EXHIBIT 99.1



[LOGO] K-Fed
B A N C O R P
1359 N Grand Avenue
Covina, California
91722-5107


                              FOR IMMEDIATE RELEASE
                              ---------------------

For Additional Information Contact:
Kay Hoveland, President and Chief Executive Officer
(626) 339-9663

                                  K-FED BANCORP
                             ANNOUNCES COMPLETION OF
                                 BRANCH PURCHASE

     Covina, California - (September 24, 2004) - Kay Hoveland, President and
Chief Executive Officer of K-Fed Bancorp, headquartered in Covina, California,
announced today that Kaiser Federal Bank, a wholly-owned subsidiary of K-Fed
Bancorp, has completed its acquisition of the Panorama City Branch of Pan
American Bank, FSB, Burlingame, California. The transaction included the
assumption of approximately $60 million in deposits.

     Ms. Hoveland, stated, "Kaiser Federal Bank looks forward to the improved
service this new branch will provide our customers in the San Fernando Valley.
Our new branch will also contribute toward the growth of our bank and enable us
to broaden our customer base."

     "We hope our new customers will take advantage of the wide range of
products and services we offer, while also enjoying the personalized attention
of a community bank," Hoveland added. "We look forward to welcoming these new
customers to our bank."

     This transaction will add a third full service branch to Kaiser Federal
Bank's presence in the Los Angeles metropolitan area. Kaiser Federal Bank also
has a financial service center located in both Santa Clara and Fontana,
California. Kaiser Federal Bank also operates a network of 30 ATMs in northern
and southern California.

     This news release contains certain forward-looking statements about the
proposed branch purchase. Forward-looking statements can be identified by the
fact that they do not relate strictly to historical or current facts. They often
include words like "believe," "expect," "anticipate," "estimate" and "intend" or
future or conditional verbs such as "will," "would," "should," "could" or "may."
Certain factors that could cause actual results to differ materially from
expected results include delays in completing the transaction, changes in the
interest rate environment, changes in general economic conditions, legislative
and regulatory changes that adversely affect the business of the bank and
changes in the securities markets.