UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10‑Q

(Mark One)

[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
            EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2004
or

[    ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES                       EXCHANGE ACT OF 1934

For the transition period from                                    to

Commission File Number 0-27404

PFF BANCORP, INC.
(Exact name of registrant as specified in its charter)

DELAWARE

95-4561623

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer I.D. No.)

350 South Garey Avenue, Pomona, California  91766
(Address of principal executive offices)

(909) 623-2323
(Registrant's telephone number, including area code)

Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      X       No            .

Indicate by check mark whether the registrant is an accelerated filer (as defined in rule 12b-2 of the Exchange Act).Yes      X       No            .

The registrant had 16,844,903 shares of common stock, par value $.01 per share, outstanding as of January 31, 2005.

PART I

FINANCIAL INFORMATION (Unaudited)

PAGE

Item 1

Financial Statements

Consolidated Balance Sheets as of
December 31, 2004 and March 31, 2004

1

Consolidated Statements of Earnings for the three and nine months ended December 31, 2004 and 2003

2

Consolidated Statements of Comprehensive Earnings for the three and nine months ended December 31, 2004 and 2003

3

Consolidated Statement of Stockholders' Equity
for the nine months ended December 31, 2004

4

Consolidated Statements of Cash Flows for the
nine months ended December 31, 2004 and 2003

5

Notes to Unaudited Consolidated Financial Statements

7

Item 2

Management's Discussion and Analysis of
Financial Condition and Results of Operations

12

Item 3

Qualitative and Quantitative Disclosures about Market Risk

24

Item 4

Controls and Procedures

25

PART II

OTHER INFORMATION

Item 1

Legal Proceedings

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

Item 3

Defaults Upon Senior Securities

Item 4

Submission of Matters to a Vote of Security Holders

Item 5

Other Information

Item 6

Exhibits

December 31,
2004

March 31,
2004

Assets

Cash and cash equivalents

$     45,690

$     60,151

Investment securities held-to-maturity (estimated fair value of $6,759 at        

6,739

5,742

Investment securities available-for-sale, at fair value

62,498

62,957

Mortgage-backed securities available-for-sale, at fair value

250,943

292,888

Loans held-for-sale

1,685

2,119

Loans and leases receivable, net

3,388,962

3,149,318

Federal Home Loan Bank (FHLB) stock, at cost

48,351

42,500

Accrued interest receivable

15,565

14,752

Assets acquired through foreclosure, net

-

683

Property and equipment, net

29,762

27,430

Prepaid expenses and other assets

22,941

19,154

Total assets

$3,873,136

$3,677,694

Liabilities and Stockholders' Equity

Liabilities:

  Deposits

$2,704,621

$2,455,046

  FHLB advances and other borrowings

756,250

851,600

  Junior subordinated debentures

30,928

-

  Accrued expenses and other liabilities

34,550

54,677

        Total liabilities

3,526,349

3,361,323

Commitments and contingencies

-

-

Stockholders' equity:

   Preferred stock, $.01 par value.  Authorized 2,000,000
        shares; none issued

-

-

Common stock, $.01 par value.  Authorized 59,000,000
    shares; issued 16,978,565 and 16,894,697; outstanding
    16,978,565 and 16,614,997 at December 31, 2004 and
    March 31, 2004, respectively

168

168

    Additional paid-in capital

164,440

144,585

   Retained earnings, substantially restricted

187,646

173,188

   Unearned stock-based compensation

(752

)

(2,121

)

-

(3

Accumulated other comprehensive income (losses)

(4,715

)

554

        Total stockholders' equity

346,787

316,371

        Total liabilities and stockholders' equity

$3,873,136

$3,677,694

For the Three Months Ended
December 31,

For the Nine Months Ended
December 31,

2004

2003

2004

2003

Interest income:

  Loans and leases receivable

$       51,118

$        41,632

    $   143,454

123,126

  Mortgage-backed securities

2,460

2,476

7,449

6,421

  Collateralized mortgage obligations

-

-

-

(327

)

  Investment securities and deposits

1,105

1,009 

3,343

3,117

      Total interest income

54,683

45,117 

154,246

132,337

Interest expense:

