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 1934For the quarterly period ended June 30, 2006
				or[   
				] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
				SECURITIES
				EXCHANGE ACT OF 1934For the transition period from                             
				toCommission File Number 001-16845PFF 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.)9337 Milliken Avenue, Rancho Cucamonga, California 
				91730(Address of principal executive offices)(909) 941-5400(Registrant's telephone number, including area code)Former Address: 350 South Garey Avenue, Pomona, California 
				91766(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 a large
				accelerated filer, an accelerated filer, or a non-accelerated
				filer.  See definition of "accelerated filer and large
				accelerated filer" in Rule 12b-2 of the Exchange Act. (Check
				one):
				Large accelerated
				filer X   
				Accelerated filer       
				Non- accelerated filer  .Indicate by check mark whether the registrant is a shell company
				(as defined in rule 12b-2 of the Exchange Act).
				Yes    
				No X .The registrant had 24,546,616 shares of common stock, par value
				$.01 per share, outstanding as of July 31, 2006.


---

PFF
	BANCORP, INC. AND SUBSIDIARIES Form 10-Q Table of
	Contents  PART I
				
				FINANCIAL
				INFORMATION (Unaudited)
				PAGEItem 1
				
				Financial
				Statements
				
				
				Consolidated
				Balance Sheets as of June 30, 2006 and March 31, 2006
				1Consolidated
				Statements of Earnings for the three months ended June 30, 2006
				and 2005
				2Consolidated
				Statements of Comprehensive Earnings for the three months ended
				June 30, 2006 and 2005
				3Consolidated
				Statement of Stockholders' Equity for the three months
				ended June 30,
				2006
				4Consolidated
				Statements of Cash Flows for the three months ended
				June 30, 2006 and
				2005
				5Notes to
				Unaudited Consolidated Financial Statements
				6Item 2
				
				Management's
				Discussion and Analysis of Financial Condition and
				Results of
				Operations
				12Item 3
				
				Quantitative and
				Qualitative Disclosures about Market Risk
				21Item 4
				
				Controls and
				Procedures
				21PART II
				
				OTHER
				INFORMATIONItem 1
				
				Legal Proceedings
				22Item 1A
				
				Risk Factors
				22Item 2
				
				Unregistered
				Sales of Equity Securities and Use of Proceeds
				22Item 3
				
				Defaults Upon
				Senior Securities
				22Item 4
				
				Submission of
				Matters to a Vote of Security Holders
				22Item 5
				
				Other Information
				22Item 6
				
				Exhibits
				22SIGNATURES
				23


---

PART I --
	FINANCIAL INFORMATION Item 1. Financial
	Statements. PFF
	BANCORP, INC. AND SUBSIDIARIES
	CONSOLIDATED BALANCE SHEETS
	(Dollars in thousands, except per share data) June 30,
				2006
				
				March 31,
				2006(Unaudited)AssetsCash and cash
				equivalents
				$
				53,993
				
				$
				58,831Investment
				securities held-to-maturity (estimated fair value of
				$6,554 at June 30, 2006, and $6,567 at March 31, 2006)
				
				6,721
				
				
				6,724Investment securities
				available-for-sale, at fair value
				
				54,667
				
				
				60,092Mortgage-backed securities
				available-for-sale, at fair value
				
				254,048
				
				
				229,470Loans held-for-sale
				
				985
				
				
				795Loans and leases
				receivable, net (net of allowances for loan and lease losses
				of
				$37,658 at June 30, 2006 and $37,126 at March 31, 2006)
				
				3,967,952
				
				
				3,839,779Federal Home Loan Bank (FHLB)
				stock, at cost
				
				42,620
				
				
				39,307Accrued interest receivable
				
				23,430
				
				
				21,278Assets acquired through
				foreclosure, net
				
				8,605
				
				
				8,728Property and equipment, net
				
				47,382
				
				
				44,303Prepaid expenses and other assets
				
				27,114
				
				
				31,483Total assets
				$
				4,487,517
				
				$
				4,340,790Liabilities and Stockholders' EquityLiabilities:Deposits
				$
				3,130,880
				
				$
				3,057,309FHLB advances and
				other borrowings
				
				884,000
				
				
				822,000Junior subordinated
				debentures
				
				56,702
				
				
				56,702Accrued expenses and
				other liabilities
				
				40,264
				
				
				41,048Total liabilities
				
				4,111,846
				
				
				3,977,059Commitments 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 and outstanding 24,496,162 and
				24,493,472
				at June 30, 2006 and March 31, 2006, respectively
				
				244
				
				
				244Additional paid-in
				capital
				
				177,375
				
				
				175,581Retained earnings
				
				206,852
				
				
				195,591Accumulated other
				comprehensive losses
				
				(8,800
				)
				
				(7,685
				)Total stockholders' equity
				
				375,671
				
				
				363,731Total liabilities and stockholders' equity
				$
				4,487,517
				
				$
				4,340,790
  See accompanying notes to the unaudited consolidated financial statements. 1   PFF BANCORP, INC. AND SUBSIDIARIES
	CONSOLIDATED STATEMENTS OF EARNINGS(Dollars in thousands, except per share data)
	(Unaudited) For the Three Months Ended
				June 30,2006
				
				2005Interest income:Loans and leases receivable
				$         
				76,454
				
				$       
				56,105Mortgage-backed securities
				2,613
				
				2,346Investment securities and
				deposits
				1,436
				
				1,133Total interest income
				80,503
				
				59,584Interest expense:Deposits
				22,406
				
				12,604Borrowings
				11,225
				
				5,894Total interest expense
				33,631
				
				18,498Net interest income
				46,872
				
				41,086Provision for loan and lease losses
				500
				
				-Net interest
				income after provision for loan and
				lease losses
				46,372
				
				41,086Non-interest income:Deposit and related fees
				3,293
				
				2,947Loan and servicing fees
				593
				
				502Trust, investment and
				insurance fees
				1,522
				
				1,146Gain on sale of loans, net
				10
				
				67Gain on sale of securities,
				net
				271
				
				-Other non-interest income
				786
				
				206Total non-interest income
				6,475
				
				4,868Non-interest expense:General and administrative:Compensation and
				benefits
				15,635
				
				12,949Occupancy and
				equipment
				3,757
				
				3,457Marketing and
				professional services
				3,134
				
				2,987Other general
				and administrative
				3,756
				
				3,273Total general and administrative
				26,282
				
				22,666Foreclosed asset operations,
				net
				(115
				)
				(1
				)Total non-interest expense
				26,167
				
				22,665Earnings before income taxes
				26,680
				
				23,289Income taxes
				11,255
				
				10,931Net earnings
				$       
				15,425
				
				$       12,358Basic earnings per share
				$            
				0.63
				
				$          
				0.51Weighted average shares outstanding
				for basic
  earnings per share calculation
				24,424,431
				
				24,398,414Diluted earnings per share
				$            
				0.62
				
				$          
				0.49Weighted average shares outstanding for diluted
  earnings per share calculation
				24,806,515
				
				25,006,953
 See accompanying notes to the unaudited consolidated financial statements. 2  PFF BANCORP, INC. AND SUBSIDIARIES
	CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
	(Dollars in thousands)
	(Unaudited)


For
			the Three Months Ended
			June 30,2006
			
			2005Net earnings
			$     15,425
			
			$   
			12,358Other comprehensive
			earnings (losses), net of income tax expense (benefit) of $(808) and
			$763 at June 30, 2006 and 2005, respectively:Change in
			unrealized gains (losses) on:Investment securities available-for-sale, at fair value
			(86
			)
			11Mortgage-backed securities available-for-sale,
			at fair value
			(762
			)
			1,358Reclassification of realized securities gains included
      in earnings
			(174
			)
			-Reclassification of realized gains on interest rate swaps
			included in earnings
			(93
			)
			-Change in fair
			value of interest rate swaps
			-
			
			(315
			)Other comprehensive
			earnings (losses)
			(1,115
			)
			1,054Comprehensive
			earnings
			$    
			14,310
			
			$   
			13,412


See accompanying notes to the unaudited consolidated financial statements.  3


PFF BANCORP, INC. AND SUBSIDIARIES
	CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
	(Dollars in thousands, except per share data)
	(Unaudited) Number of
				Shares
				
