PFF Bancorp Inc. in Rancho Cucamonga, Calif., reported third-quarter earnings Monday of $14 million, up 4.5% from the third quarter of 2005. Earnings per share increased 3.7%, to 56 cents.
The $4.6 billion-asset PFF said that net interest income was up 10%, to $45.9 million, largely because of strong growth in consumer, construction, commercial, and commercial real estate loans.
However, higher deposit costs ate into its margins. Its average cost of deposits rose 116 basis points, to 3.28%, and its average cost of Federal Home Loan bank and other borrowings rose 208 basis points, to 5.14%. As a result, its net interest margin declined by 21 basis points, to 4.37%.
PFF's stock fell 5.34% Monday, to $32.07.
PFF has 30 branches in the Inland Empire region of southern California and plans to open eight more within a year.
