Annual Report


March 15, 2022


Pioneer Federal must remain true to our core values as indicated by our Mission Statement. Pioneer Federal Savings and Loan Association is dedicated to providing quality services and products to its customers all the while remaining financially strong and adding value to the quality of life to the communities it serves.  Pioneer Federal is known for commitment to our communities and our desire to help our communities grow.  We are Montana’s only mutual thrift institution our commitment is to you- our customers- and the communities we serve.  We do not face the dilemma that most banks do of trying to balance shareholders’ demand for returns with serving customers’ interests.  As a mutual, our customers are our owners, our success is measured by your success.  Mutual banking is community banking at its finest, where we know our customers because you are our neighbors.

The year 2021 continued one of the most trying times in our nation’s history and we are uncertain where the economic world will be when we come out the back end of this pandemic.  Currently as a nation we are facing historic inflation numbers, supply chain shortages and a very tight labor market, just to name a few obstacles. As members you should be proud as well as comfortable with the decisions made by your Association over the years which prepared us to survive the unsettled economic times as well as prosper going forward.  Locally, the economy surrounding our two locations continued the uptick in real estate sales and prices in the year 2021 as will be evident when you see our loan production numbers.


2021 saw Pioneer Federal Savings and Loan have another good growth year:

12.31.20-  Assets: $101,224,000           Deposits: $82,000,000            Loans: $70,000,000

12.31.21-  Assets: $108,915,000          Deposits: $90,500,000             Loans: $77,780,000


The deposit increase mainly consisted of an increase in the “core” Non-Maturing Deposits- Savings, Money Market, Checking and Business Checking accounts as well as an increase in Certificate of Deposits.  IRAs stayed at a flat level from 2020 to 2021.  The bulk of Pioneer’s deposits continue to be the Non-Maturing deposits comprising $60,300,000 of the $90,500,000 on deposit; Certificates of Deposit make up $19,700,000 and IRAs $10,500,000.  Depositors at Pioneer Federal Savings and Loan earned over $309,000 in interest in 2021.  At year end 2021 we had 5,652 deposit accounts across our variety of deposit products.


The Association new loans two-year comparison:

Association Loan
2021 2020
Assoc New Loans Total 157 Loans 159 Loans
New Loans Total Volume $23,800,000.00$23,500,000.00
Average Loan Size $151,600.00$148,000.00
Dillon Total Loans 80 Loans 88 Loans
Dillon Total Loan Volume $13,660,000.00$14,700,000.00
Dillon Average Loan Size $170,700.00$167,000.00
Deer Lodge Total Loans 77 Loans 71 Loans
Deer Lodge Total Loan Volume $10,140,000.00$8,800,000.00
Deer Lodge Average Loan Size $131,700.00$124,300.00


The 2021 new loans included:

91 Residential Real Estate Loans

60 Consumer Loans

4 Non-Residential RE Loans

2 Commercial Loans


During the year 94 loans paid off for a variety of reasons with 24 of those loans being internally refinanced by Pioneer Federal.

Pioneer Federal Savings and Loan Association’s capital position remains one of the strongest in MT.  Our capital level of $17,700,000 is 16.22% of assets and far exceeds the requirements of federal guidelines as of December 31, 2021. The Association’s strong capital levels will allow us to handle ongoing market uncertainties.

The Association’s cost of funds at year end was .30%.  Our number is higher than some of our competitors, as a mutual your Association continues to try to reward customers with very competitive deposit rates appropriate with the time, so we try to remain on the high end of scale regarding the interest paid to our depositors.

Asset quality continues to remain high with very few loan delinquencies and an investment portfolio consisting of highly rated investments.  At year-end 2021, the Association had no Other Real Estate Owned (OREO) or foreclosed property on our books.

Pioneer Federal has been involved in quality loan participations with other MT financial institutions.  These participations make up approximately 7% of our total loan balances and allow the Association to diversify our loan portfolio.  Management continues to monitor the loan portfolio for weaknesses and the Association maintains a healthy provision for loan losses for any potential exposure we might have with respect to economic downturns or problem loans.