				Common
				Stock
				Additional
				Paid-in
				Capital
				
				Retained
				Earnings
				
				Accumulated
				Other
				Comprehensive
				Losses
				
				TotalBalance at March 31, 2006
				24,493,472
				
				$    244
				$  175,581
				
				$   195,591
				
				$
				(7,685
				)
				$  363,731Net earnings
				-
				
				-
				-
				
				15,425
				
				
				-
				
				15,425Amortization
				under stock-based
				compensation plans
				-
				
				-
				1,757
				
				-
				
				
				-
				
				1,757Stock options
				exercised
				2,690
				
				-
				37
				
				-
				
				
				-
				
				37Dividends ($0.17
				per share for June 2006)
				-
				
				-
				-
				
				(4,164
				)
				
				-
				
				(4,164
				)Changes in
				unrealized losses on securities
				available-for-sale, net
				-
				
				-
				-
				
				-
				
				
				(1,022
				)
				(1,022
				)Changes in
				unrealized gains on
				interest rate swaps, net
				-
				
				-
				-
				
				-
				
				
				(93
				)
				(93
				)Balance at June
				30, 2006
				24,496,162
				
				$    244
				$  177,375
				
				$   206,852
				
				$
				(8,800
				)
				$  375,671
  See accompanying notes to the
	unaudited consolidated financial statements. 4


PFF BANCORP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(Dollars in thousands)(Unaudited)Three Months Ended June 30,2006
				
				2005Cash flows from
				operating activities:Net
				earnings
				$
				15,425
				
				$
				12,358Adjustments to reconcile net earnings to net cash provided by
				operating activities:Amortization of premiums, net of discount accretion on loans,
				leases
				and securities and deferred loan origination costs, net
				
				(6,110
				)
				
				(3,914
				)Loan and lease fees collected
				
				6,074
				
				
				5,203Dividends on FHLB stock
				
				(461
				)
				
				(941
				)Provisions for losses on loans, leases and foreclosed asset
				operations
				
				500
				
				
				5Gains on sales of loans, securities available-for-sale, real
				estate and
				property and equipment
				
				(282
				)
				
				(65
				)Depreciation and amortization of property and equipment
				
				1,001
				
				
				887Loans originated for sale
				
				(1,812
				)
				
				(4,389
				)Proceeds from sale of loans held-for-sale
				
				1,632
				
				
				4,933Amortization of stock-based compensation
				
				1,757
				
				
				1,303Increase
				in market value of interest rate swaps
				
				(475
				)
				
				-Amortization of deferred issuance cost on junior subordinated
				debt
				
				20
				
				
				15Other, net
				
				(1,583
				)
				
				(1,572
				)Net cash provided by operating activities
				
				15,686
				
				
				13,823Cash flows from
				investing activities:Loans and leases originated for investment
				
				(690,616
				)
				
				(693,538
				)Increase (decrease) in construction loans in process
				
				(27,246
				)
				
				46,288Purchases of loans held-for-investment
				
				(2,997
				)
				
				-Principal payments on loans and leases
				
				596,442
				
				
				606,885Principal payments on mortgage-backed securities
				available-for-sale
				
				16,369
				
				
				17,213Purchases of mortgage-backed securities available-for-sale
				
				(42,449
				)
				
				-Redemption (purchases) of FHLB stock, net
				
				(2,852
				)
				
				896Proceeds from maturities of mortgage-backed-securities
				available-for-sale
				
				-
				
				
				16Proceeds from sale of investment securities available-for-sale
				
				5,337
				
				
				-Proceeds from sale of property and equipment
				
				128
				
				
				-Purchases of property and equipment
				
				(4,084
				)
				
				(11,639
				)Net cash used in investing activities
				
				(151,968
				)
				
				(33,879
				)Cash flows from
				financing activities:Net change in deposits
				
				73,571
				
				
				37,956Proceeds from long-term FHLB advances and other borrowings
				
				356,150
				
				
				215,000Repayment of long-term FHLB advances and other borrowings
				
				(244,150
				)
				
				(100,000
				)Net change in short-term FHLB advances and other borrowings
				
				(50,000
				)
				
				(101,774
				)Proceeds from exercise of stock options
				
				37
				
				
				483Cash dividends
				
				(4,164
				)
				
				(3,670
				)Excess tax benefit from stock-based payment arrangements
				
				-
				
				
				1,800Purchases of treasury stock
				
				-
				
				
				(8,110
				)Net cash provided by financing activities
				
				131,444
				
				
				41,685Net (decrease) increase in cash and cash equivalents
				
				(4,838
				)
				
				21,629Cash and cash
				equivalents, beginning of period
				
				58,831
				
				
				44,844Cash and cash
				equivalents, end of period
				$
				53,993
				
				$
				66,473Supplemental
				information:Interest paid
				$
				33,537
				
				$
				18,263Income taxes paid
				$
				-
				
				$
				1,500Non-cash
				investing and financing activities:Net transfers
				from loans and leases receivable to assets acquired through
				foreclosure
				$
				-
				
				$
				63




See accompanying
notes to the unaudited consolidated financial statements.



5

---

PFF BANCORP,
INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements



(1)   
	Basis of Consolidation   The accompanying unaudited
	consolidated financial statements include the accounts of PFF Bancorp, Inc.
	and its wholly-owned subsidiaries PFF Bank & Trust, Glencrest Investment
	Advisors, Inc. ("Glencrest") and Diversified Builder Services, Inc. ("DBS")
	(collectively "Bancorp", "we", "us" and "our").  Our business is
	conducted primarily through PFF Bank & Trust and its subsidiary, Pomona
	Financial Services, Inc. (collectively, the "Bank").  Pomona Financial
	Services, Inc. includes the accounts of Diversified Services, Inc. Glencrest
	includes the accounts of Glencrest Insurance Services, Inc. The Bancorp owns
	100% of the common stock of two unconsolidated special purpose business
	trusts "PFF Bancorp Capital Trust I" and "PFF
	Bancorp Capital Trust II" created for the purpose of issuing capital
	securities. All material intercompany balances and transactions have been
	eliminated in consolidation.  Our unaudited consolidated financial statements have been prepared in
	accordance with accounting principles generally accepted in the United
	States of America for interim financial information and with the
	instructions to Form 10-Q and Rule 10-01 of Regulation S-X. 
	Accordingly, they do not include all of the information and footnotes
	required by accounting principles generally accepted in the United States of
	America for complete financial statements.  In our opinion, all
	adjustments (consisting principally of normal recurring accruals) necessary
	for a fair presentation have been included.  We have made certain
	reclassifications to the prior year's consolidated financial statements to
	conform to the current presentation.  The results of operations for the
	three months ended June 30, 2006 are not necessarily indicative of results
	that may be expected for the entire fiscal year ending March 31, 2007.  These interim consolidated financial statements should be read in
	conjunction with our consolidated financial statements, and the notes
	thereto, included in our Form 10-K for the year ended March 31, 2006.  (2)    Current Accounting Issues  In February 2006, the Financial Accounting Standards Board ("FASB")
	issued Statement of Financial Accounting Standards ("SFAS") 155, "Accounting
	for Certain Hybrid Financial Instruments, an amendment of SFAS 133 and SFAS
	140" ("SFAS 155"). This Statement permits fair value remeasurement for any
	hybrid financial instrument that contains an embedded derivative that
	otherwise would require bifurcation; clarifies which interest-only strips
	and principal-only strips are not subject to SFAS 133; establishes a
	requirement to evaluate interests in securitized financial assets to
	identify interests that are freestanding derivatives or hybrid financial
	instruments that contain an embedded derivative requiring bifurcation;
	clarifies that concentrations of credit risks in the form of subordinations
	are not embedded derivatives; and amends SFAS 140 to eliminate the
	prohibition on a Qualified Special Purpose Entity from holding a derivative
	financial instrument that pertains to a beneficial interest other than
	another derivative financial instrument.  SFAS 155 is effective for all
	financial instruments acquired or issued after the beginning of an entity's
	first fiscal year that begins after September 15, 2006. Early adoption of
	this statement is allowed. We do not expect the adoption of SFAS 155 to have
	a material impact on our financial condition or results of operations. In March 2006, the FASB issued SFAS 156, "Accounting for Servicing of
	Financial Assets," ("SFAS 156") which amends the guidance in SFAS 140. SFAS
	156 requires that an entity separately recognize a servicing asset or a
	servicing liability when it undertakes an obligation to service a financial
	asset under a servicing contract in certain situations. Such servicing
	assets or servicing liabilities are required to be measured initially at
	fair value, if practicable. SFAS 156 also allows an entity to measure its
	servicing assets and servicing liabilities subsequently using either the
	amortization method, which existed under SFAS 140, or the fair value
	measurement method. SFAS 156 will be effective in the fiscal year beginning
	April 1, 2007. We do not expect the adoption of SFAS 156 to have a material
	impact on our financial condition or results of operations.  In June 2006, the FASB issued Interpretation No. 48, "Accounting for
	Uncertainty in Income Taxes - an Interpretation of   FASB
	Statement No. 109" ("FIN 48"). FIN 48 clarifies the accounting for
	uncertainty in income taxes recognized in an enterprise's financial
	statements in accordance with SFAS 109, "Accounting for Income Taxes." FIN
	48 prescribes a recognition threshold and measurement attribute for the
	financial statement recognition and measurement of a tax position taken or
	expected to be taken in a tax return. We will be required to adopt FIN 48 in
	the fiscal year beginning April 1, 2007. We are currently assessing the
	impact that the adoption of FIN 48 will have on our financial condition and
	results of operations. 6


