
|                                          |   | $              | 752,607 |   |         | $      | 746,875 |   |

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|                         | Three months ended March 31, |   | Nine months endedMarch 31, |   |
|------------------------------|------------------------------|--------|----------------------------|--------|
|                         | 2010                         |   | 2009                       |   | 2010 |   | 2009 |   |
|                         | (In thousands)               |   |
| Balance, beginning of period |                         | $      | 10,740                     |   |   | $ | 3,932 |   |   | $ | 4,586 |   |   | $ | 3,229 |   |
| Provision for loan losses    |                         |   | 2,272                      |   |   |   | 660 |   |   |   | 8,787 |   |   |   | 2,007 |   |
| Recoveries                   |                         |   | 16                         |   |   |   | 50 |   |   |   | 62 |   |   |   | 189 |   |
| Loans charged off            |                         |   | (208                       | )      |   |   | (339 | ) |   |   | (615 | ) |   |   | (1,122 | ) |
| Balance, end of period       |                         | $      | 12,820                     |   |   | $ | 4,303 |   |   | $ | 12,820 |   |   | $ | 4,303 |   |

|                                                               |   | March 31,2010  |   |   | June 30,2009 |   |
|--------------------------------------------------------------------|--------|----------------|--------|--------|--------------|--------|
|                                                               |   | (In thousands) |   |
| Loans with no allocated allowance                                  |   | $              | 4,531  |   |         | $      | 3,522 |   |
| Troubled debt restructured loans with no allocated allowance       |   |           | 3,085  |   |         |   | 282 |   |
| Loans with allocated allowance                                     |   |           | 15,953 |   |         |   | 3,244 |   |
| Troubled debt restructured loans with allocated allowance          |   |           | 7,034  |   |         |   | 1,812 |   |
|                                                               |   | $              | 30,603 |   |         | $      | 8,860 |   |
|                                                               |   |           |   |   |         |   |   |   |
| Amount of allowance allocated                                      |   | $              | 3,015  |   |         | $      | 648 |   |
| Amount of allowance allocated for troubled debt restructured loans |   |           | 1,665  |   |         |   | 553 |   |
| Total allowance for loan losses allocated                          |   | $              | 4,680  |   |         | $      | 1,201 |   |