Pioneer Federal Savings and Loan Association and the Pioneer Federal Community Foundation, Inc. continue to financially support worthy projects and organizations located primarily in Powell and Beaverhead counties.  In addition to supporting many local area events and organizations, during 2021 we continued to fund previous financial commitments made supporting UM-Western and hospitals in both communities, and the Deer Lodge playground construction project.   In the past 10 years alone, Pioneer Federal Savings and Loan and its Foundation have made cash contributions well over $1,000,000 within our local communities.

Personnel worked closely with bank regulators and independent auditors.  The Office of the Comptroller of the Currency (OCC), which has been the Association’s primary regulator, had the Association on an 18-month exam cycle conducted a full scope exam in the spring of 2021.  Once again we received a favorable report with only a couple minor items to correct.  Our annual independent audit for year end 2021 was performed by Wipfli, as in years past the Association received a clean and unqualified audit.  The auditors commended favorably on our efforts in building and maintaining a strong financial structure.  The MT Banking Division was able to rewrite some of the MT banking laws, and put forth to the MT Legislature, to allow Mutual Savings and Loan Associations to become a MT State Chartered bank.  These updated laws passed the legislature in the spring 2021 session and became law effective October 1, 2021.  The Association made the decision to pursue becoming a MT State Chartered Mutual Savings and Loan, with the cooperative effort from the MT Banking Division, an approval from the Associations’ members via a member vote in November, the MT legislature and the FDIC the Association officially became a MT State Charter on December 20, 2021.  The Association will now be regulated by the State of MT and the FDIC, of which the Association is very proud to now be a MT bank!

Usage of the Association’s electronic banking package continues to grow as more customers take advantage of mobile banking, including e-statements, along with our phone app, the on-line services and debit cards.  The Association continues to provide financial education products for our customers on our website, as well as implementing online training to help prevent our customers avoid and/or recognize cyber hacking.  In 2021 the Association added an online loan application portal, MortgageBot, to further enhance our reach to areas outside of our local communities and provide an option to customers who do not need the face-to-face personalized service. The mobile and technology trend is something the Association needs to keep pace with our peers as this is the direction not only the banking industry is headed, but also where the world in general is moving.

The Dillon office again successfully hosted its annual community shred day.  This continues to be very successful and is expected to continue.  Deer Lodge office had its 2nd community shred day, which saw increased success, and will continue in the future.

The Deer Lodge office continued their long-standing participation in the zero percent interest rate annual Christmas Cash loan program in the community.

Our successes in the compliance and regulatory areas are made possible in no small part to Pioneer Federal’s commitment to strong compliance, audit and fiscal reporting programs coupled with an emphasis on continued staff, management, and Director training.  Pioneer Federal Savings and Loan continued to get the most from our capable staff of 20 representing 19 FTEs.  Many years of service to Pioneer Federal are represented by our existing staff and Directors.

Pioneer Federal must remain true to the local communities in which we serve as well as we must work hard to retain and grow support of our local customer base.  Despite our successes we understand we cannot become complacent.  The way people bank and interact financially is changing more rapidly than ever before.  In this regard, we are committed to continuing to invest in our employees and the technology needed to meet our customers’ financial needs and expectations.  Also, we need to continue to expand our footprint in neighboring communities to allow us the opportunity for more growth.  Various factors including increased competition, both locally and from outside sources, such as Fintech; a global epidemic; inflation at historic levels has made it more difficult each year to operate as a community oriented, mutual thrift, so we must be flexible and adapt to changes for long term sustainability.  As a community financial institution, we are faced daily with operational, regulatory, economic, and most recently, health risks and how we deal with these on an ongoing basis will define our continued success.

To our many customers, I would like to personally thank you for your relationship and your trust in Pioneer Federal- you are truly our most valued asset.  As members of Pioneer Federal Savings and Loan Association you should be very proud as we have a strong financial institution.  We have well trained and qualified staff who are also involved in many organizations and projects within our communities.

I would like to express sincere appreciation to our staff, the officers and our Board of Directors for their continued effort and support on behalf of the Association. Please let me know any questions you may have about Pioneer Federal Savings and Loan Association.


Phillip K Willett
March 15, 2022


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FDIC Deposit Insurance

Each depositor insured to at least $250,000.