PFF BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
(Continued)

(3)    Stock-Based Compensation Plans In December
	2004, the FASB issued SFAS 123R, "Share-Based Payment, an Amendment of FASB
	Statement No. 123" ("SFAS 123R").  SFAS 123R requires companies to
	recognize in the statement of operations the grant-date fair value of stock
	options and other equity-based compensation issued to employees and
	directors. SFAS 123R is effective for fiscal years beginning after June 15,
	2005.  We adopted SFAS 123R beginning with our first quarter of fiscal
	2006, and the impact is not material to our consolidated financial
	statements. During October 1996, our stockholders approved the PFF Bancorp, Inc. 1996
	Incentive Plan (the "1996 Plan"). During September 1999, our stockholders
	approved the PFF Bancorp, Inc. 1999 Incentive Plan (the "1999 Plan"). The
	1996 Plan authorized the granting of options to purchase our common stock,
	option related awards, and grants of common stock. The 1999 Plan authorized
	the granting of options to purchase our common stock.  Any options or
	awards previously granted under the 1996 and 1999 Plans that expire, lapse or
	otherwise terminate for any reason without having been settled in full will
	become available for issuance under the 2004 Plan.  A summary of option activity under the 1996 and 1999 Plans as of June 30,
	2006 and 2005, and changes during the three months ended June 30, 2006 and
	2005 are presented below:  For the Three Months Ended June 30, 2006Weighted AverageWeighted Average
			Remaining
			
			AggregateShares
			
			
			Exercise Price
			Contractual Term
			
			Intrinsic Value(Dollars in thousands, except per share data)Outstanding at April 1, 2006
			602,993
			
			$
			12.49
			-
			$
			-Granted
			-
			
			
			-
			-
			
			-Exercised
			(2,690
			)
			
			13.43
			-
			
			-Forfeited or expired
			(840
			)
			
			15.33
			-
			
			-Outstanding at June 30, 2006
			599,463
			
			$
			12.48
			4.9
			$
			12,395Exercisable at June 30, 2006
			594,172
			
			$
			12.49
			4.9
			$
			12,281    For the Three Months Ended June 30, 2005Weighted AverageWeighted Average
			Remaining
			
			AggregateShares
			
			
			Exercise Price
			Contractual Term
			
			Intrinsic Value(Dollars in thousands, except per share data)Outstanding at April 1, 2005
			1,019,615
			
			$
			10.82
			-
			$
			-Granted
			-
			
			
			-
			-
			
			-Exercised
			(74,250
			)
			
			6.50
			-
			
			-Forfeited or expired
			(1,463
			)
			
			11.67
			-
			
			-Outstanding at June 30, 2005
			943,902
			
			$
			11.16
			4.7
			$
			18,057Exercisable at June 30, 2005
			922,328
			
			$
			11.01
			4.6
			$
			17,782  No options were granted during the three months ended June 30, 2006 and
	2005.  The total intrinsic value of options exercised during the three
	months ended June 30, 2006 and 2005 was $53,000 and $1.3 million,
	respectively. Cash received from options exercised under the 1996 and 1999
	Plans for the three months ended June 30, 2006 and 2005 was $36,000 and
	$483,000, respectively.  The tax benefit realized for the tax
	deductions from options exercised totaled $1,000 and $680,000 for the three
	months ended June 30, 2006 and 2005, respectively. 7  PFF BANCORP, INC. AND SUBSIDIARIES
	Notes to Unaudited Consolidated Financial Statements
	(Continued) The fair value of each option is estimated on the grant date using the
	Black-Scholes model that applies the following assumptions:  Volatility
	is based on the historical volatility of our stock.  The expected term
	of options granted represents the period of time the options granted are
	expected to be outstanding.  The risk-free rate is the yield from
	United States government securities with the same terms as the life of the
	options.  Dividend yield is calculated using the anticipated dividend
	payout rate of the stock over the life of the option.  Compensation expense under the 1996 and 1999 Plans was $6,000 and $35,000
	for the three months ended June 30, 2006 and 2005, respectively, based upon
	the vesting of 1,395 options and 4,941 options, respectively. 
	Compensation expense of $8,000 associated with an additional 1,685
	previously issued, but unvested options outstanding at June 30, 2006, will
	be recorded in future periods ending in October 2006 as the applicable
	service is rendered. During September 2004, our
	stockholders approved the PFF Bancorp, Inc. 2004 Equity Incentive Plan (the
	"2004 Plan").  The 2004 Plan authorizes the granting of 1,112,632
	options or 556,315 restricted stock awards to Directors or employees. 
	Additionally, any ungranted options or awards along with options or awards
	previously granted under the 1996 and 1999 Plans that expire, lapse or
	otherwise terminate for any reason without having been settled in full will
	become available for issuance under the 2004 Plan.  During the three
	months ended June 30, 2006, 840 options issued under the 1999 Plan expired
	and were transferred to the 2004 Plan.  For the three months ended June 30, 2006 and 2005, based upon current
	performance levels, compensation expense associated with the 2004 Plan was
	$989,000 and $654,000.  As of June 30, 2006, there was $3.6 million of
	total unrecognized compensation cost related to non-vested awards granted
	under the 2004 Plan.  The unrecognized compensation cost is expected to
	be recognized over a weighted average period of 1.4 years.  A summary of our nonvested awards principally to Directors that vest
	based solely on service as of June 30, 2006 and 2005 and changes during the
	three months ended June 30, 2006 and 2005 are presented below:  Weighted AverageGrant DateShares
			Fair ValueNonvested at April 1,
			2006
			81,900
			$
			28.59Granted
			-
			
			-Vested
			(29,250)
			
			28.59Forfeited
			-
			
			-Nonvested at June 30,
			2006
			52,650
			$
			28.59    Weighted AverageGrant DateShares
			Fair ValueNonvested at April 1,
			2005
			-
			$
			-Granted
			81,000
			
			28.57Vested
			-
			
			-Forfeited
			-
			
			-Nonvested at June 30,
			2005
			81,000
			$
			28.57  8   PFF
	BANCORP, INC. AND SUBSIDIARIES
	Notes to Unaudited Consolidated Financial Statements
	(Continued)  A summary of activity of our
	nonvested awards to employees that vest based on a combination of service
	and performance as of June 30, 2006 and 2005 is
	presented below:  Weighted AverageGrant DateShares
			
			Fair ValueNonvested at April 1,
			2006
			329,565
			$
			27.46Granted
			-
			
			-Vested
			-
			
			-Forfeited
			(21,176)
			
			27.46Nonvested at June 30,
			2006
			308,389
			$
			27.46   Weighted AverageShares
			
