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PSB Financial, Inc., a newly formed Maryland corporation, is conducting a mutual-to-stock conversion of Pioneer Federal Savings & Loan Association, a Montana-chartered mutual savings bank, into Pioneer State Bank, which will become its wholly-owned subsidiary. Pioneer Federal operates two branches in Deer Lodge and Dillon, Montana, focusing on originating fixed-rate one-to-four-family residential mortgage loans (87.1% of total loans at $79.5 million as of December 31, 2025), with smaller portfolios in commercial real estate ($7.1 million, 7.8%), construction, commercial, home equity, and consumer loans. The bank reported total assets of $120.0 million, deposits of $92.7 million, net interest income of $3.5 million, and net income of $48,000 for the year ended December 31, 2025. PSB Financial is offering 1,105,000 to 1,495,000 shares of common stock at $10.00 per share (up to 1,719,250 shares), expecting net proceeds of $9.5 million to $13.4 million (or $15.6 million adjusted maximum), primarily to capitalize Pioneer State Bank (at least 50%), fund an ESOP loan, and support general corporate purposes including loan growth and potential branching. The conversion aims to raise capital for strategic growth, enable stock-based incentives for management retention, and provide equity ownership to customers and employees, enhancing financial flexibility in a competitive rural Montana market driven by agriculture, tourism, and resources.
Offering Amount
$300.0K
Shares Offered
5,000,000
Price Range
$10.00 – $10.00
Shares Offered
1,495,000
Offering Amount
$14,950,000 (maximum)
Price Range
$10.00
Share Type
Common Stock
Exchange
OTCQB Market
Use of Proceeds: At least 50% to Pioneer State Bank capital contribution ($4.7-$7.8M), ESOP loan (8-9%), remainder for general corporate purposes including short-term investments.
Pioneer Federal Savings & Loan Association is a community-oriented mutual savings bank operating two branches in Deer Lodge and Dillon, Montana, primarily originating one-to-four-family residential mortgage loans for retention in portfolio.