<SUBMISSION>
<ACCESSION-NUMBER>0000895527-04-000065
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20040709
<ITEMS>5
<ITEMS>7
<FILING-DATE>20040709
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>AF FINANCIAL GROUP
<CIK>0001064025
<ASSIGNED-SIC>6021
<IRS-NUMBER>562098545
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-24479
<FILM-NUMBER>04907083
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>21 EAST ASHE STREET
<CITY>WEST JEFFERSON
<STATE>NC
<ZIP>28694
<PHONE>3362464344
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>21 EAST ASHE STREET
<STREET2>PO BOX 26
<CITY>WEST JEFFERSON
<STATE>NC
<ZIP>28694
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>afjuly8k1.htm
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<center><b><font size=+2>UNITED STATES</font></b>
<p><b><font size=+2>SECURITIES AND EXCHANGE COMMISSION</font></b>
<p><b><font size=+2>WASHINGTON, D.C. 20549</font></b>
<p><b><font size=+1>_________________________________</font></b>
<p><b><font size=+1>FORM 8-K</font></b>
<p><b><font size=+1>CURRENT REPORT</font></b>
<br><b><font size=+1>PURSUANT TO SECTION 13 OR 15(d) OF THE</font></b>
<br><b><font size=+1>SECURITIES EXCHANGE ACT OF 1934</font></b>
<p>Date of Report (Date of earliest event reported):
<br><b>July 9, 2004</b>
<p><b>AF FINANCIAL GROUP</b>
<br>(Exact name of registrant as specified in its charter)
<p><b>Federally Chartered</b>
<br>(State or other jurisdiction of incorporation)
<p><b>0-24479</b>
<br>(Commission File Number)
<p><b>56-2098545</b>
<br>(IRS Employer Identification No.)
<p><b>21 East Ashe Street</b>
<br><b>West Jefferson, North Carolina</b>
<br>(Address of principal executive offices)
<p><b>28694</b>
<br>(Zip Code)
<p><b>(336) 246-4344</b>
<br>(Registrant's telephone number, including area code)</center>

<p><br><b></b>
<br><b></b>
<p>
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<br><b></b>&nbsp;<b></b>
<p><b>ITEM 5. OTHER EVENTS AND REQUIRED FD DISCLOSURE</b>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On July
9, 2004, AF Financial Group, and its wholly-owned Subsidiary, AF Bank (together,
the &quot;Companies&quot;), issued a press release, a copy of which is attached hereto
as Exhibit 99.1.
<p><b>ITEM 7. EXHIBITS</b>.
<p>99.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; News Release disseminated
on July 9, 2004 by the Companies.
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<center><b>SIGNATURES</b></center>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AF FINANCIAL GROUP</b>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
By: /s/ MELANIE PAISLEY MILLER
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Melanie Paisley Miller
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Chief Financial Officer
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
And Acting Chief Executive Officer
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Dated: July 9, 2004
<br>&nbsp;
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<p><b>EXHIBIT INDEX</b></center>

<br>&nbsp;
<br>&nbsp;
<br>
<p><b><u>Exhibit No</u></b>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b><u>Description</u></b>
<p>99.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
News Release disseminated on July 9, 2004 by the Companies.
<br>&nbsp;
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<TYPE>EX-99
<SEQUENCE>2
<FILENAME>afjulypress1.htm
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   <title>PRESS RELEASE</title>
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<b><u>PRESS RELEASE</u></b>
<p>For Further Information Contact:
<p>Melanie Paisley Miller
<br>Chief Financial Officer and Acting CEO
<br>336-246-4344
<br>&nbsp;
<br>&nbsp;
<br>
<center>
<p>AF Financial Group Terminates
<br>President and Chief Executive Officer
<br>James A. Todd</center>

<p>West Jefferson, N.C., July 9, 2004 - AF Financial Group (OTCBB:ASFE.OB)
and its wholly owned subsidiary AF Bank (the &quot;Companies&quot;) announced today
that James A. Todd, the President and Chief Executive Officer of the Companies,
has been terminated for cause pursuant to his employment agreements with
the Companies, effective July 8, 2004. The termination follows and is based
upon an investigation authorized by the Boards of Directors of the Companies.
Mr. Todd has threatened litigation in this matter. However, the Companies
believe that any such litigation will be without merit and the Companies
plan to defend vigorously any such litigation.
<p>Since Mr. Todd was suspended and placed on leave with pay effective
June 2, 2004, operations of the Companies have continued in the ordinary
course, with Chief Financial Officer Melanie Miller serving as Acting CEO.
Ms. Miller will continue serving as Acting CEO of the Companies until further
action by the Boards of Directors. Operations are expected to continue
as normal.
<p>Also, on July 7, 2004, the Board of Directors of AsheCo, M.H.C., a federally
chartered mutual holding company (&quot;AsheCo&quot;), which is the majority shareholder
of AF Financial Group, removed James A. Todd as President and CEO of AsheCo.
<p>AF Financial Group is a federally chartered stock holding company which
owns 100% of the common stock of AF Bank, AF Insurance Services, Inc. and
AF Brokerage, Inc.
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