			Grant Date
			Fair ValueNonvested at April 1,
			2005
			-
			$
			-Granted
			436,760
			
			27.42Vested
			-
			
			-Forfeited
			-
			
			-Nonvested at June 30,
			2005
			436,760
			$
			27.42


9

---

PFF BANCORP,
INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
(Continued)



(4)   
	Earnings Per Share  Earnings per share ("EPS") is
	calculated on both a basic and diluted basis, excluding common shares in
	treasury. Basic EPS is calculated by dividing net earnings available to
	common stockholders by the weighted average common shares outstanding during
	the period.  Diluted EPS includes the potential dilution resulting from
	the assumed exercise of stock options, including the effect of shares
	exercisable under our stock-based compensation plans.   The following table presents
	a reconciliation of the numerators and denominators of the basic and diluted
	EPS computations for the three months ended June 30, 2006 and 2005.   For the Three Months Ended June 30,2006
				
				2005Earnings
				(Numerator)
				Shares
				(Denominator)
				Per-Share
				Amount
				
				Earnings
  (Numerator)
				Shares
				(Denominator)
				Per-Share
				Amount(Dollars in thousands, except per share data)Net Earnings
				$
				15,425
				
				
				
				
				$
				12,358Basic EPSEarnings
				available to common stockholders
				
				15,425
				24,424,431
				$
				0.63
				
				
				12,358
				24,398,414
				$
				0.51Effect of Dilutive SecuritiesOptions and stock
				awards
				
				
				382,084
				
				
				
				
				
				608,539Diluted EPSEarnings
				available to common stockholders
				and assumed conversions
				$
				15,425
				24,806,515
				$
				0.62
				
				$
				12,358
				25,006,953
				$
				0.49
  The exercise price of all
		options was less than the average market price of the common shares
		during the three month period ended June 30, 2006 and 2005.  As a
		result, there were no options excluded from the computation of earnings
		per share due to anti-dilution.  10               PFF
	BANCORP, INC. AND SUBSIDIARIES
	Notes to Unaudited Consolidated Financial Statements
	(Continued)


(5)   
	Derivative Hedging Activities   The Company enters into
	financial derivatives in order to mitigate exposure to the issuance of its
	junior subordinated debentures.  On September 30, 2004, we
	entered into an interest rate swap with a financial institution in the
	notional amount of $30.0 million for a period of five years.  This
	interest rate swap was transacted concurrent with and for the purpose of
	hedging the cash outflows from $30.0 million of variable rate junior
	subordinated debentures against increasing interest rates.  The terms
	of the interest rate swap require us to pay a fixed rate of 6.08 percent and
	receive three month LIBOR plus 2.20 percent quarterly on dates which mirror
	those of the junior subordinated debentures through the termination of the
	interest rate swap on November 23, 2009.  We recognize all derivatives
	on the balance sheet at fair value based on dealer quotes.  At June 30,
	2006, the interest rate swap had a fair value of $1.6 million.  The
	periodic net settlement of this swap decreased interest expense by $86,000
	for the three months ended June 30, 2006.    On September 16, 2005, we
	entered into an interest rate swap with a financial institution in the
	notional amount of $10.0 million for a period of five years.  The
	interest rate swap was transacted concurrent with and for the purpose of
	hedging the cash outflows from a portion of an additional $25.0 million of
	variable rate junior subordinated debentures against increasing interest
	rates.  The terms of the interest rate swap require us to pay a fixed
	rate of 5.98 percent and receive three month LIBOR plus 1.52 percent
	quarterly on dates which mirror those of the junior subordinated debentures
	through the termination of the interest rate swap on November 23, 2010. 
	At June 30, 2006, the interest rate swap with a notional amount of $10.0
	million had a fair value of $447,000.  The periodic net settlement of
	this swap decreased interest expense by $14,000 for the three months ended
	June 30, 2006.  We have determined that the
	above interest rate swaps do not qualify for hedge treatment under the
	provisions of SFAS 133, "Accounting for Derivative Instruments and Hedging
	Activities" ("SFAS 133").  As a result, a $475,000 non-cash credit
	representing the increase in market value of the interest rate swaps for the
	quarter ended June 30, 2006 has been recorded as a component of other
	non-interest income in the Statement of Earnings.  Future changes in
	market value will also be recorded as a component of non-interest income. 
	While the provisions of SFAS 133 require that these interest rate swaps be
	considered unhedged derivatives for accounting purposes, from both economic
	substance and cash flow standpoints, the interest rate swaps have been and
	will continue to be fully effective in hedging the floating rate nature of
	the junior subordinated debentures.  11




Item 2.  Management's
	Discussion and Analysis of Financial Condition and Results of Operations  Average Balance Sheets  The following table sets
	forth certain information relating to our average balances of assets,
	liabilities and equity for the three months ended June 30, 2006 and 2005. 
	The yields and costs are derived by dividing interest income or expense by
	the average balance of interest-earning assets or interest-bearing
	liabilities, respectively, for the periods shown.  Average balances are
	generally derived from average daily balances.  The yields and costs
	include fees that are considered adjustments to yields.  Three Months Ended June 30,2006
				2005Average
				Balance
				Interest
				
				Average
				Yield/
				Cost
				
				Average
				Balance
				Interest
				Average
				Yield/
				Cost(Dollars in thousands)Assets:Interest-earnings assets:Interest-earnings
				deposits and short-term investments
				$
				5,771
				$
				105
				
				7.30
				%
				$
				7,361
				$
				77
				4.20
				%Investment securities,
				net
				
				62,285
				
				810
				
				5.22
				
				
				67,399
				
				576
				3.43Mortgage-backed
				securities, net
				
				241,964
				
				2,613
				
				4.32
				
				
				242,951
				
				2,346
				3.86Loans and leases
				receivable, net
				
				3,906,331
				
				76,454
				
				7.84
				
				
				3,435,548
				
				56,105
				6.54FHLB stock
				
				41,516
				
				521
				
				5.03
				
				
				41,839
				
				480
				4.60Total interest-earnings assets
				
				4,257,867
				
				80,503
				
				7.57
				
				
				3,795,098
				
				59,584
				6.29Non-interest-earning
				assets
				
				156,363
				
				
				
				
				
				
				132,156Total assets
				$
				4,414,230
				
				
				
				
				
				$
				3,927,254Liabilities and Stockholders' Equity:Deposits:Non-interest bearing
				demand accounts
				$
				275,467
				
				-
				
				0.00
				
				$
				267,890
				
				-
				0.00Interest-bearing demand
				accounts
				
				396,122
				
				502
				
				0.51
				
				
				489,591
				
				775
				0.63Savings accounts
				
				159,607
				
				167
				
				0.42
				
				
				176,316
				
				132
				0.30Money market accounts
				
				798,468
				
				6,324
				
				3.18
				
				
				818,579
				
				4,301
				2.11Certificate accounts
				
				1,429,711
				
				15,413
				
				4.32
				
				
				965,573
				
				7,396
				3.07Total Deposits
				
				3,059,375
				
				22,406
				
				2.94
				
				
				2,717,949
				
				12,604
				1.86FHLB advances and other
				borrowings
				
				874,732
				
				10,354
				
				4.75
				
				
				786,746
				
				5,423
				2.76Junior subordinated
				debentures
				
				56,702
				
				871
				
				6.14
				
				
				30,928
				
				471
				6.11Total
				interest-bearing liabilities
				
				3,990,809
				
				33,631
				
				3.38
				
				
				3,535,623
				
				18,498
				2.10Non-interest-bearing liabilities
				
				53,772
				
				
				
				
				
				
				51,922Total liabilities
				
				4,044,581
				
				
				
				
				
				
				3,587,545Stockholders' equity
				
				369,649
				
				
				
				
				
				
				339,709Total liabilities and stockholders' equity
				$
				4,414,230
				
				
				
				
				
				$
				3,927,254Net interest income
				
				$
				46,872
				
				
				
				
				$
				41,086Net interest spread
				
				
				
				4.19
				
				
				
				4.19Net interest margin
				
				
				
				4.40
				
				
				
				4.33Ratio of interest-earning assets to
				interest-bearing liabilities
				106.69
				%
				
				
				