  Deposits

10,673

8,717

28,664

28,203

  Borrowings

5,297

2,861

13,359

9,120

      Total interest expense

15,970

11,578 

42,023

37,323

Net interest income

38,713

33,539

112,223

95,014

Provision for loan and lease losses

1,030

120

2,694

2,425

Net interest income after provision for loan and
        lease losses

37,683

33,419 

109,529

92,589

Non-interest income:

  Deposit and related fees

2,921

2,820

8,892

8,503

  Loan and servicing fees

1,831

1,779

4,785

5,166

  Trust and investment fees

704

597

2,261

1,760

  Gain on sale of loans, net

136

58

260

700

  Gain on sale of securities, net

2

1,524

4,771

1,641

  Other non-interest income

139

357

548

558

      Total non-interest income

5,733

7,135

21,517

18,328

Non-interest expense:

  General and administrative:

    Compensation and benefits

14,118

12,657

39,032

34,038

    Occupancy and equipment

3,917

3,380

10,744

9,509

    Marketing and professional services

2,827

2,003

7,458

6,148

    Other non-interest expense

3,657

3,020 

10,515

8,929 

      Total general and administrative

24,519

21,060

67,749

58,624

  Foreclosed asset operations, net

30

302

64

303

      Total non-interest expense

24,549

21,362 

67,813 

58,927 

Earnings before income taxes

18,867

19,192

63,233

51,990

  Income taxes

9,292 

8,106 

29,679

21,971 

Net earnings

$           9,575

$         11,086

$      33,554

$    30,019 

Basic earnings per share

$             0.58

$            0.69 

$       2.05 

$        1.88

Weighted average shares outstanding for basic
  earnings per share calculation

16,520,509

16,146,432 

16,400,934 

15,967,434

Diluted earnings per share

$             0.56

$             0.66

$        1.99

$         1.81

Weighted average shares outstanding for diluted
  earnings per share calculation

16,965,769

16,864,143 

16,829,554

16,615,556

See accompanying notes to the unaudited consolidated financial statements.

For the Three Months Ended
December 31,

For the Nine Months Ended
December 31,

2004

2003

2004

2003

Net earnings

  $     9,575

$  11,086

$ 33,554

$  30,019

Other comprehensive earnings (losses), net of income taxes of $(4,134) and $2,434 at December, 2004 and
      2003, respectively:

  Unrealized gains (losses) on securities
          available-for-sale:

    U.S. Treasury and agency securities and other
      investment securities available-for-sale, at fair value

              (57

)

3,712 

267

4,139

    Collateralized mortgage obligations available-for-
          sale, at fair value

-

-

-

213

    Mortgage-backed securities available-for-sale,
           at fair value

283

(827

)

(1,472

)

(1,760

)

    Reclassification of realized gains (losses) included
           in earnings

  -

(2,139

)

(4,503

)

820

  Interest rate swap at fair value

99

-

72

-

325

746

(5,636

)

        3,412

Tax benefit on minimum pension liability

-

-

367

-

Other comprehensive earnings (losses)

325

746

(5,269

) 

3,412  

Comprehensive earnings

$  9,900

$  11,832

$ 28,285

$ 33,431 

Number of
Shares

Common
Stock

Additional
Paid-in
Capital

Retained
Earnings,
Substantially
Restricted

Unearned
Stock-based
Compensation

Treasury
Stock

Accumulated
Other
Comprehensive
Income (Losses)

Total

Balance at March 31, 2004

16,614,997

$    168

$ 144,585

$   173,188

$    (2,121

)

$         (3

)

$         554

$316,371

Net earnings

-

-

-

33,554

-

-

-

33,554

Purchases of treasury stock

(319,300

)

-

(2,277

)

(9,183

)

-

(3

)

-

(11,463

)

Stock options exercised

682,868

6

8,501

-

-

-

-

8,507

Treasury stock retirement

-

(6)

-

-

-

6

-

-

Dividend ($0.20 per share paid for June, September and December 2004)

-

-

-

(9,913

)

