President's Message

Thomas G. Welch
President/CEO

Spring 2008

Here we are months into 2008 and the focus seems to be on the unsettled national economy. Locally, although not booming, our economies seem to moving along and maintaining a somewhat solid and steady posture. Hopefully our local economic diversity will carry us through what appears to be some troubled times.

Sub prime lending and foreclosures continue to be very much in the national news. As I reported here in a previous writing, PIONEER FEDERAL SAVINGS AND LOAN has not previously and does not now engage in sub prime lending. We pride ourselves on prudent lending that allows the borrower to enjoy the many benefits of homeownership. Since we do not sell our loans except for the handful made yearly that are required to be sold to the Montana Board of Housing (MBOH), we are committed to a long term relationship with the borrower as we work together thru the trials and tribulations of homeownership from application to closing and beyond to eventual payoff. We are proud to say that if you get your home loan from PIONEER FEDERAL, it stays with PIONEER FEDERAL! We have been making good quality home loans in Montana since 1912.

The MBOH requires those lenders who participate in their programs which assist low to moderate income borrowers, to sell those loans to the MBOH. PIONEER FEDERAL is able to service these loans so those borrowers still deal with our local staff after the loan is made as do all borrowers who get home loans from PIONEER FEDERAL! As stated above, these are the only loans which PIONEER FEDERAL ever sells and we simply feel that the benefits to low to moderate borrowers from these programs outweigh our aversion to selling loans.

Should you have any questions about your mortgage loan, whether with PIONEER FEDERAL or any other lender please feel free to contact myself or our loan staff and we will be most happy to address your questions or concerns. We would also be most happy to process your application for a refinance loan from your current out of state loan servicer.

PIONEER FEDERAL SAVINGS AND LOAN remains one of the strongest financial institutions in the nation. Our capital position of over $11,600,000.00 or some 16.50% of assets exceeds all regulatory minimum requirements by several million dollars. Our financial strength and storied history of conservative operations will carry us through whatever developments the economy throws our way.

You may have seen read or heard recently of PIONEER FEDERAL’S continued support of the efforts to restore the Rialto Theatre in Deer Lodge. This historic theatre, which prior to its massive November 2006 fire was a focal point for the Deer Lodge area activities. Events such as concerts, high school graduations, public meetings and funerals were routinely held here in addition to weekly movies. The non-profit organization which owns the Rialto is working to restore the theatre to usable condition and is undertaking a major fundraising project. PIONEER FEDERAL has committed $50,000.00 cash to this effort and has also agreed to match the next $50,000.00 in outside donations received by June 1, 2008 to the project. More information on the restoration of the Rialto Theatre can be found at their web site www.deerlodgerialto.com.

I would encourage you to support this most worthwhile effort.

The 2008 Annual Meeting of the members of PIONEER FEDERAL SAVINGS AND LOAN ASSOCIATION will be held on Tuesday, April 15th beginning at 3:30PM in our Deer Lodge office. Your questions about this meeting can be directed to me.

This is an excellent time of year to evaluate your tax status. PIONEER FEDERAL SAVINGS AND LOAN offers the Montana Medical Savings Account (MMSA) and Individual Retirement Accounts (IRA) to assist your efforts in reducing or deferring income taxes all the while saving for medical bills (planned or unexpected) or for your retirement. Both of these accounts earn quite favorable interest rates in today’s market place. See one of our tellers about these accounts today.

Do not forget that you can use PIONEER FEDERAL to direct deposit your Federal and State income tax returns. Not only do you receive your refunds quicker but they immediately begin earning interest.

This is a very good time to get started on your construction loan for 2008 whether it is for a new home or the cabin of your dreams. Our experienced loan staff will work with you to get your loan approved and ready to go when your contractor is ready. Additionally with our one close construction loan, you can lock in today’s favorably interest rates not only for the construction phase of your project but also for the long term loan as well.

If a new or used vehicle is in your plans, do stop by and see one of our loan officers, PIONEER FEDERAL offers great rates and terms for all types of vehicle loans with quick approval times. In addition, we do make loans on snowmobiles and other forms of recreational vehicles.

Do keep in mind that all borrowings discussed are subject to our underwriting and credit approval and that PIONEER FEDERAL SAVINGS AND LOAN is an Equal Housing Lender.

Current economic times have caused much turmoil in the stock markets and other investments vehicles. However, certificates of deposit remain one of the best investment options available. At PIONEER FEDERAL, our CD’s require a low minimum balance to open, earn you a respectable guaranteed rate of return coupled with the comfort of FDIC insurance. The uncertainties of today’s financial markets can be forgotten with the safety and security of a PIONEER FEDERAL Certificate of Deposit. Be sure to see our staff today about opening your certificate of deposit account.

Do not forget that both of our offices have a lobby coin counter for all that loose change that you have been saving at home. Our tellers are available to assist you but these are quite easy to use. Stop by and use our machine to count your change and deposit it into your account!

Remember that 24 hour ATMs and NIGHT DEPOSITORIES are located at both of our facilities.

Please keep in mind that your deposits at PIONEER FEDERAL SAVINGS AND LOAN are insured under the FDIC.

Again, THANK YOU for your business-we most certainly appreciate it. We also would like to hear from you on what we can be doing better to serve your needs. Do not hesitate to stop by with your questions or just to visit-the coffee pot is always on and the water jug is full!