				107.34
				%


12

---

Rate/Volume Analysis  The following table presents the extent to which changes in interest
	rates and changes in the volume of interest-earning assets and
	interest-bearing liabilities have affected our interest income and interest
	expense during the periods indicated.  Information is provided in each
	category with respect to:  (i) changes attributable to changes in
	volume (changes in volume multiplied by prior rate); (ii) changes
	attributable to changes in rate (changes in rate multiplied by prior
	volume); (iii) changes attributable to changes in rate/volume (change in
	rate multiplied by change in volume); and (iv) the net change.  Three Months Ended June 30, 2006Compared toThree Months Ended June 30, 2005Increase (Decrease)Due toVolume
				
				Rate
				Rate/
				Volume
				
				Net(Dollars in thousands)Interest-earning assets:Interest-earning deposits and
				short-term investments
				$
				(17
				)
				57
				(12
				)
				28Investment securities, net
				
				(44
				)
				301
				(23
				)
				234Mortgage-backed securities, net
				
				(10
				)
				278
				(1
				)
				267Loans and leases receivable, net
				
				7,676
				
				11,147
				1,526
				
				20,349FHLB stock
				
				(4
				)
				45
				-
				
				41Total interest-earning assets
				
				7,601
				
				11,828
				1,490
				
				20,919Interest-bearing liabilities:Demand deposits accounts
				
				(148
				)
				(155)
				30
				
				(273
				)Savings accounts
				
				(13
				)
				53
				(5
				)
				35Money market accounts
				
				(106
				)
				2,183
				(54
				)
				2,023Certificate accounts
				
				3,555
				
				3,014
				1,448
				
				8,017FHLB advances and other borrowings
				
				606
				
				3,890
				435
				
				4,931Junior subordinated debentures
				
				393
				
				5
				2
				
				400Total interest-bearing liabilities
				
				4,287
				
				8,990
				1,856
				
				15,133Change in net interest income
				$
				3,314
				
				2,838
				(366
				)
				5,786    Forward-Looking Statements  "Safe Harbor" statement under
	the Private Securities Litigation Reform Act of 1995: This Form 10-Q
	contains forward-looking statements that are subject to risks and
	uncertainties, including, but not limited to, changes in economic conditions
	in our market areas, changes in policies by regulatory agencies, the impact
	of competitive loan and deposit products, the quality or composition of our
	loan or investment portfolios, fluctuations in interest rates and changes in
	the relative differences between short and long-term interest rates, levels
	of nonperforming assets and operating results, the impact of domestic or
	world events on our loan and deposit inflows and outflows and other risks
	detailed from time to time in our filings with the Securities and Exchange
	Commission. We caution readers not to place undue reliance on
	forward-looking statements.  We do not undertake and specifically
	disclaim any obligation to revise or update any forward-looking statements
	to reflect the occurrence of anticipated or unanticipated events or
	circumstances after the date of such statements.  These risks could
	cause our actual results for fiscal year 2007 and beyond to differ
	materially from those expressed in any forward-looking statements by, or on
	behalf of, us.  13           Critical
	Accounting Policies Our management has established various accounting policies, which govern the
	application of accounting principles generally accepted in the United States
	of America in the preparation of our consolidated financial statements. 
	The significant accounting policies are described in our Annual Report on
	Form 10-K for the year ended March 31, 2006 and there has not been any
	material change in those policies since that date, other than changes
	discussed in this report. Certain accounting policies require significant
	estimates and assumptions, which have a material impact on the carrying
	value of certain assets and liabilities, and these are considered to be
	critical accounting policies.  The estimates and assumptions used are
	based on historical experience and other factors, which we believe are
	reasonable under the circumstances.  Actual results could differ
	significantly from these estimates and assumptions which could have a
	material impact on the carrying values of assets and liabilities at the
	balance sheet dates and on the results of operations for the reporting
	periods.  The following represents critical accounting policies that
	require the most significant estimates and assumptions that are particularly
	susceptible to significant change in the preparation of the consolidated
	financial statements:  Allowance for losses on
		loans and leases.  For further information, see "Comparison of
		Financial Condition at June 30, 2006 and March 31, 2006" in this Form
		10-Q and "Item 1 - Business - Lending Activities - Allowance for Loan
		and Lease Losses", "Item 1- Foreclosed Assets" and "Notes 5 and 6 to the
		Consolidated Financial Statements" in our March 31, 2006 Annual Report
		on Form 10-K.  Other-Than-Temporary
		Impairment.  For further information, see "Item 1 - Business -
		Investment Activities" and "Notes 2 and 3 to the Consolidated Financial
		Statements" in our March 31, 2006 Annual Report on Form 10-K.  Financial Derivatives.
		For further information, see "Item 1 -- Financial Statements - Note 5 -
		Derivative Hedging Activities" in  this Form 10-Q and "Note 13 to
		the Consolidated Financial Statements" in our March 31, 2006 Annual
		Report on Form 10-K. 14   Comparison of Operating
	Results for the Three Months Ended June 30, 2006 and 2005   Overview  The following discussion
	compares the results of operations for the three months ended June 30, 2006
	with the corresponding period of 2005. This discussion should be read in
	conjunction with the consolidated financial statements and footnotes
	included therein.   We recorded net earnings of
	$15.4 million or $0.62 per diluted share for the three months ended June 30,
	2006 compared to net earnings of $12.4 million or $0.49 per diluted share
	for the comparable period of 2005.  Net interest income rose $5.8 million or 14 percent to $46.9 million
		for the current quarter compared to the same quarter of 2005.  On a
		sequential quarter basis, net interest income increased $2.0 million or
		5 percent.  Net interest margin expanded 7 basis points to 4.40%
		between the quarters ended June 30, 2005 and 2006 and contracted 6 basis
		points on a sequential quarter basis.  Construction, commercial business, commercial real estate and
		consumer loans (the "Four-Cs") increased $496.8 million or 28 percent to
		$2.29 billion or 58 percent of loans and leases receivable, net compared
		to $1.79 billion or 52 percent of loans and leases receivable, net, one
		year ago. Based on end of period balances, the Four-Cs increased $120.1
		million or 6 percent during the current quarter.  The average
		balance of the Four-Cs increased $217.6 million or 11 percent on a
		sequential quarter basis.  Our loan origination focus continues to be on the Four-Cs. 
		Four-Cs originations totaled $595.1 million or 86 percent of total
		originations in the current quarter, compared to $590.9 million or 85
		percent of total originations for the comparable period of the prior
		year.  The Four-Cs originations include $49.4 million and $21.5
		million originated by DBS during the quarters ended June 30, 2006 and
		2005, respectively.  At June 30, 2006, DBS had outstanding loans
		receivable, net, of $97.2 million compared to $54.5 million one year
		ago.  The majority of DBS's loans are classified as construction
		and land.  Average total deposits increased $341.4 million or 13 percent
		compared to the quarter ended June 30, 2005 and increased $161.5 million
		from the quarter ended March 31, 2006.  Reflecting a widening rate
		differential between certificate accounts ("CDs") and interest-bearing
		liquid accounts arising from increases in the general level of interest
		rates, the average balance of CDs increased $464.1 million while lower
		cost passbook, money market and demand deposits ("core deposits")
		decreased $122.7 million from one year ago.  At June 30, 2006, core
		deposits totaled $1.65 billion or 53 percent of total deposits, compared
		to $1.69 billion or 55 percent of total deposits at March 31, 2006 and
		$1.80 billion or 65 percent of total deposits one year ago.
		Non-interest-bearing demand deposits averaged $275.5 million or 9
		percent of average total deposits for the current quarter compared to
		$267.9 million or 10 percent of average total deposits for the
		comparable quarter of 2005.  Deposits, particularly core deposits, provide a more preferable source of
	funding than to FHLB advances and other borrowings. However, as and to the
	extent competitive or market factors do not allow us to meet our funding
	needs with deposits, FHLB advances and other borrowings provide a readily
	available source of liquidity.  At June 30, 2006, FHLB advances and
	other borrowings increased to $884.0 million or 21 percent of total
	liabilities from $822.0 million or 21 percent of total liabilities at March
	31, 2006.  Asset quality remained strong with non-accrual loans totaling $1.1
	million or 0.02 percent of gross loans and leases at June 30, 2006 compared
	to $1.1 million or 0.03 percent of gross loans and leases at March 31, 2006
	and $11.1 million or 0.27 percent of gross loans and leases at June 30,
	2005.  The distribution of the non-accrual loan balance of $1.1 million
	as of June 30, 2006 by loan type was $824,000 single-family, $240,000
	commercial business and $76,000 consumer.  We did not repurchase any shares of our common stock during the current
	quarter.  At June 30, 2006, 954,310 shares remain under a 1.0 million
	share repurchase authorization adopted by our Board of Directors on October
	26, 2005. 15    At June 30, 2006, our
	consolidated capital to assets ratio was 8.37%.  The Bank's core and
	total risk-based capital ratios were 8.31% and 10.90%, respectively,
	compared to 5.00% and 10.00%, respectively, needed to be considered "Well
	Capitalized."  Our internal target floors for the Bank's core and total
	risk-based capital ratios are 7.75% and 11%, respectively.  For further
	information relating to our risk-based capital ratios, see "Liquidity and
	Capital Resources" in this Form 10-Q.   Net
	Interest Income  Net interest income is the
	difference between interest and dividends earned on loans and leases,
	mortgage-backed securities and other investment securities and other
	interest-earning investments (collectively, "interest-earnings assets") and
	the interest paid on deposits and borrowings ("interest-bearing
	liabilities"). The spread between the yield on interest-earning assets and
	the cost of interest-bearing liabilities and the relative dollar amounts of
	these assets and liabilities are the principle items affecting net interest
	income.   Our net interest income
	totaled $46.9 million for the current quarter, up 14 percent or $5.8 million
	from $41.1 million for the quarter ended June 30, 2005.  This increase
	was attributable primarily to a $462.8 million or 12 percent increase in
