Kaiser Federal Bank announced plans Tuesday to change its name to Simplicity Bank.

The Covina institution’s holding company, Kaiser Federal Financial Group Inc., said the move is part of an effort to broaden its business strategy and appeal to more potential customers.

The bank was founded in 1953 as a credit union serving employees of Kaiser Foundation Hospital, now part of the Kaiser Permanente system. The institution converted to a mutual savings bank in 1999.

The name change, which will take effect next month, follows an “extensive market and brand evaluation analysis,” the bank said in a statement.

“The company believes the new name will eliminate any confusion that might be experienced by potential customers in its markets,” Kaiser said.

Kaiser expects to spend more than $1 million next year on new signs, branch remodeling, advertising and other expenses related to the rebranding. In addition to the new bank name, the holding company plans to become Simplicity Bancorp Inc. and change its stock symbol to SMPL.

Shares closed down 2 cents, or less than 1 percent, to $15.36.