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

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|                                                                               |   | For the three months ended March 31, |
|------------------------------------------------------------------------------------|--------|--------------------------------------|
|                                                                               |   |                                 |   |   | 2010 (1) |   |   |   |   |   |   |   |   | 2009 (1) |   |   |   |   |   |
|                                                                               |   |                                 |   |   |   |   |   | Average |   |   |   |   |   |   |   |   | Average |   |   |
|                                                                               |   | Average                              |   |   |   |   |   | Yield/ |   |   | Average |   |   |   |   |   | Yield/ |   |   |
|                                                                               |   | Balance                              |   |   | Interest |   |   | Cost |   |   | Balance |   |   | Interest |   |   | Cost |   |   |
|                                                                               |   | (Dollars in thousands)               |
| INTEREST-EARNING ASSETS                                                            |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivable(2)                                                                |   | $                                    | 756,472 |   |   | $ | 11,049 |   |   |   | 5.84 | % |   | $ | 750,189 |   |   | $ | 11,059 |   |   |   | 5.90 |  % |   |
| Securities(3)                                                                      |   |                                 | 7,269 |   |   |   | 83 |   |   |   | 4.57 | % |   |   | 12,903 |   |   |   | 146 |   |   |   | 4.53 |  % |   |
| Federal funds sold                                                                 |   |                                 | 50,690 |   |   |   | 25 |   |   |   | 0.20 | % |   |   | 26,568 |   |   |   | 13 |   |   |   | 0.20 |  % |   |
| Federal Home Loan Bank stock                                                       |   |                                 | 12,649 |   |   |   | 8 |   |   |   | 0.25 | % |   |   | 12,649 |   |   |   | — |   |   |   | 0.00 |  % |   |
| Interest-earning deposits in other financial institutions                          |   |                                 | 22,679 |   |   |   | 86 |   |   |   | 1.52 | % |   |   | 18,380 |   |   |   | 66 |   |   |   | 1.44 |  % |   |
| Total interest-earning assets                                                      |   |                                 | 849,759 |   |   |   | 11,251 |   |   |   | 5.30 | % |   |   | 820,689 |   |   |   | 11,284 |   |   |   | 5.50 |  % |   |
| Noninterest earning assets                                                         |   |                                 | 40,252 |   |   |   |   |   |   |   |   |   |   |   | 37,401 |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                                       |   | $                                    | 890,011 |   |   |   |   |   |   |   |   |   |   | $ | 858,090 |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST-BEARING  LIABILITIES                                            |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money market                                                                       |   | $                                    | 120,573 |   |   | $ | 254 |   |   |   | 0.84 | % |   | $ | 95,057 |   |   | $ | 412 |   |   |   | 1.73 |  % |   |
| Savings deposits                                                                   |   |                                 | 129,973 |   |   |   | 139 |   |   |   | 0.43 | % |   |   | 119,071 |   |   |   | 238 |   |   |   | 0.80 |  % |   |
| Certificates of deposit                                                            |   |                                 | 323,470 |   |   |   | 2,283 |   |   |   | 2.82 | % |   |   | 262,251 |   |   |   | 2,495 |   |   |   | 3.81 |  % |   |
| Borrowings                                                                         |   |                                 | 154,500 |   |   |   | 1,665 |   |   |   | 4.31 | % |   |   | 232,009 |   |   |   | 2,333 |   |   |   | 4.02 |  % |   |
| Total interest-bearing liabilities                                                 |   |                                 | 728,516 |   |   |   | 4,341 |   |   |   | 2.38 | % |   |   | 708,388 |   |   |   | 5,478 |   |   |   | 3.09 |  % |   |
| Noninterest bearing liabilities                                                    |   |                                 | 68,888 |   |   |   |   |   |   |   |   |   |   |   | 57,922 |   |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                                  |   |                                 | 797,404 |   |   |   |   |   |   |   |   |   |   |   | 766,310 |   |   |   |   |   |   |   |   |   |   |
| Equity                                                                             |   |                                 | 92,607 |   |   |   |   |   |   |   |   |   |   |   | 91,780 |   |   |   |   |   |   |   |   |   |   |
| Total liabilities and equity                                                       |   | $                                    | 890,011 |   |   |   |   |   |   |   |   |   |   | $ | 858,090 |   |   |   |   |   |   |   |   |   |   |
| Net interest/spread                                                                |   |                                 |   |   |   | $ | 6,910 |   |   |   | 2.92 | % |   |   |   |   |   | $ | 5,806 |   |   |   | 2.41 |  % |   |
|                                                                               |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Margin(4)                                                                          |   |                                 |   |   |   |   |   |   |   |   | 3.25 | % |   |   |   |   |   |   |   |   |   |   | 2.83 |  % |   |
|                                                                               |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of interest-earning assets to interest bearing liabilities                   |   |                                 | 116.64 | % |   |   |   |   |   |   |   |   |   |   | 115.85 | % |   |   |   |   |   |   |   |   |   |
|                                                                               |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) Yields earned and rates paid have been annualized.                             |
| (2) Calculated net of deferred fees, loss reserves and includes non-accrual loans. |
| (3) Calculated based on amortized cost.                                            |
| (4) Net interest income divided by interest-earning assets.                        |
|                                                                               |