	average interest-earning assets from the comparable period of the prior
	year.  The average balance of the Four-Cs increased $497.5 million or
	29 percent between the quarter ended June 30, 2005 and 2006, which
	contributed to the increase of $470.8 million or 14 percent in the average
	balance of loans and leases receivable, net.   Reflecting the higher
	interest rate environment and the sensitivity of our loan and lease
	portfolio to changes in rates, the average yield on loans and leases
	receivable, net, increased 130 basis points to 7.84% for the quarter ended
	June 30, 2006 as compared to the quarter ended June 30, 2005.  Loan and
	lease principal repayments totaled $596.4 million for the quarter ended June
	30, 2006 compared to $606.9 million for the comparable period of 2005. 
	Expressed as an annualized percentage of average loans and leases
	receivable, net, this represented 61 percent of the
	portfolio compared to 71 percent for the quarter ended June 30, 2005. 
	Premium amortization, net of discount accretion on the loan and lease
	portfolio for the quarters ended June 30, 2005 and 2006 was $320,000 and
	$242,000, respectively.  Amortization of loan origination fees and
	extension fees increased to $4.3 million and $1.8 million, respectively, for
	the quarter ended June 30, 2006 compared to $3.7 million and $707,000 for
	the comparable period of 2005.  For the quarter ended June 30, 2006,
	this fee amortization increased yield on average loans receivable, net, and
	yield on average interest-earning assets by 64 basis points and 58 basis
	points, respectively, compared to 52 basis points and 47 basis points for
	the comparable period of 2005.   Our average cost of
	interest-bearing liabilities increased 128 basis points to 3.38% between the
	quarters ended June 30, 2005 and 2006.  Our average cost of deposits
	rose 108 basis points between the quarter ended June 30, 2005 and 2006 while
	our average cost of FHLB advances, other borrowings and junior subordinated
	debentures rose 195 basis points. The increase in our average cost of
	interest-bearing liabilities was partially mitigated by the continued growth
	and increasing utilization of deposits as our principal and preferable
	source of funding.  The average balance of our deposit portfolio
	increased $341.4 million or 13 percent to $3.06 billion or 77 percent of our
	average interest-bearing liabilities, which is comparable to the same period
	of 2005.   Provision
	for Loan and Lease Losses  We recorded a $500,000
	provision for loan and lease losses for the quarter ended June 30, 2006,
	which reflects an increase in the percentage of real estate secured
	mortgages in our loan portfolio.  These are generally assigned lower
	allowance for loan and lease losses ("ALLL") allocations.  Total
	commercial business loans and leases declined $9.3 million while real estate
	secured mortgages increased $8.4 million. We did not record a
	provision for loan and lease losses for the quarter ended June 30, 2005
	primarily due to declines in non-accrual loans and classified assets. At
	June 30, 2006, the ALLL was $37.7 million or 0.82% of gross loans and leases
	compared to $37.1 million or 0.83% of gross loans and leases at March 31,
	2006.  We will continue to monitor and modify the ALLL based upon
	economic conditions, loss experience, changes in portfolio composition, and
	other factors.  16        Non-Interest Income  Total non-interest income
	increased $1.6 million or 33 percent to $6.5 million between the quarters
	ended June 30, 2006 and 2005.  Excluding gains on sales of securities
	and the non-cash credit associated with our interest rate swaps,
	non-interest income increased $861,000 or 18 percent between the quarters
	ended June 30, 2005 and 2006.   Deposit and Related
	Fees   Deposit and related fees
	increased 12 percent or $346,000 to $3.3 million for the current quarter.
	Monthly service charges and overdraft fees increased $396,000 to $2.8
	million for the current quarter.  This increase reflects the continued
	growth in our deposit transaction accounts and the fee income opportunities
	associated with those accounts.  At June 30, 2006, we had approximately
	70,064 transaction accounts compared to approximately 67,852 transaction
	accounts at June 30, 2005.   Loan and Servicing Fees   Loan and servicing fees rose
	18 percent or $91,000 to $593,000 for the current quarter due to an increase
	of $115,000 in disbursement and inspection fees associated with our
	construction loan portfolio.  Amortization of our mortgage servicing
	rights ("MSR") asset was $3,000 and $12,000 for the quarters ended June 30,
	2006 and 2005, respectively.  At June 30, 2006, our MSR asset was
	$286,000.   Trust, Investment and
	Insurance Fees   Trust, investment and
	insurance fees increased $376,000 or 33 percent to $1.5 million for the
	quarter ended June 30, 2006. This reflects an increase in market value of
	trust and investment assets under management or advisory by Glencrest and
	the Bank's trust department to $669.7 million at June 30, 2006, compared to
	$521.1 million at June 30, 2005.  These assets under management or
	advisory include $533.4 million managed or advised by Glencrest at June 30,
	2006 compared to $402.4 million at June 30, 2005.  The average annual
	fee per dollar of assets managed or advised by Glencrest and the Bank's
	trust department was approximately 53 basis points for the quarter ended
	June 30, 2006 compared to 57 basis points for the comparable period of 2005.  Gain on Sale of Loans   Our community banking
	business strategy does not include aggressively pursuing the origination of
	loans for sale. Accordingly, the principal balances of loans sold during the
	quarters ended June 30, 2006 and 2005 were $1.6 million and $4.9 million,
	respectively.  This activity generated net gain on sales of $10,000 and
	$67,000 for the quarters ended June 30, 2006 and 2005, respectively.   Gain on Sale of
	Securities   We generally follow a "buy
	and hold" strategy with respect to our securities portfolio.  While the
	overwhelming majority of our securities portfolio is classified as
	"available for sale," our securities sales activity has been and is expected
	to continue to be infrequent.  Securities with a cost basis aggregating
	$5.1 million were sold during the current quarter to generate funds used to
	meet DBS loan demand, generating gain on sales of $271,000.   Non-Interest Expense   Non-interest expense
	increased $3.5 million to $26.2 million for the quarter ended June 30, 2006
	as compared to the same period last year.  General and administrative
	("G&A") expense increased $3.6 million or 16 percent between the quarters
	ended June 30, 2006 and 2005 to $26.3 million.  Employee Stock
	Ownership Plan ("ESOP") expense was $1.4 million for the current quarter
	compared to $751,000, for the comparable quarter of 2005.  The increase
	in G&A expense primarily reflects the direct and indirect costs associated
	with the growth in our lending operations and the addition of two new
	banking branches during fiscal 2006.  17    The ratio of G&A expense to
	average assets increased 7 basis points to 2.38%, on an annualized basis for
	the quarter ended June 30, 2006 compared to 2.31% for the comparable period
	of 2005.  Our efficiency ratio was relatively unchanged at 49.27% for
	the current quarter compared to 49.32% for the comparable period of 2005.   Income
	Taxes  Our effective income tax rate
	decreased from 46.9 percent for the quarter ended June 30, 2005 to 42.2
	percent for the current quarter.  The reduction in our effective tax
	rate was attributable principally to a decrease in the amount of
	non-deductible ESO P expense.  While ESOP expense increased, the
	non-deductible portion decreased as non-deductibility is determined by
	market value in excess of cost basis of the shares purchased to fund the
	ESOP.  In the current fiscal year, all shares were purchased at market
	value, which results in ESOP expense being fully deductible.  This is
	expected to continue for the remainder of this fiscal year.   Comparison
	of Financial Condition at June 30, 2006 and March 31, 2006  Total assets were $4.49
	billion at June 30, 2006 compared to $4.34 billion at March 31, 2006. 
	Loans and leases receivable, net, totaled $3.97 billion at June 30, 2006, a
	$128.2 million increase from $3.84 billion at March 31, 2006.  The
	balance of the Four-Cs increased $120.1 million or 6 percent from $2.17
	billion at March 31, 2006 to $2.29 billion at June 30, 2006.  These
	loan balances are shown net of undisbursed construction loan funds of $586.6
	million and $596.2 million at June 30 and March 31, 2006, respectively. 
	These undisbursed balances represent funds that will be disbursed and begin
	earning interest as construction progresses on projects.   At June 30, 2006, the ALLL
	was $37.7 million or 0.82% of gross loans and leases compared to $37.1
	million or 0.83% of gross loans and leases at March 31, 2006.  Assets
	classified "Substandard" and "Doubtful" under our Internal Asset Review ("IAR")
	system were $19.4 million and none, respectively at June 30, 2006 compared
	to $16.6 million and none, respectively at March 31, 2006.  The $19.4
	million at June 30, 2006 primarily consists of 26 commercial business loans
	totaling $9.4 million, three single-family loans totaling $823,000, a
	commercial real estate loan of $452,000, and a 20-unit residential
	construction loan, that was reclassified to assets acquired through
	foreclosure of $8.6 million.  The 20-unit residential construction loan
	was reclassified due to a court appointed receiver that was put in place to
	oversee the property during the quarter ended December 31, 2005.   The ALLL is maintained at an
	amount management considers adequate to cover probable losses on loans and
	leases receivable. The determination of the adequacy of the ALLL is
	influenced to a significant degree by the evaluation of the loan and lease
	portfolio by our IAR function.  The IAR system is designed to identify
	problem loans and leases and probable losses.  As the percentage of our
	loan and lease portfolio comprised by the Four-Cs has increased, the IAR
	function has become increasingly important not only for the timely and
	accurate identification of probable losses, but also to minimize our
	exposure to such losses through early intervention.  Among the factors
	taken into account by the IAR function in identifying probable losses and
	determining the adequacy of the ALLL are the nature, level and severity of
	classified assets, historical loss experience adjusted for current economic
	conditions, and composition of the loan and lease portfolio by type. 
	In addition, various regulatory agencies, as an integral part of their
	examination process, periodically review the Bank's ALLL.  Such
	agencies may require the Bank to make additional provisions for loan and
	lease losses based upon information available at the time of the review. 
	We will continue to monitor and modify our ALLL as economic conditions, loss
	experience, changes in asset quality, portfolio composition and other
	factors dictate.  18             The following table sets
	forth activity in our ALLL.


