Annual Report
ANNUAL REPORT TO THE MEMBERS OF PIONEER FEDERAL SAVINGS AND LOAN ASSOCIATION
March 18, 2025
Pioneer Federal 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 and prosper.
2024 saw Pioneer Federal Savings and Loan basically maintain a flat level of growth:
12.31.23- Assets: $112,669,000 Deposits: $86,207,000 Loans: $82,207,000
12.31.24- Assets: $112,268,000 Deposits: $85,258,000 Loans: $87,557,000
The “core” Non-Maturing Deposits- Savings, Money Market, Checking and Business Checking accounts decreased somewhat from 2023 to 2024-year end. The bulk of Pioneer’s deposits continue to be the non-Maturing deposits comprising $52,409,000 of the $85,258,000 on deposit; Certificates of Deposit make up $25,610,000 and IRAs $7,068,000. Like 2023, the interest rates on deposits remained higher than previous years in 2024 as depositors at Pioneer Federal Savings and Loan earned almost $1,500,000 in interest in 2024. At year end 2024 we had 5,608 deposit accounts across our variety of deposit products.
The Association new loans two-year comparison:
| Association Loan Comparisons | 2024 | 2023 | 2022 |
|---|---|---|---|
| Assoc New Loans Total | 125 Loans | 113 Loans | 108 Loans |
| New Loans Total Volume | $16,130,000.00 | $15,590,000.00 | $20,470,000.00 |
| Average Loan Size | $129,100.00 | $138,000.00 | $189,520.00 |
| Dillon Total Loans | 59 Loans | 62 Loans | 66 Loans |
| Dillon Total Loan Volume | $9,500,000.00 | $11,513,000.00 | $12,860,000.00 |
| Dillon Average Loan Size | $161,000.00 | $185,700.00 | $194,850.00 |
| Deer Lodge Total Loans | 66 Loans | 51 Loans | 42 Loans |
| Deer Lodge Total Loan Volume | $6,630,000.00 | $4,070,000.00 | $7,608,500.00 |
| Deer Lodge Average Loan Size | $100,500.00 | $79,800.00 | $181,200.00 |
The 2024 new loans included:
57 Residential Real Estate Loans
19 HELOCs
54 Consumer Loans
9 Non-Residential RE Loans
5 Commercial Loans
The Association had 694 loans on the books as of year-end 2024.
Pioneer Federal Savings and Loan Association’s capital position remains one of the strongest in MT. Our capital level of $18,410,000 is 17.03% of assets and far exceeds the requirements of federal guidelines as of December 31, 2024. The Association’s strong capital levels will allow us to handle ongoing market uncertainties- specifically rising interest rates.
The Association’s cost of funds at year end was 2.05%. 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, we try to remain on the higher end of scale regarding the interest paid to our depositors. The cost of funds throughout 2025 will continue to be a real challenge as consumers look to capture optimum interest rates on deposits as well as keeping consumer deposit accounts will be very challenging.
Asset quality continues to remain high with very few loan delinquencies and an investment portfolio consisting of highly rated investments. At year-end 2024, 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 4.5% 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 2024 we continued to fund, and payoff, previous financial commitments made in both locations. In the past 10 years alone, Pioneer Federal Savings and Loan and its Foundation have made cash contributions of well over $1,000,000 to our local communities.
Personnel continues to work closely with bank regulators and independent auditors. The Association did not have any FDIC or State led examinations in 2024, the next Safety and Soundness exam will be March 2025 led by the FDIC. Internal audits performed all resulted in favorable reports once again as the Association continues to maintain strong audit functions keeping us a very strong institution.
The Deer Lodge location moved in January 2024 to the brand-new state of the art building located at 202 N Main Street and the Association was able to sell old Milwaukee Avenue building. The Association is proud to have made this massive investment in the Deer Lodge community with the wonderful addition right on Main Street.
The Dillon office again successfully hosted its annual community shred day. This continues to be very successful and is expected to continue.
Pioneer Federal must remain true to the local communities in which we serve as well as work hard to retain and look to grow support of our local customer base. The way people bank is changing daily, we are committed to continuing to invest in our employees and technology to try to meet our customers’ financial needs and expectations. We continue to work on expanding our footprint into neighboring communities to allow us the opportunity for more growth. As a community financial institution, we are faced daily with operational, regulatory, economic risks that will define how we can operate as a community oriented, mutual thrift, so we must be flexible and adapt to changes for sustainability.
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.
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
President/CEO
March 18, 2025