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|                                                                               |   | For the nine months ended March 31, |
|------------------------------------------------------------------------------------|--------|-------------------------------------|
|                                                                               |   |                                |   |   | 2010 (1) |   |   |   |   |   |   |   |   | 2009 (1) |   |   |   |   |   |
|                                                                               |   |                                |   |   |   |   |   | Average |   |   |   |   |   |   |   |   | Average |   |   |
|                                                                               |   | Average                             |   |   |   |   |   | Yield/ |   |   | Average |   |   |   |   |   | Yield/ |   |   |
|                                                                               |   | Balance                             |   |   | Interest |   |   | Cost |   |   | Balance |   |   | Interest |   |   | Cost |   |   |
|                                                                               |   | (Dollars in thousands)              |
| INTEREST-EARNING ASSETS                                                            |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivable(2)                                                                |   | $                                   | 755,941 |   |   | $ | 33,101 |   |   |   | 5.84 | % |   | $ | 743,877 |   |   | $ | 32,678 |   |   |   | 5.86 |  % |   |
| Securities(3)                                                                      |   |                                | 8,160 |   |   |   | 278 |   |   |   | 4.54 | % |   |   | 14,292 |   |   |   | 485 |   |   |   | 4.52 |  % |   |
| Federal funds sold                                                                 |   |                                | 47,614 |   |   |   | 82 |   |   |   | 0.23 | % |   |   | 34,373 |   |   |   | 285 |   |   |   | 1.11 |  % |   |
| Federal Home Loan Bank stock                                                       |   |                                | 12,649 |   |   |   | 35 |   |   |   | 0.37 | % |   |   | 12,632 |   |   |   | 314 |   |   |   | 3.31 |  % |   |
| Interest-earning deposits in other financial institutions                          |   |                                | 27,717 |   |   |   | 292 |   |   |   | 1.40 | % |   |   | 11,707 |   |   |   | 140 |   |   |   | 1.59 |  % |   |
| Total interest-earning assets                                                      |   |                                | 852,081 |   |   |   | 33,788 |   |   |   | 5.29 | % |   |   | 816,881 |   |   |   | 33,902 |   |   |   | 5.53 |  % |   |
| Noninterest earning assets                                                         |   |                                | 40,825 |   |   |   |   |   |   |   |   |   |   |   | 36,671 |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                                       |   | $                                   | 892,906 |   |   |   |   |   |   |   |   |   |   | $ | 853,552 |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST-BEARING  LIABILITIES                                            |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money market                                                                       |   | $                                   | 116,148 |   |   | $ | 848 |   |   |   | 0.97 | % |   | $ | 89,211 |   |   | $ | 1,384 |   |   |   | 2.07 |  % |   |
| Savings deposits                                                                   |   |                                | 130,418 |   |   |   | 488 |   |   |   | 0.50 | % |   |   | 120,494 |   |   |   | 874 |   |   |   | 0.97 |  % |   |
| Certificates of deposit                                                            |   |                                | 307,369 |   |   |   | 6,893 |   |   |   | 2.99 | % |   |   | 257,318 |   |   |   | 7,840 |   |   |   | 4.06 |  % |   |
| Borrowings                                                                         |   |                                | 182,001 |   |   |   | 5,697 |   |   |   | 4.17 | % |   |   | 241,213 |   |   |   | 7,556 |   |   |   | 4.18 |  % |   |
| Total interest-bearing liabilities                                                 |   |                                | 735,936 |   |   |   | 13,926 |   |   |   | 2.52 | % |   |   | 708,236 |   |   |   | 17,654 |   |   |   | 3.32 |  % |   |
| Noninterest bearing liabilities                                                    |   |                                | 63,764 |   |   |   |   |   |   |   |   |   |   |   | 54,059 |   |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                                  |   |                                | 799,700 |   |   |   |   |   |   |   |   |   |   |   | 762,295 |   |   |   |   |   |   |   |   |   |   |
| Equity                                                                             |   |                                | 93,206 |   |   |   |   |   |   |   |   |   |   |   | 91,257 |   |   |   |   |   |   |   |   |   |   |
| Total liabilities and equity                                                       |   | $                                   | 892,906 |   |   |   |   |   |   |   |   |   |   | $ | 853,552 |   |   |   |   |   |   |   |   |   |   |
| Net interest/spread                                                                |   |                                |   |   |   | $ | 19,862 |   |   |   | 2.77 | % |   |   |   |   |   | $ | 16,248 |   |   |   | 2.21 |  % |   |
|                                                                               |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Margin(4)                                                                          |   |                                |   |   |   |   |   |   |   |   | 3.11 | % |   |   |   |   |   |   |   |   |   |   | 2.65 |  % |   |
|                                                                               |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of interest-earning assets to interest bearing liabilities                   |   |                                | 115.78 | % |   |   |   |   |   |   |   |   |   |   | 115.34 | % |   |   |   |   |   |   |   |   |   |
|                                                                               |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) Yields earned and rates paid have been annualized.                             |
| (2) Calculated net of deferred fees, loss reserves and includes non-accrual loans. |
| (3) Calculated based on amortized cost.                                            |
| (4) Net interest income divided by interest-earning assets.                        |
|                                                                               |

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| 1.   | All variable rate loans are underwritten using the fully indexed rate. |
|----------------|------------------------------------------------------------------------|

| 2.   | All interest-only loans were underwritten using the fully amortized payment. |
|----------------|------------------------------------------------------------------------------|

| 3.   | We only lend up to 80% of the lesser of the appraised value or purchase price for one-to-four family residential loans. |
|----------------|-------------------------------------------------------------------------------------------------------------------------|