> Three Months EndedJune 30,2006
> 				2005Beginning Balance
> 				$
> 				37,126
> 				
> 				$
> 				33,302Provision for loan and lease losses
> 				
> 				500
> 				
> 				
> 				-Charge-offs
> 				
> 				(99
> 				)
> 				
> 				(138
> 				)Recoveries
> 				
> 				131
> 				
> 				
> 				28Ending Balance
> 				$
> 				37,658
> 				
> 				$
> 				33,192

The charge-offs of $99,000
	for the current quarter included $61,000 related to commercial business
	loans and $38,000 related to consumer loans.  The $131,000 of
	recoveries for the quarter ended June 30, 2006 was primarily related to
	commercial business loans.   Total liabilities increased
	$134.8 million to $4.11 billion at June 30, 2006 from $3.98 billion at March
	31, 2006. Deposits increased $73.6 million to $3.13 billion or 76 percent of
	total liabilities at June 30, 2006 compared to $3.06 billion or 77 percent
	of total liabilities at March 31, 2006.  Reflecting a widening rate
	differential between certificate accounts and interest-bearing liquid
	accounts arising from increases in the general level of interest rates, core
	deposits decreased $37.2 million while certificates of deposits increased
	$110.8 million during the current quarter.  At June 30, 2006,
	non-interest bearing demand deposits were $285.7 million or 9 percent of
	total deposits compared to $315.6 million or 10 percent of total deposits at
	March 31, 2006.   Total stockholders' equity
	increased $11.9 million to $375.7 million at June 30, 2006 compared to
	$363.7 million at March 31, 2006. The increase in total stockholders' equity
	was comprised principally of an $11.3 million increase in retained earnings.   The $11.3 million increase in
	retained earnings is comprised of:  An increase of $15.4
		million representing net earnings for the three months ended June 30,
		2006,
		A decrease of $4.1
		million representing quarterly cash dividends of $0.17 per common share
		paid on June 30, 2006 to shareholders of record as of June 16, 2006. Liquidity and Capital
	Resources   The objective of liquidity
	management is to ensure that we have the continuing ability to meet our
	funding needs on a cost-effective basis.  Our most liquid assets are
	cash and short-term investments.  The levels of these assets are
	dependent on our operating, financing, lending and investing activities
	during any given period.   Our primary sources of funds
	are deposits, principal and interest payments on loans, leases and
	securities, FHLB advances and other borrowings, and to a lesser extent,
	proceeds from the sale of loans and securities.  While maturities and
	scheduled amortization of loans, leases and securities are predictable
	sources of funds, deposit flows and loan and security prepayments are
	greatly influenced by the general level of interest rates, economic
	conditions and competition.   The Office of Thrift
	Supervision has no statutory liquidity requirement, but rather a policy,
	consistent with that of the other Federal banking regulatory agencies, that
	liquidity be maintained at a level which provides for safe and sound banking
	practices and financial flexibility.  Our internal policy is to seek to
	maintain at approximately three percent the ratio of cash and readily
	marketable debt securities with final maturities of one year or less to
	total deposits, FHLB advances and other borrowings maturing within one year
	(our "defined liquidity ratio").  In determining the adequacy of
	liquidity and borrowing capacity, we also consider large customer deposit
	concentrations, particularly with respect to core deposits, which provide
	immediate withdrawal opportunity.  At June 30, 2006, our largest core
	deposit relationship was $24.2 million and our ten largest core deposit
	relationships aggregated $94.9 million.   19   At June 30, 2006, our defined
	liquidity ratio was 3.10% and our average defined liquidity ratio for the
	quarter ended June 30, 2006 was 3.09%.  At June 30, 2006, cash and
	short-term investments totaled $54.0 million.  As an additional
	component of liquidity management, we seek to maintain sufficient mortgage
	loan and securities collateral at the FHLB to enable us to immediately
	borrow an amount equal to at least five percent of the Bank's total assets. 
	At June 30, 2006, our immediate borrowing capacity from the FHLB was $481.9
	million or eleven percent of the Bank's total assets. Additionally, we have
	the capability to borrow funds from the Federal Reserve Bank discount
	window.  As of June 30, 2006, our borrowing capacity at the Federal
	Reserve Bank was approximately $12.0 million.  We also have $16.0
	million of immediate borrowing capacity at June 30, 2006, under a $50.0
	million line of credit with a commercial bank.   Our strategy is to manage
	liquidity by investing excess cash flows in higher yielding interest-earning
	assets, such as loans, leases and securities, or paying down FHLB advances
	and other borrowings, depending on market conditions.  Conversely, if
	the need for funds is not met through deposits and cash flows from loans,
	leases and securities, we initiate FHLB advances and other borrowings or, if
	necessary and of economic benefit, sell loans and/or securities.  Only
	when no other alternatives exist will we constrain loan and lease
	originations as a means of addressing a liquidity shortfall.  We have
	not found it necessary to constrain loan and lease originations due to
	liquidity considerations.   Our cash flows are comprised
	of three primary classifications: cash flows from operating activities,
	investing activities and financing activities.   Net cash provided by
	operating activities was $15.7 million and $13.8 million for the quarter
	ended June 30, 2006 and 2005, respectively.  The increase in net cash
	provided by operating activities is primarily due to an increase in net
	earnings between the three months ended June 30, 2005 and 2006, an increase
	in net deferred loan fees collected on loan originations and extensions,
	partially offset by an increase in amortization of premiums, net of discount
	accretion on loans, leases and securities and deferred loan origination
	costs, net, during the three months ended June 30, 2006.   Investing activities consist
	primarily of disbursements for loan and lease originations, purchases of
	loans, leases and securities, offset by principal collections on loans,
	leases and securities and to a lesser degree proceeds from the sale of
	securities. The levels of cash flows from investing activities are
	influenced by the general level of interest rates.   Net cash used in investing
	activities was $152.0 million for the current quarter compared to $33.9
	million for the comparable period of the prior year.  The increase in
	net cash used in investing activities between the quarters ended June 30,
	2005 and 2006 was attributable principally to a $42.4 million increase in
	purchases of mortgage-backed securities available-for-sale, and a $73.5
	million net decrease in construction loans in process, partially offset by
	lower purchases of property and equipment.   Cash flows provided by
	financing activities were $131.4 million for the current quarter compared to
	$41.7 million for the comparable period of the prior year.  Financing
