K-Fed Bancorp said its second quarter net income was 129 percent higher than the year-ago quarter, when profits were dampened by costs related to a canceled stock offering.

The Covina-based parent company of Kaiser Federal Bank reported net income late Tuesday of $931,000 (7 cents per share) for the quarter ended Dec. 31, compared with net income of $406,000 (3 cents) a year ago. Net income for the same period a year ago included $1.3 million in costs from the November 2007 cancellation of the stock offering due to unfavorable market conditions.

Total assets decreased less than 2 percent to $834 million, the bank said, primarily due to a pay-down of $28 million in Federal Home Loan Bank advances. Total equity increased 1 percent to $91.7 million compared with the end of its 2008 fiscal year.

The bank, which said it did originate or purchase construction and development loans, teaser option-ARM loans, or negative amortizing loans during the housing boom, said its asset quality remains strong despite the economic crisis and continued deterioration in the housing market.

K-Fed said it increased its provision for loan losses to $984,000, compared with $184,000 in the same period a year ago.

K-Fed shares were up 78 cents, or 11 percent, to $7.01 in morning trading on the Nasdaq.