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|               | Loans Delinquent :     |   |            |    |                   |    |
|--------------------|------------------------|--------|-----------------|---------|------------------------|---------|
|               | 60-89 Days             |   | 90 Days or More |    | Total Delinquent Loans |    |
|               | Number of Loans        |   | Amount          |    | Number of Loans        |    | Amount |   | Number of Loans |   | Amount |   |
|               | (Dollars in thousands) |   |
| At March 31, 2010  |                   |   |            |    |                   |    |   |   |   |   |   |   |   |   |   |
| Real estate loans: |                   |   |            |    |                   |    |   |   |   |   |   |   |   |   |   |
| One-to-four family | 7                      |   | $               | 2,595   |                   | 31      |   | $ | 13,182 |   | 38 |   | $ | 15,777 |   |
| Multi-family       | —                |   |            | — |                   | 2       |   |   | 2,786 |   | 2 |   |   | 2,786 |   |
| Commercial         | —                |   |            | — |                   | — |   |   | — |   | — |   |   | — |   |
| Other loans:       |                   |   |            |    |                   |    |   |   |   |   |   |   |   |   |   |
| Automobile         | 2                      |   |            | 29      |                   | 2       |   |   | 27 |   | 4 |   |   | 56 |   |
| Home equity        | —                |   |            | — |                   | — |   |   | — |   | — |   |   | — |   |
| Other              | 4                      |   |            | 7       |                   | 1       |   |   | 1 |   | 5 |   |   | 8 |   |
| Total loans        | 13                     |   | $               | 2,631   |                   | 36      |   | $ | 15,996 |   | 49 |   | $ | 18,627 |   |
|               |                   |   |            |    |                   |    |   |   |   |   |   |   |   |   |   |
| At June 30, 2009   |                   |   |            |    |                   |    |   |   |   |   |   |   |   |   |   |
| Real estate loans: |                   |   |            |    |                   |    |   |   |   |   |   |   |   |   |   |
| One-to-four family | 6                      |   | $               | 2,212   |                   | 14      |   | $ | 6,220 |   | 20 |   | $ | 8,432 |   |
| Multi-family       | —                |   |            | — |                   | — |   |   | — |   | — |   |   | — |   |
| Commercial         | —                |   |            | — |                   | — |   |   | — |   | — |   |   | — |   |
| Other loans:       |                   |   |            |    |                   |    |   |   |   |   |   |   |   |   |   |
| Automobile         | 3                      |   |            | 16      |                   | — |   |   | — |   | 3 |   |   | 16 |   |
| Home equity        | —                |   |            | — |                   | — |   |   | — |   | — |   |   | — |   |
| Other              | 11                     |   |            | 16      |                   | 6       |   |   | 11 |   | 17 |   |   | 27 |   |
| Total loans        | 20                     |   | $               | 2,244   |                   | 20      |   | $ | 6,231 |   | 40 |   | $ | 8,475 |   |
|               |                   |   |            |    |                   |    |   |   |   |   |   |   |   |   |   |
| At June 30, 2008   |                   |   |            |    |                   |    |   |   |   |   |   |   |   |   |   |
| Real estate loans: |                   |   |            |    |                   |    |   |   |   |   |   |   |   |   |   |
| One-to-four family | —                |   | $               | — |                   | 4       |   | $ | 1,583 |   | 4 |   | $ | 1,583 |   |
| Multi-family       | —                |   |            | — |                   | — |   |   | — |   | — |   |   | — |   |
| Commercial         | —                |   |            | — |                   | — |   |   | — |   | — |   |   | — |   |
| Other loans:       |                   |   |            |    |                   |    |   |   |   |   |   |   |   |   |   |
| Automobile         | 10                     |   |            | 159     |                   | 8       |   |   | 132 |   | 18 |   |   | 291 |   |
| Home equity        | —                |   |            | — |                   | — |   |   | — |   | — |   |   | — |   |
| Other              | 22                     |   |            | 34      |                   | 9       |   |   | 15 |   | 31 |   |   | 49 |   |
| Total loans        | 32                     |   | $               | 193     |                   | 21      |   | $ | 1,730 |   | 53 |   | $ | 1,923 |   |
|               |                   |   |            |    |                   |    |   |   |   |   |   |   |   |   |   |