	activities consist primarily of net activity in deposit accounts and FHLB
	advances and other borrowings. Our net increases in deposits were $73.6
	million and $38.0 million for the three months ended June 30, 2006 and 2005,
	respectively.  During the current quarter, we increased our use of FHLB
	advances and other borrowings by $62.0 million, net, compared to $13.2
	million, net for the comparable period of 2005.   At June 30, 2006, the Bank
	exceeded all of its regulatory capital requirements with tangible capital of
	$364.6 million, or 8.31% of adjusted total assets, which is above the
	required level of $65.8 million, or 1.5%; core capital of $364.6 million, or
	8.31% of adjusted total assets, which is above the required level of $175.5
	million, or 4.0%; and total risk-based capital of $399.7 million, or 10.90%
	of risk-weighted assets, which is above the required level of $293.4
	million, or 8.0%.  Our internal policy is to maintain our total
	risk-based capital ratio at approximately 11.00%.  To the extent the
	Bank's total risk-based capital is below 11.00%, our internal policy
	restricts the upstreaming of cash from the Bank to the Company.  Based
	on our expectations of continued robust Four-Cs loan growth, we do not
	expect to be in a position to upstream cash from the Bank to the Company for
	the next several quarters.  However, the Company has sufficient cash
	flow available to it from DBS as well as from a $50.0 million revolving line
	of credit with a commercial bank, $16.0 million of which was available at
	June 30, 2006, to meet all of its funding requirements, including dividends
	paid to stockholders.  The Company also has the ability to issue
	additional junior subordinated debentures should the need for additional
	funding arise. 20   We currently have no material
	contractual obligations or commitments for capital expenditures. At June 30,
	2006, we had outstanding commitments to originate and purchase loans of
	$216.3 million and none, respectively, compared to $188.7 million and none,
	respectively, at June 30, 2005.  Standby letters of credit are
	conditional commitments we issue to guarantee the performance of a customer
	to a third party.  At June 30, 2006 and 2005, we had standby letters of
	credit of $39.9 million and $36.0 million, respectively.  We anticipate
	that we will have sufficient funds available to meet our commitments.
	Certificate accounts that are scheduled to mature in less than one year from
	June 30, 2006 totaled $1.28 billion.  We expect that we will retain a
	substantial portion of the funds from maturing CDs at maturity either in
	certificate or liquid accounts.  In response to the increases in
	short-term interest rates initiated by the Federal Reserve, as well as
	competitive market forces, rates on CDs have increased disproportionately to
	those of more liquid accounts.   As a result, we have seen a shift
	in customer behavior back towards CDs.  We anticipate that this shift
	in consumer preference will continue as and to the extent general market
	conditions create continued widening of the rate differential between CDs
	and liquid accounts.  Segment Reporting   Through our branch network,
	lending operations and investment advisory offices, we provide a broad range
	of financial services to individuals and companies located primarily in
	Southern California.  These services include demand, time, and savings
	deposits; real estate, business and consumer lending; cash management; trust
	services; investment advisory services and diversified financial services
	for homebuilders.  While our chief decision makers monitor the revenue
	streams of our various products and services, operations are managed and
	financial performance is evaluated on a company-wide basis. 
	Accordingly, we consider all of our operations are aggregated in one
	reportable operating segment.  Item 3. Quantitative
	and Qualitative Disclosures about Market Risk  We believe there have been no
	significant changes to our qualitative and quantitative disclosures of
	market risk (consisting primarily of interest rate risk) during the three
	months ended June 30, 2006, from that which is disclosed in our Annual Report
	on Form 10-K for the fiscal year ended March 31, 2006.   Item 4. Controls and
	Procedures   Our management, including our
	Chief Executive Officer and Chief Financial Officer, has evaluated the
	effectiveness of our disclosure controls and procedures (as defined in
	Exchange Act Rules 13a-15(e) and 15d - 15(e)) as of the end of the period
	covered by this report.  Based upon that evaluation, the Chief
	Executive Officer and Chief Financial Officer concluded that our disclosure
	controls and procedures are effective, as of June   30, 2006, to
	ensure that information relating to us, which is required to be disclosed in
	the reports we file with the Securities and Exchange Commission under the
	Exchange Act, is (i) recorded, processed, summarized and reported as and
	when required and (ii) accumulated and communicated to our management,
	including our principal executive officer and principal financial officer,
	as appropriate to allow timely decisions regarding required disclosures.   There has been no change in
	our internal control over financial reporting identified in connection with
	the evaluation that occurred during our last fiscal quarter that has
	materially affected, or that is reasonably likely to materially affect, our
	internal control over financial reporting.  21                PART II -- OTHER INFORMATIONPFF BANCORP, INC. AND SUBSIDIARIESItem 1.
			Legal Proceedings.Other than ordinary routine
			litigation incidental to our business, neither we, nor any of our
			subsidiaries or any of their properties, are the subject of any
			material pending legal proceeding and, to the best of our knowledge,
			no such proceedings are contemplated by any governmental
			authorities.  Item 1A.
			Risk Factors.There have been no material changes to
			the risk factors previously disclosed in Part I. Item 1A of the
			Company's Annual Report on Form 10-K for the year ended March 31,
			2006.  Item 2.
			Unregistered Sales of Equity
			Securities and Use of Proceeds. We did not repurchase any shares of our
			common stock during the quarter ended June 30, 2006.  At June
			30, 2006, the maximum amount of shares that were available to be
			repurchased was 954,310 shares under a 1.0 million share repurchase
			authorization adopted by our Board of Directors on October 26, 2005.   Item 3.
			Defaults Upon
			Senior Securities.NoneItem 4.
			Submission of Matters to a Vote of Security
			Holders.NoneItem 5.
			Other Information.None Item 6.
			Exhibits31.1
			Rule 13a-14(a)/15d-14(a) Certifications32.1
			Section 1350 Certifications


22

---



PFF BANCORP, INC. AND SUBSIDIARIES
			SIGNATURESPursuant 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, thereunto duly
			authorized.PFF BANCORP, INC.DATED: August 9, 2006
			BY: /s/ KEVIN MCCARTHYKevin McCarthy
			President, Chief Executive Officer and DirectorDATED: August 9, 2006
			BY: /s/ GREGORY C. TALBOTTGregory C. Talbott
			Senior Executive Vice
			President,
			Chief Operating
			Officer/Chief Financial Officer
			and Treasurer




23