-

-

-

(9,913

)

Change in unrealized losses on securities available-for-sale, net

Change in unrealized losses on interest rate swap, net

-

-

-

-

-

-

72

72

Tax benefit from stock options/minimum pension liability

- 

-

7,565

- 

- 

- 

367

7,932 

Balance at December 31, 2004

16,978,565 

$    168

$ 164,440

$   187,646 

$    (752

) 

$         - 

$     (4,715

) 

$346,787 

Nine Months Ended
December 31,

2004

2003

Cash flows from operating activities:

  Net earnings

$   33,554 

$  30,019

  Adjustments to reconcile net earnings to net cash provided by operating activities:

  Amortization of premiums, net of discount accretion, on
      loans, leases and securities

1,140

1,817 

  Amortization of deferred loan origination costs, net

665

485

  Loan and lease fees collected

59

801

  Dividends on FHLB stock

(1,301

)

(878

)

  Provisions for losses on:

     Loans and leases

2,694

2,425

     Real estate

107

191

   Gains on sales of loans, securities available-for-sale,
       real estate and property and equipment

(5,084

)

(2,249

)

   Depreciation and amortization of property and equipment

2,543

2,287

   Loans originated for sale

(25,531

)

(36,533

)

   Proceeds from sale of loans held-for-sale

26,146

38,748

   Amortization of deferred issuance cost on junior subordinated debt

15

-

   Amortization of unearned stock-based compensation

7,435

6,019

   Decrease in accrued expenses and other liabilities

(7,989

)

(22,641

)

   (Increase) decrease in:

      Accrued interest receivable

(813

)

447

      Prepaid expenses and other assets

(761

)

(2,085

)

            Net cash provided by operating activities

32,879

18,853

Cash flows from investing activities:

   Loans and leases originated for investment

(1,893,723

)

(1,599,219

)

   Increase in construction loans in process

31,736

58,624

   Purchases of loans held-for-investment

(240,865

)

(615,567

)

   Principal payments on loans and leases

1,857,827

1,869,744

   Principal payments on mortgage-backed securities
        available-for-sale

68,419

70,109 

   Principal payments on collateralized mortgage obligations
        available-for-sale

-

15,199 

   Principal payments on investment securities available-for- sale

56

-

   Purchases of investment securities available-for-sale

(9,960

)

(35,514

)

   Purchases of investment securities held-to-maturity

(1,005

)

-

   Purchases of FHLB stock

(5,377

)

(10,130

)

   Redemption of FHLB stock

827

1,368

(Continued)

Nine Months Ended
December 31,

2004

2003

   Purchases of mortgage-backed securities available-for-sale

(30,147

)

(144,943

)

   Proceeds from maturities of investment securities available-for-sale

-

70

   Proceeds from sale of investment securities available-for-sale

7,983

76,273

   Proceeds from sale of property and equipment

736

840

   Purchases of property and equipment

(4,903

)

(5,506

)

        Net cash used in investing activities

(218,396

)

(318,652

)

Cash flows from financing activities:

   Proceeds from long-term FHLB advances and other borrowings

331,250

450,000

   Repayment of long-term FHLB advances and other borrowings

(394,000

)

(223,000

)

   Net change in short-term FHLB advances and other borrowings

(32,600

)

9,615

   Net change in deposits

249,575

52,972

   Proceeds from issuance of Junior subordinated debentures, net

29,700

-

   Proceeds from exercise of stock options

8,507

4,550

   Cash dividends

(9,913

)

(6,310

)

   Purchases of treasury stock

(11,463

)

(560

)

        Net cash provided by financing activities

171,056

287,267

        Net decrease in cash and cash equivalents

(14,461

)

(12,532)

Cash and cash equivalents, beginning of period

60,151

50,323

Cash and cash equivalents, end of period

$          45,690

$       37,791

Supplemental information:

Interest paid, including interest credited

$          41,844 

$       38,004

Income taxes paid

$           33,707

$       15,250

Non-cash investing and financing activities:

Net transfers from loans and leases receivable to assets acquired
        through foreclosure

$                   -