RANCHO CUCAMONGA, Calif., June 2 /PRNewswire-FirstCall/ -- PFF Bancorp,Inc. (NYSE: PFB, the 'Company'), the holding Company for PFF Bank & Trust (the'Bank'), Diversified Builder Services, Inc. and Glencrest Investment Advisors,Inc., announced today that effective May 31, 2008, it entered into anamendment and waiver in connection with the restructuring of its secured termloan agreement with a commercial bank. The secured term loan has a currentoutstanding principal balance of $44.0 million.
The amendment extends the maturity date from May 31, 2008, to June 16,2008, and provides that the lender will waive a prepayment requirement inconnection with proceeds from the sale of a loan expected to be received bythe Company. As consideration for the amendment and waiver, the Company hasagreed to make an additional payment of $440,000 at the maturity date of theloan in the event of the successful completion of a recapitalization whichreturns the Bank's capital levels to above 'well-capitalized' for regulatorypurposes.
The Company is pursuing recapitalization transactions that wouldstrengthen the Company's capital levels and provide for the retirement of thecommercial bank loan described above. The Company has engaged financialadvisors to assist in this effort; however, there can be no assurance that anyrecapitalization will be consummated.
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 Companyoperates, projections of future performance perceived opportunities in themarket and statements regarding the Company's strategic objectives. Theseforward-looking statements are based upon current management expectations andmay therefore involve risks and uncertainties. The Company's actual results orperformance may differ materially from those suggested, expressed, or impliedby forward-looking statements due to a wide range of factors including, butnot limited to, the general business environment, the California real estatemarket, competitive conditions in the business and geographic areas in whichthe Company conducts its business, regulatory actions or changes, actions bylenders and customers, the possibility of a going concern explanatoryparagraph in our independent registered public accountants' opinion on theCompany's March 31, 2008 consolidated financial statements, the risk that arecapitalization or other capital-raising transaction is not successfullycompleted prior to the maturity of the secured loan agreement, and other risksdetailed in the Company's reports filed with the Securities and ExchangeCommission, including the Annual Report on Form 10-K for the fiscal year endedMarch 31, 2007. The Company disclaims any obligation to subsequently reviseor update any forward-looking statements to reflect events or circumstancesafter the date of such statements or to reflect the occurrence of anticipatedor unanticipated 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.
