Whistleblower Procedures For Employees

PSB FINANCIAL, INC.

WHISTLEBLOWER PROCEDURES FOR EMPLOYEES

The Sarbanes-Oxley Act of 2002 requires audit committees to establish procedures for the receipt, retention and treatment of complaints regarding accounting, internal accounting controls or auditing matters, and the confidential, anonymous submission by employees of concerns regarding questionable accounting or auditing matters (“Accounting Complaints”). Accordingly, PSB Financial, Inc. (the “Company”) has established the following procedures:

Accounting Complaints may be made to the Chairperson of the Audit Committee of the Board of Directors via regular mail to the following address:

PSB Financial, Inc.

Attention: Chairperson, Audit Committee 202 North Main St.

PO Box 191

Deer Lodge, Montana 59722

Employees of the Company and its direct and indirect subsidiaries, including Pioneer State Bank, are expressly authorized to make Accounting Complaints using these procedures on a confidential and anonymous basis. All Accounting Complaints received from employees will be treated confidentially and anonymously.

Consistent with Company policies, neither the Audit Committee nor management will retaliate or attempt to retaliate, and will not tolerate any retaliation or attempted retaliation by any other person or group, directly or indirectly, against anyone who, in good faith, makes an Accounting Complaint or provides assistance to the Audit Committee, management or any governmental, regulatory or law enforcement body, investigating or otherwise helping to resolve an Accounting Complaint.