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|                                               |   | At March 31,           |    |   | At June 30, |   |    | At June 30, |   |
|----------------------------------------------------|--------|------------------------|---------|--------|-------------|--------|---------|-------------|--------|
|                                               |   | 2010                   |    |   | 2009        |   |    | 2008        |   |
|                                               |   | (Dollars in thousands) |    |
| Non-accrual loans:                                 |   |                   |    |   |        |   |    |        |   |
| Real estate loans:                                 |   |                   |    |   |        |   |    |        |   |
| One-to-four family                                 |   | $                      | 14,997  |   |        | $      | 6,766   |        |   | $ | 1,583 |   |
| Multi-family                                       |   |                   | 2,786   |   |        |   | — |        |   |   | — |   |
| Commercial                                         |   |                   | 2,673   |   |        |   | — |        |   |   | — |   |
| Other loans:                                       |   |                   |    |   |        |   |    |        |   |   |   |   |
| Automobile                                         |   |                   | 27      |   |        |   | — |        |   |   | 132 |   |
| Home equity                                        |   |                   | — |   |        |   | — |        |   |   | — |   |
| Other                                              |   |                   | 1       |   |        |   | 11      |        |   |   | 15 |   |
| Troubled debt restructurings:                      |   |                   |    |   |        |   |    |        |   |   |   |   |
| One-to-four family                                 |   |                   | 7,698   |   |        |   | 1,859   |        |   |   | — |   |
| Multi-family                                       |   |                   | 689     |   |        |   | 235     |        |   |   | — |   |
| Commercial                                         |   |                   | — |   |        |   | — |        |   |   | — |   |
| Total non-accrual loans                            |   |                   | 28,871  |   |        |   | 8,871   |        |   |   | 1,730 |   |
|                                               |   |                   |    |   |        |   |    |        |   |   |   |   |
| Real estate owned and repossessed assets:          |   |                   |    |   |        |   |    |        |   |   |   |   |
| Real estate:                                       |   |                   |    |   |        |   |    |        |   |   |   |   |
| One-to-four family                                 |   |                   | 976     |   |        |   | 496     |        |   |   | 1,045 |   |
| Multi-family                                       |   |                   | — |   |        |   | — |        |   |   | — |   |
| Commercial                                         |   |                   | — |   |        |   | — |        |   |   | — |   |
| Other:                                             |   |                   |    |   |        |   |    |        |   |   |   |   |
| Automobile                                         |   |                   | 27      |   |        |   | 3       |        |   |   | 161 |   |
| Home equity                                        |   |                   | — |   |        |   | — |        |   |   | — |   |
| Other                                              |   |                   | — |   |        |   | — |        |   |   | — |   |
| Total real estate owned and repossessed assets     |   |                   | 1,003   |   |        |   | 499     |        |   |   | 1,206 |   |
|                                               |   |                   |    |   |        |   |    |        |   |   |   |   |
| Total non-performing assets                        |   | $                      | 29,874  |   |        | $      | 9,370   |        |   | $ | 2,936 |   |
| Ratios:                                            |   |                   |    |   |        |   |    |        |   |   |   |   |
| Non-accrual loans to total loans (1)               |   |                   | 3.77    | %      |        |   | 1.18    | %           |   |   | 0.23 | % |
|                                               |   |                   |    |   |        |   |    |        |   |   |   |   |
| Non-performing assets to total assets              |   |                   | 3.34    | %      |        |   | 1.05    | %           |   |   | 0.35 | % |
|                                               |   |                   |    |   |        |   |    |        |   |   |   |   |
| (1) Total loans are net of deferred fees and costs |   |
|                                               |   |

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|                                   |   | March 31,2010          |   |   | June 30,2009 |   |
|----------------------------------------|--------|------------------------|--------|--------|--------------|--------|
|                                   |   | (Dollars in thousands) |   |
| Classified and Special Mention Assets: |   |                   |   |   |         |   |
| Loss                                   |   | $                      | 4      |   |         | $      | 20 |   |
| Doubtful                               |   |                   | 58     |   |         |   | 126 |   |
| Substandard                            |   |                   | 36,750 |   |         |   | 13,964 |   |
| Special Mention                        |   |                   | 11,412 |   |         |   | 7,316 |   |
| Total                                  |   | $                      | 48,224 |   |         | $      | 21,426 |   |

