RANCHO CUCAMONGA, Calif., April 30 /PRNewswire-FirstCall/ -- PFF Bancorp,Inc. (NYSE: PFB, the 'Holding Company'), the holding company for PFF Bank &Trust (the 'Bank'), Diversified Builder Services, Inc. and GlencrestInvestment Advisors, Inc., today announced that it expects to report aconsolidated net loss of approximately $159 million for the quarter endedMarch 31, 2008. The operating results for the quarter include an estimated$196 million consolidated provision for loan and lease losses and an estimated$44 million valuation allowance established against the Holding Company'sconsolidated deferred tax asset.
The Holding Company has a secured term loan agreement with a commercialbank, with a current outstanding balance of $44.0 million. Upon the filing ofits quarterly Thrift Financial Report on April 30, 2008, the Bank isclassified as 'adequately capitalized' for regulatory purposes. Thisclassification would have resulted in an event of default under a covenant ofthe loan agreement as of April 30, 2008. On April 30, 2008, the lendergranted the Holding Company a waiver of all events of default as of April 30,2008, including the requirement to make prepayments on the loan upon receiptof any excess cash flow. The Holding Company is working with the lender tofurther restructure the loan agreement.
Certain matters discussed in this news release may constitute forward-looking statements within the meaning of the Private Securities LitigationReform Act of 1995. These forward-looking statements may relate to, amongother things, expectations of the business environment in which the HoldingCompany operates, projections of future performance, perceived opportunitiesin the market and statements regarding the Holding Company's strategicobjectives. These forward-looking statements are based upon current managementexpectations, and may therefore involve risks and uncertainties. The HoldingCompany's actual results or performance, may differ materially from thosesuggested, expressed, or implied by forward-looking statements due to a widerange of factors including, but not limited to, the general businessenvironment, the California real estate market, competitive conditions in thebusiness and geographic areas in which the Holding Company conducts itsbusiness, regulatory actions or changes, actions by lenders and customers, thepossibility of a going concern explanatory paragraph in our independentregistered public accountants' opinion on the Holding Company's March 31, 2008consolidated financial statements and other risks detailed in the HoldingCompany's reports filed with the Securities and Exchange Commission, includingthe Annual Report on Form 10-K for the fiscal year ended March 31, 2007. TheHolding Company disclaims any obligation to subsequently revise or update anyforward-looking statements to reflect events or circumstances after the dateof such statements or to reflect the occurrence of anticipated orunanticipated events.
Contact Kevin McCarthy, President and CEO or Gregory C. Talbott, Senior Executive Vice President, COO/CFO, PFF Bancorp, Inc. 9337 Milliken Avenue, Rancho Cucamonga, CA 91730 (909) 941-5400
http://www.pffbank.com
SOURCE PFF Bancorp, Inc.