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|                            |   | March 31,2010          |   | June 30,2009                                     |   |
|---------------------------------|--------|------------------------|--------|--------------------------------------------------|--------|
|                            |   | Amount                 |   | Percent of Loans in Each Category to Total Loans |   | Amount |   | Percent of Loans in Each Category to Total Loans |   |
|                            |   | (Dollars in thousands) |   |
| Real estate loans:              |   |                   |   |                                             |   |   |   |   |   |   |   |
| One-to-four family              |   | $                      | 7,664  |                                             | 44.90  | % | $ | 3,326 |   | 50.22 | % |
| Multi-family                    |   |                   | 3,715  |                                             | 34.02  |   |   | 515 |   | 26.17 |   |
| Commercial                      |   |                   | 1,191  |                                             | 14.90  |   |   | 286 |   | 16.13 |   |
| Other loans:                    |   |                   |   |                                             |   |   |   |   |   |   |   |
| Automobile                      |   |                   | 168    |                                             | 4.23   |   |   | 342 |   | 5.56 |   |
| Home equity                     |   |                   | 9      |                                             | 0.14   |   |   | 6 |   | 0.17 |   |
| Other                           |   |                   | 73     |                                             | 1.81   |   |   | 111 |   | 1.75 |   |
| Total allowance for loan losses |   | $                      | 12,820 |                                             | 100.00 | % | $ | 4,586 |   | 100.00 | % |

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|                                                |   | Actual |                   | Minimum Capital Requirements |   | Minimum required to be Well Capitalized Under Prompt Corrective Actions Provisions |   |
|-----------------------------------------------------|--------|--------|------------------------|------------------------------|--------|------------------------------------------------------------------------------------|--------|
| March 31, 2010                                      |   | Amount |                   | Ratio                        |   | Amount                                                                             | Ratio  |   | Amount | Ratio |   |
|                                                |   |   | (Dollars in thousands) |                         |
| Total risk-based capital (to risk-weighted assets)  |   | $      | 86,535                 |                         | 13.99  | %                                                                                  | $      | 49,487 | 8.00 | % | $ | 61,899 | 10.00 | % |
| Tier 1 risk-based capital (to risk-weighted assets) |   |   | 78,798                 |                         | 12.74  |                                                                               |   | 24,759 | 4.00 |   |   | 37,139 | 6.00 |   |
| Tier 1 (core) capital (to adjusted tangible assets) |   |   | 78,798                 |                         | 8.89   |                                                                               |   | 35,473 | 4.00 |   |   | 44,342 | 5.00 |   |

|                                                |   | Actual |                   | Minimum Capital Requirements |   | Minimum required to be Well Capitalized Under Prompt Corrective Actions Provisions |   |
|-----------------------------------------------------|--------|--------|------------------------|------------------------------|--------|------------------------------------------------------------------------------------|--------|
| June 30, 2009                                       |   | Amount |                   | Ratio                        |   | Amount                                                                             | Ratio  |   | Amount | Ratio |   |
|                                                |   |   | (Dollars in thousands) |                         |
| Total risk-based capital (to risk-weighted assets)  |   | $      | 80,077                 |                         | 13.32  | %                                                                                  | $      | 48,096 | 8.00 | % | $ | 60,120 | 10.00 | % |
| Tier 1 risk-based capital (to risk-weighted assets) |   |   | 76,713                 |                         | 12.76  |                                                                               |   | 24,048 | 4.00 |   |   | 36,072 | 6.00 |   |
| Tier 1 (core) capital (to adjusted tangible assets) |   |   | 76,713                 |                         | 8.65   |                                                                               |   | 35,493 | 4.00 |   |   | 44,367 | 5.00 |   |

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

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|                                                                             |   | March 31, 2010           |   |
|----------------------------------------------------------------------------------|--------|--------------------------|--------|
| 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                       |   | $ | 78,330 |   |   | $ | (30,009 | ) |   |   | (28 | )% |   |   | 8.88 | % |   |   | (273 | )bp |
|                                                                             | +200   | bp                       |   |   | 89,909 |   |   |   | (18,430 | ) |   |   | (17 | ) |   |   | 9.99 |   |   |   | (162 | ) |
|                                                                             | +100   | bp                       |   |   | 100,581 |   |   |   | (7,758 | ) |   |   | (7 | ) |   |   | 10.96 |   |   |   | (65 | ) |
|                                                                             | 0      | bp                       |   |   | 108,339 |   |   |   | — |   |   |   | — |   |   |   | 11.61 |   |   |   | — |   |
|                                                                             | -100   | bp                       |   |   | 111,383 |   |   |   | 3,044 |   |   |   | 3 |   |   |   | 11.81 |   |   |   | 20 |   |

Item 4. Controls and Procedures

Item 1. Legal Proceedings

Item 1A. Risk Factors

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

| Period                   |   | Total Number of Shares Purchased |   | Weighted Average Price Paid Per Share |    | Total Number of Shares Purchased as Part of Publicly Announced Plans* |    | Maximum Number of Shares That May Yet be Purchased Under the Plan |    |
|--------------------------|--------|----------------------------------|--------|---------------------------------------|---------|-----------------------------------------------------------------------|---------|-------------------------------------------------------------------|---------|
| 08/1/08 – 08/31/08 |   | —                          |   | $                                     | — |                                                                  | — |                                                              | 228,354 |   |
| 09/1/08 – 09/30/08 |   | 14,024                           |   |                                  | 9.96    |                                                                  | 14,024  |                                                              | 214,330 |   |
| 10/1/08 – 10/31/08 |   | —                          |   |                                  | — |                                                                  | — |                                                              | 214,330 |   |
| 11/1/08 – 11/30/08 |   | 14,536                           |   |                                  | 8.14    |                                                                  | 28,560  |                                                              | 199,794 |   |
| 12/1/08 – 12/31/08 |   | 75                               |   |                                  | 7.41    |                                                                  | 28,635  |                                                              | 199,719 |   |
| 01/1/09 – 01/31/09 |   | 15,150                           |   |                                  | 8.04    |                                                                  | 43,785  |                                                              | 184,569 |   |
| 02/1/09 – 02/28/09 |   | 46,983                           |   |                                  | 7.56    |                                                                  | 90,768  |                                                              | 137,586 |   |
| 03/1/09 – 03/31/09 |   | 37,956                           |   |                                  | 7.68    |                                                                  | 128,724 |                                                              | 99,630  |   |
| 04/1/09 – 04/30/09 |   | —                          |   |                                  | — |                                                                  | — |                                                              | 99,630  |   |
| 05/1/09 – 05/31/09 |   | 10,125                           |   |                                  | 7.82    |                                                                  | 138,849 |                                                              | 89,505  |   |
| 06/1/09 – 06/30/09 |   | 400                              |   |                                  | 9.95    |                                                                  | 139,249 |                                                              | 89,105  |   |
| 07/1/09 – 07/31/09 |   | —                          |   |                                  | — |                                                                  | — |                                                              | 89,105  |   |
| 08/1/09 – 08/31/09 |   | —                          |   |                                  | — |                                                                  | — |                                                              | 89,105  |   |
| 09/1/09 – 09/30/09 |   | 600                              |   |                                  | 9.17    |                                                                  | 139,849 |                                                              | 88,505  |   |
| 10/1/09 – 10/31/09 |   | —                          |   |                                  | — |                                                                  | — |                                                              | 88,505  |   |
| 11/1/09 – 11/30/09 |   | 175                              |   |                                  | 8.66    |                                                                  | 140,024 |                                                              | 88,330  |   |
| 12/1/09 – 12/31/09 |   | 12,301                           |   |                                  | 8.66    |                                                                  | 152,325 |                                                              | 76,029  |   |
| 01/1/10 – 01/31/10 |   | —                          |   |                                  | — |                                                                  | — |                                                              | 76,029  |   |
| 02/1/10 – 02/28-10 |   | 107                              |   |                                  | 8.70    |                                                                  | 152,432 |                                                              | 75,922  |   |
| 03/1/10 – 03/31/10 |   | 80                               |   |                                  | 8.78    |                                                                  | 152,512 |                                                              | 75,842  |   |

Item 3. Defaults Upon Senior Securities

Item 4. Reserved and Removed

Item 5. Other Information

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Item 6. Exhibits

| 31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act |
|------|--------------------------------------------------------------------------------------------|
| 31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act |
| 32.1 | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act |
| 32.2 | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act |

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K-FED BANCORP AND SUBSIDIARY

| K-FED BANCORP       |
|---------------------|
|                |   |
|                |   |
|                |   |
| Dated: May 13, 2010 |   |
|                | BY: /s/ K. M. Hoveland |
|                | K. M. Hoveland |
|                | President, Chief Executive Officer |
|                |   |
|                | BY: /s/ Dustin Luton |
|                | Dustin Luton |
|                | Chief Financial Officer |

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